@BluDevil wrote:Hi everyone,
Wasn't 100% sure where to post this. Overall, I'm new to credit, with about 1 yr 8 months for my oldest account. For context, I'm 20 - so I joined the game just a smidge late. Current projected income for this year should be roughly 50k.
My score has been all over the place, which I believe to be due to being an AU on one of my parents cards. They carry a high balance, and, at one point "my" utilization was at 80%. After opening a few CC's, I've been able to get the reported utilization down to 25% which has increased my score. They never pay late.
However, I now have 2 questions that I've been debating on.
1) Should I ask to be removed as an AU on my parents card? Their card was opened in 2019.
2) With the attached below cards, should I garden for a while before applying to anything else?
Current scores:
EX: 716, 3 hard inquiries
EQ: 732, 1 hard inquiry
TU: 733, 0 inquiries
Current CC's
Discover it: $3500 CL, $1500 SL - 03/22
Chase Freedom Flex: $5000 CL - 03/23
American Express BCE: $6000 CL - 03/23
AAdvantage Red Aviator: $7000 CL - 04/23
I don't currently need any other CC's - and doubly think I wouldn't qualify for many due to the high velocity.
Thank you kindly for any advice/time you take reading in advance!
Yes you should absolutely remove yourself from your parent's card.
As to gardening, you should definitely not be applying for anything since you don't need anything.
Welcome to the game! You haven't joined late, you're way ahead of most people your age. And if you can use your credit cards responsibly then you'll be ahead of many people older than you as well. The average credit score and the average amount of debt in this country is scary. This is a great place to learn about proper usage and optimization.
1) High utilization is a temporary ding to your score, but it sounds like being an AU is causing more harm than good right now. I would get off their account and focus on your own credit profile at this point.
2) And yes, I would garden for 6-12 months at the least. Your score will go up as your accounts age and your inquiries drop. Just use the cards for small purchases and pay in full every month to get some on-time payment history. Even after 6-12 months it will probably serve you better to start requesting CLI's rather than opening new accounts. Discover is great about giving CLI's over time with responsible use. And AmEx & Discover both do CLI's without a hard pull / inquiry on your report.
@BluDevil wrote:Thank you kindly for the advice! If you don't mind me asking, would removing myself as an AU hurt my score?
Not when it its 80% util. Ouch. Cut the cord and enjoy your time building credit. If your util is low. Removing yourself wont hurt a thing.
Removing your AU account will lower your AAoA but your overall util % will be way better. You might see a temporary ding from the AAoA lowering but overall it will be better for your score.
@BluDevil wrote:Thank you kindly for the advice! If you don't mind me asking, would removing myself as an AU hurt my score?
One can never say, but probably it will not hurt your scores.