FICO EQ reports the following as hurting score:
#1 Heavy CU (43%)
#2 Too many cards with balances (7)
#3 Amount owed on CC ($11579)
I am listed as authorized user on a CC that still reports. My current Balance/CL ratio is $11579/$27050 or 42.8% CU. It takes approx. $272 balance drop to equal 1% CU drop.
If I request to be dropped as AU, it will result in my ratio being $9123/$20650, or 44.1% CU. This would go against #1 above by a slight margin, but would reduce #2 by 1 account, as well as reduce #3 by $2456. In this scenario, it would take approx. a $223 balance drop to equal 1% CU drop.
Since the account is actually younger than my average account age, this would increase the avg. age of my accounts.
Do you think that this plan of action would boost my score any? (Currently EQ 693 EX 732 TU 725)
Should I or shouldn't I?
I know that sometime in 2008 that AU will no longer count, so I would be jumping ahead a few months. But if I can benefit now instead of later, why wait?
In order to have the AU removed, should I contact the CCC and wait, or dispute it directly with CRA? I was only added to the account in order to have access to the account for billing issues, but now it is managed under a DMP.
As an alternative method to reduce CU, I also checked on a credit increase on my cc with the highest cu. I called the credit union that holds the card, and asked several questions. Soft vs. Hard pull? They said hard, since I would have to actually fill out another loan application. Was my current CL high, low, or average? A little on the high side. She also told me that if additional CL was requested, and they run my CR, they could decide to close the card if CU was high on CR, instead of providing any CLI.
Since this is my only CC not included in my DMP (mostly used for business travel), and I have had the card since 1995, I decided not to risk it. The probability of a successful CLI was not likely with this local Credit Union as it would have been with the corporate banks.
One more question: My car loan turns 2 years old in January 2008. Will that boost my scores any? Or is it only the 1-year birthday that helps?
