Understanding FICO® Scoring

[lava224]

THIS HAS PROBABLY BEEN REPEATED BEFORE BUT..... HERE IT GOES

Currently have 3 credit cards. 2 with $0 balances. 1 with $80 and a $1000 line. I am under the thrershold for debt ratio. Questions is:

Do the 2 cards with $0 balances report every month that the balance is $0  the best way to work the cards? Vs: Having a statement

balance reporting each month with say $40 on each??

Thanks in advance..

[Shogun]

You're doing it right.  Have those report at $0 then one report a minimal amount.  

[my-own-fico]

It's somewhat like the magic pill that'll only work as long as you eat right and exercise. It's just that the pill itself does little more than give you hope and focus. Nothing wrong with that, except perhaps false advertising.

If you practice a heathy financial life by never being late and always keeping your debt low on your credit cards, your score is already so high that it may well not increase from all $0 balances except one small one.

Some enjoy the pill, some do fine without it.

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"It's good - we do not have to go to the bank."

I Remember Mama (1948)

[Burned2manybridgesB4]

Just keep on doing what you are. Good rule of thumb (and I count on others chiming in here) is to keep two @ 0.00, while letting one post a "due balance," but you don't need to carry a balance past the due date (PIF). Since getting high fico is a marathon, not a race, you have time to play with the percentages, and find out which zone will work best for your own profile/bucket. 3 to 8%...

[Booner72]

They say to use your cards so they don't get closed on you - so I'd say at least every 8-12 months buy a coffee and PIF. I haven't used some accounts for that long, and longer, and they are all still open. YMMV.

[Booner72]

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my-own-fico wrote:

It's somewhat like the magic pill that'll only work as long as you eat right and exercise. It's just that the pill itself does little more than give you hope and focus. Nothing wrong with that, except perhaps false advertising.

If you practice a heathy financial life by never being late and always keeping your debt low on your credit cards, your score is already so high that it may well not increase from all $0 balances except one small one.

Some enjoy the pill, some do fine without it.

--

"It's good - we do not have to go to the bank."

I Remember Mama (1948)

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Some of us around here need fast pointage, especially if going for a mortgage or something.  Every point counts in those desperate situations.  If we had practiced a "healthy financial life" then we probably wouldn't have found this forum. 

[my-own-fico]

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Booner72 wrote:

Some of us around here need fast pointage, especially if going for a mortgage or something.  Every point counts in those desperate situations.  If we had practiced a "healthy financial life" then we probably wouldn't have found this forum. 

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You're probably referring to the various myFICO forums as a whole. But just in case you meant the Understanding FICO Scoring forum, I have noticed a steady stream of people here  requesting feedback on specific needs of urgent character, generally about moving from the mid or low 600s to something like 680 or 700. For some reason they are attracted to this forum rather than other of the perhaps more suitable myFICO forums such as Rebuilding Your Credit and Mortgage Loans. Maybe it's because their minds have zoomed in on the word score, and the title of this forum includes that. I'd be interested in finding out why the new of these posters come to this particular forum. Certainly understanding FICO scoring is more along the lines of asking for a bank loan when you don't need it.

[Booner72]

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my-own-fico wrote:

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Booner72 wrote:

Some of us around here need fast pointage, especially if going for a mortgage or something.  Every point counts in those desperate situations.  If we had practiced a "healthy financial life" then we probably wouldn't have found this forum. 

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You're probably referring to the various myFICO forums as a whole. But just in case you meant the Understanding FICO Scoring forum, I have noticed a steady stream of people here  requesting feedback on specific needs of urgent character, generally about moving from the mid or low 600s to something like 680 or 700. For some reason they are attracted to this forum rather than other of the perhaps more suitable myFICO forums such as Rebuilding Your Credit and Mortgage Loans. Maybe it's because their minds have zoomed in on the word score, and the title of this forum includes that. I'd be interested in finding out why the new of these posters come to this particular forum. Certainly understanding FICO scoring is more along the lines of asking for a bank loan when you don't need it.

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No, I was referring to your advice to OP.   I spent a lot of time in the Understanding when I first found the forum and was working my A off to get the house.  I wanted to know How things worked and why and when and where, so I could do whatever I had to do.  Ultimately, it worked for me, and I am grateful.  I did NOT practice healthy finances, and just threw bills in the backseat, unopened, until they turned into a mountain, at which time they would get thrown out.  So I relate a lot to OP's initial question.    it has nothing to do with "zooming in" to the word FICO, it's the word Understanding.  Certainly Undertanding FICO Scoring has everything to do with asking the bank for a loan, when I DID need it.

[goose1]

In my limited experience it seems to my via FICO scoring that as long as your UTI is under 10% (although 9% seems to by the magic number) there is minimal effect. Although as always YMMV