If the bank you are trying to get a loan from is going strickly by your FICO scores it probably will matter. If your wife has maxed out her cards this effects credit utilization (reducing the amount of available credit) on a whole, which will drop your score. For instance, add all revoling cedit limit lines on credit report, your cards and the cards that you are AU on and that are showing up on your credit report. Then subtract all the balances of each card, to get utilization. For instance, Total credit card limit is 20,000. Total balance is 10,000. Your utilization is 50%. For highest scores, you generally want to keep utilization low. For your best score I would guess in the 0 to 5% range.
It would depend, if the loan company or bank is strickly going by FICO scores and your relationship with the bank. I think FICO score is typically 30% utilization. The lower balance you carry, the better.
Bottom line is, if being a AU can help your score, it can also hurt your score.
You need answers to some questions. What is the leanding institution going by, FICO or other? What is your score based on the institutions loan guidelines? Getting the loan or not and at what APR is all based on those answers.
If you take yourself off all your wife's cards as a AU. Do the same utilization formula as above with only your cards. Keep in mind there are other factors. If she has had these cards for 15 years in good standing and your credit history is say 7 years, that can effect your score negatively if you remove the items. Age of accounts play a role also.
This is assuming the AU accounts are in good standing without any 30days late or worse.
Didn't mean to make it complicated. lol
