Being removed as an authorized user can hurt your credit score if the account is completely removed from your credit report. If the authorized user's account was the only positive account on your credit report, you could see a drop in your credit score after removing yourself as an authorized user.
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.
Disadvantages of being an authorized user
Limited access: Authorized users can be removed at any time, and they cannot use all of the benefits of the card. For instance, they cannot earn their own credit card rewards points and typically are not authorized to redeem them.
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.
If the lender doesn't report activity from authorized user accounts to the credit bureaus, then those accounts won't influence your credit rating. Authorized user accounts must show up on your credit report to affect your credit score.
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.
If your primary cardholder begins practicing bad credit habits — such as missing payments or maxing out credit cards — end your authorized user relationship as quickly as possible.
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.
Am I liable to repay the debt? 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.
The process of removing an authorized user is simple and can be done by calling the credit card issuer or sending a letter. There are risks involved in being an authorized user, such as negative financial behavior of the primary cardholder impacting your credit score.
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.
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.
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.
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.
A joint cardholder can only be removed with an issuer's permission. Authorized users can be removed at any time by the primary cardholder.
Your score may drop a bit when you are removed as an authorized user, but you can improve it over time by using your own credit accounts responsibly.
Your credit score can drop for a number of reasons, including a recent late or missed payment, an application for new credit or a change to your credit limit or usage. To understand why your credit may have gone down, it's important to understand what affects your credit scores.
While being added as an authorized user is not the same as earning credit card approval through a co-signer, they are both options to start your credit history if you have little to no credit.
Generally, both people on a joint account will have to contact the credit card company and cancel it. From there, there may be a way for one person to put the card only in their name.
Being added as an authorized user is just like applying for a new credit card but without the hard inquiry. Some companies, like Amex have even been known to backdate your card to the original member's 'member since date'.
On the other hand, if the account in question has had frequent late payments or carries a high credit utilization, removing an authorized user (or removing yourself as an authorized user) could give a boost to your credit scores.
Capital One reports authorized users to the credit bureaus. But if your issuer doesn't do that or the card isn't used responsibly, being an authorized user won't help them build credit.