I have a credit card with a 20K balance and I'm the primary cardholder while my wife is listed as an authorized user. This debt now shows up on both of our credit reports even though technically the debt is all mine. But this is hurting her credit score since she does not have many accounts on her credit profile and 20K looks very bad on her credit report. So my question is if I remove her as an authorized user, will the 20K debt dissapear from her credit report thus she will have 0 debt on her credit report. Thanks!
Answer:If this account is in good standing and has a long history, it probably is adding more to your wife's credit than harming. Having 0 debt does not make your credit score higher. It's really much more complicated.
About a third of your score is based on the ratio of credit card debt to limit. Carrying balances of more than 30% does hurt your score. However, pay off the balance and your score rebounds. If this account is relatively new and maxed out, then removing your wife as an authorized user might improve her score.
CreditKarma.com offers a free score estimator based on your TransUnion credit report. It's not FICO. But it's close enough if your just curious. You can add and remove things to see what happens to your score.
Authorized user accounts for spouses and children still count the same in FICO scores. But are not suppose to count at all in other circumstances.
Answer:I would like to disagree with the previous answer.
It would only help her if the available credit line you have on that credit card would be 100K.
Any time you pass 20% of your available balance, you are causing harm to your credit score.
It is much better not to have credit at all than to be maxed out.
Any time you hit 50% of your balance you are causing devastation.
Take her off the card.
Watch her score shoot up.
Get her to open her own credit card with a small limit, such as a gas card.
She can use it to buy gas and pay in full each month.
I achieve 800 scores in a couple of years just by getting a gas card and paying in full each month.
I never paid interest and got amazing credit.
I did this because I was looking for work – and employers check scores.
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Answer:The new scoring models give less weight to piggyback users than they have in the past. What is the limit on the card? Are you using more than 30% of the available balance. If so, it is hurting her score. Does she have any revolving credit of her own. If not, she may want to open a revolving account in her name and keep the balance below 30%.
Answer:Cleveland 12/23/09
My good friend the spouse be a co-signer. Co-signers are a sort of safety net,..
Any business that you go to – if you be spousal,..er, husband- and wife,..when either need only to
sign,..the transaction will go on,..Whatz',..Up,..,here,.??
Your wife unless or,..you causes a bad debt,..you will both have outstanding credit,..a card for
you and a card for your wife,..may use the same account number,..or,..different numbers,..
If you've got no bad reports,..tell those dopes they are,..dead wrong,..Okay,..!??
Eliasis Yahwehei ( The Main Man )
Answer:Technically if the account is in good standing and has a long history of good payment it will actually help her credit dramatically, it is called piggybacking in the credit industry.
Answer:if you remove her, it will not help her credit. by the same token, if you would become unemployed they cannot pursue her for the balance, because you are primary holder.
Answer:A credit score is based on activity. If it's used monthly, it should go up about every 12 months between 5 to 10% per month. Getting another credit card will not make it go up any faster.
Answer:Yes removing her as an A.U. will lower her debt to income ratio, which is what is hurting her score.
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