Back in my teenage years I was added to my mom's credit card account
as an authorized user. I have not used this card in several years, but
have never closed it since it helps establish a long credit history on
my report. (My mom has had the account since 1979, so to the reporting
agencies my history appears to be about as old as I am!)

Recently I ran a credit report and noticed that the card has a balance
of several thousand dollars. Even though this is not my debt,  the
account is now creating a negative hit on my credit report, with the
stated reason being that my debt to income ratio is too high.  While
this isn't an issue for my mom since she makes significantly more
money than me, I would like to remove this negative item.

What I would like answered is this:

1. If I remove myself from the account as an authorized user, would
the debt no longer be listed on my credit report, thus removing the negative
hit against my score?

2. (Extra Credit) If the answer to question one is yes, which course
of action would most likely offer a more positive outcome: cancelling
the card to remove the debt from my report, or keeping the card to
maintain the long history? (If I  remove the card, my credit history
would begin around 1996)

Personally, I believe that FICO scores are a ridiculous predictor of a
person's credit-worthiness -- as evidenced by the steadily increasing
number of bankruptcies in this country. Any help sorting through this
complicated issue will be greatly appreciated.

--

I would get myself removed from your mom's card and when that's done
ask the credit agencies to update their records.

Submit a request for investigation to the credit bureau that issued
the report. Generally you can do this online. State that it is not
your debt. If you were under 18 when you received the card, indicate
this fact as well.

Per the FCRA, the credit bureaus cannot report to an authorized user's
credit report.  You MUST have had firm offer of credit, employment, or
insurance.

For more details...

http://creditinfocenter.com/creditreports/AuthorizedUsers.shtml

If the history on this card is good (no late payments, etc), other
than a high debt:limit ratio, you might ask the card issuer to raise
the limit.   If the limit is $5000 and the debt is $4000, ask for a
limit raise to $10000.   This would be a better option than removing
the information altogether from your report.