One simple way to help someone build credit is to add them to your credit cardas an authorized user.
Once you remove them, though, there are a couple of ways it could impact their credit.
There are a various reasons why you’d want to drop someone as an authorized user on your card.
Maybe the user is your child, and they’re ready to build their own score.
Maybe you decided adding this person wasn’t a good idea in the first place.
Maybe you simply want to kill the card.
First, it could impact the length of their credit history.
Your credit age makes up15 percent of your FICO score.
Probably a bigger factor iscredit utilization, which makes up 30 percent of a score.
This is the ratio of available credit they have to the amount they’re actually using.
If you drop them from your card, their credit line drops, too.
And this could increase their ratio.
“This is typically calculated individually and in the aggregate.
If they’ve built their credit quite a bit, though, the impact could be minimal.
Check out Credit.com’s full post for more detail.
