Parents' large credit line negatively affecting credit score??
11-04-2012 08:51 AM
I am 25 years old, and opened my first credit card (a Mastercard) about a year ago. Before that I only used debit cards, and occasionally an American Express that was linked to my parents' account. I have no other debts. My credit score is good (722) but Credit Karma gave me an F on total accounts, since I only have 3 (my parents' amex shows up twice for some reason, more on that later).
I recently applied for the Amazon.com Visa, and got rejected for the reason of "current obligations too high relative to income." I make $40k a year, and my only personal credit card has a $750 limit. Meanwhile, the credit card that's linked to my parents' account has tens of thousands of dollars on it (they make a lot of money, and can afford to pay it off in full each month). On Credit Karma, they count these thousands of dollars among my "Total Credit Card Balances." But the site still lists my credit card limit as $750, and my credit card utilization rate only reflects the percentage of that $750 credit line I'm using.
A few questions:
1. Why does the American Express come up twice? Is this some sort of error? The balance is the exact same on each card, and as far as I know I've only ever had that single account with them.
2. Is the Amex linked to my parents' account actually making my credit situation worse?? I rarely use that card in the first place. Meanwhile, I pay my Mastercard in full every month.
3. Assuming that it's my parents' account that's messing up my credit options ... how do I fix this? Do I need to get them to cancel my card on that account in order to be able to get a credit line that's more than 2% of my income?
Thanks in advance for any advice.