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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Credit Experts
Can you please help me with a few questions I'm unclear on?
Authorized user accounts:
If you're an authorized user on the account, does it count as your debt? I got on FH's accounts because he has a good payment history and i thought it would help my credit. Now it is hurting me, since it makes my debt/income ratio look upside down (more debt than income), and I have had my rates raised and been denied credit for this reason. I am trying to straighten this out. It was my understanding thought hat this is not my debt. why is it showing up as such? Does it effect my score?
Student Loan Debt:
Is this really good debt? Should I pay it off early if I can, or is it "good" are there other "good" debts?
Scores:
If they have been counting FH's debt against my score, is there a way to get them to reevaluate my score?
TIA! 
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Posted 2/27/08 8:52 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Credit Experts
I don't know much about an authorized user - I would assume it acts much in the way a co-signer would, in which you are just as liable for the account as your DH. If it is, indeed, hurting your credit, and your score, I'd consider getting yourself removed as an authorized user for his accounts. But, keep in mind, it would take some time for that to reflect on the credit report - it usually takes a few months for the credit agencies to update their records.
As for your school debt - I know for myself, it's worth keeping around. It's good debt because I pay it on time, each month so it builds up my credit. Also, my interest rate is so ridiculously low (1.85%) that it doesn't make sense to pay it off quickly. In the alternative, if you can't make your payments regularly, or if your interest rate is very high, I would first consider consolidating at a lower interest rate, or, if you have trouble making your payments on time, to just pay it off.
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| Posted 2/27/08 8:57 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Credit Experts
Question 1 re: authorized user. Yes, it does count as your debt. Think of it as being a co-signer on a loan.
Question 2. Student Loan debt. Although student loan debt is referred to as good debt, it's still debt.
What do you mean FH's debt against your debt?
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| Posted 2/27/08 8:57 AM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Experts
I'm pretty sure as an authorized user I am NOT responsible.
My student loan rate is consolidated at like 4%. I pay it on time. i used to pay extra $$ to it, but now I started paying the extra to my CC's. I was wondering if I should pay it off after my credit cards are done or keep it for the 10 years. It sounds like I should keep it.
Thanks!
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| Posted 2/27/08 8:58 AM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Experts
Posted by bicosi
Question 1 re: authorized user. Yes, it does count as your debt. Think of it as being a co-signer on a loan.
Question 2. Student Loan debt. Although student loan debt is referred to as good debt, it's still debt.
What do you mean FH's debt against your debt?
Against my score. So does the debt/credit ratio that comes from factoring in his debt (I;m an authorized user) go into determining my score?
My score is kind of s*cky, and I did have a handful of late payments 3+ years ago, but since then I've been perfect with payment.
ETA: If I had known his debt would be my debt I would not have done it. i was trying to HELP my credit, but then FH got laid off and survived by charging up CCs 
Message edited 2/27/2008 9:03:10 AM.
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| Posted 2/27/08 9:00 AM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Experts
Ok apparently it will not be used in determining FICO score as of this year. All of the scores I have are from before this was implemented.
Article
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| Posted 2/27/08 9:04 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Credit Experts
Posted by JenniferEver
I'm pretty sure as an authorized user I am NOT responsible.
My student loan rate is consolidated at like 4%. I pay it on time. i used to pay extra $$ to it, but now I started paying the extra to my CC's. I was wondering if I should pay it off after my credit cards are done or keep it for the 10 years. It sounds like I should keep it.
Thanks!
As an authorized user on the account, you are authorized to use the primay card holder's card, but you are NOT responsible to pay that credit card balance BUT it will still be reported on your credit report (I know it's stupid).
So if there were any late payments, missed payments, etc. that the credit card company tried to get from the primary card holder, they will report it not only to their credit burearu as the primary card holder's deliquincy but it will be reported against the authorized user as well.
(I shouldn't have used the term co-signer, because a co-signer would be resp. for repayment).
Student loan debt is perceived as good debt and I wouldn't pay it off using a credit card (plus it's only 4%). So long as you keep your credit card balances low (or $0), and as long as you are paying your student loan on time, I wouldn't worry about it. Most grantors see the student loan debt as good debt because it's an investment in your future and it's felt that you'll reap the rewards from it in the future. But either way, it's still factored into your debt to income ratio, regardless of whether or not it's good debt.
Good luck!
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| Posted 2/27/08 9:23 AM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Experts
Thanks! I would never pay it off using a credit card, I just mean once I'm out of CC debt, should I try to pay it off faster? I guess not really.
And your assessment of authorized user is what I thought, so I will keep trying to get it removed if possible.
he has no late payments, I have no recent late payments, but the amount of his debt is what's hurting me. It basically quadruples my CC debt if it's counted.
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| Posted 2/27/08 9:26 AM |
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Credit Experts
Posted by JenniferEver
Thanks! I would never pay it off using a credit card, I just mean once I'm out of CC debt, should I try to pay it off faster? I guess not really.
And your assessment of authorized user is what I thought, so I will keep trying to get it removed if possible.
he has no late payments, I have no recent late payments, but the amount of his debt is what's hurting me. It basically quadruples my CC debt if it's counted.
I would def try and pay it down as much as possible. Just as if you would pay any credit down. The quicker, the better.
Yeah, it stinks =( I would try to get yourself removed.
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| Posted 2/27/08 9:32 AM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: Credit Experts
Thanks!
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| Posted 2/27/08 9:35 AM |
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