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Hi, all. I'm new here and have a question about credit cards and credit scoring.
I recently checked my FICO credit score and it was 798. I checked it purely out of curiosity since I don't anticipate opening any credit cards or getting a home or car loan anytime in the next several years.
Anyway, I discovered that I am listed as an 'authorized user' on two credit cards, one with each of my parents. These would have been from when I was in my teens, opened by them to build my credit. I never have/will use these cards and don't physically have them to use if I wanted to, but they are contributing significantly to the length of my credit history (I'm 33) and to the number of credit lines I have.
I currently have only one credit card that I actually use. It was opened in 2005, has a $15,000 limit, and I charge around $2,000 to it monthly (paid in full each billing cycle). One of the authorized user cards was opened in 1992, has a limit of $2,500, and a balance of $0. I assume that this a card that is open but rarely/never used. The credit limit for the other card is not listed, it was opened in 1998, and the balance is $1,681. The largest past balance on this card is listed as $34,028. I'm assuming the limit on that card is either very high or there is no limit, since neither of my parents is likely to charge anything to a card and not pay it off immediately. They are both financially stable and responsible.
On to my question: Should I have myself removed as an authorized user on either or both of these cards? I had a car loan years ago that has been paid in full. It is still listed on my credit report, and is 'paid as agreed'/$0 balance. Other than that, those 3 cards are the only lines of credit I have. Our mortgage is in my husband's name, as he purchased our house before we married. So the two extra cards are contributing significantly to my credit history and to my total lines of available credit.
My main concern is that I am not in control of them. I have seen cards with various family members' names on them sitting in a drawer in my father's house, and one or both of my brothers may physically hold a card that is connected to one of these accounts. One of my brothers is not in a great financial position right now; the other is very stable - I have no idea if either of them has access to these cards. I worry that a card that is connected with me could be stolen, or that charges could be made on a card that will negatively affect the total percentage of credit it appears that I am using. For example, if one of my parents made a large purchase on one of the cards (for the miles or cash back, etc.) it wouldn't be likely to make much of a dent in his/her score (as they each have very long histories and plenty of available credit on other high-limit cards), but this scenario would have a major impact on my credit score. I never use a very high percentage of my available credit on my own credit card, but I have no way of knowing what everyone else is going to do. As an aside, I'm also wondering if I should try to have the limit raised on my current card so that the percentage of available credit I use is even lower.
As I said, I don't anticipate needing credit anytime soon, but you never know. How much might my score be dinged by getting rid of these cards? Should I take myself off the riskier one (that is being used) and keep the other? Should I open another card that I would never use (to build history and add to my available credit), then maybe remove myself from the others at a later date?
What would you do?
I recently checked my FICO credit score and it was 798. I checked it purely out of curiosity since I don't anticipate opening any credit cards or getting a home or car loan anytime in the next several years.
Anyway, I discovered that I am listed as an 'authorized user' on two credit cards, one with each of my parents. These would have been from when I was in my teens, opened by them to build my credit. I never have/will use these cards and don't physically have them to use if I wanted to, but they are contributing significantly to the length of my credit history (I'm 33) and to the number of credit lines I have.
I currently have only one credit card that I actually use. It was opened in 2005, has a $15,000 limit, and I charge around $2,000 to it monthly (paid in full each billing cycle). One of the authorized user cards was opened in 1992, has a limit of $2,500, and a balance of $0. I assume that this a card that is open but rarely/never used. The credit limit for the other card is not listed, it was opened in 1998, and the balance is $1,681. The largest past balance on this card is listed as $34,028. I'm assuming the limit on that card is either very high or there is no limit, since neither of my parents is likely to charge anything to a card and not pay it off immediately. They are both financially stable and responsible.
On to my question: Should I have myself removed as an authorized user on either or both of these cards? I had a car loan years ago that has been paid in full. It is still listed on my credit report, and is 'paid as agreed'/$0 balance. Other than that, those 3 cards are the only lines of credit I have. Our mortgage is in my husband's name, as he purchased our house before we married. So the two extra cards are contributing significantly to my credit history and to my total lines of available credit.
My main concern is that I am not in control of them. I have seen cards with various family members' names on them sitting in a drawer in my father's house, and one or both of my brothers may physically hold a card that is connected to one of these accounts. One of my brothers is not in a great financial position right now; the other is very stable - I have no idea if either of them has access to these cards. I worry that a card that is connected with me could be stolen, or that charges could be made on a card that will negatively affect the total percentage of credit it appears that I am using. For example, if one of my parents made a large purchase on one of the cards (for the miles or cash back, etc.) it wouldn't be likely to make much of a dent in his/her score (as they each have very long histories and plenty of available credit on other high-limit cards), but this scenario would have a major impact on my credit score. I never use a very high percentage of my available credit on my own credit card, but I have no way of knowing what everyone else is going to do. As an aside, I'm also wondering if I should try to have the limit raised on my current card so that the percentage of available credit I use is even lower.
As I said, I don't anticipate needing credit anytime soon, but you never know. How much might my score be dinged by getting rid of these cards? Should I take myself off the riskier one (that is being used) and keep the other? Should I open another card that I would never use (to build history and add to my available credit), then maybe remove myself from the others at a later date?
What would you do?
I haven't found anything that looks 'official' on the topic.
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