topic Authorized user account NOT counted in util, should I get a CC in Credit Cards

Authorized user account NOT counted in util, should I get a CC

nyuphoto — Fri, 13 Dec 2019 03:01:49 GMT

Hello all,
I’ve learned a lot here on this forum. So many helpful posts and people, Thank you.

I’m getting ready to apply for a mortgage. I only have an authorized cc and in the MyFICO app insights, the Revolving Accounts states: No valid accounts. When I run the simulator, my FICO 8 scores jump 25,35,25 pt’s by adding a $500 cc. My mortgage middle score is 619. Should I open a new cc now, I’m planned to put in a mortgage application by end of the month. If so, would a secured card be ideal? I closed one in 2016 with navy fed not knowing what I know now.

Also, my wife has 2 cards (one of which I am an authorized user), both in 90% util. CL of 20k and the other, my authorized card, 5k CL. I have 6k tomorrow to use to pay down but not sure how I should apply it. I was thinking get the 5k CL down to 9% and then apply the rest to the other. When we sell our home in January we will be cutting the 20k card to at least 19% until. Any other thoughts?

Thank you in advance.

Re: Authorized user account NOT counted in util, should I get a CC

ShanetheMortgageMan — Fri, 13 Dec 2019 03:11:24 GMT

I wouldn't recommend you apply for any new credit just prior to applying for a mortgage, the inquiry + a new account may decrease your scores initially and could take a few months to recover.

Re: Authorized user account NOT counted in util, should I get a CC

nyuphoto — Fri, 13 Dec 2019 03:17:09 GMT

That is what I was planning on doing prior to seeing the point increase in simulator. Thank you for reinforcing that. As for how I can help my wife’s score, how should we apply the 6k we have tomorrow to use. Both cards have 90% utilization, 20k and 5k (I’m authorized user).

Re: Authorized user account NOT counted in util, should I get a CC

ShanetheMortgageMan — Fri, 13 Dec 2019 03:41:12 GMT

So I mainly hang out in the mortgage section, this question has been moved to the credit card section since the question is more specific to how credit cards impact credit scoring... but my layman's view of what you should do is pay down the authorized user account that has the $5k balance, as I believe that is also impacting your credit scores due to the high utilization (when we look for our clients to get added as an authorized user as a way to improve credit scores, we always recommend that they are added to accounts which have 0% or low utilization).

paging pizza1 as they might have better insight than I've provided.

Re: Authorized user account NOT counted in util, should I get a CC

nyuphoto — Fri, 13 Dec 2019 15:37:20 GMT

Thank you Shane. Can anyone also weigh in on if asking for a credit line increase will hurt my wife prior to mortgage application?

Re: Authorized user account NOT counted in util, should I get a CC

ShanetheMortgageMan — Fri, 13 Dec 2019 17:30:56 GMT

Asking for a credit limit increase isn't a bad idea, or at least if there is an inquiry it should be offset if the credit limit increase is approved.