05-12-2011 08:47 AM
I have five CCs. One has a long-term 13% utilization (BT). The other four are PIF.
Last month one of the other four CCs was reported with a small balance, and this month all four cards had a $0 balance report.
My EX score (PSECU) is around 790, and I assumed it would go up this month, but it actually went down a few points. One of the reasons stated is:
no recent balances on your revolving credit accounts
I got to wondering how it can be determined whether a balance is "recent" or not. I make a payment on the BT card every month, and it's not clear to me how anyone knows whether this balance is "recent".
It also appears that the idea of keeping a small balance on just one CC needs to be refined a bit.
I guess I am still mystified as to the exact algorithm needed to optimize this situation, beyond paying down the 13% CC to 9% or lower.
I also wonder about unused LOC like the one that's part of the PSECU combo. Does this drop out at some point?
05-12-2011 08:52 AM
If you're at EX 790, don't sweat any scores at all. It's all window dressing once you're over 750 or so.
You are doing very well. Enjoy the ride!
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO