topic Re: Help! Could AU Status Be holding me back? in Understanding FICO® Scoring

Help! Could AU Status Be holding me back?

Anonymous — Thu, 26 Mar 2020 15:38:13 GMT

Hello everyone- I hope someone can give me some solid advice (almost always happens from this board!)

I"ve been working very hard to get my mortgage scores up so that we can buy a new home (or build) after selling our current home. My FICO 8's have gone up 100 points in a year. Currently, here are my scores:

Fico 8: TU 723

EX 722

EQ 724

Mortgage Scores:

TU 689

EX 683

EQ 660

What concerns me is that I used the AZEO method and as of this month got all cards paid off, except my Capitol One Card, which is reporting at $89 (1.6% Utilization). My other four revolvers are at zero now and my overall utilization is just the 1.6% on the Cap One card. HOWEVER, I am an AU on my inlaws Bank of America card, and they are reporting just over 10% this month. The BOA card is 20 years old, so helps my AAOA, but is this 10% keeping me down? I was really, really disappointed because I expected a big boost when I paid my Cap One card down to $89 this month from prior balance of $2000, but my scores (both FICO 8 and mortage scores) only went up ONE measly ponit. How much effect is this BOA card having as an authorized user? Is it better to remove it and take the hit on AAoA?

Thank you so much for your help.....

Re: Help! Could AU Status Be holding me back?

RSX — Thu, 26 Mar 2020 17:39:21 GMT

yes. Remove yourself

AU's can be helpful. But lately I am seeing more people being harmed by it, than helped

you should only be an AU on a card;

1. more than 2 years old

2. CL. $10k +

3. Zero util every month. Never a balance

The age you are gaining is always undone by a balance reported

Re: Help! Could AU Status Be holding me back?

Remedios — Thu, 26 Mar 2020 18:20:47 GMT

@Anonymous you still have remaining negative info on your CR?

Re: Help! Could AU Status Be holding me back?

Anonymous — Thu, 26 Mar 2020 20:20:58 GMT

@Remedios and @RXS-

Yes, I have two negatives remaining on the report- 2 30 days late from about 2 years ago. Otherwise, clean.

The AU is an old one, opened in 1996. It doesn't always carry a balance- its been hovering just below adn then just above 10% month to month. Right now its just over 10% when its hurting me.

With the AU card, my AAOA is 5.5.

Without it my AAOA is 3.5

My feelign is that I can't control the utilization they carry. It may be best, even if I take a hit to AAOA, to drop that card. If I do so, does the AAOA go down? I knwo that my primary cards/accoutns still count towards my aging even if closed.

Re: Help! Could AU Status Be holding me back?

Remedios — Thu, 26 Mar 2020 21:10:09 GMT

You can remove yourself, but if utilization on it is 10%, then it's really not hurting much. The loss off AAoA might have bigger impact in this case than going 1% over ideal utilization on a single card, if the card is removed entirely. Some AU accounts stay as closed accounts, hence contributing to AAoA even after removal.

I'm not sure about AAoA thresholds between 3.5 and 5.5 years. There may be no impact from removing yourself, but this is one of those situations where you're going to have to do it in order to see what happens.

AU accounts can "hurt" if balances are suddenly run up and you have no control over them.

With that said, your lates are what's holding your scores back. They are fairly recent in *credit time* and there might not be much improvement till more time passes.