Bad credit history may be inherited from your parents

Bad credit history may be inherited from your parentsIn order for new consumers to dive into the world of credit, parents often add their children as authorized users of their credit cards. This is a great way for them to start out, but only if the parents have ideal FICO scores, otherwise they are passing down a bad credit history.

A parent's credit history is automatically reflected in the child's once they confirm his or her authorization on the account. However, those who have a poor credit score are passing that along, as well. Regardless of how well the new borrower follows the rules of credit (timely payments, a low debt-to-credit ratio, etc.) their history may be damaged because they inherited mom or dad's bad spending habits.

Luckily, authorized users are not responsible for their parents' debt and the blemishes will be removed from their credit reports as soon as they are removed from the account. Authorized users, however, are not allowed to unauthorize themselves, as the bank will want the main account holder to make the move.

Make sure to get a written document from the bank that proves the removal of your name from the bad account. After doing so, it may take up to 30 days for your score to be adjusted.