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do i need to have my name removed from a credit card authorized user list to get a conventional loan

Profile picture for jjenks816
I've got a home under contract and i've just been told that i need to have my name taken off of the credit card authorized user thing.  the loan i've got is a conventional.
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August 12 - Bountiful
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Profile picture for gfacorp
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For a conventional loan you would need at least 2 or 3 real tradelines that are at least 2 years old.
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October 28
Yes sorry.... I didn't realize it was that old until it was too late....  I don't use this site very often so I am a total newbie.  I was call on this already and will pay more attention.  Sorry again
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October 27
Profile picture for Greg Darlin
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Ryan,
Are you going through all the Utah threads and answering them no matter how old?
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October 27
It sounds like you are talking about the Authorized User where you can use the card but are not a co-signer for the debt.  This used to be a way to build credit.  You could gain the positive credit history from someone else's card.  The credit agencies have removed the positive affect to your credit but it still leaves the debt payment on your report.  Without knowing more. I'm assuming that the Debt Ratio is the problem or possible its lowered your scores.  Its very easy to remove your name from the card because you are not a co-signer or was on the application to get the card approved.
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October 27
Profile picture for Gary Kinberg
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May you try FHA? What is the benefit of conventional? Do you need the use of these cards because if so why not just put the card holder on the loan as a non-occupant co-borrower; if you don't need to use the cards, do as underwriting requires or restructure the loan (or the loan officer\lender).
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August 17
Guess the banks finally caught on to this practice. 

Here is the deal with AU accounts.  They raise your scores but don't give you a real tradeline for home loan underwriting purposes.  You will not be able to use these tradelines when there is an actual underwriter (set of eyes) overlooking the credit report.

You were supposed to apply for your own credit cards (automated approval) after your score was boosted with an AU account to create your own "real" tradeline.  Then after 2 years you would actually qualify for a home loan. 

For a conventional loan you would need at least 2 or 3 real tradelines that are at least 2 years old. 

The reason the underwriter is asking that you are removed from the AU accounts is because they want to remove the artificial score(s). 
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August 17
Profile picture for Georgia Loans
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This is the first time i have heard of this. The credit bureaus were supposed to have fixed this by holding those accts out of the scoring and it may be that your scores will not be affected but who knows. If the accts are several years old with low balances and excellent pay history and are factored in, then it could lower the score. In the past, someone with limited credit could be added as an authorized user and all the sudden their scores went up 100 or more points because of someone else's great history, then there are the paid for auth accts, some paying $1000-$2500 to be added to an auth acct with 10 year history/25K credit line and 0 balance. They could not use the acct, just benefit from the spike in credit score. That was someone's version of credit repair. The key to your situation is what tradelines do you have aside from those? How many, how old, pay history and balance? Please share the name of the lender too, thanks. 
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August 12
Profile picture for jjenks816
my family has a business and I have two credit cards that i'm an authorized user on. One is a gas card and the other is a Home Depot card.   And I was told that i must have my name removed from these card because they affect my credit for better or worse.  And once my name has been removed from them, then they will recalculate my credit score.  why is this a problem?
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August 12
Profile picture for wetdawgs
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Could you explain "credit card authorized user thing".
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August 12
Profile picture for CA UMB
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I don't think this will matter but you need to explaint this in more detail. ... Thank you, Rudi
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August 12
 

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