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millerduck76

Utilization vs. Account Age Decision

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I recently noticed that my Wife's USBank Visa did not have me as an Authorized User.  It is $10K of unused limit that I could use to get my utilization under 14% (from ~15%).  It would however reduce my average account age to 3Y 3M.  (Down 1 month from current 3Y 4M).  Will the utilization help be offset by the age difference?

 

If I am pulling for mortgages in February, which one has a bigger impact?

 

Maybe these differences are too small to matter?

 

Thanks,

MD

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If she had never requested that you be added as an AU, it stands to reason you wouldn't have BEEN an AU.  Neither of the figures you list are going to be significant in terms of score impact.  A 1% drop in overall utilization when it is not at a threshold-point isn't going to be much of an impact, if it even reports.  Ditto on the one month differential on average age of accounts...anything in the three-year window is still a young file. 

 

It IS odd that a $10K line would only decrease your overall utilization by roughly one percentage point...this suggests that you either have a LOT of outstanding debt OR, alternately, that you already have substantial levels of available credit such that a $10K line is not needed on your report. 

 

Other elements of your file that could have a greater impact could be discussed if we know WHAT is in the reports, to include number of cards and number of cards with balances...

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3 hours ago, centex said:

I

6 hours ago, millerduck76 said:

It is $10K of unused limit that I could use to get my utilization under 14% (from ~15%). 

It IS odd that a $10K line would only decrease your overall utilization by roughly one percentage point...this suggests that you either have a LOT of outstanding debt OR, alternately, that you already have substantial levels of available credit such that a $10K line is not needed on your report.

FWIW, the stated numbers suggest a profile with about $10k of debt and $65k in existing lines (util goes from 15.3% to 13.3%).

 

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Those numbers are way too close to even worry about it. It's not going to help or hurt you much. 

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Total limits is $201K.  Currently using $29K (all 0% balance transfers).

 

41 open CC accounts with 6 carrying those 0% balances (utils ranging from 11% to 89%).

 

Average age: 3.37 years

Median age: 3.00 years

Oldest 19 y, 9 mos

Newest 7 mos (4 tied)

 

2 Auto Loans that (3Yr 10mos & 2Yr 9Mos)

 

Everything paid as agreed with one ancient collection, 6+ Year utility account for $500.  Outside SOL in my state.

 

I take it from the replies that the addition of a 42nd card, 10K in available limit and a 1 month hit to my average age would be negligible at best.  So no harm in doing it or not?

 

Any other inputs or opinions?

 

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What are your current mortgage FICO scores, and what scores are required to get favorable terms?

 

We see a fair number of questions from people who want to take specific actions to improve their mortgage-worthiness, when they don't even know if there is any work that's necessary.

 

Not saying that's you, I'm just trying to go back a step for context.  

 

If this is where you are in the process I would encourage you to get all three of your mortgage scores now (all six if you will have a joint applicant) and then decide what actions (if any) are necessary.

 

Edited by cv91915

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2 hours ago, millerduck76 said:

Total limits is $201K.  Currently using $29K (all 0% balance transfers).

 

41 open CC accounts with 6 carrying those 0% balances (utils ranging from 11% to 89%).

 

Average age: 3.37 years

Median age: 3.00 years

Oldest 19 y, 9 mos

Newest 7 mos (4 tied)

 

2 Auto Loans that (3Yr 10mos & 2Yr 9Mos)

 

Everything paid as agreed with one ancient collection, 6+ Year utility account for $500.  Outside SOL in my state.

 

I take it from the replies that the addition of a 42nd card, 10K in available limit and a 1 month hit to my average age would be negligible at best.  So no harm in doing it or not?

 

Any other inputs or opinions?

 

Individual card utilization should be below 50%. Doing this should give you a substantial score increase, in your case.

 

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1 hour ago, MarvBear said:

41???????????????????????????????????????

That includes my AU accounts from the wife.  Haven't wanted to close anything to mess up utilization.

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1 hour ago, cv91915 said:

What are your current mortgage FICO scores, and what scores are required to get favorable terms?

 

We see a fair number of questions from people who want to take specific actions to improve their mortgage-worthiness, when they don't even know if there is any work that's necessary.

 

Not saying that's you, I'm just trying to go back a step for context.  

 

If this is where you are in the process I would encourage you to get all three of your mortgage scores now (all six if you will have a joint applicant) and then decide what actions (if any) are necessary.

 

I need to make mortgage application in about 45 days.  Here are my current FICO 8s:

image.thumb.png.9d8d0282192c190c1ca31726d5bd8690.png

 

My Wife is my co-applicant and hers are:

image.thumb.png.d2e4c7c23dc19d820b6f4fd2ac212d3b.png

 

We will be reducing overall utilization to under 10% on both of our reports over the next 30 days. 

 

Based on another comment, it seems that spreading that payoff across the cards to get as many under 50% individual would be good.  Possibly balance transfer a few things if needed to have no cards over 50%?

 

My wife does have two old low-dollar collections that are also out of SOL (one is actually a re-age) but I don't know that we have time / ability to get those deleted.  Those won't fall off on their own before we have to make app.

 

You may ask why we have to make when we do... it's complicated.  I must have a funded mortgage on this property by 2/6/2019 or risk losing it.  Long story.

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38 minutes ago, hegemony said:

why so many low limit cards? look into combining a few and work toward higher limits.

That's the plan post-mortgage.  Will be pruning considerably at that point and then gardening the ones we decide to keep.

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4 hours ago, MarvBear said:

41???????????????????????????????????????

 

Marv, 41 is nothing.  :)

 

What is surprising is that the average CL is under $5,000.  That would be embarrassing.  

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50 minutes ago, PotO said:

 

Marv, 41 is nothing.  :)

 

What is surprising is that the average CL is under $5,000.  That would be embarrassing.  

$5121.95

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18 minutes ago, hegemony said:

no. base 9

 

Now I'm confused.

 

I divide $201,000 by 41 and get $4,902.43902.  Must be my crappy math skills.  Need to sue my university.

 

And sue Apple, too.  Their crappy calculator gets it wrong also.

Edited by PotO

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21 minutes ago, PotO said:

 

Now I'm confused.

 

I divide $201,000 by 41 and get $4,902.43902.  Must be my crappy math skills.  Need to sue my university.

 

And sue Apple, too.  Their crappy calculator gets it wrong also.

 

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1 hour ago, hegemony said:

$5121.95

 

Well, Hege, might want to consider remedial math and reading. 

 

$5,121.95 x 41 = $209,999.95.  Only problem, OP stated his limits totaled $201,000.

 

Now, $201,000 would give us:

 

$201,000 / 41 = 4,902.43902 (Base 10)

 

or 

 

$201,000 / 41 = 4,357.47704 (Base 9)

 

Set up a GoFundMe for tuition and I'll throw in a few $$.

 

 

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13 hours ago, PotO said:

 

Well, Hege, might want to consider remedial math and reading. 

 

$5,121.95 x 41 = $209,999.95.  Only problem, OP stated his limits totaled $201,000.

 

Now, $201,000 would give us:

 

$201,000 / 41 = 4,902.43902 (Base 10)

 

or 

 

$201,000 / 41 = 4,357.47704 (Base 9)

 

Set up a GoFundMe for tuition and I'll throw in a few $$.

 

 

That escalated quickly.... 

 

The last 3 years have been adding accounts to aggregate limits as my scores slowly came up from upper 500s.  Have avoided any hard-pull CLIs and new higher-limit apps for the past 7+ months to keep inquiries low.

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45 minutes ago, hegemony said:

I fat fingered and used 210k


I know.

 

But how much fun would it have been for me to just say, "Hey, buddy, you made a typo"?  Then I wouldn't have gotten the cool recruiting video.  :)

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