What Happens If I’m Removed as an Authorized User?

An individual added to a credit card account by the primary cardholder becomes an authorized user. This grants them the ability to make purchases using a card issued in their name. While authorized users can make transactions, the primary cardholder retains sole responsibility for managing the account and making payments. This setup often helps individuals with limited credit history establish a credit profile.

Impact on Your Credit Score

Being an authorized user can positively influence a credit score through the reporting of the primary account’s payment history and credit utilization. When the primary cardholder makes on-time payments and maintains low credit utilization, this positive behavior reflects on the authorized user’s credit report. This is beneficial for individuals with a “thin” credit file, helping them build a credit history and generate a FICO score.

However, removal from an authorized user account can significantly impact your credit score. The extent of the effect depends on your existing credit profile. If you have an established credit history, the impact might be minimal. For those with a thin credit file or who heavily relied on the authorized account, removal can be more substantial as it eliminates a source of positive credit history.

Two key factors influenced by removal are the average age of accounts and credit utilization. The average age of accounts contributes approximately 15% to your FICO score. If the authorized user account was one of your oldest credit relationships, its removal can shorten your overall credit history, potentially leading to a score decrease.

Credit utilization, which accounts for about 30% of your FICO score, can also be affected. As an authorized user, the credit limit of that account was included in your total available credit, which could have kept your utilization ratio low. Upon removal, that available credit disappears. If you carry balances on your other cards, your overall utilization ratio may increase, potentially lowering your score. Conversely, if the primary account had high utilization or late payments, being removed might prevent further negative impact or even improve your score.

Changes to Your Credit Report

When removed as an authorized user, the credit card account typically undergoes a change in status or is removed from your credit report. The account may be updated to reflect a “closed” or “removed” status, indicating the end of your relationship with that account. Some credit card issuers may remove the entire account history, while others simply update the status.

The three major credit bureaus—Equifax, Experian, and TransUnion—receive updates from credit card issuers regarding account changes. These changes are generally reflected on your credit report within 30 to 45 days.

You can access your credit reports from each of the three nationwide credit reporting agencies to verify that the account has been accurately updated or removed. Reviewing these reports regularly helps ensure that all information is correct and reflects your current credit standing. If the account still appears inaccurately after the typical processing time, you may need to dispute the entry with the relevant credit bureau.

Understanding Financial Responsibilities

An authorized user holds no legal responsibility for the debt incurred on a credit card account. The primary cardholder, who opened the account, retains sole financial obligation for all charges, regardless of who made them. This means the credit card company cannot legally pursue an authorized user for unpaid balances.

This distinction separates an authorized user from a joint account holder or a co-signer, both of whom share legal liability for the debt. While an authorized user is not financially liable to the credit card issuer, personal agreements may exist between the authorized user and the primary cardholder regarding repayment of charges. Such private arrangements do not translate into legal responsibility to the credit card company.

Steps to Take After Removal

After being removed as an authorized user, managing your credit profile is important. A primary step involves regularly monitoring your credit reports for accuracy. You can obtain a free copy of your credit report from each of the three major bureaus—Equifax, Experian, and TransUnion—annually through AnnualCreditReport.com. This allows you to confirm that the authorized user account has been removed or updated appropriately and to identify any potential inaccuracies.

If you find that the account is still listed incorrectly or reflects negative information that should not impact you, you can dispute it directly with the credit bureaus. While legitimate removal is not an inaccuracy, ensuring the account’s status is correctly reflected is important for your credit health. Beyond monitoring, focus on building or maintaining your own independent credit history. This can involve applying for your own credit cards, particularly if you have a limited credit file, or securing a credit-builder loan. Establishing your own lines of credit and demonstrating responsible payment behavior will help you independently build a strong credit profile.