Thinking about removing AU from credit reports - impact could be wild

[slund5499]

I recently have been thinking about removing my AU from my wifes accounts. This action I think will drastically lower my utilization to 18%, but I fear it will have even a bigger (negativeI impact on my AAofA. 3 accounts (1 with 1 year history and 2 with 5 year histories) totaling $5,500 in CL.

AAoA could drop to 3-4 months from 1.2 years. Still would have inquiries (28 on EQ, 31 on EX and 11 on TU) to deal with that will take 2 years to fall off.

Tradeoff might be higher fico score based on Utilization, but that would be counetred by 5 years wouth of perfect pay history. Utilization is currently 34% and can only bring down utilization about 1% per month, until installment loan is paid off( 8 months). Then utilization will begin to fall around 3% per month.

[tonyjones]

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@slund5499 wrote:

I recently have been thinking about removing my AU from my wifes accounts. This action I think will drastically lower my utilization to 18%, but I fear it will have even a bigger (negativeI impact on my AAofA. 3 accounts (1 with 1 year history and 2 with 5 year histories) totaling $5,500 in CL.

AAoA could drop to 3-4 months from 1.2 years. Still would have inquiries (28 on EQ, 31 on EX and 11 on TU) to deal with that will take 2 years to fall off.

Tradeoff might be higher fico score based on Utilization, but that would be counetred by 5 years wouth of perfect pay history. Utilization is currently 34% and can only bring down utilization about 1% per month, until installment loan is paid off( 8 months). Then utilization will begin to fall around 3% per month.

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I'm not entirely sure FICO uses AU the same way for calculating AAoA, if so everybody would be piggybacking.

[Anonymous]

To get my scores going, DH added me on one of his small cards. It was a 2 yr old account with perfect history. He canceled that card a couple weeks ago because of annual fees. He replaced it it a $10k card with no fee. Smart for him but it killed me. I lost 15+ points, not sure why. I thought since it stays on for 10 years, it wouldn't affect anything - wrong lol

If you just want to establish your own credit portfolio, do it now while your scores are low. It will take time but your scores will grow faster than you think. Also consider being AU on one account vs several so the hit isn't as drastic.

[slund5499]

The only way I can see FICo using AU in it's scoring model would be for total Utilization. Other than that, I think the AU does not impact credit reports (in general) and usually does not give leverage to applicants when lenders reviewing accounts/applications. Most lenders disregard AU reporting in their scoring models.

[gdale6]

AAoA includes AU accounts. AU accounts can be excluded at creditors request at the time a score is requested.

[RobertEG]

If you have AU accounts in your report, any scoring would no longer be representative of only your own history.

Creditors have no way to "back out" the effect of one or more AU accounts and then produce a score that is repwawnrative of only your own credit hitory.

Unless applying for credit wherein the creditor does not do a manual review and thus does not notice that your score is based in part on credit history that is not your own, a creditor might choose to disregard or discount your score in ther decision making.

Addition of AUs might be good when rebuliding, but once moving to higher levels of credit where manual reviews are the norm, they can become a detriment.

There aint no free lunch.

[RaiseMyScoreASAP]

Don't do it. If you decide to remove the AU accounts, they will never again appear on your report. You can always bring down your wife's balances. You can't get back years and years of paid on time data.

[MarineVietVet]

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@RaiseMyScoreASAP wrote:

Don't do it. If you decide to remove the AU accounts, they will never again appear on your report. You can always bring down your wife's balances. You can't get back years and years of paid on time data.

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You can always have yourself added back on the account as an AU and all that history will once again be on your profile.