topic A definitive answer on removing AU accounts in Understanding FICO® Scoring

A definitive answer on removing AU accounts

Anonymous — Fri, 11 Dec 2015 01:59:47 GMT

Okay, not sure if this warrants a new thread, sorry. I've just gotten quite confused, I always thought if you remove yourself as an AU on a card, the entire tradeline will be removed from your reports.

Now, I'm reading that if you remove yourself as an AU, the account will show as CLOSED and in whatever standing it was in when you were still an AU. If it was in bad standing you could dispute it off, again, from my new understanding.

I have an au card from July 2013 while all 5 of my personal cards are from July 2015-Sept 2015. Meaning, if I wasn't an AU on the 2013 card, I'd get no fico until MY oldest card is at least 6 months.

But, with this new information, I could theoretically remove the 2013 au tomorrow and let the closed account (in good standing) stay on my report so I will not lose my aaoa and keep getting ficos. It has a balance of $20/$4300, statement is the 23rd.

Am I not getting something??

Re: A definitive answer on removing AU accounts

gdale6 — Sun, 13 Dec 2015 18:35:09 GMT

@Anonymous wrote:
Okay, not sure if this warrants a new thread, sorry. I've just gotten quite confused, I always thought if you remove yourself as an AU on a card, the entire tradeline will be removed from your reports.

Now, I'm reading that if you remove yourself as an AU, the account will show as CLOSED and in whatever standing it was in when you were still an AU. If it was in bad standing you could dispute it off, again, from my new understanding.
There are no active CSRs on the board from the other side of Fico, these questions would be best resolved by giving Fico a call on the 800 number. As far as discounts I have not heard of any.
I have an au card from July 2013 while all 5 of my personal cards are from July 2015-Sept 2015. Meaning, if I wasn't an AU on the 2013 card, I'd get no fico until MY oldest card is at least 6 months.

But, with this new information, I could theoretically remove the 2013 au tomorrow and let the closed account (in good standing) stay on my report so I will not lose my aaoa and keep getting ficos. It has a balance of $20/$4300, statement is the 23rd.

Am I not getting something??

Its creditors choice whether or not they completely remove the TL or they just report the relationship terminated. Cap1 I know reports it as relationship terminated. You want to leave the AU account open till one of your cards moves past 6 months. Im not sure if credence would be given to FIco score calculations if the card reports terminated.

Re: A definitive answer on removing AU accounts

Anonymous — Mon, 14 Dec 2015 05:05:25 GMT

Theoretically, when you close the AU account, it should report closed with 0 balance. If the tradeline has no negative info then keep the tradeline, and let it fall off naturally from your credit reports after ten years.

If it has derogatory info, late payments, or whatever, then yes, dispute to have it removed.

Of course, if the card is well maintained, why close it at all, unless the account holder wants you off of it. Nothing wrong with keeping it open longer, if that is a option and you feel comfortable with the account holder.