Will This Effect My Credit Rating?
I have an excellent credit rating with my own credit cards. I am an authorized user on one of my mother’s cards. She is becoming careless about paying hers on time. She refuses to let us, her children, handle her finances. She is extremely stubborn and will never change. Should I have my name removed from her card to protect myself?
As long as you are only an "authorized user", not a "joint account holder", you are not legally responsible for her account. That said, whatever she does will show up on your credit, because her account "mirrors" on your credit, so I’d get yourself off the account as soon as you can. If you know she has made late payments in the past, I’d get a copy of all your credit reports from www.AnnualCreditReport.com (you can get this once a year for free) and dispute any late payments from that account that are showing up on your report immediately. You can do this at the same time you get copies of your report, right there, on-line, with each credit bureau.
I feel for you in your situation. I had a similar situation with my dad a few years back, and his pride wouldn’t let me help him either. It wasn’t until he had a fall and ended up in the hospital that I could take over his finances because I had medical power of attorney and he had a trust where I was successor trustee.
Hopefully your mom has a trust and power of attorneys set up so you can take over to help her as soon as you can. If not, now would be a great time to talk her into setting one up. This will save you enormous time and heartache in the future. I wish you the best of luck and my heart goes out to you!
February 26th, 2010 at 9:36 am
No, her credit card does not affect your credit, even if you are an authorized signer.
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February 26th, 2010 at 10:25 am
Anything she does – will directly show on your credit report.
It will affect you exactly as much as it affects her – equally.
(Just got my kids credit report – it is now treated as equal – laws have changed).
Is she carrying balances?
This is bad for your credit rating.
If she is paying interest and carrying balances call the credit card company yourself and tell them that you want to be removed as an user due to your mother’s credit actions.
One thing, before you close that account.
If that is your only account, you don’t want to delete it from your report untill you get another credit card first.
You need to show some history.
Go to bankrate.com today and apply for a card – or call your local bank and ask for a card.
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February 26th, 2010 at 10:41 am
No, it is her name and ss# tied to the account so you should not take a hit on your score.
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February 26th, 2010 at 11:09 am
As long as the account is in her name only, as in you did not supply any of your own personal information when it was opened and added after the fact as an authorized signer, it will NOT affect your credit report. The law was changed about 6 years ago regarding account owners and authorized signers.
References :
http://www.creditcards.com/credit-card-news/sandberg-authorized-user-joint-account-holder-1377.php
February 26th, 2010 at 11:34 am
As long as you are only an "authorized user", not a "joint account holder", you are not legally responsible for her account. That said, whatever she does will show up on your credit, because her account "mirrors" on your credit, so I’d get yourself off the account as soon as you can. If you know she has made late payments in the past, I’d get a copy of all your credit reports from http://www.AnnualCreditReport.com (you can get this once a year for free) and dispute any late payments from that account that are showing up on your report immediately. You can do this at the same time you get copies of your report, right there, on-line, with each credit bureau.
I feel for you in your situation. I had a similar situation with my dad a few years back, and his pride wouldn’t let me help him either. It wasn’t until he had a fall and ended up in the hospital that I could take over his finances because I had medical power of attorney and he had a trust where I was successor trustee.
Hopefully your mom has a trust and power of attorneys set up so you can take over to help her as soon as you can. If not, now would be a great time to talk her into setting one up. This will save you enormous time and heartache in the future. I wish you the best of luck and my heart goes out to you!
References :
February 26th, 2010 at 11:41 am
If you’re only listed on the card as an authorized user it will not have a negative impact on your credit rating. This is because authorized users are not considered financially responsible for the credit card. However, while it does not have an impact on your overall score the account itself can show up on your credit report and cause a credit analyst to think a little longer before making a decision. I’d say if you’re not using the card then have your name removed.
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I’ve worked in the credit card industry for 10 years and spent about 3 of the 10 as a credit analyst.
February 26th, 2010 at 12:04 pm
No this will not affect you.
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February 26th, 2010 at 12:09 pm
Get your name removed as authorized user. Authorized user accounts show up on your credit report and count in the FICO scores for spouses and children. Ask your mother to remove you as it adversely impacts your credit.
By the way, Fair Isaac changed the way authorized user accounts were calculated in scores a few years back. However, there was such a hue and cry, that they changed the formula again. Authorized user accounts DO count for spouses and children!
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BD