AU question.

[Anonymous]

I am looking to buy a home and need a significant point increase on my Equifax report. My father in law is adding me as an AU to his $16,500 Chase card and they've agreed to post to the three Bureau. This account is very old. A lot older than any of mine with never a late payment. It is at a zero balance and is and active card. My question is approximately how many points will my 565 credit score increase with this addition?

Thanks!!

[Anonymous]

Hi joshandkimm,

Congrats!  You have a very nice f-i-l.

Whenever you are looking at a potential rebucket, it's very difficult to estimate score changes.

With your 565, I'm guessing that you may have some baddies on your report?  If so, remember that this new account will increase your AAofA, length of credit history, and lower your utilization, but the baddies will still have an impact.  You may get some estimates here - but the most helpful post will be when you let us know how your score was impacted.  btw - I see from your Fitness Challenge that you've made a significant score jump on EQ - nice work!

Let us know your AAofA, length of credit history, and utilization - before and after you've added the new AU account.  You'll get some good input based on that information.

[MarineVietVet]

I agree with beamMEup on this. You can get guesses, estimates, simulations, assumptions, etc. but in the end there is simply no way to accurately predict what will happen to your score because your financial situation is unique to you and no one else can know all the particulars. IMO anyone who says they can tell you what effect it will have is kidding you and themselves.

This should help you but only after the AU account starts reporting and you pull your score again will you know exactly where you stand.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

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Whats In Your FICO Score

[RobertEG]

Also remember that large principal lendors, such as mortgage lendors, dont base their lending decisions solely on your FICO score.

They will want to know your income, total assets, total debt, etc., which are not even considered in your FICO score.

They will pull your CR and do a manual review.

They know that an AU account is not based on your proven credit history, and may discount it, regardless of its improvement in your credit score.

AU accounts are an enthema to credit scoring..... which is based on one person, one score.

Potential score increase from addition of the AU will probably be dependent mainly on the addition of a high CL, low % util account to your CR.

Assume, as an example, that your current total CL is $8K, and your current % util is 50%. Just an example.

Adding the AU will triple your CL, and reduce your % util from 50% to less than 20%.  That could easily increase your score by over 20 points, but as had been said, a lot also depends on what your scoring bucket is.  What are the payment history derogs on your CR?  If you have major derogs, adding CL wont move you out of a "dirty" scoring bucket.

It is impossible to give you any specific estimates.  FICO scoring is too complex to estimate the impact of any one single action.

[MarineVietVet]

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@RobertEG wrote:

Also remember that large principal lendors, such as mortgage lendors, dont base their lending decisions solely on your FICO score.

They will want to know your income, total assets, total debt, etc., which are not even considered in your FICO score.

They will pull your CR and do a manual review.

They know that an AU account is not based on your proven credit history, and may discount it, regardless of its improvement in your credit score.

Potential score increase will probably be dependent mainly on the addition of a high CL, low % util account to your CR.

Assume, as an example, that your current total CL is $8K, and your current % util is 50%. Just an example.

Adding the AU will triple your CL, and reduce your % util from 50% to less than 20%.  That could easily increase your score by over 20 points, but as had been said, a lot also depends on what your scoring bucket is.  What are the payment history derogs on your CR?  If you have major derogs, adding CL wont move you out of a "dirty" scoring bucket.

It is impossible to give you any specific estimates.  FICO scoring is too complex to estimate the impact of any one single action.

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+1

[Anonymous]

Thanks for everybodys responses. Robert, I make really good money actually but had some bad credit decisions in the past. I currently have one final unpaid CA left on my credit bureau. Late payments on two credit cards that got to 90 days over a year ago. I have several paid collection accounts over four years old that  I paid before I found this website. I need to update my Scores on the challenge thing on here. They are currently.... TU 660 EX 610 EQ 596

[Anonymous]

Typo EQ is 569