mcooper

Authorized User on a card with a high balance

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Back when I was 16 or so, my mom added me as an authorized user on her American Express credit card. She has always paid the balance, never been late or anything. But now I am 31 and have my own cards and loans. Currently I have one card that has a small balance of $163 and a auto loan with a balance of $3,000.00. My husband and I are about to start looking for a home in the next 6 months to a year. 
I just created a credit karma account for the first time and seen that my mom still has me as an authorized user on her American Express. She still continues to make her payments on time and hasnt been late but her balance is really high. She owes close to $10,000 on that card. It shows on my credit that I am over $12,000 in debt. Will this effect my husband and I getting a mortgage? My husband has about $10,000 in debt on his credit report and we have been working really hard to pay our debts down to afford a mortgage. I personally will be debt free by August of this year but my husbands debt will take another 1.5 years to finish paying off. 

As of now my credit score shows to be 805 and 806. If I am taken off as an authorized user will it effect my credit. Im assuming it will make my score go down slightly. Any suggestions on what to do. Should I ask her to take me off or should I keep it on?

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Nobody can tell you exactly what would happen to your real FICO score.  
 

Credit Karma has a feature that can show what would happen to their approximation of your score if you make certain changes.  I don’t know if it gets quite that sophisticated.  But they could guess at least as well as any of us. 

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Authorized user, reaps the benefits of the on-time payments and "good" credit relating to that card. But also has the burden of dealing with the "bad" credit if it is unpaid. Having yourself removed from that account will undoubtedly cause a little hiccup at the very least in your credit score. Other than that, it could prevent you from buying a home, and it might not. I suppose it would all come down to the debt-to-credit, and/or debt-to-income ratios. 

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On 3/14/2021 at 6:04 PM, mcooper said:

If I asked her to take me off how badly would it affect my credit score? A few points or would it be a big hit?

 

Probably not enough to hurt your chances of getting a mortgage.  If you drop as much as 50 points, you're still in the very good range.  But like the others suggested, play around with various scenarios on Credit Karma.

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