topic Re: Open new CC? in Rebuilding Your Credit

Open new CC?

smackmaster2 — Wed, 20 Jul 2011 21:13:20 GMT

Trying to increase DWs credit score...and am curious whether having her open a Visa or MC acct of her own would help.

Right now she has no CC accounts of her own (Visa, MC Amex), but is an AU for my Amex, and two Visas (Cap1 and BofA)

Under her name she has:

Mortgage

2 student loans

Eddie bauer

Sears

Shell gas

Thoughts?

Re: Open new CC?

llecs — Wed, 20 Jul 2011 21:41:03 GMT

Welcome to the forums!

If those three CCs report, even as an AU, then her mix of credit is fine. In fact, IMO, if she added any new CCs, she'd see an initial drop due to the new credit.

Re: Open new CC?

RobertEG — Thu, 21 Jul 2011 01:16:08 GMT

I would agree that the AU accounts are currently serving the credit scoring needs of showing revolving credit. Thus, as long as she remains an AU, I dont see the pressing need to open another revolving account, which, unless its new CL is high, might negatively affect her score in the short term by addition of a new inquiry, and by reducing her average age of accounts.

AU status can be removed, either by the credtior, or at the request of the consumer. Additionally, how a potential creditor views a FICO score based to a large degree on the credit history of another is hard to assess. Her score may be viewed as inflated, and not soundly based on her own proven use of credit. Just something to ponder.

Re: Open new CC?

smackmaster2 — Thu, 21 Jul 2011 12:59:59 GMT

OK, I wasnt sure how much weight being an AU provides on a CR and knowing she doesnt have any major accts of her own, that was my concern.

I think I will be conservative and not open anything else.

thanks for the feedback!!