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Authorized User vs. Co-Signer

Date: Tue, 07/06/2010 - 16:51

Submitted by ball_mich
on Tue, 07/06/2010 - 16:51

Posts: 360 Credits: [Donate]

Total Replies: 7


We have a number of credit cards that were charged off and subsequently settled. These cards were in my name, but my wife at one point was added to a few of these as an authorized user. All of these cards pre-dated our marriage and were only issued in my name originally.

We received her credit reports today and I am seeing that the charge-off and settlement of my credit cards are showing on her credit report. She was only an authorized user on these accounts, never a co-signer.

Is this correct that they should report all of these negative marks on her credit report? I guess I was under the impression that as an authorized user that her "credit worthiness" was not a consideration for the extension of credit to me and therefore it wouldn't impact her when these became delinquent and charged-off.

Am I missing something here?


Quote:

Is this correct that they should report all of these negative marks on her credit report?
Yes, this is correct that the creditors can report the negatives on the credit report of the authorized user (AU). The negatives against an account affects the authorized user in the same way as the positives does. The only difference is that the negatives lowers the credit score.

However, the authorized user cannot be held liable for the debts incurred against the accounts on which he/she had been added as the AU. You should immediately request the removal of your wife's name as the AU from the negative accounts.


lrhall41

Submitted by SC on Wed, 07/07/2010 - 03:28

( Posts: 3937 | Credits: )


Quote:

Originally Posted by SC
However, the authorized user cannot be held liable for the debts incurred against the accounts on which he/she had been added as the AU. You should immediately request the removal of your wife's name as the AU from the negative accounts.


This being the case, the negative accounts are now all charge-off, closed, and settled. Is it even possible to remove an AU from a closed account?


lrhall41

Submitted by ball_mich on Wed, 07/07/2010 - 10:42

( Posts: 360 | Credits: )


I would love to know the correct answer to this one. I filed bankruptcy last year, my mother was an authorized user on a few cards and they show as authorized user on her reports also shows they were included in bankruptcy which lowered her credit rating. But she is not responsible for them and shes been at me about her score. Can they be removed so her score no longers suffers from my mistakes? Other than my bankruptcy showing on her report she has a perfect credit record, so as an authorized user my bankruptcy caused her to drop in half. How can that be fair or legal when THEY are only an authorized user and NOT responsible?!


lrhall41

Submitted by on Wed, 07/07/2010 - 11:15

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Quote:

Originally Posted by ball_mich
This being the case, the negative accounts are now all charge-off, closed, and settled. Is it even possible to remove an AU from a closed account?


I have no idea what the answer is here, but figured in light of the silence that I'd fire off some letters to seek removal of my wife as authorized user and see where it take me.


lrhall41

Submitted by ball_mich on Thu, 07/15/2010 - 16:25

( Posts: 360 | Credits: )


Update: A little less than 30 days since I sent those letters to remove my wife as an AU on my closed accounts. No response, which is hardly a surprise.

However, I/she did dispute these with the credit reporting agencies. We just received a letter from TransUnion and they have deleted all these accounts from her report. Hopefully the others follow suit.


lrhall41

Submitted by ball_mich on Mon, 08/09/2010 - 08:37

( Posts: 360 | Credits: )