11-06-2012 10:43 AM
I've improved my scores as much as I possibly could but I'm at a point where they're no longer going up. I want to get a regular credit card soon and a mortgage in the next year or so. I was wondering if being added to my mom's credit card as an AU would help me. Her credit line is $7500 and her balance is about $4350 (58%), opened 7/2003. This is my report:
Creditor Opened Credit Line Utilization Status
Walmart 8/2012 $150 5% Always paid on time
Fingerhut 7/2012 $600 0% Always paid in full and on time
Cap 1 4/2012 $1000 6% Always paid on time, Secured card
Instalment 7/2003 $2575 0% PIF 5/2004, still open
Ford Credit Auto Loan opened 10/2001, Paid Charge Off, Last activity 3/2007
Capio Partners, Collection setted for less
Should I be added as an Authorized User for the card with $7500 limit that has been opened for 9 years, but 58% utilization? Would it help or hurt me?
11-06-2012 10:51 AM
AU's are tricky. When you add you to her then BOTH actions are reported on both persons report. If she misses a payment, you get a missed payment on YOUR report. You also get that debt added to your debt to income, etc. It doesnt affect her report as much as it will yours. But it can help you gain points along the way. Its a two way street really. Do the math on your Debt to income and see what this addition will add to you first. 58% utilization is BAD!!!!
9-10% utilization is most ideal.
11-06-2012 11:01 AM
Agree about the 58% utilization. Although the tradeline is 10 years old I think the utilization will hurt since that makes up 30% of your score. Does she have one with less than 30% utilizatio nand a high limit?
11-06-2012 12:29 PM
Even if the tradeline was 20 years old, I wouldn't touch it as long as it has that high of a Util.
I would go with the lowest Util card she has with the longest record.
Ignore the credit limit.
If she uses 10k out of 10k that will lower your score vs if she SD's a 300 Cap 1 card and only puts $5 every 6 months on it.