Credit Reports

[Duncan]

I'm married, however our 100k+ of CC debt is all under my name so I will be filing Ch13 only. I've recently run annual credit reports on my wife and noticed that several of my accounts where she is listed as an "authorized user" appear on her credit reports. These accounts are all high $$ and close to 100% utilization. I didn't pay for her actual credit score, just the freebie version of the reports themselves. How, if at all, is her "authorized user" status impacted once I stop making payments on these cards later this month? We haven't been using these cards since December. Should I have her "authorized user" status revoked before I stop making payments? Not sure what to do here, but I'm trying to avoid any negative blowback on her credit standing.

[StartingOver08]

Yes, make sure you take the authorized user (your wife) off your accounts before you file.

[Flamingo]

When you file, those accounts will be closed out by the creditor and could be closed out beforehand if you are very late or have stopped paying. Your wife's SS number was provided to the creditors when you gave your wife authorization to use your account. That is why the information is showing on her accounts. YOu need to remove her from those accounts; however, information prior to filing will stay on both of your credit reports; you will need to dispute information for your wife if your BK shows up on her credit reports.

[Duncan]

Just so I make sure I understand.....If her credit report is showing all OK right now because no missed payments, and I take her off as an authorized user today.....If I stop making payments next month will those negative reports hit her credit report as well as mine? I realize that my eventual Ch13 shouldn't hit her but the negative reports for missed payments in between now and my actual filing will or won't? Also, if she is listed as an "authorized user" vs "account holder" - do the negative reports hit as hard as they would on my credit report?

Thanks for the replies so far, they're quite helpful

[Flamingo]

Just so I make sure I understand.....If her credit report is showing all OK right now because no missed payments, and I take her off as an authorized user today.....If I stop making payments next month will those negative reports hit her credit report as well as mine? I realize that my eventual Ch13 shouldn't hit her but the negative reports for missed payments in between now and my actual filing will or won't? Also, if she is listed as an "authorized user" vs "account holder" - do the negative reports hit as hard as they would on my credit report?

Thanks for the replies so far, they're quite helpful

If you remove her now while your credit is good, any negativity should not hit her credit reports; however, if the agencies are delayed in updating information, there is a possibility it could hit. You will just have to monitor theh situation and dispute as/if necessary. Think of how an authorized user is set up...it was originally set up as your account with your own credit. You added your wife on as an authorized user (not joint) and provided her SS# in order to be able to do so. She benefits from your good credit and she is able to also utilize the account. So if your credit goes down on that account as long as she is on it, so does hers.

[StartingOver08]

Make sure you remove her before you file. Make sure you do it in writing. If there is a reporting error at some future date, you will have the evidence to back it up. Mail it Certified Mail Return Receipt Request (CMRRR) and keep a record.

The incidence of errors in CR's is high.