FICO 08 dropping AU benefits

[Anonymous]

My mom is a AU on 3 of my CC"s I added her to establish her a credit file she never had any credit, until  this point. My dad was the the sole provider she was a stay at home mom according to the new FICO 08 sytem I understand AU will no longer be figured in to there score. Is it better to have AU removed from the accounts or leave them as they are. What are the ups and downs to these changes. Thanks credit08

[Junejer]

If she has generated a score, you might want to establish a file for her outside of the AU accounts.

[Dawn]

As Byrdman has suggested, she might want to establish some accounts in her own name so that if and when the AU accounts are no longer factored into her score, she has some other accounts with established history to fall back on.

I would hesitate to remove her from the AU accounts at this time, if they are in good standing and helping her.  Even when FICO 08 is made available through the various CRAs, the lenders then will have to specify that they want to use that particular scoring model.  Just because the CRA offers it doesn't mean that the lenders will pick up on it right away.  She still has an unknown amount of time to benefit from the AU accounts.

[Anonymous]

Thanks for the insight my mom has 4 CC"s established on her own at this time  prior to adding her as AU she did not even have a file. Shortly after that she starting getting offers from BOA Chase  Amex, and last CC was from her bank Wachovia Platinum visa. I checked her EQU FICO 6 mos ago 773  when we started this up in 2005 from scratch not to bad for such a short time period. What do you think. credit08 

[Anonymous]

Hi Dawn thanks for the info great idea I will sit tight  for now see how the new program falls into place credit08.

[RobertEG]

Even, if and when, FICO 08 is released,and includes a provision to delete AUs, it is NOT automatic that ANY lendor will just jump on the new FICO product bandwagon. FICO 08 will not supplant all prior scoring algorithms.  FairIsaac will still deliver to them what they decide to pay for. The current algorithm will not simply die.  FairIssac has released other "improved" algorithms in the past that were simply not embraced by their customers, and died. Lendors, comfortable with the old algorithm, will take a long time to supplant the unknown "new" shoes when their old "work" shoes are not creating blisters.

So, I agree.  History has shown us not to knee-jerk with each release of FairIsaac,and I would not delete any current AU status based upon an unknown and unaccepted fairyland of FICO08.

[Anonymous]

As usual, Robert speaks the truth.  We are not sure when this FICO 08 thing will happen.

Also, I have not heard anyone say that, with 100% assurance, that AU's will definitely NOT count.  Maybe the plan is to discount these TL's 50% or 75% but not eliminate them totally, since there are so many people who rely on their spouses for their credit.

So, keep the AU's, but try to either make the accts joint or set up new TL's for those with only AU's.

[Anonymous]

Thanks guys for the advice once again excellent point of views I will just "Keep On Keeping On" for now.

[Anonymous]

1.  Keep the AU accounts,

2.  Have her apply for credit in her name.  Quality credit cards (BofA, Citi, Chase, Amex, Discover),

3.  When the AU change takes effect, see if any of the banks you are doing business with might agree to change the AU status to Joint.  So it might be good for her to use the AU cards occasionally (or matter of fact, you can simply use her AU cards at a gas station), like a $10 purchase here or there.