Removed as authorized user on CC - affecting credit score?

[jwoair23]

Hello! This is my first post to this forum, what a great resource! I am a very serious budgeter/saver, and I have a question regarding my credit score.

I am 21 years old, and I currently have a MYFICO score of 781. However, this doesn't reflect the most recent change I did. I was an authorized user on my parent's Discover Card, which was opened in 1986. This had no missed payments, a credit limit of $14,500, and a balance of $3900.

I opened a credit card of my own 3 months ago, with a credit limit of $7,500 and keeping no balance on it (paying off immediately any purchase).

So my question is, with my current score of 781, how bad of a hit am I going to take having removed myself as an authorized user? I did this about a month ago, but haven't seen it updated yet. I wanted to do this because I want to stand on my own merits, but I am just hoping it doesn't hurt me too badly. Can anyone take a guess, I sure would appreciate it! Thanks!

[vsjhoc]

Welcome! It's great to see someone taking care of their credit at 21.

I'd get myself back on the Discover card. One of the factors in the FICO score is credit history. You just wiped out both (a) a 20-year credit history; and (b) a perfect track record on this card over the past couple of years. Having a credit history of only 3 months will really hurt your score. Of course, if anyone's paying attention they may notice that you were only 1 year old when you got the card, although you could have been added at any time.

If you go back as an authorized user, make sure the balance never gets any higher. The utilization ratio (amount of credit used versus credit line) should be well below 30%. Currently the Discover is 26%. Let your parents know!

Also, it will help you if you have a small balance on your credit card rather than paying it immediately. You need to show that you can manage your credit, and if it looks like you never use your card, you aren't proving yourself. Keep up the perfect payment record!

Good luck, it's great to see someone starting on the right foot.

[Broken Arrow]

Heh, wish I was that financially responsible at 21.

I don't know for sure, but I suspect that it would hurt your score, perhaps even greatly.

I agree not to be in too much of a rush to have yourself removed just yet. I mean, there's no harm done by keeping yourself on right? And if you want to prove yourself, you're doing that already.

I'd wait at least a few more years to build up your own credit history before I sever the tether.

[kristinecfp]

I agree that removing yourself as an authorized could have a negative impact on your credit score, especially since you don't have much other credit history.

You should generally not close (or take yourself off as an authorized user) old accounts that have a good history, with no missed or late payments.

Good luck! Sounds like you're on the right track otherwise.