AU question...

[Anonymous]

It has been suggested that I consider having my Mother remove me as a AU from a CC with a balance of 12k and limit of 27k... I have paid all of my own CC's off so this is the only card reporting towards my utilization. My concern is that the card has a 30+ year history and my accounts only provide a little more than 12 years of history.

Would you expect a small increase in score with this CC removed, or the opposite? I'm hoping for a little bump to put me solidly in the FHA range. I suppose I can just be added back if it has a negative effect.

Thanks in advance!

[llecs]

I wouldn't remove it. I predict a loss. If you add it back on, give yourself at least 2 months from the drop off to insure it gets readded prior to your mortgage app.

ETA...I think DTI may come into play. Something to consider too.

[Anonymous]

Hi duke, and welcome!

I agree with llecs.

Someone on these forums (hmmm....was it llecs???) was in a similar scenario, pulled themselves off the AU card, and lost points.  And as llecs points out, you'll want to give yourself enough time to add yourself back as an AU, if you try the experiment and see a FICO score loss when removing yourself as AU.  That timing could be tough if you're at the last stages of a mortgage countdown.

What other things could you do to add points?  If you pull your FICO score here, your report will list those items that are "hurting your FICO score" and items that are "helping your FICO score."  That can be very helpful and useful info as you try to pull your scores up.  If you post those items, you'll get some very helpful info from folks.

[llecs]

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@Anonymous wrote:

Someone on these forums (hmmm....was it llecs???) was in a similar scenario, pulled themselves off the AU card, and lost points.  And as llecs points out, you'll want to give yourself enough time to add yourself back as an AU, if you try the experiment and see a FICO score loss when removing yourself as AU.  That timing could be tough if you're at the last stages of a mortgage countdown. 

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It had happened to Mrs. llecs. We weren't at any credit crossroads like a mortgage at the time, but her father kept a $6000 balance on a $6300 CL Citi CC or something like that and she was an AU on too. The absolute best utilization she could be at with that CC reporting was around 95%. We thought by removing it and having util drop below 20% would help her FICO, but when removed she lost approx. 20 points, IIRC. Why? It was her oldest TL, oldest revolving, and improved her AAoA by something like 6-7 years. Dooooh. I posted this before too, but her dad actually PIF the following month. Double doooh! But did bring the balances back up later on (whew!).

[Anonymous]

Thanks for the advice... I'll update what the end result is. I am hoping that I do not lose points, but wont be surprised if so.

[Anonymous]

The AU acct in question dropped from my reports... I had a 46 point gain on my TU, and a 7 point decrease in my EQ... I'm not sure what to make of the big difference, but EQ also is reporting 2 CA's with a balance listed as past due that were paid 10/10. I have tried and tried to get the CA to update with no success so I'll dispute the balance info today. TU does not show these accounts as past due.

[OptimalCS]

Based on personal experience I also know that TU hates balances.