AU on Ex's Cap One CC - Remove Lates or Helping AAoA?

[Anonymous]

Well,  I'm not taking any chances.  Anything that I can remove that might potentially help me is worth the effort.  Even if it doesn't have that much of an effect, if a lender sees a few collection accounts and then a bunch of late CC payments, it looks terrible and is embarrassing to explain.

And if there is a chance that it's affecting my score negatively then all the more reason to deal with them.  I was just curious if the age of the account could possibly be helping my score.  If not, it's outta here.  

What's on paper is not me.  But these days the paper is what counts, it' a first impression.  So I need to do whatever I can to make it right, you know?  The last things I want at this stage in my life are my landlord, employer, insurance company and bank looking at a big 'red flag' when they meet me, because that's all they seem to see.

 

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@Cinnnamon wrote:

I had worked in the banking business and as I stated the truth. Some people are not knowledge on the forum and I apologize for that the creditors don't look at an AU like a Joint User or Prim User because an AU HAS no financial responsibility to the Account.

I been told that by many of the BIG banks that it's has no effect on your score and I know that it doesn't if you were joint or the prime user than it would due to you being the one responsible for the bill and an AU is what some may consider a "Free-Loader" sorry I'm being funny. They load things free on a credit card and not have to pay for any of it!! haha!!  But as I was a former Credit Analyst/ Underwriterwe do not consider AU and it does not increase or decrease their credit score.

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[llecs]

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Cinnnamon wrote:

I been told that by many of the BIG banks that it's has no effect on your score and I know that it doesn't if you were joint or the prime user than it would due to you being the one responsible for the bill and an AU is what some may consider a "Free-Loader" sorry I'm being funny. They load things free on a credit card and not have to pay for any of it!! haha!!  But as I was a former Credit Analyst/ Underwriterwe do not consider AU and it does not increase or decrease their credit score.

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AU accounts certainly impact the FICO score as pointed out. FICO has and will continue to score all AU accounts. Payment history, age, mix of credit, and utilization all have a serious impact on your FICO score due to AU accounts and are scored equally as joint accounts and individual accounts. All these things should be considered when adding or removing AU accounts. OP, if you look over in Understanding FICO scoring or in Credit Cards, you'll see hundreds of threads where other posters commented on their results after adding or removing AU accounts.

Last fall, I was helping my FIL get a business loan where personal credit was a major consideration. Cinnamon is correct in that under a manual review, some banks may or may not consider AU accounts. We did talk to some big banks like BofA, Wachovia, and others and AUs were part of underwriting. My FIL was AU on nearly ever CC he had.

Now FAKO scores like VantageScore do not consider AU accounts. I'm not sure about PLUS. But I personally don't care about FAKOs anyway.

[Cinnnamon]

As I stated... A majority of the banks don't even look @ an AU score because IT's NOT A Prim or Joint User.  AU don't have any effect and if you want your to increase become a JU or Prim user on an account. This will determine your financial responsbility on the account. Since AU don't have that you score is neutral.

[Anonymous]

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Cinnnamon wrote:
As I stated... A majority of the banks don't even look @ an AU score because IT's NOT A Prim or Joint User.  AU don't have any effect and if you want your to increase become a JU or Prim user on an account. This will determine your financial responsbility on the account. Since AU don't have that you score is neutral.

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Part of what you are saying is true. There are some lenders who will not consider the "history" of the AU account when manually evaluating your credit report.

However, the AU account does impact your score, the banks can't just "ignore the AU score" because they get a whole FICO score, not a score that is broken down giving X points for this account and X points for that account. They just know overall your score is XXX.

When the new FICO scoring model was first being developed it was said that the new formula would exclude any account marked as AU when it calculated your score. This has been changed, it will continue to score just as it did before.

[Anonymous]

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@Cinnnamon wrote:
But as I was a former Credit Analyst/ Underwriterwe do not consider AU and it does not increase or decrease their credit score.

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Interesting. This is contrary to everything I have heard so far.  I know that FICO is supposedly changing to steer away from AU's counting, but from what I have heard, very few people are using the new formula as of right now.  We are talking about it not increasing/decreasing their FICO score, right?

[llecs]

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austintex wrote:

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@Cinnnamon wrote:
But as I was a former Credit Analyst/ Underwriterwe do not consider AU and it does not increase or decrease their credit score.

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Interesting. This is contrary to everything I have heard so far.  I know that FICO is supposedly changing to steer away from AU's counting, but from what I have heard, very few people are using the new formula as of right now.  We are talking about it not increasing/decreasing their FICO score, right?

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The new formula does include AU accounts, just as the old ones do.

[nothingman02]

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