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New Contributor
travisp33
Posts: 61
Registered: ‎06-21-2013

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 10/13: Experian FAKOS are EX: 713 EQ: 690 TU: 649
NFCU Platinum 25k | Discover 11k | Walmart 5k | Lowes 2.5K
Valued Contributor
AndySoCal
Posts: 1,895
Registered: ‎04-07-2009

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 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
Moderator
09Lexie
Posts: 24,593
Registered: ‎09-13-2012

Re: AU Removal - will it help or hurt?

[ Edited ]
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.
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

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.

Moderator
Revelate
Posts: 8,465
Registered: ‎12-30-2011

Re: AU Removal - will it help or hurt?

[ Edited ]

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 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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