topic AU on a CC to help score? in Rebuilding Your Credit

AU on a CC to help score?

firsttimemama — Tue, 01 May 2012 03:05:03 GMT

In what (if any) does becoming an AU on a CC help your credit score?

Re: AU on a CC to help score?

MarineVietVet — Tue, 01 May 2012 04:26:07 GMT

firsttimemama wrote:
In what (if any) does becoming an AU on a CC help your credit score?

First of there are certain criteria that should be met in order for you to be hepled as an AU:

1. The account needs to be older than any of yours (older than your current AAoA is even better),

2. The payment history should be long and clean,

3. The utilization needs to be very low, and

4. It has to report to the CRA's. Not all cards will do this. You need to ask the company first.

You will inherit the entire history of this account. Which means it can increase your AAoA (Average Age of Accounts) and credit length history. It can also help your utilization by increasing your overall CL's.

One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

Re: AU on a CC to help score?

firsttimemama — Tue, 01 May 2012 13:20:59 GMT

MarineVietVet wrote:
firsttimemama wrote:
In what (if any) does becoming an AU on a CC help your credit score?

First of there are certain criteria that should be met in order for you to be hepled as an AU:

1. The account needs to be older than any of yours (older than your current AAoA is even better),
2. The payment history should be long and clean,
3. The utilization needs to be very low, and
4. It has to report to the CRA's. Not all cards will do this. You need to ask the company first.

You will inherit the entire history of this account. Which means it can increase your AAoA (Average Age of Accounts) and credit length history. It can also help your utilization by increasing your overall CL's. That's what I was counting on since right now I only have 2 open TLs and it seems that 3 is optimal.

One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind. It's my mom's account. She doesn't believe in keeping a balance on any card and ALWAYS pays on time. I'm very fortunate that she's willing to help!

Thanks for the info!