hi, 4 years ago, i was helping a friend of mine boost his thin credit report and score. i added him as an "Authorized User" on an Amex SPG Personal Card with a 26k credit line. this card never exceeded 20% of the CL but it so happen that last month the statement balance was 28k (whole story as to why this happened...)
he now has his own chase SP card for 3 years with an 11k credit limit.
last week he applied for the chase freedom and he got declined. in the letter he received it states the the following reasons.
1. High debt to income utilization
2. High debt to credit utilization
3. 1 of your credit cards exceeded the credit limit
i was always under the impression that adding as an AU can only help but would never harm since the AU is not liable?! by looking at his credit karma (fako) score, it plummeted 112 points over the last month..
he would like to call recon within the next 20 days or so and try to approve still under the current pull;
-can he make the case that it's just AU and therefore shouldn't effect his credit score/report in a negative way?
-would it help if he gets off as an AU and if so how soon does it reflect on his credit report? or would it help if the Amex SPG card is paid up (reporting date is the 20th of the month)?
-can he make the case that it's just AU and therefore shouldn't effect his credit score/report in a negative way?