I will be trying to obtain a home in the next 3-4 months. My scores are around 650ish on all 3. I have been a authorized user on one of my parents Amex for 4 years with payment on time every time. The Amex card is a gold card and it never reports a credit limit (( I do not think it has one )) it does however report the balance. The balance as of today is around 17k. When I sit down with a loan officer im sure they will ask why my DTI is so high ... sooooooo... I know I can get AMEX to take this off of my account by asking my parents to take me off as a AU... BUT... will this bring my score down or up? Any Idea?
|Account Name:||AMEX||AMERICAN EXPRESS||AMEX|
|Acct Type:||Credit Card||Open Account||Open account|
|Payment Status:||Current||Pays account as agreed||Paid or paying as agreed|
|24-Month Payment History|
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Is this your oldest account? do you have any other accounts?
No this account was put on my CR around 2006 or 2007(( I think )) I do have a student loan for 21k that is being consolidated as we speak...
Here is a snap shot
|REAL ESTATE ACCOUNTS:|
I dont think it would hurt your AAoA if you were to have it removed.... might be a good idea.
IME, my lender didn't consider any account into DTI or util if it was a charge card and it did not show a CL. It's implied you'd have to pay the $17k in full within a month anyway. And since it doesn't factor into util because it lacks a CL, FICO would really only score the age of it and the mix. I vote to let it be.
I guess i will just let it stand..from your opinion it probably wouldn't sow a jump in score if it was taken off.. right.. I may just see how the lender looks at it.. it they say it is a negative i can have it taken off my report within 30 days... maybe it will help and not harm my chances at a loan... I have no idea
The loan officer wont figure that into your debt to income ratio, as it is not your debt.
It figures into your percent util as far as FICO scoring goes, so he may discount your deflated % util of credit as reflected in your FICO score. They know that an AU status is not a reflection on your personal credit management, and may simply give less credence to your FICO score. I would not, when filling out a questionaire as to indebetness, include the AU card in any fashion. It is no more than an anomoly permiited by the credit scoring process.
I would leave it. The LO can clearly discount the card as not a debt, but will have no way to discount its inflation of your FICO score.
Thus, he will either take your inflated FICO score or leave it.