Advice needed to improve credit score

[C24Webb]

I'm relatively new to the credit world, but I know healthy credit is quite necessary and I am looking to improve my FICO score.

I pulled Experian at 675 and Equifax at 655 today.

I have a Mastercard issued by USAA with a CL of $1,000 and I've had it since June 2011.

Today, I was approved for a Chase Slate with a CL of $400 (upon activation, I plan on asking for a slight increase).

I have made no late payments since opening my first card, although my utilization sits at about 25% on the USAA MC right now.

I am an authorized user on two of my mother's credit cards (from when I was about 16 and hadn't even had my first job yet).

She has one card with 0/5000 and another with 3340/3600.  The utilization is high, but these cards are also giving me a better AAoA (3 years versus my sole nine months, which will soon drop because of the Slate) .

So what do you think is better for my score -- keeping the higher utilization from my mom's cards on my records while also maintaining a higher AAoA, or taking my name off of them to have a lower utilization but also lower AAoA? 

Any feedback will be appreciated immensely!  

[RobertEG]

Util scores approx double that of length of credit.  Revolv % util is the bulk of util scoring, so I would estimate that the high util and balance on the one card is hurting at least as much as it is helping your AAoA.

Another important aspect, aside from actual score, on being an AU is that it may make your entire credit score of much less value to a creditor who wishes to discount the affect of the account history contributing to your score that is not based on your own credit history.

Just as you cant "back out" their history and see the actual results yourself, neither can a creditor.

In my opinion, when it is even close, it is best to stand on your own credit history.

As for your own history, have you taken all steps to address old derogs, and do you currently have any unpaid delinquent debt?

[pizzadude]

Welcome to the forums !

+1 to Robert's advice above.    FICO weighs revolving revolving utilization heavier so you might be hurting your FICO score by having these high balances show on the AU accounts.    But at the same time they are helping you somewhat due to your short credit history.  

Is the high balance going to be paid down soon, or is going to be slowly paid down over time ?

[C24Webb]

Thank you both for your advice!

Based on what you've said, I think I'll have a talk with my mother about taking my name off of her two cards.  I've been reluctant about this, because it's just a bit awkward to bring up, but I suppose it must be done at some point.  I haven't used them since gaining my own card, and I think the high balance is likely hurting me more than the higher AAoA is worth.  My mother is in a decent financial situation, although I honestly do not know when or how much she plans to pay on the card. I would also like to stand on my own when it comes to my credit score, as opposed to having to deal with whatever she decides to do with her accounts.

I'm only 20, and I haven't had anything severely negative in my history (derogs, debt, late payments, etc.)... so once those high balances are gone, but my AAoA drops, I think my score will at least marginally improve. 

[pizzadude]

That sounds like a good plan.   Only one card has a balance right ?   Perhaps you could keep AU on the card with zero balance.

And congrats to you on getting off to a good start with building your credit !  Many people wait to do this until much later in life, or don't until they are forced due to financial issues.  

[Anonymous]

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@bitternut wrote:

Thank you both for your advice!

Based on what you've said, I think I'll have a talk with my mother about taking my name off of her two cards.  I've been reluctant about this, because it's just a bit awkward to bring up, but I suppose it must be done at some point.

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It's less awkward than you think.

Actually, she might even be impressed once you bring up the conversation and you explain the "why" of it all.

Seeing how you are only 20, kudos, for getting a jump on this. You'll benefit a lot more than you could honestly believe so, just by taking the initiative to do so.