Authorized User questions

[Anonymous]

In about 2 months I am applying for a CLI and new CC online with NFCU and want to get the highest limits possible. My fico8 scores range 675-685 on all 3 bureaus. Other than my 9 late student loans (over 2 years ago) I have nothing bad on credit besides my credit history length with my oldest account being 6 years and my aaoa 2y,4m hence the reason I want to be added so I can hopefully get a boost to atleast 740's (wishful thinking) across the board with the new age. I currently have 2 store cards and 1 credit card of my own and they're all reporting at $0.

Background about the card- it's a Dillards store card but it has 25 years of age (they do back date au, we called). The limit is 4600 it has a balance about 4,000 so about 85-87% utl and the balance has always been a little high but there has not been 1 late payment on the card ever. Before getting added I am going to pay it down to atleast 1000 so it can be at 25% UTL (I figured it would hurt that much since all my other cards are reporting at 0.)

Questions

1. Will the increase in score from my credit history length out weigh the 25% utl score decrease?

2. I can pay it to $1000 then pay it to $0 the next month. Is waiting to get added after it's paid to $0 better or does it not matter since im going to pay it to $0 the following month? (basically asking will I lose out on points by getting added before it's at $0?)

3. Will the balance being high in the past cause me more harm than good even if I do pay it down? 

4. What do you think my potential score range would be when added? My 740's was just wish thinking lol

PS: I know that an underwitter may disregard my score but I am hoping for an instant approval online since I have no neg's.

PPS: It's not some randoms card, it's my grandmother's card so I want to help her by paying it off but why not benefit too lol.

[HeavenOhio]

@Anonymous, you're leaving some points on the table for all cards being at zero.

An ideal scoring scenario would have a small balance on your NFCU card, with all other cards reporting zero. That would be with or without the AU. Store cards and AUs aren't as reliable as major cards as the AZEO card that reports a balance.

For us to guess at scoring with the increased age and 25% utilization on the AU, we'd need to know your limits on all of your cards. Still, there'd be the element of mystery of how FICO would look at the AU in the first place.

Note that some lenders disregard AUs entirely, despite what FICO might do. I don't know where NFCU stands. But I'd have to guess that much of its decision making is going to be based on your history with NFCU, as long as your other accounts aren't brand-spanking new.

[Anonymous]

So you're saying let my NFCU report a small balance? I was under the impression the for the best results to PIF for the first 91/3 then leave small balances. Just to be safe ill lose out on the small points for now till I get the new CC and CLI but thanks for that info.

My cards are all brand spanking new lol thats why I want to get the AAOA up with adding the 25 year card. The limit on all 3 cards are 5k.

Myjewelers- Oct 2018 (store)

NCD- Jan 2019 (store)

NFCU- March 2019

Dillards- Jan 1994 (possible store AU)

Again, I know most lenders disregard the AU but I am hoping for a instant approval online without the UW having to approve it.

Sidenote question- I am going to cancel both Myjewelers and NCD but should I do it before or after I apply for new CC and CLI?

[Anonymous]

UPDATED @MikeMike18 OK listen to me OK. First off when you add that that AU card, it may not count and may not benefit you. First off Dillards will not allow you to become a joint account owner so all you can do is AU. AU is not guaranteed to count. It may and it may not. You probably have a better chance if you have the same last name and address but that’s still no guarantee. And the only way to know for sure is to do a test. So all you can do is add your self as AU to the card and then look and see if your score jumps. If it counts that will increase your AooA enough that you should see a significant score jump. If not then it will only help you with mortgage scores. Which is still a benefit.
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-efficacy-test/m-p/5557347#M153182

And to answer some of your questions:
1. absolutely the score increase will outweigh the 25% utilization. Utilization on individual cards does not start counting against you until 28.9% .
2. Your score is from a snapshot in time. Therefore as utilization changes, so does your score. So it doesn’t matter what the utilization is now, as long as when you need the best score, the utilization is it the right percentage and has been reported as such. Therefore find out when the card reports and make sure the proper utilization reports when you need it. If you’re trying for the best score, you want to do AZEO as suggested by HeavenOhio. So it doesn’t matter when you’re added, it matters what the utilization has been reported at when you apply and your report is pulled.
3. Again it’s a snapshot in time it doesn’t matter, because as utilization changes, your score changes, so it doesn’t matter if it’s 90% today. if you pay it off tomorrow, your score will improve tomorrow.
4. As stated by HeavenOhio, its impossible to know that information but you should see a decent score jump.

[Anonymous]

Why would you cancel myjewelers and NCD? Just pay them to zero and leave it alone. make sure they report zero and leave it alone.

[Anonymous]

They are at $0 but they are new accounts. I don’t want them bring down my AAoA. Thought it would bring up the AAoA if I take them off so I guess that should have been a question lol

[Anonymous]

Absolutely not!!!! The algorithm counts both open and closed accounts. You will receive no benefit from closing the accounts. They will affect your AAoA for 7 years if they have any negative info and 10 years if no negative info. Therefore, to close them is simply to kill their help to your AAoA 7-10 years down the line, because they will drop off then due to being closed now. But by then, they would be awesome helpers to your AAoA. Understand?

In other words, it's too late, you already screwed yourself by opening them; to close them now only compounds and exacerbates that "oversight" or "lapse in judgment."