11-09-2012 01:53 PM
We just sold our home & went to get pre-approved for a new mortgage, and found out that my scores are significantly lower than what I believed. This means that I need to improve them as quickly as humanly possible in order to qualify (ideally within the next 30 days). My scores are being driven down primarily due to high credit card utilization (currently at 77%). I will have paid off all accounts to zero balances within the next two weeks, except for one card - which is my husband's and I am an authorized user on. I do not have the funds to pay this off in full within the next few weeks.
My accounts that I have paid off, have total limit of approximately $4000 and have a fairly long credit history (more than a few years on each of them). My husband's card that I cannot pay off, has a $2000 limit with a $1900 balance.
My question is - should I remove myself as an authorized user & get his account off my report - which would bring down my utilization to 0%, or leave it on there - even though it has a high utilization. I"m just worried if I remove it - it might negatively effect my score in some way!
Any advice is APPRECIATED!!
11-09-2012 02:39 PM
so 1900/6000 after your debts are paid off it would help a lot to remove it most likely, but at the sametime even if you do succeed in trying it probably won't be done within 30 days since you never know when the card companies will issue an update, if they just did you might have to wait longer than 30days.
only way to get it down for sure is by doing a rapid rescore, but that costs a lot and might as well pay your husbands debt down instead. Otherwise best option out there for your score is to drown your debt ratio with a much higher credit limit if you can find anyone with a very high CL to add you guys as an AU would do the trick just nicely. that's the most ideal way but not always the easiest to find. People who don't know that AU is not a bad thing with very little to no risk, they think it's something tricky or etc cause it does sound too good to be true scenarios.
11-09-2012 03:41 PM - edited 11-09-2012 03:47 PM
Thanks - my mother-in-law has added me as an AU on her card ($4k balance with a $25k limit) but its not shown up on my report yet!
My cc's should be updated to $0 based on what the previous balance was when they reported by early December from what I can tell. Should I dispute on my report the AU account for my husbands card(once I confirm they've removed me) to expedite the process?
We have a place to stay in the meantime butwould like to get per approvewas soon as we can.