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Background: Recent college graduate looking to get my own credit card; 4.5 years of credit history including student loans; 2.3 years average credit history
I was put on my mom's Chase back in 12/2012 before I left to go away for school. Since then, several recent events in my parent's life has caused them to need to use the card, which has resulted in the card almost reaching it's limit. Due to this, my father added me to his AmEx with very little usage.
What would happen if I was removed from my mom's card? Would it be beneficial, because my credit utilizaiton owuld go down? Or would it be harmful, because it's ending about 3 years of good history (on-time payements, etc.)?
Right now my credit score is a 676, according to KC. I'm not sure if it's generally that low for someone with credit history like mine, or if it's low partically because of my high utilization.
Any info/advice woul be wonderful! Looking to gain more insight!
Is your Dad's card roughly the same age as your Mom's?
PS. Do you have any personal credit cards in your own name?
No, my dad's has a limit of 15k and only 1200 on it. His always stay around 20% utilization.
When I posted this, no. I was recently approved for a Disocver card.
Congrats on the Discover card that is in your own name! Since your dad's card is the same age as you mom's, but your mom's has a very high utilization, ask your mom to drop you from hers.
Would your father be willing to keep the dollar amount that his card typically reports much lower than it reports now? At least during the next eight months while you are in your early stages of building your credit? You mention that the card typically reports at 20% utilization, which would mean that most months the statement has a dollar amount of $3000 on it (3000 / 15000 = 20%).
Here's a way he could do that. About a week before his statement prints he would pay his balance down to about $5. Then he can keep using it. If his statement prints with $5, that's great for you. But even if prints with a much higher amount (say $500) that's still much better for you than $3000. Keeping his CC balance low would help his credit score too.
Alternatively he could pay it to $0 and then just use another card.
Regardless, you should develop a plan for managing your personal credit card. You should be making two payments each month:
* Four days before the statement prints, pay it down to $5.
* A few days after it prints, pay the amount listed on the statement in full.
Then you can use it as much as you like and you will still be reporting a very low utilization with no interest.
Three months after you and your father have been consistently reporting very low balances, you should apply for one more card.