AU Question

[soccer5]

During my credit rebuilding process,  my brother added me to his PNC credit card as an AU. He has a perfect payment history of over 6 years and a limit of $20k with about 10% util. This helped me greatly and I got a decent score bump. I then received CCs from NFCU (and Navchek) and PSECU plus some store cards giving me a total credit limit of over $20k not counting my AU account. I know if I drop the AU account,  my AAoA and Util will take a big hit.  But my annual wages are just under my total credit limit of about $43k (counting the AU acct). I'm not worried about this too much right now as I'm in the garden,  but will this affect me from getting credit in the future? I seem to remember in a past denial letter that one of the reasons listed was total credit limits being higher than reported wages? What should I do with the AU acct? I wouldn't want NFCU to deny me auto or soft pull CLIs or an auto loan (need one in spring) due to having too much credit in relation to my wages. Thoughts?

[djc1puno]

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@soccer5 wrote:

During my credit rebuilding process,  my brother added me to his PNC credit card as an AU. He has a perfect payment history of over 6 years and a limit of $20k with about 10% util. This helped me greatly and I got a decent score bump. I then received CCs from NFCU (and Navchek) and PSECU plus some store cards giving me a total credit limit of over $20k not counting my AU account. I know if I drop the AU account,  my AAoA and Util will take a big hit.  But my annual wages are just under my total credit limit of about $43k (counting the AU acct). I'm not worried about this too much right now as I'm in the garden,  but will this affect me from getting credit in the future? I seem to remember in a past denial letter that one of the reasons listed was total credit limits being higher than reported wages? What should I do with the AU acct? I wouldn't want NFCU to deny me auto or soft pull CLIs or an auto loan (need one in spring) due to having too much credit in relation to my wages. Thoughts?

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you can probably drop you AU cc...the biggest drop would come from you total utilization since your TL will be cut in half...if you can absorb the less TL, then i would do go ahead and remove it...also, it'll stay in your CRs for 10 years even after it's closed

[soccer5]

Yeah that's kind of what I was thinking, but I'm always looking for opinions here because the helpfulness of the people on this forum is a big reason for my rebuilding success. 

[soccer5]

Ok so I got my denial letter from NFCU (last app before joining the garden) for a personal loan and the reason stated was "Excessive credit obligations in relation to income." What does that mean?  My total util is only 15% and total debt is only $6700. My annual wages are just under $40k. EQ fico is 620, dropped some. So do you think the reason is the AU CC with the $20k limit or just that I've only been with NFCU for a couple months? 

[myjourney]

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@soccer5 wrote:

Ok so I got my denial letter from NFCU (last app before joining the garden) for a personal loan and the reason stated was "Excessive credit obligations in relation to income." What does that mean?  My total util is only 15% and total debt is only $6700. My annual wages are just under $40k. EQ fico is 620, dropped some. So do you think the reason is the AU CC with the $20k limit or just that I've only been with NFCU for a couple months? 

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Just curious what's your DTI?

Home,cars,loans,CC's etc 

[soccer5]

My total outstanding debt is $8600. I rent currently and have no car payments or student loans etc. I make about $38.5k a year. I have not added my wifes income to anything because her credit is horrible,  we are in the process of repairing hers too. So everything I have is solo, no joint accounts.

[myjourney]

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@soccer5 wrote:

My total outstanding debt is $8600. I rent currently and have no car payments or student loans etc. I make about $38.5k a year. I have not added my wifes income to anything because her credit is horrible,  we are in the process of repairing hers too. So everything I have is solo, no joint accounts.

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So now this is just a rough est. w/o knowing what you pay for rent and food etc etc 

But it looks like your actual DTI w'$8600+ rent etc etc maybe close to 30-40% which some lenders may view as high 

Just guessing based on the letter 20+% being $8600