Bank Of America Remove Authorized User Credit Card. Here’s what it means to make someone an authorized user of your account, some great reasons to remove someone from your credit card account, and how to do it properly (and elegantly) at each of the major credit card issuers.
Authorized User Rights And Restrictions
If you’ve allowed someone to use your credit cards as an authorized user, there may come a time when you want to revoke their privileges. As the Master Account Holder, it is your decision to terminate the Agreement for any reason at any time.
Although the credit card issuer doesn’t ask for an explanation, it’s often a good idea to notify the person who has access to your account first.
All credit card accounts are protected two factor authentication
All major credit card issuers allow primary account holders to assign additional cardholders. Authorized users do not need to go through a qualification process as they are never the account holders. Instead, they are invited guests.
The credit cards they receive have the same account numbers as yours but have their names printed on them. Users are legally authorized to transact and very often can report lost or stolen cards, verify and discuss account information with the issuer, initiate billing disputes and remove late payment. Some can even complete a balance transfer.
As a primary account holder, depending on the issuer and card, you may be able to set a lower limit for authorized users so they don’t have full access to your credit limit.
Most credit issuers supply account information to authorized users’ credit reports, and once listed, the account activity counts towards that person’s credit score. As long as you run the account well by making all payments on time and keeping the credit utilization rate low, the authorized user’s credit history and standing will benefit.
However, authorized users are never obliged to pay the issuer. As the main account holder, you are fully liable for payments and debts, even if you did not collect the fees. It is therefore important that you remain in control of the account at all times.
First create a set of rules. For example, you can expect the authorized user to:
- Reimburse you for all or part of the Fees
- Only shop at certain stores or buy certain things
- Do not charge more than a fixed amount per month
- Contact you before making the transaction to get your permission
- Only use the card in extreme emergencies
When To Remove An Authorized User From Your Account
While you don’t have to give the credit card issuer a reason if you cancel the authorized use relationship, there are some reasonable reasons for doing so, including:
Change of employment status: “It’s common for employers to make employees authorized users on their business cards,” Steele said. “But if their job responsibilities or travel requirements change, or the person leaves the company, remove them from the map.”
Divorce or Separation: Even separating couples need to watch their cards, Steele said. If your partner is listed as an authorized user and you don’t trust that person to handle the credit card with care, don’t hesitate to get access to the account.
Broken Rules: If the authorized user isn’t honoring the agreement, you may want to pull the plug — especially if it results in unmanageable payments or a high balance to contend with.
Take Back Control: When others have access to your credit card account, you may feel a growing sense of unease about the possibility of debt or credit damage. In the end, you may decide that account sharing just isn’t for you.
Financial instability: You may have informed the authorized user that
that you will pay the fees because you could afford them at the time. However, if your financial circumstances have changed and you are no longer able to pay for it, this arrangement may not make sense.
Reduced Credit Line: Credit card issuers have the right to reduce credit lines, and if you do, the account may not have enough loading power for additional cardholders.
Account not in good standing: If you are or are behind on payments, or the balance has steadily increased to more than 30% of the credit limit, the card does not benefit the authorized user’s (or your) creditworthiness, so you can use the person undress just as well.
Credit history built: If you wanted to help the person build a credit history so they could qualify for their own card and that goal was achieved, it may be time to remove the person from your card.
No longer necessary: Many parents let their young adult children jump on their card to cover possible emergencies and learn how to deal with loans properly. That’s what Lisa Shamus, President of brand firm Lisa Shamus & Partners, did. “I wanted her to have it when she was in college and traveling abroad,” Shamus said. “I removed it when she graduated and got her first job. She has her own card and pays her own bills.”
And if an authorized user wants out of the arrangement? This person can leave your account at any time without your permission – or your knowledge – by making a telephone request to the credit card issuer.
How To Tell An Authorized User It’s Over
Although there is no law or policy that requires you to notify the person that you are removing them from your account, in many cases this is a good idea.
“If you have an authorized user who has abused the privilege, you need to remove the person from your account,” said Beverly Harzog, credit card expert. “Don’t insult the person, but explain why. This is an opportunity to enlighten someone on how credit works. And also discuss how irresponsible behavior with your credit card affects your credit score.”
In the event that you remove the person from your card for a positive or neutral reason, or it is a personal decision unrelated to them, simply explain your change of plan. Provide a date for when you will take this action so they can prepare, especially if they want to apply for a credit card or loan on their own behalf.
Typically, when you notify the credit card issuer that you are removing the authorized user from your account, the issuer submits a complaint form to the three credit reporting agencies: TransUnion, Equifax, and Experian.
“The timing is important,” said Ulzheimer. “Authorized users should apply for their own cards while the card is still on their credit reports. If you remove them from your account, the card will be deleted from their credit reports, so any value it gave them will be lost.”
Conversely, if you think the person is going to take the opportunity to file a lot of charges (as might be the case with an acrimonious breakup), an unannounced closure can protect you from unwanted debt.
In general, credit card issuers do not notify people that they are no longer authorized users. That is up to you, the main cardholder. Also make sure you ask them to return the card to you or to destroy it. If the person doesn’t and you think they’ll try to use it, contact the issuer to have the account numbers changed, which will render any old cards useless.
Bank Of America Remove Authorized User Credit Card
Bank of America customized cash rewards for students, which is easy to add and remove an authorized user.
Although add authorized user to checking account is typically done on the card issuer’s website, in the app, or over the phone. Bank of America has not yet issued this service online banking
Many card issuers only remove authorized users over the phone by providing authorization code.
Below are the customer service phone numbers
Also related to US Bank Add Authorized User To Checking Account
Can An Authorized User Remove Themselves From Someone Else’s Account?
An Authorized User may request to be removed from an Account by contacting an Issuer either online or by telephone.
The authorized user no longer has access to a line of credit if they are not a separate credit card account holder. This means that when applying for a new card, a credit report may not show an existing credit limit. This may be a red flag for some issuers.
If the Authorized User attempts to move on and become the main account holder of another credit card, the new card application should be completed (and ideally accepted) before it is removed from someone else’s account.
How Being An Authorized User Affects Your Balance
Depending on the primary cardholder’s financial habits, becoming an authorized user can be a good or bad thing. If the account holder makes payments on time and keeps balances low, your credit score can improve. For this reason, students, young adults, or those with a shaky credit history are often recommended to become an authorized user to start rebuilding their credit score.
On the other hand, if the primary cardholder is regularly late on payments, runs out of card balances, or carries a high balance, the credit bureau could use that information against the authorized user.
Late payments may appear as derogatory marks on your Equifax and TransUnion credit reports. Your credit score could also suffer from a high credit utilization rate, which is the second most important factor in determining your credit score.
Remain As An Authorized User
If you do not request that the account be deleted as an authorized user, you can still use the card. No activity is showing on your credit report.
It might be in your best interest to work with the cardholder and pay off the debt together – especially if you were responsible for some of the fees. However, you are under no legal obligation to make any payments as the debt is not in your name.
The situation changes a bit if you are married to the main cardholder. In a community of property states, the spouse is legally liable for debts incurred by a spouse during the marriage.
Concerned about how removing an authorized user from your account might affect your credit reports and ratings? Do not be.
“There will be no record of you removing the person from your card because they were not on your report at all,” Ulzheimer said. “So you don’t have to worry about any negative repercussions when you make the change.”
Once you’ve contacted the issuer to make the request, reclaimed or destroyed the user’s card (or changed the account numbers), you don’t need to do anything else. You’ll have the account all to yourself again.
Bank of America allows users to change, add, remove authorized user, but you need to follow their process. Hopefully, these information is helpful. Read more on our website at Powerpacplus to find about banking and digital banks