If I Remove an Authorized User, Will It Hurt Their Credit?

An authorized user on a credit card account is someone permitted to use the primary cardholder’s credit line, often receiving a card with their name on it. This arrangement allows them to make purchases, but the primary account holder remains solely responsible for all debt incurred on the account.

How Authorized User Status Influences Credit

When an individual becomes an authorized user, the primary account’s history often begins appearing on their personal credit report. This includes details such as the credit limit, the current balance, and the payment history associated with that account. Credit bureaus typically incorporate this information into the authorized user’s credit file.

A well-managed primary account, characterized by timely payments and low credit utilization, can positively influence an authorized user’s credit profile. The positive payment history contributes to their overall credit history, demonstrating responsible credit behavior. Additionally, the available credit limit from the primary account can help lower the authorized user’s overall credit utilization ratio. The age of the primary account can also contribute to the authorized user’s average age of accounts, potentially benefiting their credit score.

Conversely, if the primary account holder manages the account poorly, such as making late payments or carrying high balances, these negative actions can also reflect on the authorized user’s credit report. Even though the authorized user is not financially responsible for the debt, the reported delinquencies or high utilization can still adversely affect their credit score. The impact depends on the severity and frequency of the negative reporting, as well as the authorized user’s overall credit history.

Credit Impact of Removing an Authorized User

Removing an authorized user from a credit card account can lead to various changes on their credit report, potentially affecting their credit score. When removed, the account history associated with that specific credit card may be taken off the authorized user’s credit file by the credit bureaus.

The length of credit history is one factor that may be affected. If the removed authorized user account was one of the oldest or had the longest payment history on their report, its removal could effectively shorten their average age of accounts. A shorter average age of accounts generally has a less favorable impact on credit scores, as credit scoring models often reward longer, established credit histories. The actual impact varies depending on the age and number of other accounts remaining on the authorized user’s credit report.

Credit utilization can also experience a shift after an authorized user is removed. If the primary account contributed a significant amount of available credit to the authorized user’s overall credit limit, its disappearance could cause their total available credit to decrease. Should the authorized user carry balances on their other credit accounts, this reduction in available credit could lead to an increase in their overall credit utilization ratio. A higher utilization ratio typically indicates a greater reliance on credit and can negatively influence a credit score.

The removal might also subtly influence the authorized user’s credit mix. While not as heavily weighted as payment history or utilization, having a diverse mix of credit types, such as installment loans and revolving credit, can be beneficial. If the authorized user had limited other revolving accounts, the removal of the authorized user account might slightly alter this aspect of their credit profile. However, their independent payment history on any other credit accounts they hold will remain intact and continue to factor into their score. The overall impact on an authorized user’s credit score is highly individualized, depending on their existing credit profile, the number and age of their own accounts, and their independent payment behavior.

Steps to Remove an Authorized User

The process for a primary account holder to remove an authorized user from a credit card account is generally straightforward. The most common method involves contacting the credit card issuer directly. This can often be done by calling the customer service number found on the back of the credit card or on the issuer’s official website.

Many credit card companies also offer the option to remove an authorized user through their online banking portal. After logging into the account, primary cardholders can typically navigate to account management or authorized user sections to initiate the removal. In some instances, it may be necessary to send a written request by mail, particularly if other methods are not available or if the issuer requires it for specific security protocols.

When contacting the issuer, the primary account holder will usually need to provide their account number and verify their identity, which may involve answering security questions. They might also need to provide the authorized user’s name and potentially their card number if it’s different from the primary card. After the request is made, the issuer will typically process the removal within a few business days, and the authorized user’s card will be deactivated.