Removing Yourself as an Authorized User and Credit Score Effects

As an authorized user on a credit card, you have all the privileges that come with using the credit card without the responsibility of making payments toward the balance. Some credit card issuers, report authorized user accounts to the credit bureaus and the account history gets displayed on your credit report. The account history on an authorized user account can help your credit if the credit card is well managed.Authorized User and Credit Score Effects

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You may also get a credit score boost from being listed as an authorized user on a credit card that has a long and positive account history. You can also jump-start your credit history if you’re new to credit or you have a troubled credit history as an authorized the user. Also, the positive account history from being an authorized user can help you qualify for credit on your own.

If you decide to opt-out as an authorized user, your credit score could be affected. The impact will largely depend on the accounts history, the other information in your credit report, and whether the authorized user account continues to be reported after you’ve been removed.

What Happens When You’re Removed As An Authorized User?

The credit card issuer will stop updating the account on your credit report, once you’re removed as an authorized user as you no longer have the privileges of using the account. Depending on how the card company reports authorized user accounts, the account history for the credit card may drop instantly off your credit report once you’re removed. You’ll be notified by the credit card issuer whether the account will fall off your credit report after being removed as an authorized user.

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In case the authorized user account does not instantly drop off your credit report after you’re removed, you can send a credit report dispute to have the account removed from your credit report. You should do this if you feel the account is hurting your credit score.

You can also ask the card issuer, how the account will show up on your credit report once you’re removed as an authorized user if it shows up on your credit report at all. Alternatively, you can verify by checking your credit report 30-45 days after you’ve removed from the account.

How Being Removed As An Authorized User Could Affect You

Being removed as an authorized user can affect you in the following ways;

  • It can hurt your credit score if the account is removed from your credit report. If that was the only positive account you had, your credit score can drop after the removal.
  • If that was the oldest account on your credit report, there could also be a drop on your credit score.

On the other hand, if the account history for that credit card was negative (i.e.) late payments or high balances, your credit score might take a turn for the better once your authorized user status is removed. If you lose credit score points after you’re removed as an authorized user, you can get those points back over time by building your credit score with your own credit accounts.

For the primary account holder, removing an authorized user does not affect your credit score. The account will still be reported on your credit report as before.

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