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Regular Contributor
Posts: 123
Registered: ‎08-21-2013
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AU Question

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?

Starting Score: EX 549 EQ 465 TU 477
Current Score: EX 714 EQ 681 TU 727 EX Fico (PSECU) 683 EQ Fico 676 (MyFico) TU Fico (WalMart) 701 as of 6/6/2014
Goal Score: 700's
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Registered: ‎03-07-2013
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Re: AU Question


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?


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 :smileyhappy:



GARDEN GOAL: MARCH 2014
LAST APP: 08/20/2013
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Regular Contributor
Posts: 123
Registered: ‎08-21-2013
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Re: AU Question

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. 

Starting Score: EX 549 EQ 465 TU 477
Current Score: EX 714 EQ 681 TU 727 EX Fico (PSECU) 683 EQ Fico 676 (MyFico) TU Fico (WalMart) 701 as of 6/6/2014
Goal Score: 700's
Regular Contributor
Posts: 123
Registered: ‎08-21-2013
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Re: AU Question

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? 

Starting Score: EX 549 EQ 465 TU 477
Current Score: EX 714 EQ 681 TU 727 EX Fico (PSECU) 683 EQ Fico 676 (MyFico) TU Fico (WalMart) 701 as of 6/6/2014
Goal Score: 700's
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Senior Contributor
Posts: 26,763
Registered: ‎02-07-2013
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Re: AU Question


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? 


Just curious what's your DTI?

Home,cars,loans,CC's etc 



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Regular Contributor
Posts: 123
Registered: ‎08-21-2013
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Re: AU Question

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.

Starting Score: EX 549 EQ 465 TU 477
Current Score: EX 714 EQ 681 TU 727 EX Fico (PSECU) 683 EQ Fico 676 (MyFico) TU Fico (WalMart) 701 as of 6/6/2014
Goal Score: 700's
Community Leader
Senior Contributor
Posts: 26,763
Registered: ‎02-07-2013
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Re: AU Question


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.


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

 



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