Plusses and minuses of a new card?

[Anonymous]

I have been following the advice of this forum  and have seen a shift of almost 70 average points in 10 months. Up to 700 Fico 8 now.  Some of the advice was 3 credit card minimums with two not being used, and the other one used less that 10%. That 3rd card does have a usage of around 40% of total available credit. I pay if off in full monthly, but FICO says I need to pay some of the debt down to get better credit...yet I pay it all off with automatic payments!

Secondly, I am an authorized used on a chase S. card that belongs to my wife. I use if for business and it has a very high limit, around 30K. Most of the time it is used to the max, then paid off in full each month before its due date.  I was told that it would help me toward being considered as credit if I am buying a house.

My concern is that if I do get this card, and load it for business use, that the debt/available credit ratio will skew against my score. When I simulated getting another credit card of any size, up to 50K, my simulated credit either came down or stayed the same.

So I don't know it the tradeoff, more credit to my name that could help in buying a house when the underwriter reviews the file, may be more than negated by lower scores due to debt ratios.  I don't have any installment loans.

Suggestions/insights?

Thanks

[RobertEG]

When a potential creditor sees that an account is an AU,, they know that it does NOT represent your own credit history/risk.

If they wish to see a score that represents only your own risk, as a score is normally intended to do, they cannot back out the effect of the AU.

If a creditor is apt to do a manual review and thus become aware that your scorng is based in part on history that is not yours, it can create problems.  It is bet to eventually wien of all AU accounts, and establish a firm score representative only of your credit risk.

When rebuilding, lower-tier creditors will often forgo a more time intensive manual review, and rely only on your score.

AUs can thus be a good rebulding tool.

[Anonymous]

Thanks! So i have 3 Capital Ones that are only mine, and a big one, the Chase Sapphire, that is my wife's, as an AU.  Looks like I need to get my own to replace the AU, especially since a mortgage underwriter will look at everything carefully.

[Anonymous]

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@Anonymous wrote:

Thanks! So i have 3 Capital Ones that are only mine, and a big one, the Chase Sapphire, that is my wife's, as an AU.  Looks like I need to get my own to replace the AU, especially since a mortgage underwriter will look at everything carefully.

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I would remove myself only if the underwriter suggests doing so. Husband/Wife AU is generally not looked upon negatively.

[gdale6]

Moving to CC forum for better coverage