Scoring clarification

[Anonymous]

I have two credit cards:

   Discover It - <9% util, 13 mos old

    Amex BCE - 0% util, 1 month old

AU on two cards:

    Sam's club/synch - 10% util, 12 yrs old

    Cap1 - 0% util, 16 yrs old

Seems max score is 3 cards, but my question is, am I already getting max scoring with the AU accounts? Considering apping for the third in the next couple of months (nfcu) before heading into the garden. But if I'm already maxed, i may put off the third for a year or so.

TIA

[SouthJamaica]

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@Anonymous wrote:

I have two credit cards:

   Discover It - <9% util, 13 mos old

    Amex BCE - 0% util, 1 month old

AU on two cards:

    Sam's club/synch - 10% util, 12 yrs old

    Cap1 - 0% util, 16 yrs old

Seems max score is 3 cards, but my question is, am I already getting max scoring with the AU accounts? Considering apping for the third in the next couple of months (nfcu) before heading into the garden. But if I'm already maxed, i may put off the third for a year or so.

TIA

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1.  You don't need 3 cards to maximize your scores. 2 would suffice.

2.  You have 4 cards, by my count.

[Anonymous]

Ok thanks. Thought I'd read that at least three revolvers was best for scoring purposes and wasn't sure if being an AU counted.

My score seems to dip if I pay my 2 cards fully, leaving the "except 1" in AZEO being one of the AU cards. So that got me thinking that the AU cards may not count in some ways and it's not as simple thinking that I have four cards.

Thanks for the clarification.  This forum is such an awesome resource.

[SouthJamaica]

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@Anonymous wrote:

Ok thanks. Thought I'd read that at least three revolvers was best for scoring purposes and wasn't sure if being an AU counted.

My score seems to dip if I pay my 2 cards fully, leaving the "except 1" in AZEO being one of the AU cards. So that got me thinking that the AU cards may not count in some ways and it's not as simple thinking that I have four cards.

Thanks for the clarification.  This forum is such an awesome resource.

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You probably did read that, but that was just someone's opinion.

In my opinion you don't need 3.

You didn't mention AZEO in your original post. If you're trying for AZEO then you should let your Discover or Amex card report a small balance while the other reports zero.

If you have control of your AU accounts, it would be good for the Capital One card to report a small balance, while the other reports a zero balance, as it appears that the AU cards -- for AZEO purposes -- may count as a separate utilization metric.

[Thomas_Thumb]

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@Anonymous wrote:

I have two credit cards:

   Discover It - <9% util, 13 mos old

    Amex BCE - 0% util, 1 month old

AU on two cards:

    Sam's club/synch - 10% util, 12 yrs old

    Cap1 - 0% util, 16 yrs old

Seems max score is 3 cards, but my question is, am I already getting max scoring with the AU accounts? Considering apping for the third in the next couple of months (nfcu) before heading into the garden. But if I'm already maxed, i may put off the third for a year or so.

TIA

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Authorized user accounts, by definition, are not under your control. It is best not to rely on AU accounts as the owner of the account could close it or report elevated utilization levels that could negatively impact score. Also, lenders tend discount AU accounts when evaluating credit worthiness.

I would advise having 3 to 5 revolving accounts where you are primary. Since you have a limited credit history, maintain AU account status for now but, consider shedding the AU accounts once your credit history passes 5 years. Good choice on the Discover and AMEX. Excellent CL growth potential with those cards.

If you add a 3rd revolving account, consider a bank or credit union Visa/Mastercard with no annual fee. However, no significant benefit getting a 3rd card now vs holding off for a year. Long term having a couple more accounts adds flexibility for spending and aggregate utilization control.

Side note: AU accounts are always factored into the older Fico "mortgage" models but, may not count on Fico 8 or Fico 9 due to anti abuse conditioning in the newer models. [an account my DW has which I am AU on counts on Fico 98 and Fico 04 models but, not Fico 8]

BTW -

[Anonymous]

Great advice above. True enough you can get max scores with 2 cards, but it’s quicker and easier to do it with more cards, at least 3 for version 8 and at least 5 for the mortgage models, in my opinion. So I also recommend 5 at the minimum.

Also there’s a test explained in the Scoring Primer to test whether or not your authorized user accounts are being counted on version 8 and forward.

[Anonymous]

Regarding number of cards, you want might wanna read credit mix:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Mas...