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Credit Card Authorized User Management

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Normally I always have a credit card bonus I am working on.  Either with myself as primary and my wife as authorized user or vice versa.  Yesterday I was denied for the Capital One Spark offer for "too many recent accounts."  I checked my report(s) and see that I have 4 new accounts in 6 months, but 2 of them are as an authorized user.  That made me think I should start closing and removing authorized users every time we are done with a card.  This is something I have never bothered with before.  Its also interesting that people talk about Chase 5/24 as counting authorized users, but it seems like CapOne also does it. (unless they denied me for only 2 cards in 6 months).

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rated:
Using AU (or joint accounts) is a bad idea not only because it increases your "recent account" counts, but also because it limits the total amount of money you can each borrow individually (per-issuer and total credit lines), because your credit report is burdened by AU (or joint) credit lines (and debt).

Also the subject line sounds like a technology question. Please prepend "Credit Card" to it.

rated:
scripta said:   Using AU (or joint accounts) is a bad idea not only because it increases your "recent account" counts, but also because it limits the total amount of money you can each borrow individually (per-issuer and total credit lines), because your credit report is burdened by AU (or joint) credit lines (and debt).

Also the subject line sounds like a technology question. Please prepend "Credit Card" to it.

  But if AU's can be removed, that takes care of the downsides.  The upside of AU is that we are able to hit the spending goal much faster.  I doubt we would even be able to spend enough if it was only me spending.

rated:
The other bad thing is Capital One hits all three credit bureaus increasing your hard pull count on each one. I can remember when hard pulls importance dropped off after one year. Now according to multiple sources, it is two years for most reports. So in addition to the number of cards you have, hard pulls can be a killer to success. Hard pulls can be different counts for each credit bureau. At a certain point, you may have to take that into account.
My counts Experian 12 / Transunion 5 / Equifax 3. Of those, I have two applications that pulled all three and one review that pulled two reports. At the end of April, most of them will be just over a year since being pulled.

You may want to remove the authorized user, but keep the card on hand for the primary user.
Removing an authorized user - http://www.doctorofcredit.com/removing-authorized-user-accounts-...

FICO Factors - http://www.rd.com/advice/saving-money/your-credit-score-the-magi...

rated:
We stopped doing AU on "bonus only" credit card signups. The practical matter is that it's pretty easy for either of us to use the other's card. Any online payments are obviously fine, but even in person, generally no one looks at a card. It does happen, so we each also keep our daily spender with us always. Worst (and very rare for us) case is we pay with that instead.

I would worry that removing an AU would look like a closed card. Chase counted a closed account toward their 5/24 on my wife's recent application.

rated:
SlimTim said:   We stopped doing AU on "bonus only" credit card signups. The practical matter is that it's pretty easy for either of us to use the other's card. Any online payments are obviously fine, but even in person, generally no one looks at a card. It does happen, so we each also keep our daily spender with us always. Worst (and very rare for us) case is we pay with that instead.

I would worry that removing an AU would look like a closed card. Chase counted a closed account toward their 5/24 on my wife's recent application.

From what I have read AUs can be completely removed, not show up as closed.  I'm going to try it on a BofA card from the recent Merrill Lynch bonus program.

I hear you about being able to use each other's card.  Might resort to that if removing AUs doesn't work out.  

rated:
cameron2003 said:   
SlimTim said:   We stopped doing AU on "bonus only" credit card signups. The practical matter is that it's pretty easy for either of us to use the other's card. Any online payments are obviously fine, but even in person, generally no one looks at a card. It does happen, so we each also keep our daily spender with us always. Worst (and very rare for us) case is we pay with that instead.

I would worry that removing an AU would look like a closed card. Chase counted a closed account toward their 5/24 on my wife's recent application.

From what I have read AUs can be completely removed, not show up as closed.  I'm going to try it on a BofA card from the recent Merrill Lynch bonus program.

I hear you about being able to use each other's card.  Might resort to that if removing AUs doesn't work out.  

  Yea, do refer to the DoC guide and the forum posters' experiences. 

Chase, for example, makes it very easy to remove AU accounts with just a phone call, while Citi is more onerous.

rated:
Once he AU is removed from the account, the AU can then dispute that account on their credit report(s) as "no longer liable" or some such thing. Works at a 100% rate for me so far.

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