Removing an authorized user from your American Express account is a straightforward process that can help protect your credit rating and maintain control over your account. An authorized user is someone added to your credit card account who can make purchases, but they are not legally responsible for repaying the debt. However, their activity on the account can impact both their credit score and yours.
Understanding the Role of an Authorized User
Credit Impact: The account’s payment history and credit utilization can affect the authorized user’s credit score. If the account is well-managed, it can benefit the authorized user’s credit profile. Conversely, mismanagement can harm it.
Primary Account Holder’s Responsibility: As the primary cardholder, you are responsible for all charges made on the account, including those by authorized users.
Steps to Remove an Authorized User from Your American Express Account
Retrieve the Authorized User’s Card: Collect the physical card issued to the authorized user. This ensures that the card cannot be used after removal.
Contact American Express Customer Service: Call the American Express customer service department at 866-913-4282. Inform the representative that you wish to remove an authorized user from your account. Note that this change cannot be made through the American Express website.
Destroy the Authorized User’s Card: Once the authorized user has been removed, destroy the physical card by cutting it up or shredding it. This prevents any future unauthorized use.
Considerations Before Removing an Authorized User
Impact on Credit Score: The authorized user’s credit score may be affected, as they will no longer benefit from the account’s positive payment history. Additionally, if the account had a high credit limit, its removal could increase the user’s credit utilization ratio, potentially lowering their score.
Communication with the Authorized User: It’s advisable to discuss the removal with the authorized user. This ensures they are aware of the change and can take steps to manage their credit independently.
Alternative Solutions: If the concern is about the authorized user’s spending habits, consider setting spending limits or monitoring their activity instead of removal. This allows them to maintain their credit history while addressing specific issues.
Potential Impact on Credit Scores
Removing an authorized user can influence credit scores in the following ways:
Credit Utilization Ratio: If the authorized user had access to a significant credit limit, their removal could lower the total available credit, increasing the credit utilization ratio if they carry balances elsewhere. This change can negatively impact their credit score.
Length of Credit History: If the account was one of the user’s oldest, its removal could reduce the average age of their credit accounts, potentially affecting their score.
Best Practices After Removal
Establish Independent Credit: The authorized user should consider applying for their own credit card to build a separate credit history. This step can help them maintain a positive credit profile independent of the removed account.
Monitor Credit Reports: Both the primary account holder and the former authorized user should regularly check their credit reports to ensure accuracy and address any discrepancies promptly.
Maintain Low Credit Utilization: Keep credit card balances well below credit limits to maintain a healthy credit utilization ratio, which is beneficial for credit scores.
Conclusion
Removing an authorized user from your American Express account is a simple process that involves contacting customer service and ensuring the physical card is destroyed. However, it’s essential to consider the potential impacts on credit scores for both parties involved. Open communication and proactive steps to establish independent credit can help mitigate negative effects and support healthy credit management practices.
