beastofburden

5 CC's (self); 2 AU - Effect of payoff - Pros best guess needed

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I have 5 CCs with total limit of 19,000 with a balance of about 2,600. These cards are about 5 yrs old. Also 2 other CCs where listed as an Authorized User - with TL of additional 12000 and a balance of 5700. One of the two AU cards is Cap One (0 bal), which doesn't report credit limits and the other is a major bank (5700). These cards are about the same age - 6 yrs. I'm separating from my long-time GF who is the primary on the 2 AU cards. I need to remove my name from the two AU tradelines and need some best guesswork on the following scenarios.

If I remove my name as an AU for the two cards with 5700 on the bank card will this hurt my credit score? Since Cap One does not report CL and has a zero balance, I don't think that one will have a noticeable effect. I'm concerned about the bank card though.

Another option is to get a consolidation loan and pay off the bank card - even though, as an AU, I'm not responsible for payment. My GF has threatened to run up the two AU cards and I'm concerned about the effect on my credit/FICO scores.

I've got some leverage to prevent a CC runup on the two cards (although not guaranteed - consider it a settlement of sorts), and wanted some other thoughts on the best approach. Cancel immediately and run the risk of showing a high balance on closing or pay off through a loan and cancel my AU with the two cards after showing a zero balance?

By my calculations, the utilization of my CCs is 14%; the utilization on the 2 CC where I'm an AU is 48%; and the total utilization between all cards is 27%.

Also, has anyone run into problems with cancelling as an AU? I assume that I could just call and cancel or is it more difficult than it sounds?

Thanks.

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In the above scenario, it seems like being removed as an AU would actually help you.

Cap1 doesn't report limit, but CRAs are using high balance instead of limit for Cap1.

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Yea, it's pretty unlikely that it will hurt your score and you'll probably see a positive bump from the improved utilization. Getting removed as AU is usually quite easy. Most banks simply do it upon request. Some banks have weird policies, like if the account is in bad standing you cannot be removed until it's in good standing - but that's very uncommon. I dropped off two cards with a simple call to customer service.

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Does anyone have an idea whether it will have an effect on my FICOs if I cancel the AU with 5700 balance or would it be better to pay off the balance first? Do AU accounts drop completely off or will they show removal as AU with 5700 balance for the seven year reporting period?

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Does anyone have an educated guess as to the effect of removing myself as an authorized user (AU) on a CC with high utilization (47%)? I understand from comments on another thread that it should increase my score but I was wondering if it would be better, scorewise, to wait to remove my AU status when the card is paid off/down?

Also, I'm not sure what happens when removal occurs as far as credit reporting goes. Does it show the outstanding balance at the time of removal? Does that balance continue to show up on the CR for seven years? Or does the AU simply fall off the report completely? Other?

Any info would be very helpful. I have worked very hard on restoring my credit but find myself in an awkward position regarding the AU account.

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As far as I know as long as you are not a co -signer as opposed to an authorized user you can have yourself removed at anytime. Just call the CRA. As far as how it effects your score your guess is as good as mine. Because the utilization is killing you. I do know it doesn have an immediate depressing effect

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If it's paid off or down I personally would keep it on there. Low balance , high limit and an old seasoned account is what you want

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