I’d like to add something, if I may. If you’ve been added as an authorized user and your “host” suddenly goes rogue with their card, you can always call the card’s issuer and have them remove yourself from their account. Just keep in mind that doing so will remove the tradeline from your report.
Thank you for the video! I'm curious: if you've defaulted on the airline credit cards (lounge access, etc. like Chase) and later settled with them, do you think there's ever going to be a time you can open a new airline card with that company? Am I forever banished from the admiral's club?
If the credit card itself is the reason you have access, and the card is closed due to default, I can see access to the card bennies being blocked. If the card is more about all your purchases helping you get extra miles towards qualifying or maintaining your elite status, but your airline reward status is how you get the bennies, defaulting would typically not affect that. In a situation where Chase is the card you build points with Southwest or United, you may not get another Chase airline reward card after defaulting and settling with them.
So my nephew is an authorized user to one of my accounts. My question is that since he got a pretty good boost to his credit score, he got his own credit card now. My question is if his utilization rate is based off my card and his card combined now? or is it just his now ? and if one card is over utilized (his, $500 limit) while the other not (mine, 19k limit), could that affect his score?
Utilization can be defined as including all accounts on the credit reports, and at the individual card level. Conventional wisdom is to keep your individual credit card usage to under 30 percent utilization. I try to keep it even lower than that. He could be impacted if your credit card that he is an authorized user on goes over that 30 percent utilization.
@@MichaelBovee Thanks for the response. Well so to be clear, his utilization rate is determined by three factors. 1) his own credit card that he has 2) my card in which hes an authorized user on 3) the combined total utilization of both cards limits together ? If this is the case, would any one of these take priorities when calculating his credit score? Thanks again.
