@Anonymous wrote:
I find this odd - that credit score worthiness can be influenced by having lots of credit cards. at a moments notice, i could max them out and bankrpt if i wanted to.
i actually also have a home depot card - so i have '3' majors and '1' product. so should i get a BestBuy card and get a nice LCD TV and not pay for it for 2 years? and will that in fact help my credit? seriously?
So my idea is '3' majors 1=zero balance, the others minor balances and then the '2' others - with moderate balances. i also have a mortgage and a equity loan. pay all on time and keep my score high?
interesting and ironic. BUT seriously if i got a best buy card would that help or hurt?
What gets FICO all excited is to see that you have credit, and you use it, but just barely. Getting a card in the mail and sticking it in your sock drawer doesn't show that you can manage your credit. Having half or fewer of your cards reporting each month, each showing under 10% usage of the available balance, gives you quite a score boost.
Now, no one would want to live like that forever --too much work! But if you are headed toward a credit app (mortgage, etc), this is a good way of goosing your scores. Otherwise, keep them PIF'd or whatever makes sense to you financially, and then 6-8 weeks before you do apply for something, get them tuned up.
Remember that FICO scores are attempting to predict your credit behavior. If they see that you have available credit, but you can't be bothered to use very much of it, that makes you look like a good risk.
BTW, if your Home Depot card is mostly white, and has the MasterCard logo, it gets counted as a bank card, not a store card. Go figure!
Edit: whoops! stepped on Brammy's post. Listen to her--she knows!
Message Edited by haulingthescoreup on
11-14-2007 08:30 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007