Would being removed from the Discover card as an AU raise my score because of utilization, or hurt my score because it is so old? Any guesses? If I am removed, and the score goes down, I could just get re-added, right?
Ans:
Chances are greater your score will increase. Util is 35% of your score. When the balance is reduced significantly -add yourself back on assuming the primary cardholder is agreeable.
Ans:
Chances are greater your score will increase. Util is 35% of your score. When the balance is reduced significantly -add yourself back on assuming the primary cardholder is agreeable.
@RobertEG wrote:As an aside to purely FICO scoring issues, while an AU is included in your CR, those doing a manual review will be unable, if they so desire, to see your score based on only your own credit report history.
Having no way to "back out" one or more accounts used to calculate your score, they cannot assess your own, personal repayment risk.
It could thus caste the value of your entire score into doubt in their assessment.
While rebuilding, many apps are for lower CL or principal credit, and the creditor, for reasons of cost saving, may rely primarily or solely upon your score without a review of your CR. Thus, addition of postive AU accounts can be a very useful building or rebuliding tool.
However, as you move along the credit path and seek higher CLs or loan amounts, it is possible that a manual review might make the inclusion of the AU accounts more of a detriment than a benefit. If in doubt as to the continuing benefit, it might be wise to ditch the AU once you expect manual reviews in your app processes.
I've never had an AU on my report but aren't they coded differently? Under FICO yeah they can't discount them (though there's theoretically some anti-abuse code now in FICO '08) but in an internal score which all major and a lot of minor lenders have some version of, it wouldn't be hard to discount AU's altogether if they choose. Chase according to the forum allegedy does this regularly.
