What should my next step be?

[Anonymous]

Good Afternoon Y'all,

I recently turned 18, and I've started working on my credit because I understand its importance throughout my life. I figured that It'd be better to start now versus later.

I am an authorized user on my mother's credit card with a 15k limit. I've been on that card for about ten months.

I applied, and was accepted, for a discover it student with a 1k limit. I applied for that card earlier in the week.

I have thought that I would like to remove myself from my mothers credit card so that I can build my credit independently of that card. Is that a smart idea? Should I just stay on there, forever?

Maybe somebody can explain this to me; I just get the feeling that there will be some negativity that will arise in the future because I'm an AU. I just want to know beforehand of any risks so that I may tend to them ASAP.

Secondly, I'd like to get another card in 6 months to a year. What would be a smart choice after my recent discover it student card?

Thank you all for reading my post, and I hope to hear back some great advice

Edit: I forgot to add some info: my FAKO is around 750 and my utilization is around 25%. My average age of accounts WAS 10 months, but it will go down due to this new card.

[myjourney]

Welcome to the forum 

Stay as AU for at least another 6 months as that account is helping you due to aging and honestly as long as its an good account you should wait a year until you establish more credit on your own 

I like your plan of waiting 6 months for your next trophy card and hard to say what card now will be good for you in 6 months 

Cards change perks change and so should your approach and plan 

Edit to add for your edit ....Lol

Is the high UTL a result of the AU account?

[Anonymous]

I mainly just wanted to say welcome and congratulations on the new card and the impressive score.

If I had to offer some advice it would be to begin to pay down your utilization. That's probably the single best thing you can do and the best habit you can get into (although it sounds like you already have some decent credit habits).

[SouthJamaica]

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@Anonymous wrote:

Good Afternoon Y'all,

I recently turned 18, and I've started working on my credit because I understand its importance throughout my life. I figured that It'd be better to start now versus later.

I am an authorized user on my mother's credit card with a 15k limit. I've been on that card for about ten months.

I applied, and was accepted, for a discover it student with a 1k limit. I applied for that card earlier in the week.

I have thought that I would like to remove myself from my mothers credit card so that I can build my credit independently of that card. Is that a smart idea? Should I just stay on there, forever?

Maybe somebody can explain this to me; I just get the feeling that there will be some negativity that will arise in the future because I'm an AU. I just want to know beforehand of any risks so that I may tend to them ASAP.

Secondly, I'd like to get another card in 6 months to a year. What would be a smart choice after my recent discover it student card?

Thank you all for reading my post, and I hope to hear back some great advice

Edit: I forgot to add some info: my FAKO is around 750 and my utilization is around 25%. My average age of accounts WAS 10 months, but it will go down due to this new card.

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If I were you I'd stop being an authorized user on your mother's account. Your score may well go down, but so what? It will just go up and up from here on out if you always pay on time, and always keep your balances small.

[kdong1996]

You have nothing to lose by staying an AU for another year or two. Utilization from AU cards wont affect your score and your score will benefit from everything else.After you have an AAoA of a year or two excluding the AU card feel free to remove it then.

[myjourney]

Primaries UTL has a bearing on AU accounts 

Example Primary card holder has a 10k limit and a balance reports of 8k it effects both primary and AU's UTL in Fico eyes

[Anonymous]

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@SouthJamaica wrote:

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@Anonymous wrote:

Good Afternoon Y'all,

I recently turned 18, and I've started working on my credit because I understand its importance throughout my life. I figured that It'd be better to start now versus later.

I am an authorized user on my mother's credit card with a 15k limit. I've been on that card for about ten months.

I applied, and was accepted, for a discover it student with a 1k limit. I applied for that card earlier in the week.

I have thought that I would like to remove myself from my mothers credit card so that I can build my credit independently of that card. Is that a smart idea? Should I just stay on there, forever?

Maybe somebody can explain this to me; I just get the feeling that there will be some negativity that will arise in the future because I'm an AU. I just want to know beforehand of any risks so that I may tend to them ASAP.

Secondly, I'd like to get another card in 6 months to a year. What would be a smart choice after my recent discover it student card?

Thank you all for reading my post, and I hope to hear back some great advice

Edit: I forgot to add some info: my FAKO is around 750 and my utilization is around 25%. My average age of accounts WAS 10 months, but it will go down due to this new card.

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If I were you I'd stop being an authorized user on your mother's account. Your score may well go down, but so what? It will just go up and up from here on out if you always pay on time, and always keep your balances small.

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His score wouldn't go down, it would disappear. If you delete your AU account you'll be left with only the discover card which is a month old and you need 6 months to generate a score.