One of the most popular ways to kickstart your credit journey is by becoming an authorized user on someone else's credit card – typically, a parent's, spouse's, or friend's card. It's an excellent method for building credit, as it allows you to leverage their established credit history (find more details in this post). However, as your credit history matures, it's crucial to consider removing yourself from that authorized user card. Why, you ask? Just as being an authorized user can bolster your credit, it can also harm it. If the primary cardholder experiences late payments or carries a high balance, your credit score will feel the impact because you're connected to the account as an authorized user.

So, when should you make the decision to cut ties with being an authorized user? Here are some key indicators:

When to Cut Ties as an Authorized User

1. You already have 12 months of your own credit history.
2. Once you've established a year of credit history in your name, it's a good time to consider parting ways with the authorized user status.
3. The primary cardholder made a late payment on the credit card.
4. If the primary cardholder starts missing payments, it's a red flag that could negatively affect your credit.
5. The primary cardholder is carrying a high balance.
6. A substantial balance on the card can also dent your credit score, so keep an eye on the utilization rate.
7. You no longer trust the primary cardholder.
8. Trust is essential in any financial arrangement. If you no longer have faith in the primary cardholder's financial responsibility, it's time to take action.

How to Properly Remove Yourself as an Authorized User

If any of the above conditions apply to your situation, it's wise to take steps to remove yourself as an authorized user and ensure the account no longer appears on your credit report. Here's a step-by-step guide:

Step #1: Contact the bank's customer service to request removal from the authorized user status on the account.

Step #2: Get in touch with the bank and ask to speak with their credit reporting department. Clearly state that the account they're reporting is not yours, you're not responsible for the balance or payments, and request its immediate removal from your credit report. Make sure to request a confirmation letter from them acknowledging the removal.

For convenience, here are the phone numbers to bank credit bureau departments:

• Amex: 1-800-874-2717
• Chase: 1-888-682-8361
• Capital One: No direct line. Request assistance from a representative.
• Citi: Fax a letter to 1-866-713-5028 with the aforementioned requests.
• Bank Of America: No direct line. Request assistance from a representative.
• Discover: No direct line. Request assistance from a representative.
• US Bank: No direct line. Request assistance from a representative.
• Wells Fargo: No direct line. Request assistance from a representative.

Step #3: Over the next 30 days, closely monitor your credit. You can do this easily and for free using platforms like Credit Karma or WalletHub. Ensure that the authorized user account vanishes from your credit report entirely. The mark "terminated" isn't sufficient; it must disappear. If it lingers after 30 days, repeat Step #2.

For those applying for a mortgage, once you obtain the bank's confirmation letter stating the removal of the authorized user account from your report, request your mortgage broker to perform a rapid rescore. This should automatically update your credit file within 48 hours.

By following these steps, you can expertly manage your authorized user status and take charge of your credit journey with confidence.