topic Re: Closing AU with reported balance in Understanding FICO® Scoring

Closing AU with reported balance

wche — Wed, 30 Jan 2013 06:04:46 GMT

Hi everyone, new member here!

So apparently I am an AU on one of my older brother's credit cards. He has been racking up to 95% of the card's utility for quite some time now (having trouble paying it off). Unfortunately, this account is also my oldest TL (6 yrs). His util is really killing my overall util at 46%, and I know this will hurt my chances on applying for future credit.

My question is, if I have him take me off as an AU, how will that report on my credit reports? Will the util history still remain and destroy me? Will my AoAA decrease?

Any advice is much appreciated, thanks!

Re: Closing AU with reported balance

OhioCPA — Wed, 30 Jan 2013 11:14:39 GMT

The account should disappear from your credit file. Since it is your oldest TL, your AAoA will likely decrease (it can't go below 1 year).

Re: Closing AU with reported balance

Anonymous — Wed, 30 Jan 2013 16:03:31 GMT

No, that cards utilizaton and everything else will be gone. If it is your oldest card your AAoA will be dinged.

Re: Closing AU with reported balance

RobertEG — Wed, 30 Jan 2013 20:28:04 GMT

AAoA is only part of a lower weighted scoring category.

A maxed card is a killer in the more significant category of util of credit.

I would expect an overall score increase.

Plus, the added benefit of no longer having the credit of another clouding your actual score.

Prospective creditors, when doing a manual review of a report that includes an AU account, have no way to determine the actual score of the consumer based only on their own credit history. AUs are good for obtaining new credit when the creditor is not doing a manual review, but could be a detriment if they want to consider only your own credit history.

Re: Closing AU with reported balance

wche — Wed, 30 Jan 2013 21:10:56 GMT

Thanks for the input everyone.

Any idea how long it would take for the card to stop reporting to my CRAs? I got my brother to remove me as an AU today.

Re: Closing AU with reported balance

Anonymous — Wed, 30 Jan 2013 22:30:25 GMT

It depends on when the CCC reports to the CRAs.