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Credit Strategy Conundrum

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CosmoKramer-
Established Member

Credit Strategy Conundrum

I have an issue I am trying to sort out. I am an authorized user on a family CC account that is easily my oldest account, thus helping my AAoA. The issue is that it has around 50% utilization (that is out of my control). Would it be better to keep the account due to AAoA and deal with the high utilization, or drop it and no longer be an authorized user? Thanks in advance. 

Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: Credit Strategy Conundrum

How does your overall utilization look? As long as the card isn't maxed, and your overall utilization is low, it shouldn't have a big negative impact
Message 2 of 9
CosmoKramer-
Established Member

Re: Credit Strategy Conundrum

Card isn't close to maxed, and other than that, utilization for me is very low. About 1% on my other revolving card, and then everything else gets put on Amex charge card so no limit. Thanks for the help

Message 3 of 9
Remedios
Credit Mentor

Re: Credit Strategy Conundrum

Are they planning on paying off the card?  Are they carrying the balance or is that 50% just what gets reported but then it's paid in full? 

Message 4 of 9
SouthJamaica
Mega Contributor

Re: Credit Strategy Conundrum


@CosmoKramer- wrote:

I have an issue I am trying to sort out. I am an authorized user on a family CC account that is easily my oldest account, thus helping my AAoA. The issue is that it has around 50% utilization (that is out of my control). Would it be better to keep the account due to AAoA and deal with the high utilization, or drop it and no longer be an authorized user? Thanks in advance. 


Really the only way to find out is to do it.

 

You'll be losing the age, but getting rid of the high utilization. As to which will outweigh the other, or whether they will balance out, is anyone's guess.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 703 TU 704 EX 687

Message 5 of 9
CosmoKramer-
Established Member

Re: Credit Strategy Conundrum

Paid in full monthly, never a late payment. The 50% (from my understanding) is just what gets reported before it has been paid. 

Message 6 of 9
CosmoKramer-
Established Member

Re: Credit Strategy Conundrum

I see, that's what I thought might be the case. Thanks for the help. 

Message 7 of 9
HeavenOhio
Senior Contributor

Re: Credit Strategy Conundrum

@CosmoKramer-, when examining the age factor, zero in on AoOA (age of oldest account) more than AAoA. How old is your second oldest card?

 

If this card is typically cutting statement balances at 50% and those balances are being paid in full, the primary user of this card should probably be checking into a CLI (credit limit increase) request.

Message 8 of 9
CosmoKramer-
Established Member

Re: Credit Strategy Conundrum

I see, thanks. That is where the issue was, in that my second oldest account is 1.5 years old, and the card with the high utilization was started in 2003. I have been an authorized user since 2012. I am not sure how being authorized user effects your oldest account, or AAoA. My guess is I will just have to drop the high utilization card and see how it reacts because some agencies/credit score sites include the authorized card account in my reports, and others do not include it if that makes sense. 

Message 9 of 9
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