How exactly does closing a card affect my credit score?

[Anonymous]

Sometimes AU accounts "count" and sometimes they don't.  Does your account show up on his CR?

Not having "enough" consumer credit could be referring to one of two things, possibly both.  One could be referring to length of credit, meaning that his file is too young... that points to AoOA and AAoA.  Two, it could be referring to file thickness... that points to not enough accounts being present, meaning that his file is "thin" and thus he's a greater risk.

[jdbkiang]

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@Anonymous wrote:

Sometimes AU accounts "count" and sometimes they don't.  Does your account show up on his CR?

Not having "enough" consumer credit could be referring to one of two things, possibly both.  One could be referring to length of credit, meaning that his file is too young... that points to AoOA and AAoA.  Two, it could be referring to file thickness... that points to not enough accounts being present, meaning that his file is "thin" and thus he's a greater risk.

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They do show up on his CR. I added him as AU to 3 cards on my account, all at least a year old, with the oldest about 2 years. However, that's all he has on his file. Outside of those 3 accounts, the only other things that show up are a couple inquiries. I had him apply for a couple cards after the AU's reported, but they were all denied. After calling Amex recon this morning, the CSR said that AU accounts wouldn't help his file at all. I was pretty surprised to hear that, so now I'm slightly confused as far as how to move forward. 

[Anonymous]

That's not surprising at all, Chase also does not consider AU accounts and I'm sure they're not alone. The best course of action is a couple of secured cards (Discover for sure) and sit on them, wait for his FICO to generate after 6 months then check various prequal site for unsecured offerings, if nothing then wait another six months, by then the secured cards should have graduated. Don't be tempted by predatory lenders like Credit One and First Premier.

[jdbkiang]

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@Anonymous wrote:
That's not surprising at all, Chase also does not consider AU accounts and I'm sure they're not alone. The best course of action is a couple of secured cards (Discover for sure) and sit on them, wait for his FICO to generate after 6 months then check various prequal site for unsecured offerings, if nothing then wait another six months, by then the secured cards should have graduated. Don't be tempted by predatory lenders like Credit One and First Premier.

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But...Amex and Chase both offered my brother cards solely after being added as AU as well. He had no other history either. 

[Anonymous]

What do you mean by "offered?"  In what way?  Do you mean through the pre-qual site, a targeted offer, or something else?

[Anonymous]

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@jdbkiang wrote:

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@Anonymous wrote:
That's not surprising at all, Chase also does not consider AU accounts and I'm sure they're not alone. The best course of action is a couple of secured cards (Discover for sure) and sit on them, wait for his FICO to generate after 6 months then check various prequal site for unsecured offerings, if nothing then wait another six months, by then the secured cards should have graduated. Don't be tempted by predatory lenders like Credit One and First Premier.

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But...Amex and Chase both offered my brother cards solely after being added as AU as well. He had no other history either. 

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Then your brother is an exception to the norm, it's well documented on here that Chase will not consider AU accounts and typically wants to see 1 year of own revolving history, perhaps he has high income compared to your friend?

[Anonymous]

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@jdbkiang wrote:

As a follow-up, are AU accounts counted in the account age as well? I had a friend added on as AU with no cards of his own, but when he applies, he keeps getting told he doesn't have enough consumer credit. 

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FICO 8 has built into it a secret proprietary "anti-abuse" module that attempts to sort out people who are legitimate AUs (children, spouses), fairly legitimate AUs (brothers, nieces, etc.), dubious AUs (friends) and totally illegitimate AUs (strangers). 

You mention that your brother (who likely has the same last name as yourself) was apparently recognized by FICO 8 as a legitimate AU, but your friend was not.  This is not surprising.

Also, by the time you added your friend, FICO may have been able to see that you were adding lots of AUs in a short period of time, none of whom were your spouse or child.  The AA module is secret and may rely on data mining techniques that go beyond what is explicitly on your credit report.  

Here is an excerpt of what you said about you and your friend:

I added him as AU to 3 cards on my account, all at least a year old, with the oldest about 2 years. However, that's all he has on his file. Outside of those 3 accounts, the only other things that show up are a couple inquiries. I had him apply for a couple cards after the AU's reported, but they were all denied. After calling Amex recon this morning, the CSR said that AU accounts wouldn't help his file at all. I was pretty surprised to hear that, so now I'm slightly confused as far as how to move forward. 

You may want to adjust how you are seeing things in two ways.  First, you and your friend have the perception that he can be added as an AU to a few young cards and immediately be eligible for some of the top flight issuers (e.g. Amex).  He and you should lower your expectations and have a much more relaxed and longer timeframe. 

Second, you perceive that it is your job to figure out how to move forward on his credit journey.  It is not. 

Best wishes!

[HeavenOhio]

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@Anonymous wrote:

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Then your brother is an exception to the norm, it's well documented on here that Chase will not consider AU accounts and typically wants to see 1 year of own revolving history, perhaps he has high income compared to your friend?

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Chase does consider AU's — in a negative way — when they compute one's 5/24 standing. In other words, they won't help, but they might hurt.

[Anonymous]

That's true, forgot about 5/24.

[jdbkiang]

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@Anonymous wrote:

What do you mean by "offered?"  In what way?  Do you mean through the pre-qual site, a targeted offer, or something else?

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Sorry, should've been clearer. He was able to receive cards from Amex and Chase after applying, based on the AU's. In fact, I myself got the CSR+CFU based mainly on AU's as well. I only had a Sears MC for 3 months before then, so it was simply my assumption based on experience that AU's would help a thin/new file. My income, my brother's, and my friend's income weren't all that different at the time of applying. 

And yes, Heavenly, I appreciate the reminder. Just trying to help a friend.