My mom opened a credit card in my name years ago to help me build credit — but I just found out it has a $40,000 balance. What can I do?

When she gave her the card, Angie’s mom said it was supposed to help build her credit. Instead, the unpaid balance has trashed the score she was counting on to rent her first apartment.

So how does being added to a parent’s account turn into tens of thousands of dollars of debt you never agreed to — and once it happens, what can actually be done?

How authorized credit cards work

Many teens or young adults don’t understand what being an authorized user on a credit card actually means when their parents hand them a credit card. The kid might think this is their credit card. Or, they may know they’re an authorized user, but don’t fully grasp what that means. (Heck, the parents may not fully understand, either.)

Angie’s mom originally decided to add her as an authorized user on their credit card because it was simpler than giving her gas money all the time. And they figured since her name and credit profile were attached to the card, it’d give her a headstart on building a credit record.

However, parents should know that plan only works if the card issuer actually reports authorized-user activity to the credit bureaus — federal law doesn’t require it. Some issuers report it by default; others only do it under certain conditions, or not at all. Anyone adding a child to a card specifically to build their credit should ask the issuer directly whether — and to which bureaus — authorized-user activity gets reported, since a card that doesn’t report won’t help (or harm) anyone’s score but the primary holder’s.

Assuming the card issuer does report an authorized user’s activity to the credit bureaus, how would Angie have built credit? Ideally, her mom would have been making regular payments on the card. Payment history comprises 35% of your FICO score. Credit age accounts for another 15%, so since she’d already had the credit card for six years at that point, Angie’s credit score should have been solid.

Her mom may have intended to help Angie build credit, but this $40,000 credit card debt has actually hurt her score. By not making regular payments and allowing debt to accrue, that 35% payment history section of her score has taken a major hit.

Don’t forget that amounts owed make up another 30% of your FICO score — since that $40,000 balance is likely a large percentage of the available credit on Angie’s mom’s card, her score is likely being impacted by that as well.

When children are authorized users on their parents’ credit cards, their financial habits can affect their parents. But the opposite is also true — and in this case, her mom’s debt has directly impacted Angie.

The $40,000 credit card debt isn’t her responsibility

The $40,000 credit card debt may affect Angie’s credit score, but there is good news: She is not legally responsible for paying off the amount her mom accumulated.

Her mom is the primary account holders, so she’s the one who’ll be on the hook for the $40,000 owed, along with any associated late fees. Collection agencies may reach out to Angie about the debt simply because they made a mistake. There’s a chance she could be contacted by unethical collectors, hoping they can convince an authorized user to repay the debt. Regardless, as the CFPB confirms, she is not on the hook and those agencies cannot force her to pay.

In fact, if a collection agency or bureau ever lists her as jointly liable rather than an authorized user, Angie has a right under the Fair Credit Reporting Act to dispute it directly with the bureaus.

But what if Angie’s mom doesn’t pay down the debt? What if they accumulate even more? While this would be a tough situation for the family overall, Angie might want to consider minimizing the damage to her credit by removing herself as an authorized user.

How to remove an authorized user from a credit card

The steps to removing herself as an authorized user from her mom’s card depend on which credit card company Angie’s family uses. Some will allow her to make the decision herself, while others will require a primary cardholder to do so.

Having to ask her mom for help here could prove uncomfortable for Angie. But if her low credit score is impacting her life, then it’s worth trying.