Okay, I am totally confused here!! My husband has a Discover card that I am authorized user on. They told him that I am NOT responsible for the balance in anyway on his account. BUT, they report it on my credit report. They also said his account WON'T affect my score in anyway. How can this be? If he were to let the balance charge off that would be reported on my credit and lower my score would it not??? As long as it's on my credit report aren't I just as responsible for it???? Am I totally mental for thinking this? Also, if I have them remove this account from my report how will it affect my score? It is a $1500 limit and it is at about 90% utilization. Would this up my score or drop it if it is removed? Thanks!
Credit information on the card will report on the authorized users' reports also. Actually, this is one backdoor mechanism to get positive tradelines added to one's reports without the hassle of applying for the card and qualifying for it. Imagine you are a person with bad credit, and looking for ways to improve your score -- you cannot get a new card because of your score, and you cannot improve your score without new cards; catch-22. But, as your post implies, this is a double-edge sword. If the primary card holder charges up this card, or otherwise lets it go negative, it will also reflect on your report and yes it does lower your score. What you must do in such cases is to first take yourself off the card as an authorized user. Then dispute the tradeline on each of your reports as not mine. Should not be a problem, usually. High utilization on the authorized user card does hurt you; but I'd say bear it for a while, if you think most likely this is a temporary phenomenon. If you dispute and get the tradeline off your report now, you cannot simply add it back when the utilization is low by adding yourself as authorized user again. CRAs are supposed to have in place a mechanism where disputed and deleted tradelines do not re-appear. That mechanism will prevent the authorized user tradeline also from reappearing. You will rue the loss of this tradeline at such time, when you REALLY need it ......... Of course, if the primary card holder lets the tradeline go to charge off, you may want to dispute it and want to keep it from ever reappearing.
I agree with lakpr, the 90% untilization also lowers your score. But that´s really not a big deal as you don´t have to do anything other than pay the balance down to see your score go back up (no letters necessary). Is your husband going to let it go to chargeoff!? Inquiring minds wanna know!
No, I was just being hypothetical. I was wondering because Discover keeps telling us that it WILL NOT affect my score in anyway.
WIFE IS "AU" when I MAXED my DISCOVERCARD she took a "HIT" on HER score!!! WHEN I PAID IT OFF 100%...her score went back up!!! DON'T TELL ME IT DOESN'T AFFECT HER... She isn't "RESPONSIBLE" but it affects her... DISCOVERCARD would rather make 9.90% off $0.00 than make 1.90% or 3.90% on $17,000!!!!!!!! THEY ARE KINDA' CLULESS SOMETIMES...
Discover is another one of my "I'd prefer not to deal with you" cards. That's one of the reasons why. It's true that you are not responsible for the balance, but it does report. And yes, it WILL affect your score, good or bad, just like it was your tradeline. The only difference is that you aren't responsible for paying it, and, as was said earlier, it's fairly easy to remove if you need to.
