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AU Removal - will it help or hurt?

Contributor

AU Removal - will it help or hurt?

My report shows the following:

 

Discover CC opened in 2000 11k limit 10.5k bal *Authorized user

CC opened in May 2006 2400 limit 1k bal

 

Mortgage opened 2006

Boat loan opened 2007 (shows as auto loan)

Stu Loan showing 2002, will be paid off in a few months (will this hurt AAoA?)

 

Plus tons of positive older closed accounts - cars, mortgages, etc

 

Would being removed from the Discover card as an AU raise my score because of utilization, or hurt my score because it is so old? Any guesses? If I am removed, and the score goes down, I could just get re-added, right?

Starting 6/13: Experian FAKOS are EX: 610 EQ: 602 TU: 582
Current 5/15: TU Fico: 724
NFCU Platinum 25k | Discover 14k | AMEX SPG 20k | TotalRewards Visa 12k | US AIrways MC 15k | Walmart 6k | Sams 3k | Lowes 2.5K
4 REPLIES
Valued Contributor

Re: AU Removal - will it help or hurt?

The Discover card has a 90% utilization.  The other credit card has a 42% utilzation. Being removed of the Disocver should help your score.

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Moderator Emerita

Re: AU Removal - will it help or hurt?

Would being removed from the Discover card as an AU raise my score because of utilization, or hurt my score because it is so old? Any guesses? If I am removed, and the score goes down, I could just get re-added, right?


Ans:

Chances are greater your score will increase. Util is 35% of your score. When the balance is reduced significantly -add yourself back on assuming the primary cardholder is agreeable.
Community Leader
Epic Contributor

Re: AU Removal - will it help or hurt?

As an aside to purely FICO scoring issues, while an AU is included in your CR, those doing a manual review will be unable, if they so desire, to see your score based on only your own credit report history.

 

Having no way to "back out" one or more accounts used to calculate your score, they cannot assess your own, personal repayment risk.

It could thus caste the value of your entire score into doubt in their assessment.

 

While rebuilding, many apps are for lower CL or principal credit, and the creditor, for reasons of cost saving, may rely primarily or solely upon your score without a review of your CR.  Thus, addition of postive AU accounts can be a very useful building or rebuliding tool.

 

However, as you move along the credit path and seek higher CLs or loan amounts, it is possible that a manual review might make the inclusion of the AU accounts more of a detriment than a benefit.  If in doubt as to the continuing benefit, it might be wise to ditch the AU once you expect manual reviews in your app processes.

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Moderator

Re: AU Removal - will it help or hurt?


RobertEG wrote:

As an aside to purely FICO scoring issues, while an AU is included in your CR, those doing a manual review will be unable, if they so desire, to see your score based on only your own credit report history.

 

Having no way to "back out" one or more accounts used to calculate your score, they cannot assess your own, personal repayment risk.

It could thus caste the value of your entire score into doubt in their assessment.

 

While rebuilding, many apps are for lower CL or principal credit, and the creditor, for reasons of cost saving, may rely primarily or solely upon your score without a review of your CR.  Thus, addition of postive AU accounts can be a very useful building or rebuliding tool.

 

However, as you move along the credit path and seek higher CLs or loan amounts, it is possible that a manual review might make the inclusion of the AU accounts more of a detriment than a benefit.  If in doubt as to the continuing benefit, it might be wise to ditch the AU once you expect manual reviews in your app processes.


I've never had an AU on my report but aren't they coded differently?  Under FICO yeah they can't discount them (though there's theoretically some anti-abuse code now in FICO '08) but in an internal score which all major and a lot of minor lenders have some version of, it wouldn't be hard to discount AU's altogether if they choose.  Chase according to the forum allegedy does this regularly.

 

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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