Credit Card Accounts with Authorized Users

Guest: NightStar
Board Monitor/ Administrator
Post subject: Credit Card Accounts with Authorized Users
Posted: Wed Jan 12, 2005 2:55 am

There is one primary reason to remove authorized users, and that is when it is time to apply for a mortgage loan.

The consumer can be turned down if a lender thinks they have more debt then they really do, when I worked at the credit bureau editing credit reports, I would get requests from the loan officers to just remove these accounts off of the credit report.

Not all lenders are going to have credit bureaus processing mortgage reports like we did, especially the ones going through fannie mae, they won't accept a bureau editing, in that case it has to be the credit reporting agency direct and then only the consumer can make the change, unless they put in request for rapid rescoring, then that is costly.

It has to do with approal when debt to income ratios are being used, even though they know these are not the responsiblity of the consumer they don't want it on the credit report, and I know a good many of them don't even look at the ECOA codes to pay attention to what is not the responsibility of the consumer... so my opinion it is just better to loose the account when you are done with it.
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Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

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Guest: Board Monitor
Board Monitor/ Administrator
Posted: Wed Jan 12, 2005 9:13 am

Fess,

Thanks for your post and welcome to the board! You can find a comprehensive list of credit related books here:

http://www.cardratings.com/bookmain.html

The one you referenced is a good one. Liz Pulliam Weston is a well respected personal finance author.

Out of curiosity, how did you find out about our website?
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Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
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Guest: Fess
Posted: Wed Jan 12, 2005 4:15 pm

Quote:
2) don't utilize more than 49% of your credit line on each card and don't utilize more than 49% of your total revolving credit limit.



thanks for responding, she has a secured mastercard with $500 limit.

When you say don't utilize more than 49% of the credit line on the card, she should not exceed $245 or so?




Quote:
Just make sure your credit card companies have the policy to report AU Accounts, and that they report to all 3 of the major credit reporting agencies.


Quote:
Build up of inquiries will pull her score down, especially now when there is nothing else to outweight the inquiries.


I wasn't aware of that. Thanks for the info.


Quote:
The one you referenced is a good one. Liz Pulliam Weston is a well respected personal finance author.

Out of curiosity, how did you find out about our website?


Thanks for the link, I'll browse the selections.

Glad to hear the author is in good standing.

I actually found your website through Google. I found several others but this site had the best graphical layout & phpbb is a good script.

Thanks again everyone for your help
Regards
Fess

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CardRatings.com is the most comprehensive source for comparing credit card offers.  Please visit CardRatings.com to view the best rated credit cards!

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Guest: fotomaniak
Posted: Wed Jan 12, 2005 4:33 pm

Fess wrote:
Quote:
2) don't utilize more than 49% of your credit line on each card and don't utilize more than 49% of your total revolving credit limit.



thanks for responding, she has a secured mastercard with $500 limit.

When you say don't utilize more than 49% of the credit line on the card, she should not exceed $245 or so?


if her total credit limit is $500, then yes, $245 is 49% of the credit limit.

you also should try not to exceed 49% utilization on the cards where your mom will be an authorized user.

If you need to charge more than $245 per month then you can just make additional payments.
keep in mind that:
a) if you have negative balance(i.e. prepay) it will probably show up as positive balance on your credit report. I.e. if you have -$700 (a credit of 700) balance it'll show up at $700 which might look bad(and odd) considering you only have $500 credit line.
b) if you purchased something with a credit card and paid the balance off, a credit card might consider that by paying of the balance you agree that the charges are legit and you may loose your right to dispute.

so, I'd say, to avoid any complications, it's probably best to use the card to pay a couple of small recurring bills per month (i.e. phone and cable) so that the total amount will be less than 50% and there is no need to check the balance every day. To show more activity your mom can use the card for small purchases once in a while, but for the most part, card can be just kept in the drawer for now.

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CardRatings.com is the most comprehensive source for comparing credit card offers.  Please visit CardRatings.com to view the best rated credit cards!

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