Removing AU - positive

[Anonymous]

Hi all,

I just wanted to share how removing myself as an AU was a good thing:

My Equifax was 739 with two new accounts in November (one from July, one from September) and I was an AU on my mother's cards (no lates, but high balances).  I removed myself from these cards in Jan and lost some age...

However, my latest Equifax score was 777 - a difference of 38 points!  I attribute this to hitting >6 months of age on all accounts and removing myself so my balances are now <1% reporting on all cards (to be exact, I have $25 reporting on one card).

My AAOA is 8 years and *my* only baddie is a 4 year old late with my mother's Discover (30 day late).  *My* oldest account is 18 years and 10 months (and thus why I'm ok with the late, I want the age).

So the lesson from this: loosing some age (my AAOA went down slightly) but removing high balances can increase scores pretty well for the 700-780 range...

[Anonymous]

What was the ratio of balance to credit limit on this AU account?  I'm currently an AU on an two accounts with perfect history with the following balances/Credit limit

1000/2800

7000/25000

I'm wondering if these are hurting more than helping?

[Anonymous]

In order for an AU to really work for you, it must be older than your oldest account, be in good standing (no lates) and a low balance, 10% or less.

If the balances are high it is worth the small amount of point loss for AAoA to get it off your reports.

[Anonymous]

Would you say that I'm being hurt by these two accounts if they aren't as old as my oldest (closed) account?   Keep in mind that these accounts are perfect in history whereas some of my others have lates here and there. 

[Anonymous]

If your oldest account is closed, you have no utilization on it.

One of the cards is at 3% the other at 28%.

It is hard to say.  You can remove the one with the higher utilization and see what happens.  You can always add it back.

[Anonymous]

Tombking...I think hers were much higher than that...60% and 80% or something like that.

However, if there is no intention by the primary account holder to pay down these balances within the next few months and/or you are looking for a loan then remove one or both and see what happens (it might take a month or two to reflect the change).  The good thing with AU accounts is that if removing yourself hurt...you can always be readded with no adverse events.

Finally, while I'm still an AU on two of my mother's cards, I am just waiting until my oldest card hits 10 years, then I'm removing myself from all of them...the longer you keep on as an AU, the worse stuff could happen and it's only supposed to be a hand up, not a rock for your credit to stand on forever.

hope that helps

[RobertEG]

You did right.

AU accounts are, in my personal opinion, a total contradiction to rating one against their own credit history.

Marriage does not even merge credit files.  I would abolish all AU accounts.

[Anonymous]

Thanks for posting. This is actually very encouraging because I am looking to remove myself as an AU from my parents' Amex account (very high utilization). Hopefully this will work for me too-- I'm willing to take a hit to my AAoA if it gets that off my report.