Authorized User

[Anonymous]

Hello,

I am an AU on my mom's Capital One credit card. Her limit is $2300 and her balance is about $2100. She pays on time every month, no late payments ever and she's had the card for about 1-2 years.  I am helping her pay down the balance, but I am not sure if this is helping me, or hurting me. I have 3 other credit cards on my own. One is a victoria's secret card with a limit of $1100, and the balance is $1200. A 1st premiere card that has a $300 limit and the balance ins $260, and a Credit One card that has a limit of $500 and the balance is $600. I know I am over the limit on all of my cards, but I am paying $50 a month on all cards. My mom is also paying about $100 on her card. I will have the balance paid off on my first card by the end of the summer and the credit one card will be a lot lower too. But my Victoria's Secret card, and my mom's card will still high balances. So basically, idk if I should take my name off of my mom's card bc it can lower what I owe, and I also want to know if i'm on the right track. Any tips will be greatly appreciated.

Thank you!

[Anonymous]

You have 3 of your own tradelines- i'd remove myself from mom's card if I were in your shoes.  You definitely need to get your balances paid down and only let 1 card report a balance of under 10%

[Anonymous]

thanks for your feedback!

[RobertEG]

The inclusion of any AU in your scoring, whether it hurt or helps your score, automatically makes the produced score non-representative of only your own credit history.

If a credtior who is evaluating your request for credit does a manual review and sees an AU account, they have no way to back out the impact of that accunt should they wish to see a score that is based only on your own history.

While helpful in rebuilding where they types and amount of credit being sought may not result in a manual review, as one progresses in rebuilding, it is always wise to keepan eye on ditchng the AU crutch.

[takeshi74]

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@Anonymous wrote:

I am helping her pay down the balance, but I am not sure if this is helping me, or hurting me.

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Figure out what your revolving utilization is on each of your cards including your mom's where you're an AU and your overall utilization.  Keep in mind that revolving utilization falls under Amounts Owed, the second biggest factor.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Also keep in mind that the general advice is do not exceed 30%.  Lower is generally better as long as you don't have all 0 balances reporting.  Ideal is typically 10% or lower.

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@Anonymous wrote:

So basically, idk if I should take my name off of my mom's card bc it can lower what I owe, and I also want to know if i'm on the right track. Any tips will be greatly appreciated.

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It won't hurt.  It will hlep in cases where the tradeline is considered.  It will have no impact in cases where it is not considered.  You should check your reports after removing yourself as an AU to ensure that the tradeline is removed.

[Anonymous]

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@RobertEG wrote:

The inclusion of any AU in your scoring, whether it hurt or helps your score, automatically makes the produced score non-representative of only your own credit history.

If a credtior who is evaluating your request for credit does a manual review and sees an AU account, they have no way to back out the impact of that accunt should they wish to see a score that is based only on your own history.

While helpful in rebuilding where they types and amount of credit being sought may not result in a manual review, as one progresses in rebuilding, it is always wise to keepan eye on ditchng the AU crutch.

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Thanks Robert.  Very wise advice.  This sounds especially applicable to anybody preparing to buy a house.