No change in credit habits and score dropping!!!!????

[DaveSignal]

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@jackdashack wrote:

Dave and Takeshi74 you guys have been most helpful. You really have started to help me unravel the 'mystery' of credit scoring. I can see why now the score has dropped. I think most think just the fact that they are never late with payments is all the big deal. While helpful I'm sure there's other factors such as income and how much your cards are maxed out. I have put more on the only 2 cards I own the last year. Now, to be frank, the 2 of them only realize about $4000+ of debt, which is not much in these days. However I think the total limit of the 2 might be about $5500.  I didn't realize getting to that upper limit of the max did so much damage so to speak. So here's a hypothetical I'd like to put to you.  Is a person that has $4000 of total debt worse off with 2 cards with a total borrowing power of $6000. Or that $4000 of debt spread out over 4 cards with a total borrowing power of $6000. I hope I presented that clearly. I guess what I'm saying is if I apply for more cards, use them wisely and keep the debt down while the borrowing power of the total of them is higher ... am I better off as far as a credit score goes?

Thanks for this discussion. You are helping one poor guy understand it!  ":-D  jack

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If you applied for more cards, you would increase your available credit, which would decrease your utilization.  I am guessing that your accounts have been open for a very long time, so you don't need to worry much about AAoA for a new card or two.  You could also call up your current creditors and ask for higher limits.  With your perfect payment history, you have a high chance of getting limit increases.  Shoot high... ask for at least double, possibly triple, whatever your current limits are.  They will counter.

As far as income, FICO does not take this into consideration in any way... it is irrelevant.  The percentage your revolving cards are utilized is 30% of your FICO score.  Keep this as low as possible, with balances on as few cards as possible (but you need a balance on at least one card to show use).

[jackdashack]

That clears it even a little more. Will be making calls to the 2 card lenders. Have a great day and probably have more questions later, but this is a tremendous help. BIG THANKS!  Jack  ":-D

[jackdashack]

No place for KUDOS or LIKES here?

[DaveSignal]

Not on this board.  But you are welcome.