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Help making a decision

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Csikes
Member

Help making a decision

Hey guys,

 

  So I'm trying to decide whether I should be taken off of my parents CC as an authorized user or not.  The card I am a user on has a very high balance and utilization, however it is making my average account age much much higher.

 

  Heres an overview of my credit:

 

  AMEX BCP $10,000 limit, zero balance  3 months old

  Discover IT $2,500 limit, zero balance  2 years old

  Authorized User Chase Freedom $8,000 limit $7,800 balance 22 years old

  5-year Auto Loan $6,000 with $5,000 remaining

 

  If I remove myself from the AU card, my utilization with be extremely low since I never carry a balance other than my auto loan.  However, my age of account with plummet.  

 

  What do you guys think my best move would be?

 

Thank you for all the help

 

 

AMEX BCP $10000
Discover $2000

Equifax ScoreWatch Currently 797
Message 1 of 10
9 REPLIES 9
user5387
Valued Contributor

Re: Help making a decision

I'm no expert on how AUs work.

 

However, my rule of thumb is that utilization dominates AAoA.

 

The category that utilization is in has twice the weight of the category that AAoA is in:

 

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 

Message 2 of 10
Csikes
Member

Re: Help making a decision


@user5387 wrote:

I'm no expert on how AUs work.

 

However, my rule of thumb is that utilization dominates AAoA.

 

The category that utilization is in has twice the weight of the category that AAoA is in:

 

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 


  Yeah that was my main reasoning behind doing this.  I'm just not sure if the massive drop in AAoA will outweigh the ~50% drop in utilization.

AMEX BCP $10000
Discover $2000

Equifax ScoreWatch Currently 797
Message 3 of 10
user5387
Valued Contributor

Re: Help making a decision


@Csikes wrote:

@user5387 wrote:

I'm no expert on how AUs work.

 

However, my rule of thumb is that utilization dominates AAoA.

 

The category that utilization is in has twice the weight of the category that AAoA is in:

 

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 


  Yeah that was my main reasoning behind doing this.  I'm just not sure if the massive drop in AAoA will outweigh the ~50% drop in utilization.


If it was me I think I'd bite the bullet.

 

Being associated with high utilization will hurt you in the long term.

 

Message 4 of 10
blondy250
Established Contributor

Re: Help making a decision

AAoa is a small component, I'd remove myself as an AU you're ready to be on your own.

Fico 8 12/9/17
Equifax 850, TransUnion 842 10/30/17 , Experian 842 12/11/17 . AAOA 12 years Oldest 20
No inquires since 2014
All credit reports frozen
Fico 8 Equifax Bankcard 866 12/27/16
Message 5 of 10
thom02099
Valued Contributor

Re: Help making a decision

In agreement with the others...utilisation is more important than AAoA. 

 

Also keep in mind that, if for some obscure reason, your parents do something stoopid with that shared account, that will impact you as well.  Those high balances could turn in to a 30-, 60-, 90- day late somewhere along the line if they should get in over their heads.  Based on what you said,  about you never carrying a balance and PIF, seems like you're in a better position than they are, and they could learn a few things from their smart offspring!!! 

Message 6 of 10
Csikes
Member

Re: Help making a decision

  Alright well thanks everyone I think I'll go ahead and remove myself from it.  I'm anxious to see how my score reacts.  I've been so close to the 800 mark but unable to breech it.

 

Thanks again!

AMEX BCP $10000
Discover $2000

Equifax ScoreWatch Currently 797
Message 7 of 10
RobertEG
Legendary Contributor

Re: Help making a decision

In addition....

 

While you have the account of another reported to your CR, if a potential creditor does a manual review of your CR, it can hurt.

It tells them that your score is not based only on your own credit history.  Having no way to "back out" the effect of that account on your scoring, it could make the use of your score itself questionable in any determination.  They know it does not reflect your own personal risk.

 

Great for rebuilding where the creitor doesnt do a manual review, but can lead to potential problems when you are moving up in your quest for better or higher credit.

Message 8 of 10
notfancy
Valued Contributor

Re: Help making a decision


@Csikes wrote:

  Alright well thanks everyone I think I'll go ahead and remove myself from it.  I'm anxious to see how my score reacts.  I've been so close to the 800 mark but unable to breech it.

 

Thanks again!


Also, make sure you let one of your own cards report a 1-9% balance of that one card's limit (and then you can pif before the statement due date.) for maximum scoring.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 9 of 10
takeshi74
Senior Contributor

Re: Help making a decision


@Csikes wrote:

Yeah that was my main reasoning behind doing this.  I'm just not sure if the massive drop in AAoA will outweigh the ~50% drop in utilization.


Again, refer to the chart above. 50% change in utilzation is very significant.  Consider that 30% is the recommended max.

Message 10 of 10
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