Question on Age vs Utilization for Score

[Anonymous]

My scores are all 700 - 740, a good part of that is from 2 AUs, one 38 years and one about 28 years.  All of my own cards are under a year though.

I just got approved for Amex Green which they said they'll report as Open 1986 since I had an account then giving me my own 22 year old age which helps for score and manual review.

My question; the 38 Year Old Amex is carrying an $8000 balance on a $10k line which is not helping me.  On my last MyFico if you get rid of that one card it  lowers my utilization from 30 to 20 percent.

If I get rid of it my age drops from 38 to 22 and my average age  from 9 to maybe 7 1/2 or 8.  At the same time it gets rid of most of my balance and a good part of my util. I can't even pay it down because the balance isn;'t mine, while if i pay down my own balances I can get to 5% or less.

Any thoughts on how that plays out?

[marty56]

IMHO get ride of the card.  Util > Age in scoring.

[Anonymous]

I agree, lose the AU. Age will slightly hurt you but you will be helped in the long run and you will be totally in control of your report which is much more important. That way you will not be hurt if Amex decides to take AA on the main account for a high balance.

[Anonymous]

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@Anonymous wrote:
I agree, lose the AU. Age will slightly hurt you but you will be helped in the long run and you will be totally in control of your report which is much more important. That way you will not be hurt if Amex decides to take AA on the main account for a high balance.

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Well here is the clincher; decided to push it and apply for Delta Gold too;  approved for $10k!  So that gives me not one but two cards that will report as 22 years so the next average will go up, the total length will go down, utilized debt goes down $10k, available credit goes up $10k.  That has to be a pretty nice bump all told and that's WITH Efax at 740.

[Anonymous]

Ok did the simple math on getting rid of Amex AU and addition of Delta Amex (mine)

With current balances takes me down from 31% utilization to 13%.

Even better, I was going to pay my own cards down in full.  Because I can't do the AU, that still would have kept me at 14%. So now I can get down to 0% or 1%.

I'm very curious to see score effect;

Current: 

739

AU on Parents

31% Useage

38 Year History (from AU), 9 Year Average

Early Jan: 

Get rid of Parents Au. 

Add two Amex Cards aged to 1986 (i..e add two 22 year old accounts in my name)

1% Useage

22 Year History (mine), average same or higher.  

I'd bet the net result from the two 22 year old personal cards vs the one AU 38 is zero, and the gain from 31 to 1% is high (40+?)

[smallfry]

In the end it is all bucket driven. However my scores were only marginally lower with an average age of just over 5 years and utilization near 60% than they are today with an average age of 3 years and utilization anywhere from 1-2%. Given one or the other I would take average age. Utilization can be easily remedied.

[RobertEG]

I would dump the AU cards in a hearbeat.

The avg age that you now have without them is at about the norm, so you dont gain much from them.   

The high %util on the AU cards is hurting you, and something over which you have no future control. It could increase tomorrow, due to someone else's actions.  In this tough credit market, it might result in a decrease in your CL on your own accounts before you can ditch the AUs, or maybe even creditor closing of one of your accounts.

I agree.  I would bail on the AUs and take control of my own credit.

[Anonymous]

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@RobertEG wrote:

I would dump the AU cards in a hearbeat.

The avg age that you now have without them is at about the norm, so you dont gain much from them.   

The high %util on the AU cards is hurting you, and something over which you have no future control. It could increase tomorrow, due to someone else's actions.  In this tough credit market, it might result in a decrease in your CL on your own accounts before you can ditch the AUs, or maybe even creditor closing of one of your accounts.

I agree.  I would bail on the AUs and take control of my own credit.

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Well I challenged the 13 year old Citi with the $7k balance and non-reporting CL on TU. On Efax it reports $0/$0and I get a little bump for age / good account.

Parents Amex was cancelled anyway so I challenged that.  On TU that wil get rid of $17k in balances and $0k in CLs between them. And that is before I pay off the others in full.