Understanding FICO® Scoring

[marty56]

Yes I have 7 CC cards of which 3 are reporting a balance.  One is at 45% util for a 0% offer.   One at 9% is PIF this month. All PIF within 6 months. 

[Goal810]

So the strategy seems to be that for all but 1 card, I should pay off the full balance the DAY BEFORE the statement closing date, and for the remaining card, I calculate what < 1% of my credit line is, and pay off the remainder, also the day before the closing date? Is this correct?

It seems to me that there is no way to automate this because all the automatic payment features occur AFTER the statement closing dates?

[Goal810]

Also, if I want to do an experiment like Jello, what is the cheapest way to get monthly scores, at least from 1 credit agency? It seems like the 3 "official" scores are:

Equifax Beacon 5.0 Facta

Experian Fair Issac V2

Trans Union Fico Risk Score Classic 04

but are these not ones available for monitoring?

[nfcsaints]

Newbie here and SLOWLY learning all KINDS of good stuff!  This site rocks.

Soooooo......if I understand correctly, the goal is one card with a less than 9% balance.  Got it.

Recovering from 2004 dismissed BK.  LONG overdue effort, but hey, gotta start somewhere.  Here's my situation and question.  Other than the BK, only have 2 baddies with GWs pending - two 30 days.  I just paid down 95% utilization  to $1500.  Remaining balances are spread as such

0/2500 - Dell Financial Services

0/1700 - Applied Bank

0/1200 - Chevron

0/1200 - Cap 1

0/200 - Target

0/100 - Macys

100/300 - HSBC

100/300 - HSBC

100/300 - Orchard

100/300 - JCPenny

100/500 - Cap 1

500/1000 - Walmart (store card)

500/1200 - Amazon (store card)

So, what would be the wisest path?  Which should I focus on first?  Is there a difference between a store card versus a visa or mastercard?  Take $500 and pay off the 5 minors, put it toward either the walmart or amazon, or split it between somehow?  Any advice is greatly appreciated.  Thanks in advance!

[BN3]

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nfcsaints wrote:

Newbie here and SLOWLY learning all KINDS of good stuff!  This site rocks.

Soooooo......if I understand correctly, the goal is one card with a less than 9% balance.  Got it.

Recovering from 2004 dismissed BK.  LONG overdue effort, but hey, gotta start somewhere.  Here's my situation and question.  Other than the BK, only have 2 baddies with GWs pending - two 30 days.  I just paid down 95% utilization  to $1500.  Remaining balances are spread as such

0/2500 - Dell Financial Services

0/1700 - Applied Bank

0/1200 - Chevron

0/1200 - Cap 1

0/200 - Target

0/100 - Macys

100/300 - HSBC

100/300 - HSBC

100/300 - Orchard

100/300 - JCPenny

100/500 - Cap 1

500/1000 - Walmart (store card)

500/1200 - Amazon (store card)

So, what would be the wisest path?  Which should I focus on first?  Is there a difference between a store card versus a visa or mastercard?  Take $500 and pay off the 5 minors, put it toward either the walmart or amazon, or split it between somehow?  Any advice is greatly appreciated.  Thanks in advance!

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    I'd tackle the 5 $100 balances.  Less cards carrying balances, less things to keep track of and pay for the time being.  (Assuming nothing else gets charged on them.)

    Your overall util affect will be the same and you are 50% or under on the remaining cards.

[proton022]

More evidence to jello77's theory.

I have 3 credit cards. Utilization is less than 2% on all the cards. 

100%: 3 with a balance. EQ FICO: 725.  

66%:   2 with a balance. EQ FICO: 756 (+31)

33%:  1 with a balance. EQ FICO: 767 (+10)

Scores were observed within a span of a week. Lender pulled score matched exactly with these scores.

Question: I have a fourth card issued by a store that I never charged a penny on,  ever. Since it is an inactive charge card, I believe it is irrelavant to the above analysis. Please correct me if I'm wrong.

[mmmmmm]

How if you only have 1 TL reporting?  Is it wise to have it reporting a balance or report as $0?

When I had it reporting $0, my scores were as follows:

TU: 796

EQ: 742

When it was reporting 1% util, however, my scores were:

TU: 770

EQ: 746

Nothing else changed on my reports.

It appears with only 1 card having no balance report might actually be better, since my TU dropped 26 points while my EQ only raised 4 with it reporting 1% util.

[Elliot0409]

Excellent post! 

[MarineVietVet]

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mmmmmm wrote:

How if you only have 1 TL reporting?  Is it wise to have it reporting a balance or report as $0?

When I had it reporting $0, my scores were as follows:

TU: 796

EQ: 742

When it was reporting 1% util, however, my scores were:

TU: 770

EQ: 746

Nothing else changed on my reports.

It appears with only 1 card having no balance report might actually be better, since my TU dropped 26 points while my EQ only raised 4 with it reporting 1% util.

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The bottom line is what works for you.  There are generalities and rules of thumb of what seems to work well for most people but in the end we all have to determine the best course for our unique situation.

If having your one card report a zero balance gives you the best outcome then by all means continue with that approach.

[Elliot0409]

Lots of talk about how many cards with balances.  It seems the consensus is that 1 revolving credit card with a small balance is optimal.  What about that compounded with an installment loan with a small balance and a department store card with a small balance as well?