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Utilization vs Aging

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Utilization vs Aging

Hello - First let me apoloigize if I break any community rules here, it's my first time.  I've been lurking here for months and finally have a cunundrum I'm not sure how to handle.  This past year I've been working hard to build a credit profile I could finally be pround of.  When I started this journey I asked my extremely responsible parents to add me as an AU on two of their oldest cards (giving me a 14 year and 11 years credit line).  Initially this brought my score over 600 and I was able to get some cards on my own in addition my DH got 2 new cards and I was added as an AU user on those as well.  Overall with the addition of new credit (like 10 or so accounts in a year) my AAoA is at 3y5 months.  Now my issue is my once extremely responsible parents have become LESS responsible with their utilization, payments are always made on time though.  Both cards are sitting at almost 50% utlization and at the rate they are paying them down (OR NOT!) the utlization will be high for years.  I'm not going to preach too much to my parents - afterall who am I to judge, but I am unsure with all my new credit if simply removing myself as an AU would help me or hurt me.  I know overall the utilization matters more in the score model but taking out those accounts would really hurt the AAoA, right?   Any insight users could provide would be great.  

 

 

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Community Leader
Super Contributor

Re: Utilization vs Aging

Hi @jennscreditjourney and welcome to the forums!

 

For your situation at the time it was a good idea for your credit history to be aided by your parents' cards; gave you the boost you needed to help you and your DH establish credit profiles of your own. Now that the foundation has been set it's time to let go of those two cards because utilization will have a much bigger impact on your scores and the ability to refine your credit card portfolio as you and DH see fit. Your AAoA will take a hit yes but the gain you'll receive from getting out of the <50% utlization threshold bucket will gain those points back and more. This is all presuming your own cards do not have any utilization issues

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Community Leader
Senior Contributor

Re: Utilization vs Aging


@simplynoir wrote:

Hi @jennscreditjourney and welcome to the forums!

 

For your situation at the time it was a good idea for your credit history to be aided by your parents' cards; gave you the boost you needed to help you and your DH establish credit profiles of your own. Now that the foundation has been set it's time to let go of those two cards because utilization will have a much bigger impact on your scores and the ability to refine your credit card portfolio as you and DH see fit. Your AAoA will take a hit yes but the gain you'll receive from getting out of the <50% utlization threshold bucket will gain those points back and more. This is all presuming your own cards do not have any utilization issues


Agreed. Plus, you'll want to get out "on your own" sooner or later. Sooner being better. 

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Super Contributor

Re: Utilization vs Aging

Agreed. It’s time to continue building yourself.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



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Updated Oct 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
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