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I have a credit card with a limit of 250.00

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I have a credit card with a limit of 250.00

I know that dont seem much comp to others Ive seen on here. But right now my balance is 174.00 and 75 dollars credit available. My husband and I have been trying to buy a home and since my credit is aweful we decided to fix his. They added him onto my card as an authorized user but will my credit limit make it worse or better for his credit?

2 REPLIES
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Re: I have a credit card with a limit of 250.00

I think the best thing to do is to pay off the card. How old is your card? Does it have any late payments? Also remember that not all banks report AU. What bank is the card with?


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Re: I have a credit card with a limit of 250.00

 


mrstallt wrote:

I know that dont seem much comp to others Ive seen on here. But right now my balance is 174.00 and 75 dollars credit available. My husband and I have been trying to buy a home and since my credit is aweful we decided to fix his. They added him onto my card as an authorized user but will my credit limit make it worse or better for his credit?


 

 

It's not the credit limit itself that will hurt him but the utilization will. It is right at 70% (174/250) which is very high. That amount of utilization will not help him at all.

 

Being added as an AU can help him IF the account is older than any of his, IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. He will inherit the entire history of this account. One caveat however; if this account starts to go south his credit will be affected as well. Keep that in mind.

 

 

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