Removal as an authorized user: If you are removed as an authorized user, the account may be taken off your credit report, which could potentially lower your credit score, especially if it was an account with a long history and good standing.
It's because your utilization is high. If it's not helping you, you can remove the account from your report by removing yourself as an authorized user. Score will increase once your utilization goes back down.
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.
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.
Authorized user status can be beneficial for several reasons. It can: Decrease your credit utilization to help build your credit score. Authorized users can lower their credit utilization, or the percentage of their credit limits in use, by getting access to more available credit.
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.
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.
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.
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.
Adding an authorized user can also benefit the primary cardholder by organizing expenses, maximizing rewards earnings and more. Potential drawbacks associated with authorized users include possible fees, unequal financial responsibility, credit score impact and more.
What if I'm under 5/24 but have authorized user accounts that put me over? All accounts opened within the last 24 months count, including being added as an authorized user. However, you can have yourself removed from the account and then keep an eye on your credit report.
Once the primary cardholder adds you to their account as an authorized user, you'll have immediate access to the credit card without a credit inquiry or needing to qualify for a new account. You'll get your own card to use in the mail with your name on it typically at no additional cost.
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.
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.
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.
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.
Now, you may be wondering if removing yourself as an authorized user affects your credit, and the short answer is potentially. If the credit account you are removing yourself from is your oldest line of credit, your credit history will be shorter because of this.
Being an authorized user on a credit card could affect your credit positively if the account holder makes on-time payments and keeps the credit utilization rate low. If they don't, your credit could take a hit.
Your best option to get your name off a large cosigned loan is to have the person who's using the money refinance the loan without your name on the new loan. Another option is to help the borrower improve their credit history. You can ask the person using the money to make extra payments to pay off the loan faster.
It can affect your credit scores.
Because a co-signed loan is recorded on your credit reports, any late or missed payments can have a negative impact on your credit scores. If the borrower defaults on the loan and ceases payment, the debt may be referred to a collection agency.
Your liability for the loan may prevent you from getting credit, even if the main borrower pays on time and you aren't asked to repay the loan. Lenders will consider the loan you cosigned as your obligation. You could lose any property you offer to secure the loan.
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.
The primary cardholder makes choices that damage their credit. 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.
No, being an authorized user generally does not obligate you to pay the debt.