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@Girl_Friday98 wrote:I am thinking about purchasing a home and I want to get pre-approved for a mortgage as soon as possible. I have been trying to rebuild my credit after some very stupid mistakes in my youth. Some of those mistakes have fallen off my report, but there are a few lingering that could linger until about mid 2014, at which time they all should be gone. My credit score is currently in the high 600's or low 700's. I have one credit card of my own, a Capital One with a $1500 credit limit, which I use regularly and pay off in full every month. My mother put me as an authorized user on one of her credit cards which has a $2500 limit. My mother has subsequently started carrying a balance on that card of about $2200. I would like my mother to take me off as an authorized user, but I am not sure how this will affect my credit score. On the plus side, my credit usage should decrease significantly. However, on the negative side, it will show that I only have $1500 credit, and I am not sure if that drop in total amount of credit will cause my credit score to take a hit. I have thought about a few courses of action:
1. Do nothing, get my pre approval with the current score.
2. Have my mother take me off of her card and do nothing else.
3. Have my mother take me off of her card and apply for a new card in the hopes that I could get a higher credit limit now that my score is higher
4. Keep my mother's card, and apply for a new card as well
I currently have no inquiries on my credit report. Would applying for new a new credit card close in time to when I want to get preapproved for a mortgage be a stupid mistake? Which course of action would be best for me and my credit score?
Thanks in advance for any help anyone can give me!
2. Have my mother take me off of her card and do nothing else.
There's a few things you should consider :
Score wise getting take off you mothers card will be beneficial. DO NOT apply for another card with a mortgage app coming up. Biggest problem you may run into is lack of trade lines. Most lenders like to see at least three.
You can file a dispute on your credit reports to get that AU reporting in them. I have done it when my Dad's CC went the wrong way, the reason I put was.
either " I have never been late" or I am not financially responsible for the acc"
the AU will come off in about a month.
Also guys, remember that Mortage lender dont like AU and they will manually dont count on it.
I also think that him getting a nice card, like a GE backed one that will give a nice starting CL and will possible get a CLI in 3-4 months, will increase his TL and will have a better payment history.