Hello everyone, Yesterday, I was looking over a friends CR (all three merged) and I have a couple questions about it. 1.) If you are a Authorized User, but not the holder of the acct can the acct be put on your credit report? (there are 4 she is only the AU on, not the holder) 2.) If you are the AU, and not the original holder can you be sued if the holder of the acct defaults? Can that default go on the AU CR? 3.) My friend has about $75, 000 in debt. $35,000 of which is Student Loans and the rest Credit Card debt. She is in the process of consolodating her Student loans. She's thinking of also consoldating her Credit cards. My question is does the credit card companies get pissed if you consoldate all your loans. Think of all the interest they are losing out. My friend has excellent credit, except for her student loans which were 120 days late but are now all current. Her score is 675 but she wants a higher score. She has high balances on all her open cards. She has no judgements, public records or collection accounts. Nothing bad at all except the prior lates on student loans but as I said she is current now. Thanks, Jane.
Yes, if you're an AU the account can be put on your report. Many people are put on as an AU on a parent or spouse's account to help build or improve their credit. As long as they are only an authorized user, not a JOINT owner, they are not liable for the account, and no collection action can be taken against them. If the account defaults or becomes negative, they can always be taken off as an AU, then dispute the account and have it removed. People do balance transfers or consolidations all the time. The credit card companies may not care, but the installment account could have a negative impact on scores. If she does this, she should not close any accounts. Keep them open, use them occasionally for gas or something, and pay them off. The problem that a lot of people have is that they consolidate loans, then run the credit cards up again and have both the loan and the cards. If she gets a consolidation loan, she should never use her card for something she can't pay off the next month.
