Removing an authorized user typically won't impact the credit score of the authorized user. However, it can affect the primary account holder's credit score, which may alter their credit utilization ratio.
An authorized user is someone who's been added to a credit card account by the card's owner, also known as the primary cardholder. The authorized user can make purchases with the credit card as if it were their own. However, the responsibility to pay any charges remains with the primary cardholder.
Schulz also notes that when primary cardholders remove an authorized user on their card, the primary cardholder's credit history will no longer influence the authorized user's credit history.
A joint cardholder can only be removed with an issuer's permission. Authorized users can be removed at any time by the primary cardholder.
If you discover the primary cardholder isn't making on-time bill payments, you may decide that cutting ties is the best way to go. Call the issuer and ask to have your name removed as an authorized user. It should take only a few days, and the issuer will cease making reports under your name to credit bureaus.
With responsible card use and on time payments, your positive credit score may be able to help your Authorized User to build their credit. For more tips, our CreditWise app can help them access and understand their credit score—whether they're a cardholder or not.
A 2018 Credit Sesame survey found that people with bad credit who were added as authorized users saw a 24% increase in their FICO Score in 6 months and a 30% increase in 12 months. The lower your starting credit score, the more you benefit from being an authorized user.
Being removed as a cosigner from a loan could potentially hurt your credit scores. How much your scores are impacted depends on the details of your credit profile.
Generally speaking, negative information such as late or missed payments, accounts that have been sent to collection agencies, accounts not being paid as agreed, or bankruptcies stays on credit reports for approximately seven years.
If there's a history of late or missed payments on the account you've been added to, or if that account has a balance that exceeds about 30% of its credit limit, it will tend to lower the credit scores of the primary account holder—and potentially yours, as an authorized user.
It does not matter if you are an authorized user. You have no legal right to use the card any longer because the primary count holder has passed away leaving no one left to pay the balance.
There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.
Generally, card issuers don't let authorized users: Become the primary cardholder. Change the mailing address, contact information or account PIN. Request a change to the credit limit or annual percentage rate (APR)
Overall, Credit Karma may produce a different result than one or more of the three major credit bureaus directly. The slight differences in calculations between FICO and VantageScore can lead to significant variances in credit scores, making Credit Karma less accurate than most may appreciate.
Will removing an authorized user hurt their credit? It depends on the situation. If the card in question has been well maintained with on-time payments and low credit utilization, removing the authorized user from the account will effectively erase that positive payment history from their credit report.
You can often remove a cosigner at any point during the loan period. Your loan paperwork might dictate specific terms, though. For example, some lenders require 24 months of on-time payments from the primary borrower before they'll consider releasing the cosigner.
The best lenders consider the credit scores of both borrowers when co-signing an auto or other type of personal loan. If you have a lower credit score, having a co-signer with a higher score could work in your favor. In terms of which credit-scoring model is used for approvals, that can vary by lender.
If you want to be removed from the account, you'll have to call the credit card provider and be prepared to negotiate. If the other account holder would qualify for the card on their own, the credit card company may approve your request. If not, your only option is to pay off any outstanding debt and close the account.
Authorized user accounts must show up on your credit report to affect your credit score. As for how long it takes for authorized users to show on credit report, you might see your score change as soon as the lender starts reporting that information to the credit bureaus, which can take as little as 30 days.
Remember that the authorized user doesn't have to use the card to benefit from the good credit behavior of the original cardholder.
Remove an authorized user from your account
On the manage users page, select the user you'd like to delete and confirm it with one click. You won't be able to remove a person who jointly opened an account with you (known as a joint cardholder).
Call your credit card issuer.
In cases of fraud, you should start by calling the company where the fraud took place — in this case, the credit card issuer. Explain to the credit card issuer that someone opened an account in your name and that they are trying to steal your identity.
No, being an authorized user generally does not obligate you to pay the debt. If a debt collector insists that you co-signed the account but you believe you did not, you may request that the collector provide evidence, such as a copy of a contract that you signed.