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Question By
sstankovich

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Credit Card Utilization advice?
Hi folks, I'll run my situation by you:

Currently, I'm a "user" on one of my father's credit cards. I know he makes monthly payments on time, I believe he only pays the minimum and barely makes a dent on the overall outstanding balance -- in other words, he has VERY high credit card utilization.

Although I've been a user on his credit card for many years, I have never once used it.

Currently, my CK score is about 730, but looking at it got me wondering about that credit card. Would it be advisable to have my father take me off his card, effectively eliminating that account from my credit line (and on CK)? On the one hand, his credit card gave me an additional credit line or higher available credit, but on the other hand he keeps this outstanding balance very high--high credit card utilization which bears a huge impact on credit scores.

Heck, I'm not even sure if being a user on his card even affects my score, but it does show up on CK so...I'm not sure. Still, if anyone could shed a little light on my situation, it would be greatly appreciated!

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If I were you,

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I'd open a Credit card or 2 in your own name to offset the credit line you will be loosing.  with your score, that should be fairly easy. I suggest that you try for a 0% promo rate card that are being advertised or try your own bank first.

Try "mining" a new card.  To do that look on line at the various card offers, but don't apply for it on-line. Do this with any website that has your mailing info.. CK. your bank Etc.  That interest on your part should generate a "Pre-approved" offer in the mail with in a couple of weeks. You will usually get better deals that what is offered on the website.

Then have your dad remove you from his card.  You will probably lose the "Age of the Account" but in the long run you will probably be better off.

Good luck

Reply by
sstankovich

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Hey, thanks for the timely response.

I actually do have 2 credit cards in my own name (Chase Freedom and Citi Preferred Diamond), however they're not that old; Freedom has been about 1/2 a year, and the Diamond's only about 1 to 2 months. Still, I keep low utilization, and always pay in full on-time.

Does being an authorized user truly affect my credit rating? Would being removed from it, again bearing in mind that this isn't actually my account but simply a card with my name on it (Chase doesn't even list it when I log in), downgrade my score -- i.e., show as a closed card/account which, 9 times out of 10, is a huge no-no.

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