cancel
Showing results for 
Search instead for 
Did you mean: 

PIF / Carry / AU Question

tag
RKBAGUY
Valued Member

PIF / Carry / AU Question

Howdy, folks!

 

Much to my surprise since posting here last, my credit score through time, discipline and being an AU for another card (BoA) has risen to 755EQ 757TU 729EX for the three bureaus, respectively.

 

The only negative items suggest that I had "too many or too few" revolving accounts, therefore the "too few" must be the problem.  I applied and was approved for a new card under my own name, that caused my EQ score to drop 7 points from 762 to the present 755, which is to be expected.

 

The opening limit on the new card is only $1500, and I would like to know what you guys recommend to improve my score with an eye to a car loan this coming spring.  I'm reading that it's best to keep my balance on one card under 10%, but the card for which I'm an AU (the BoA card) is, of course, not in my control.  I don't use that one much, but it is ALWAYS paid in full at the end of each month - the owner of the card does not carry a balance.

 

So, I'd be grateful for any suggestions on a strategy for how to best use this new card.  Should I use it to pay my monthly bills (cell phone, homeowner's policy, etc.) and pay it off every month?  Should I buy something big (like a new TV) and pay it down over three months?  Should I get a second card under my own name and remove myself as an AU from the BoA card?

 

Your feedback here would be informative.  Thanks in advance for helping!

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: PIF / Carry / AU Question

Stay on as AU since the original holder doesn't carry a balance. Let your card report $5-10 per month as you want 'some' usage showing. Personally, I would also go after a Disco or Amex at this point to make 3 cards total reporting, with two being your own and aging together.
Message 2 of 7
RKBAGUY
Valued Member

Re: PIF / Carry / AU Question

Did you nean 5%-10% usage?  That's the number I've been seeing.  What about the idea of getting a 2nd card under my own name and removing myself as an AU?

Message 3 of 7
Anonymous
Not applicable

Re: PIF / Carry / AU Question

Just using $5-10 to say show small usage. Main thing is over $1 but less than 9%.

A second card for you is a good idea. Disco and Amex have recently been taking on "thin" profiles and their cards grow at reasonable rates. I would stay on as AU until certain that your profile can take the lick of it not reporting.
Message 4 of 7
RKBAGUY
Valued Member

Re: PIF / Carry / AU Question

So, just to be clear:

 

1) I pay my monthly recurring bills (phone insurance, etc.) using my card, and pay all but 9% down every month

2) Apply for a 2nd card under my own name and eventually remove myself as the AU on the BoA card (but at what point?)

3) Can you recommend a card based on the above current FICO scores?  I'd rather stay away from CapOne.  I see that AMEX Blue is obviously pays handsomely to be featured so prominently - would that be a good way to go?

 

Message 5 of 7
Anonymous
Not applicable

Re: PIF / Carry / AU Question

IMO AU accounts can be used as 'jump-offs' to the start of building one's own credit but that's about when the piggyback ride should be over ( even if it means a temporary score hit) eventually the newer profile must stand on it's own anyway....after securing 2-3 decent TLs off the piggyback platform, then IMO there is enough data to build on one's own.

As mentioned you don't have control over what % of debt is used by the AU owner as you don't control that account, in addition even though the AU owner pays at the 'end of the month' that may or may not coincide with the best reporting dates for your TLs

Plus if the AU account has a balance and then the builder has a balance or 2.. now what type of score suppression happens with multiple CCs reporting balances.... nobody is doing anything wrong but each person has to live the way they live and the agendas generally aren't gonna work out properly ( even married couples can just wind buying things/ getting paid on different cycles, that might not be ideal for the AU Rider vs the AU owner....all things considered)

Point is IMO ...use the ride grab your TLs, cut bait and build your own profile...it doesn't take long/much to build into the 700's on one's own...the thinness of a profile with it w/o the AU accounts will be noticed (hence the $1500SL even with the well above scores) either way so one may as well launch their profile and 'pay' the time fee, nobody beats 'length of time'.

* To answer the question about SHOULD you buy something BIG to pay down over 3 months, the answer is NO...you don't 'need' to create nonsensical debt look 'good' paying it back.
Maintain a beautiful debt ratio of your CL ( sub-10%) and you're fine...beat to have only ONE cc report the sub 10 and all others reporting at 0% ( Again, the more CC with ANY balance whatsoever = higher risk, which = lower score....yes even a $5 balance because the model doesn't consider the amount, just that there are multiple balances, period.)

Lastly, if you don't have an installment TL reporting the...you could manipulate THAT aspect in anticipation of next Spring's auto loan ( so that the auto loan 1) wouldn't be the 1st installment TL & 2) to Max credit mix/variety points)

Instead of buying a TV over 3 months the better score manipulation would be to establish a SSL for $500, thwn immediately pay back say $460
Leaving an OPEN but well managed, almost paid off ( but not paid off) install account

Now the ideal profile exist 3 Revolvers and 1 installer, well managed, such that when you HP for the car loan next year the score is arbitrarily higher than otherwise, then once the car loan is secured with the better score, now hat loan can take the place of the SSL as the open managed install account and the SSL can be retired as a positive TL reporting good for 10 additional years after closure....
Play Chess while others play Checkers 👍
Message 6 of 7
RKBAGUY
Valued Member

Re: PIF / Carry / AU Question

Ok, starting to get a little more clear, now.

 

I'll apply for another card TL since there's nothing I need right now to buy on installment.  I just got approved last week for a "Cash Rewards" card from WellsFargo (my primary bank).  Can anyone recommend a good card as my 2nd?  Again - I don't want to go with CapOne unless there's a compelling reason why.

 

So, two cards that are trade lines by 10/1-ish

Remove myself from the AU card by 10/30

Pay bills monthly on the WellsFargo card, carrying 9% month-to-month

Apply for auto financing some time in April.  Does it matter whether it's financing for new or used?

 

Sound about right?

 

Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.