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sherry
Posts: 96
Registered: ‎05-01-2007
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Re: FICO doesn't understand the credit card game

Timothy I know you are keen on this topic however, answer this one. Im not sure how you can use the crap out of your cc , just curious and frustrated use the hell out of their cards…and you are not suffering and they are with their credit scores.

Do you have an unlimited credit line as well as a a cc with an established limit.

Another unclear thing you said is about the creditor reporting correctly.

So they have an option to report incorrectly?…what are they….tell me both of them how should they report…and then what they may report

I do not have a cc that is unlimited.

Furthermore: I need a clear example....not just info

and no this is not a set up....lol


Starting Score: EQ 730 TU 721
Current Score: EQ 730 TU 710
Goal Score: 800 to 850


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Timothy
Posts: 9,252
Registered: ‎03-19-2007
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Re: FICO doesn't understand the credit card game

Do you have an unlimited credit line as well as a a cc with an established limit.

Yes- I have both
I use 3 of my 8 open cards every month
I have my: phone, cable, cell, electric, water, car insurance all being charged to a high limit card- UTL never goes above 20% 

All other daily expenses go on another card or 2 depending on that months $ of expenses - if UTL on a card will report above 20% I pay down the balance that will report.

So the mortgage and 1 auto loan get paid out of checking and the 2 to 3 cards get PIF and get rotated-    

So I have 4 bills-

Another unclear thing you said is about the creditor reporting correctly.

an open line like AMEX Green (no limit, must be PIF every month) gets reported correctly as an open account -

BOA has a "Signiture" (I do not have) product that also does not have an established credit line - however is reported as a revolving line and is calculated in UTL- beacaue of the CL not being reported - FICO uses the HIGH BALANCE in place of the cl.

Capital One was FAMOUS for years for not reporting CL's- (started to in Sept 07)  So if you had a 10,000 CL and you High balance was 1,000 and you put 600 on the card every month you were reported at 60% UTl - when in reality you were 6%.

So they have an option to report incorrectly?…what are they….tell me both of them how should they report…and then what they may report

Yes- the creditor has option on how to report it- Other, revolving, installment, mortage, LOC, student loan,  (I list them all)

And if all else fails- My HELOC 50K does not calulate in scoring 1 point. 

So in a given month I may have a card report up to 19% UTL but keep my over all UTL at about 5% or less.

If I need to max out my score- I only let 1 card report at 5% UTL by paying before the statement.

New Contributor
sherry
Posts: 96
Registered: ‎05-01-2007
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Re: FICO doesn't understand the credit card game

[ Edited ]
Thanks Timothy
for the explanation.
I do know that the creditor defines the type of account (installment, mortgage, revolving etc)
As far as reporting incorrectly....the example of capitol one reporting no CL would be the example I was looking for.
So thank you
Bottom line is that just curious and frustrated are spending sporadically without paying attention to their utilizations as they report to the bureaus.......They are not strategically using their credit for their overall benefit of nice healthy scores. Who they think they are and what fico sees them as is at the moment not the same. ...
but i do hope they will your advice and write us back and tell us how their scores have whirled back up
 


Message Edited by sherry on 01-05-2008 10:59 AM

Starting Score: EQ 730 TU 721
Current Score: EQ 730 TU 710
Goal Score: 800 to 850


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smallfry
Posts: 4,831
Registered: ‎04-20-2007
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Re: FICO doesn't understand the credit card game



fused wrote:


smallfry wrote:
I think credit cards with a limit of 40K are still counted in the utilization. Mine is.


It depends on the CRA and which FICO scoring version a potential lender is using. FICO scores yanked by some banks, lenders, CUs and CCCs are not necessarily the same as the ones we yank here.



Fused back in July I combined my 20K Navy MC with my 20K nRewards Visa closed the MC and now have one large nRewards Visa card. The card shows a 40K limit on all my reports FICO and otherwise and the utilization is reported as such. You saying that because the card has a 40K limit that some lenders may not include the available limit on the card when considering my utilization?

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