You have great FICO scores.
However, to say you have 20 cards and they’re not hurting your score is missing the point. TU just told you that your number of open cards is having a negative impact on your score – in other words your score would be higher with fewer accounts open. It makes sense, after all, too many open accounts raises our risk level (and that drops our scores).
(They’re not dinging you for too many accounts with balances – so the fact that only three of your accounts has a balance is not a factor for this FICO message.)
Credit is missing the point when he says “Disregard. There is no such thing as too many accounts.” FICO just told you that there is such a thing. It’s FICO code #28. TU labels this as “Too Many Accounts”, the EQ label is “Number of Established Accounts.” It’s a reminder that the FICO gods feel we can (and that you do) have too many.
When you pull your reports with scores in your high range on myfico.com, you only see – I think it’s one or two? – of the negative FICO codes affecting your account. When your lenders/creditors pull your score, they will see all four codes.
If you’re good with your lovely current score (good enough to be “great”), then don’t worry about closing accounts – just know that it is affecting your score. If you want to be at 800 for some reason, then pay attention to the specific info TU just provided you with. Fewer cards will bring you closer to 800. We may choose not to play the game because our scores are fine where they are – but never disregard FICO information – that’s exactly why we buy our reports and check them out. Basically, they’re providing us with exactly the type of information we need to manage our FICO scores – at least to the point where we want to manage them.
Pulling your reports on myfico.com/12 allows you to see all four reason codes from TU and EQ. At that point, you’ll know if it’s a factor for EQ or not. And if you see all four codes, your creditors won’t blindside you.
This #28 code can become a considerable factor in FICO scores, so it’s good to pay attention. It’s a good idea to review reports, identify all open accounts (sounds like you know yours – sometimes you really have to scout through the reports), and make an informed decision on how many to keep open. If you decide to close any accounts, then target the following: finance company accounts, revolving accounts opened most recently, or those not used, first. Maybe rethink the AU accounts.
(There is another recent post on the boards regarding having too many bank/national revolving accounts open – that’s a different, but related problem. 6 accounts triggered that code. It’s good to note that his CCard – I think it was Citi - was closed by the lender based on that code showing on his credit report). For this code, FICO experts recommend no more than 10 open accounts (including CC, mortgage, installment, student, overdraft accounts) for an 800 score.
Hope that helps. I personally love that TU & EQ will tell us exactly what it is that’s driving our scores.
And congratulations on your perfectly lovely scores - good work!
Message Edited by beamMEup on 10-23-2009 05:15 AM
