Ok, so i recently pulled my credit report for the first time EVER. Im 32 yrs old and Im trying to clean up my credit. I had great credit before and ruined it about 5 years ago. Im trying to get back on track and need some advice. I got 8 bad accounts removed from my report and my score went up 35 points which is better than nothing but I was expecting a bigger score increase. Now, i do have an account as an Authorized user with a $29000 credit limit and it has a $26000 balance right now. I dont use it at all it belongs to my sister. She has had me on it since I was 18 yrs old and I only used it up until i turned 21. She has ALWAYS been current on it. Now my question is this. Is that account hurting me more that it is helping me? should i remove myself from that? Its been open since 1997 and always current. Please advise.
2007-10-11 11:27:45 · 4 answers · asked by leana 1 in Business & Finance ➔ Credit
This account is definitely hurting your score. Get your name removed from this account.
2007-10-12 06:07:47 · answer #1 · answered by Steve R 6 · 0⤊ 0⤋
The rules have changed. Being an authorized user no longer impacts your credit score. In the past, it would have helped.
Part of the reason you only had a 35 point change is that the older the negative, the less it impacts your score.
Are you carrying any balances on your credit cards? Pay them down to less than 30% of the credit limit will help your score -- paying them in full is even better.
You just need to establish a consistent, on time payment history of at least 2 years. Remember score isn't everything. Creditors look at your whole report.
2007-10-11 18:35:13 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
The best book I read that got me back on track with my credit score and out of debt was Young, Fabulous and Broke by Suze Orman. Everyone here on YA gives great advice, but having this book as a reference so that I could truly understand my credit score and take steps to raise it was invaluable. The book has a ton of information and its easy to read and follow her steps. I used her advice and got out of debt and raised my score over 100 points in a year. Good luck!
2007-10-11 19:13:41 · answer #3 · answered by jml167 4 · 0⤊ 0⤋
it is hurting you because you are an authorized user with a balance of 26K on it. She may not be able to apply for
another card with 26K balance either. If you can be removed
do it immediately but it may still show up on your report
for another 7 years when paid debt falls off your report.
2007-10-11 18:54:39 · answer #4 · answered by Anonymous · 1⤊ 0⤋