Utilization v. Accounts Reporting Balances

[cdtotten]

I am considering having my wife add me as an AU on her Home Depot card she opened a couple years ago. It wouldn't lower my AAoA a full year, and it has a nice credit line. Considering I currently have a high utilization ratio of 62%, adding this card would bring me down to 51%. However, I currently have only 2 of my 4 revolving credit lines showing balances, this would make it 3 of 5.

Do you all think it is worth adding this AU account to get my utilization ratio down, even if it makes more than 1/2 of my revolving TLs report balances?

Message Edited by cdtotten on 12-01-2009 07:24 AM

[Anonymous]

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cdtotten wrote:

I am considering having my wife add me as an AU on her Home Depot card she opened a couple years ago. It wouldn't lower my AAoA a full year, and it has a nice credit line. Considering I currently have a high utilization ratio of 62%, adding this card would bring me down to 51%. However, I currently have only 2 of my 4 revolving credit lines showing balances, this would make it 3 of 5.

Do you all think it is worth adding this AU account to get my utilization ratio down, even if it makes more than 1/2 of my revolving TLs report balances?

Message Edited by cdtotten on 12-01-2009 07:24 AM

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Hmmm... I really don't think that you'd see much value (score rise) in going from 62% to 51% utilization, when your AAoA will not increase, and you'll have more than half of your credit lines reporting a balance. I'm even sort of tilting to the side of your seeing a small drop, or possibly AA from some of your lenders.

When I think of the benefit that can be gained from an AU account, I'd like to see an appreciable rise in the AAoA (long, clean history), and very low utilization (preferably a PIF card).