06-27-2013 06:50 PM
I am in the process of building my credit in anticipation of a new mortgage when I buy a different house in a year or two. My Fico score on myFico shows a 723 currently, but I would like to build it more than that.
Recently my parents added me as an authorized user on one of their old credit cards with a high limit and low utilization. This successfully gave me a boost (it registered on my credit report). I also recently applied for a Discover IT card and was approved. Now they have a promotion where you can refer people to sign up for the card and both parties get a $50 credit so I talked to my parents about it and they were interested.
My question is, can I be added as an authorized user if my parents get a Discover IT if I already have one?
A follow up question would be: How many is too many when talking about new accounts? (By new I believe that means <= 3 months, but correct me if I'm wrong) I also have a few other new accounts (4 total), so I'm not sure if I should go for a 5th now either way as that might be a red flag to my existing creditors.
Thanks for your time and help!
06-27-2013 06:59 PM
06-27-2013 07:00 PM
I'm tempted to add my cat to my Paypal Extras MC...LOL.
I don't see why you couldn't add someone as an AU, even if they already have the card.
06-27-2013 07:46 PM
I have already been added as an AU by my parents on one card, but what I was wondering is if I can be added on this card if I already have the same card (Discover IT)?
I have 4 new accts in less than 3 months, 5 in less than 6 months. My AAoA is around 4.5 years or so.
06-27-2013 07:50 PM
06-27-2013 08:15 PM
Thanks for the information.
No, 5 total in less than 6 months, 4 of those 5 within the last 3 months. I think the 5th one should be falling off soon though.
Do you think that will raise any red flags with any of my current creditors? Are there any good guidelines on what # of new accounts to stay under?
06-27-2013 08:36 PM
06-27-2013 08:48 PM
My overall utilization is a little bit over 30% but once my new cc's report should drop it under 30%. However I do have some individual accounts with relatively high utilizations that I am working on lowering by shifting some of my balances around to the new cc's.
From what I've read on the forums it seems like some threshholds for util %'s that can potentially make differences in your score:
also maybe one in between those like 14 or 19%
I believe there is a measure for overall utilization as well as individual account utilizations.
Does all that sound correct?
A follow up question to that would be: For the individual accounts, do the agencies look at the max util on all your cc's? Or do they look at the distribution (for example say you have 2 cards that are 30-49%, one that is 20-29% and one that is 5-9% would the 2 highest ones be the "driving" ones for your score, or does it take all into account? or some hybrid?
Also, do Lines of Credit count the same as CC's in the scoring models?
The reason I'm asking is because I'm trying to figure out which accounts to pay down/transfer funds between first and which ones to leave alone for now.
I appreciate all the help so far!
06-27-2013 08:58 PM
06-27-2013 09:24 PM
Yeah, I'm feeling ok about my overall util, it's my individual I'm trying to adjust now. Here is some more info/specifics:
For the 4 new cards I plan on keeping them at 29% or under.
I also got a CLI on a line of credit which I plan to also keep under 29%.
So I want to keep all of the new accounts under 30% to not scare them off.
I plan to shift some of the balances from my other accounts (some of which have higher balances) over to those new accounts (while still keeping the new accounts under 30%). But what I'm trying to do now is strategically pick the right ones to shift around.
Here are the details on some of my accounts that I am looking at shifting balances on:
Credit Union Line of Credit: about 83% - I am thinking I want to get this down to at least 69% and then later 49%
Home Depot: 68% - Thinking about getting this down to 49%, but not sure if it makes a difference if I tackle Home Depot or the above line of credit first
Then 4 cards hovering just under 50% with the same general plan:
Wal-Mart Discover: 45% - glad it's under 49% but want to get it under 29% ultimately, just not sure of timing
Chase: about 49% - same plan
Capital One: about 49% - same plan
Kohl's: 49% - same plan
Also have some others with util less than 30%.
Do you have any advice on timing, or know anything about any of these creditors where I should tackle one first? Any other advice?
Also I know Home Depot gives out CLI's sometimes but haven't gotten one for a while (probably due to the utilization). I'm wondering if I get it down to 49% if I might be more likely to get one.
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