Score Drop / Unknown Account

[Anonymous]

Hi,

I noticed that my TU score had dropped 14 points (Equifax stayed the same) over the last 30-days, so I started comparing this month versus last month.  The only thing that was different was that my account balances versus available credit ratio was a bit higher for this most current report.  However, we're talking about something in the range of 7% to 8% at the absolute maximum, could that really be the cause?  Everything else is the same, nothing new for pulls or baddies.

So above I mention the "absolute maximum" of balance versus available credit.  The reason that I put it that way is because I noticed that there's an account being reported against my record that I don't have any knowledge of, so I can't really speculate what the available credit might be on that account.  I just noticed this account although it does appear on last months reports.  There are no negatives associated with the account, but I do need to get it removed so that I don't have a wildcard out there, something outside of my control.

So how do I approach this?  Do I start with Chase?  I only have the information below (with the last 4 digits of the account - I X'd them out for this post).  I don't want to "dispute this with the reporting agencies since I believe that disputes can/will have a negative effect.  Or at least could if we decided to apply for a mortgage.

Thanks!

Credit Card Chase Bank Usa Na

Status as of Date opened [?] Date of last activity [?] Account number [?] Loan type [?] Largest past balance [?] Account Type [?] Account holder [?] Industry

Jan, 2011

Mar, 2006

Jan, 2011

XXXXXXXXXXXX

Credit Card

$9,238

Open Account

Authorized Account

Banks

[Anonymous]

Oh wait, just found it on my reports.  So my debt ratio did go from 5% to 10%.  So I guess that might explain the 14 point decrease?

You've made heavy use of your available revolving credit.

Ratio of your revolving balances to your credit limits
10%

For FICO High Achievers [?], this ratio is 7%, on average.

Your FICO score evaluates your revolving credit [?] balances in relation to your credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

Thanks again.

[llecs]

Looks like you're an AU on someone's Chase CC. Under account holder, it says "Authorized" as in Authorized User.

If you dispute it, it will go away. Keep your AAoA in mind as this TL is 5 yrs old. If your AAoA is younger than 5, you could take a hit if removed. It also looks like this could be a signature-type card since no CL is reporting. That would explain the lack of a score change for EQ since TU98 (the TU FICO version found on here) treats this card differently....assuming this is the only change between pulls.

Also, going to 10% could result in a drop like that. Had it hit 9%, the drop would have been less I bet.

[Anonymous]

Thank you for the detailed response IIecs.  I'm taking a closer look at the reports now and it certainly looks like the debt to available credit ratio is the issue here.  I have a TU and EQ report from today and reports from 30-days ago.  My debt ratio is reported as:

Today:

EQ = 4%

TU = 10%

30-days Ago:

EQ = 1%

TU = 5%

On my TU report I went from my debt ratio being an asset to it being a liability:

"Your FICO score evaluates your total revolving account balances in relation to your total credit limits on those accounts. Your FICO score was helped because you've kept this ratio of balances to credit limits low."

"Your FICO score evaluates your revolving credit balances in relation to your credit limits on those accounts. In your case, this ratio of balances to credit limits is too high."

The EQ numbers are actually correct for both pulls based on my accounts and account balances (ignoring the Chase CC).  The TU numbers are wrong based on "my" accounts / balances, but might be correct when adding in the Chase account, I really have no way to know. 

Does EQ not factor the debt ratio on an AU account into your debt ration but TU does? 

One way or another it looks like that AU account is causing problems and that I need to get rid of it.  My AAoA is 10 years so no worries there.  So I simply dispute it with EQ and TU and I should be all set? 

Thanks again.

[llecs]

TU and EQ factors in AUs (all FICO versions factor in AUs). This version of TU FICO just scores it a bit differently because a CL isn't reported. That would explain the utilization difference. If you disputed it as "not mine" it will disappear (because it isn't your account). I bet the utilization would match (assuming another CC isn't causing this). Now there is no urgency to remove this. A 14 pt change can easily return as balances come back. There is no permanent damage if you had intended to be an AU on someone's account.

[Anonymous]

Thanks again IIecs.  I just disputed that account, as you said it shouldn't be an issue to make it disappear from my record.  I'd rather ensure control and not be in a position where I could get blind sided at the wrong moment.

Thanks again! 

[Anonymous]

Just in case any of this information is of use to anyone else....

TU deleted that Chase account within 24-hours, so I decided to pull again to see if the effect was as expected.  Unfortunately there's a new issue with the TU report, nothing major, I'm sure that it will work itself out, but it is skewing the results.

So I picked up 6 points on my TU score, I had been expecting to regain the 14 points previously lost due to my "heavy use of your available revolving credit".  However, while my debt ratio did go back to being an asset versus a liability, the report now says that I have a new liability:

"There are no recent balances on your revolving credit accounts.

Your credit report shows no recent balances on your revolving accounts. Your FICO score was hurt because you are not currently demonstrating active revolving credit management."

Even while TU shows a small (correct) balance on a revolving credit account.  So instead of my debt ratio showing up as 4%, it shows up as zero and the zero hurts my score.

*sigh*, OK, enough with this for now.  My lesson learned is to keep my debt ratio > 0% and < 7%.