Should I keep AU? Will it hurt CL of future accounts?

[PandiferBear]

Hi everyone. I am looking for some input. Last spring, I had to go on a weeklong business trip for work to train at a newly opened location - I don't normally have to do so, so I did not have a card for that. Luckily, DH has an Amex Hilton and I was staying at a Hilton property, so we added me as an AU (my only AU account), and all was great. I have left it alone since getting back, but I wonder if it will hurt me in the future for getting new accounts. He does use the card for certain charges, so it does report a smallish balance, which in turn is paid in full. However, the CL on it is $25,000. On top of my cards, that puts my ALOC at ~$92,000 on about $70,000 income. I was looking at getting in with Chase later this year, and I really do not want a small CL. I wonder if I would be better off dropping the AU? I heard that if you do so with Amex, it shows as "terminated." I also wonder what UW think about that comment. I dunno, sounds ominous. Any advice or insight is appreciated. And if you are watching the game tonight, ROLL TIDE!!

[Anonymous]

Most underwriters won't care, because they ignore AU accounts. I don't think you really gain anything by closing the account. There are people out there with 2x or 3x multiples of their salary in credit limits. If anything, I think having a high limit reporting will help you by encouraging Chase to match it. But, overall, I don't think it is going to be a big deal either way.

[takeshi74]

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@PandiferBear wrote:

I was looking at getting in with Chase later this year, and I really do not want a small CL. I wonder if I would be better off dropping the AU? I heard that if you do so with Amex, it shows as "terminated." I also wonder what UW think about that comment. I dunno, sounds ominous.

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The comment doesn't matter.  Terminated just means you're no longer an AU in that context.

We really can't tell you if it will hurt, help or have a negligible impact.  It's not just a matter of whether or not you're an AU and the limit versus your income.  It depends on whether the TL is even considered and how it factors into your credit profile.  You won't find out until you apply.  I doubt you'd see much of an impact either way but I can't guarantee that.