General Credit Topics

[Duncanrr]

I have 5 open accounts. 2 Sallie Mae loans, 1 car note and 2 credit cards. If both cards report zero balance I'll take score hit so I'll have to keep balance on one (below 9%). So that gives me 4 accounts with balance.

Do I need to open 3 accounts and keep them at zero balance to avoid hit for too many accounts with balance? If so, is it worth opening 3 new lines?

[RobertEG]

Percent accounts with balances is only one segment of util, which also includes overall and individual revolving and installment util.

Its exact weighting is unknown, but probably not huge.

New accounts to increase the denominator of the % with balance calculation will bring their own initial baggage, with inquiries, new accounts, and lowered AAoA.

I would not add new accts simply for that reason, as you already have a good mix of credit, unless you need them for other reasons, such as increased flexibility.

[Duncanrr]

When I got hit with the ding from it last week I went from 685 to 667 so a 18 pt lost at least. (I had removed an old CO account and 18 pt loss was the net pt change). My TU score was probably about 20-30 PTA lost from this.