Why did my credit score drop after being added as an authorized user?

Why Did My Credit Score Drop After Being Added as an Authorized User?

Adding an authorized user to your credit card account can be a convenient way to help someone build or improve their credit. However, it’s important to be aware that it can also impact your own credit score. In some cases, adding an authorized user can actually lower your score.

Here are a few reasons why:

• Late payments: If the authorized user makes late payments on the account, it will negatively impact your credit score. This is because late payments are one of the most damaging factors to your credit.
• High balances: If the authorized user carries a high balance on the account, it can also lower your credit score. This is because high balances can indicate that you’re struggling to manage your debt.
• Other negative account activity: Any other negative account activity, such as exceeding the credit limit or closing the account, can also impact your credit score.

It’s important to note that the impact of adding an authorized user to your credit report can vary depending on a number of factors, including:

• Your credit history: If you have a strong credit history, the impact of adding an authorized user will likely be minimal. However, if you have a poor credit history, adding an authorized user could have a more negative impact.
• The authorized user’s credit history: If the authorized user has a good credit history, it could actually help to improve your score. However, if the authorized user has a poor credit history, it could lower your score.
• The amount of authorized users: The more authorized users you add to your account, the greater the potential impact on your credit score.

If you’re considering adding an authorized user to your credit card account, it’s important to weigh the potential benefits and risks. If you’re concerned about the impact it could have on your credit score, you may want to consider talking to a credit counselor or financial advisor.