As I've posted on here before, I got started on my credit journey by getting added as an AU to a card with a high util (right now it's at 58%!!!!). Along the way, I've managed to get my own cards and recently even got a backdated Amex (so my AAoA would be boosted since I now have a card that is "over a year old"). The card that I am an AU on has a 5 year history of on time payments. At some point the balance was decreased but some unexpected expenses led to it being at over 50% util again. I know it is affecting my credit score really bad. My util across my other cards is 18% on one card and less than 10% on the rest (all of which I can get to zero reporting with 1 card reporting 1-9% when the time comes that I need a credit score boost, i.e. when I apply for an auto loan). My question is, is it going to affect me positively (due to decreased utilization) or negatively (due to removal of 5 years credit history). My AAoA is about 7-8 months now due to several cards opened in the past year. I know it's difficult to predict, but I hate seeing on my credit report that a high utilization is dragging my score down. After this card, my oldest card would be the Amex from last month (backdated to Feb 2013) and the rest will turn one year old by Aug-October. What do you think? Should I ask to be removed?
It's really up to you and your situation.
If it were me, and if I were not seeking a loan right now.. I would stay as an AU until the balance is paid down. When removed as an AU the last reported balance will stay on the account (not good). If its a $0 balance that is perfect time to remove yourself! Then no need to dispute. If you have the time and current scores won't bother you this is the best bet.
If removed with a balance and you want it removed you can dispute and the whole TL will then be removed effecting your AAoA.
YMMV and you will have to decide which is best for you.
@TheGardner wrote:It's really up to you and your situation.
If it were me, and if I were not seeking a loan right now.. I would stay as an AU until the balance is paid down. When removed as an AU the last reported balance will stay on the account (not good). If its a $0 balance that is perfect time to remove yourself! Then no need to dispute. If you have the time and current scores won't bother you this is the best bet.
If removed with a balance and you want it removed you can dispute and the whole TL will then be removed effecting your AAoA.
YMMV and you will have to decide which is best for you.
Ok, so now util on that card is at 60%. My score won't go above 716 and probably will be lower this month because of new trade lines (auto loan and DCU CC). The owner of the card is only making a little above minimum payments and I seriously think that there is no way the balance will get paid off to <30% util anytime in the next 2 years. I had made no purchase on the card (so have no incentive to help with payments) and am afraid that some creditors for MY CCs will actually freak out over the utilization on this card. If the last reported balance stays on the report unless I dispute, how long does it do this, 10 years?? Will it get factored into my credit score for months even though no updates are being made since I have been removed?
@user5387 wrote:A rule of thumb might be that utilization issues will dominate age issues, and the FICO category weights are 30% and 15% respectively.
Thanks. Not as worried about the loss of 5 years or so of credit history, since my AAoA now is 9 months anyway (and may drop again because of the DCU CC), as I am about the increased utilization and the possibility that it stays on my report for 10 years (unless I dispute).