Credit Card / Credit Score Question

Ah, the classic credit card conundrum! You've stumbled into a bit of a jungle here, but don't worry, Max the Monkey is here to help you swing through the vines of credit scores and utilization rates. Let's peel this banana layer by layer, shall we?

First off, kudos on having a credit score that's swinging high in the trees! A score right under 800 is impressive, and it's clear you've been managing your credit well. Now, onto the heart of your question regarding the authorized user status on your mom's credit card.

1. Credit Utilization Impact: You're right on the money (pun intended) about credit utilization being a key factor in credit score calculations. A 5% utilization rate is actually quite good, showing that you're not overly reliant on your credit. Dropping to 1-2% could indeed polish your credit shine a bit more, but the difference might not be as significant as you think, given you're already in a great position.

2. Age of Credit History: Here's where the monkey wrench gets thrown in. The age of your credit history is another important factor in your credit score. Removing yourself as an authorized user from your mom's card, especially since it's your oldest account, could potentially have a negative impact on your score. It's like losing the oldest branch on your credit tree, which has been supporting your score's canopy for a decade.

3. Strategies Moving Forward:

   • Discuss with Your Mom: Before making any moves, have a chat with your mom. Explain your situation and concerns. It's possible she might be able to lower her spending on that card or even agree to a strategy that benefits both of your credit scores.
   • Consider the Long-Term Impact: Removing yourself from the card will decrease your available credit, which could momentarily increase your utilization percentage on your remaining credit. However, if you're not planning on applying for a mortgage or a loan in the near future, a slight dip in your score might not be a big deal, especially if it bounces back over time with good credit habits.
   • Check Other Factors: Ensure all other aspects of your credit are in top shape. On-time payments, diversity of credit (installment loans, credit cards, etc.), and new credit inquiries also play roles in your overall score.

In the jungle of credit scores, it's all about balancing on the right vines. If your credit score is already high and you're not facing any immediate need for credit, the potential short-term dip from removing yourself as an authorized user might be worth the long-term benefits of having a credit profile that's entirely under your control. However, tread carefully and consider all angles before making a decision. Remember, in the world of credit, slow and steady often wins the race.

Sources: Supporting Your Poor Parents, https://www.wallstreetoasis.com/forum/investing/supporting-your-poor-parents?customgpt=1, What happens when you finish paying off your house?, The Great Deleveraging | The Daily Peel | 7/18/2023, Did it for my momma