05-10-2008 02:59 PM
05-10-2008 03:11 PM
I traded in a vehichle last May. That vehichle is still showing up as open with a balance but paid as agreed. I have 2 car loans now but the paid off account is making it look like I have 3 open with a balance of $28,000 more than it actually is.1. Could this be hurting my score?
I have 5 credit card accounts, I have paid 4 of them off. Total credit limit of all 5 cards is $9500. The remaining card that I have not yet paid off has a CL of $1500 and the balance is $1400.
2. Does the ratio go by TOTAL CL? ($9500 CL- $1400 balance= 14.7% ) Or is the the card being almost maxed out hurt my score?
1. The car loan impact is probably minimal. Once you have an installment loan, any additional loans, especially with low util on those loans, probably don't do much.
2. For revolving util (completely different from installment util, btw) FICO mostly looks at overall util, but it also looks at individual util, especially if you have a maxed-out card (85 - 90%+ is considered maxed out.) Did you BT balances on the other cards to this one for a 0% or something? Good financial sense, but it does hurt your scores. My main concern is that other CCC's might react to that one maxed-out card. They're all so freaked out these days that you never quite know what might set them off. I'd probably try to knock a couple hundred bucks off that last card and then resume whatever payment strategy you have. Just a mini-insurance policy.
05-10-2008 06:49 PM
05-10-2008 08:37 PM
05-11-2008 05:44 AM
05-11-2008 07:56 PM - edited 05-11-2008 07:59 PM
05-11-2008 08:34 PM - edited 05-11-2008 08:42 PM
I'm sorry call me stupid but im not following how to do this. (Sorry) Can you give me an example?My next questions.A little more about my situation.I have 5 CCs;GE money- $6500 CL (just paid in full Friday $1940 PAID OFF)HH Gregg- $1500 CL ($1400 balance, no int. til Nov.)Walmart- $700 CL (paid in full last month $571 PAID OFF)Credit One Bank- $450 CL (paid in full last month $420 PAID OFF)HSBC- $300 CL (paid in full last month $272 PAID OFF)Paid in full all cards except HH Gregg ($1400).Credit One Bank charge a monthly fee ($5.75)HSBC charge an annual fee ($69.00)Question is should I dump the Credit One and the HSBC? Because they are costing me money without using them. If I close them will it hurt my score?If I close them I will still have 6 open accounts (house, 2 cars, and the 3 cards)Thanks for your replys
Hey, no one will call you stupid around here! This is so different from the way that people usually think about paying their cards that you have to mutter to yourself a bit before it all clicks.
I don't think my fingers can type this out again, and I hate to clog up server space with the how-to's, so let me post a link to where I described this earlier today:
How to time your payments for maximum util benefit
As for closing the two fee cards: your overall util is currently 15%. If you close them, with the same current HH Gregg balance, your util will be 16%, so no big deal there, if I'm doing my math right. Since these are builder/ rebuilder cards, there's a decent chance that they're your oldest cards, but they should continue to report for 10 years after closing, and by then, the impact probably won't be very big. The one area where you might see problems is that you will now have 3 revolving and 3 non-revolving accounts. There are score rewards for having half or fewer of all accounts with balances, AND fewer than half of revolving accounts reporting, AND at least one credit card reporting.
With only 6 accounts, and 3 automatically reporting balances (the mortgage and car loans), this means that ideally 0 credit cards should report balances. But since most people do better with 1 card reporting, you have a built-in problem. Your best bet would be to plan on eventually replacing the closed cards with one or two new and better CC's.
So if I were in your shoes, I would plan on closing the fee cards one month before the fees are due again. Make sure that you print off your current $0 balance on each, and hang on to this, because you just never know. Plan on eventually adding 1 or 2 more CC's to make your reporting math a bit easier in the long run. HTH
edit: dang freakin' recurring power/Internet failures!
Message Edited by haulingthescoreup on 05-11-2008 08:42 PM
05-12-2008 11:42 AM
05-12-2008 11:47 AM
05-13-2008 01:15 AM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.