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Question By
ArthurFortune

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Dumping an old authorized user credit line with high balance?
I have a 750 score that I've been trying unsuccessfully to raise; I have about $54K in total credit limit (all on seven credit cards) and I'm only using about $3,000 (~5%) but my average age of credit is only about 4.5 years.

The entirety of my $3,000 in debt is from a card on which I'm an authorized user but never use. It'd be a no-brainer to remove my name, but the problem is that the card is 17 years old and removing it would even further drive down my average age of history. Removing it would take my utilization down to nearly 0% and the CK credit simulator says it would cause my score to skyrocket above 800, but I'm still not entirely sure if that's accurate.

Anyone have any thoughts?

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Zero percent utilization is not your goal.   In fact a constant zero can hurt your credit score.   While this one card has high utilization on itself your overall utilzation is very good.   When you weigh the current high utilization on that single card and dropping it with those valuable years of history, I believe you will find that keeping the card on your account could prove you better in the long run.  The credit simulator is a nice tool, although far from what actually happens in the real credit world.  It too told me to pay off cards, although,  by keeping a 5% utilzation and varying monthly balances on the cards, I did see a 20 percent increase over the time I was carrying the zero percent.

Reply by
ArthurFortune

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Thanks! You're right that having a little outstanding debt is better than having none. Sounds like the smart move is to keep the account.

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Also, to provide more information I actually have nine active cards and the limit on this one is only $3K.

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