Jump to content

Dad's American Express Question


Strongbad02
 Share

Recommended Posts

Ok, first time here- so be kind...I know all the basics in credit, scoring, raising your credit score, etc. This question is a bit advanced, though. Hopefully you can shed some light on this.

When I was in college my father added me to his american express account, so I could have an emergency. I'm now 24 and out on my own and have no purpose for this card, as I don't use it, and it's just increasing my over all amount of debt I have. Here's my question...will removing my name from his american express account hurt my credit score (counting it as a canceled card) OR help it (by reducing my over-all debt)?

Let's see what ya got! Thanks in advance

Link to comment
Share on other sites

Strong- There is an abbreviations guide under the main section of the forum. http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=247970

You are considered an authorized user right now on your dads card. The FICO people are planning to revamp how they calculate scores and will not allow "authorized users" to gain/lose from being on someone else's card. This is suppose to go into effect in Sept. of this year.

Link to comment
Share on other sites

I always thought it never helped with anything score wise but to an untrained eye IE: a young or busy underwriter. A good underwriter would have seen that it was not their debt immediately.

its not your debt, you didnt make the account nor where you responsible for it. you where an authorized user only. Keeping it on your credit will only help if it is your highest credit line and then it is only to the untrained eye.

I'd keep it on, until you are well established unless there is a shot that it would ever go delinquent.

just my 2 cents.

Link to comment
Share on other sites

Ok, first time here- so be kind...I know all the basics in credit, scoring, raising your credit score, etc. This question is a bit advanced, though. Hopefully you can shed some light on this.

When I was in college my father added me to his american express account, so I could have an emergency. I'm now 24 and out on my own and have no purpose for this card, as I don't use it, and it's just increasing my over all amount of debt I have. Here's my question...will removing my name from his american express account hurt my credit score (counting it as a canceled card) OR help it (by reducing my over-all debt)?

Let's see what ya got! Thanks in advance

Any credit card that has a low available credit is hurting your score. FICO will be changing for AU, but currently when you are added as an AU the more credit used hurt your FICO.

Link to comment
Share on other sites

I'm not sure why I feel the need to further explain but I will.

assuming your Dad hasnt maxed out his card OR is over 75% LTV, isnt going to stop paying it and is of sound mind.

KEEP IT ON YOUR REPORT UNTIL YOU HAVE A FEW ACCOUNTs THAT LOOK BETTER. IT ISNT GOING TO HURT YOUR SCORE.

I REPEAT, IT IS NOT YOUR DEBT, THE CREDIT BUREAU KNOWS THIS BECAUSE IT SAYS SO NEXT TO THE ACCOUNT.

Link to comment
Share on other sites

My husbans became an authorized user on one of his parents cards and they ended up on hard times and went into Debt Collection. That account is reporting as a negative on his credit report.

So it does affect your score but I would imagine that a lender would read past that for a loan. Computers on the other hand won't.

Link to comment
Share on other sites

Wow, definately alot involved here, I'm thinking I'll probably stay put for the time being. My concern was with the balance around $6,000 and my income around 35,000, it doesn't look that good when you add on my car loan (around 13k), student loans (20k), and my credit card (around 3k). I'm really not looking to make any big purchases or anything right away that would require a credit check, but I just wanna be sure to stay on top of things.

Link to comment
Share on other sites

My husbans became an authorized user on one of his parents cards and they ended up on hard times and went into Debt Collection. That account is reporting as a negative on his credit report.

So it does affect your score but I would imagine that a lender would read past that for a loan. Computers on the other hand won't.

It effects your score TODAY. Starting next month (with one CRA) and next year with the rest it will have no affect on score at all.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.