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How To Remove A Bad Authorized User Accounts

If you have an authorized user account that the primary cardholder is mismanaging; here is how you can remove it. for your client.

First you must have the primary cardholder contact the credit card issuer and remove the authorized user from the account. Once this is done the process of removing the card from their credit reports has begun. The next step is to have the authorized user contact the credit reporting agencies and let them know that they have been removed this person from the card and to please have the account removed from the credit report.

Give them 30 days to complete their work and they’ll send you a letter summarizing their actions.

Important: Once the account is removed you will lose ALL benefits from that authorized user account. Credit scores are calculated on the fly and will not remember that account. If that account was delinquent or heavily leveraged then it was probably hurting your credit scores. Therefore having it removed could result in an increase credit score(s) but that’s not a guarantee. The payment history of an account is extremely important in both your FICO and VantageScore credit scores, as is the debt-to-limit ratio measurements. However there could have been other factors that leaving that account on there could have helped your score e.g length of time or history.

If you’re removing one bad account and there are still negative items left behind just don’t bank on a better credit score. Negative information is not always valued as some believe therefore, you won’t increase your score by a certain number of points just because something bad was removed from your credit reports.

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