Reply
Member
Posts: 12
Registered: ‎08-01-2013
0

What's impacting my score: Total Balance for open national trades....

 

This is what is impacting my score according to equifax:

 

1. Percentage trades opened within the last 2 years to total trades.
2. Percent of national credit cards trades opened within the last 2 years.
3. Total balance for open national card trades.

 

 

First 2 I understand, you open alot of cards in 2 years, it affects your score. 

 

Why is the third one impacting my score? I thought your available credit shouldn't affect your score...

Established Contributor
Posts: 785
Registered: ‎04-24-2014
0

Re: What's impacting my score: Total Balance for open national trades....


techcrium wrote:

 

This is what is impacting my score according to equifax:

 

1. Percentage trades opened within the last 2 years to total trades.
2. Percent of national credit cards trades opened within the last 2 years.
3. Total balance for open national card trades.

 

 

First 2 I understand, you open alot of cards in 2 years, it affects your score. 

 

Why is the third one impacting my score? I thought your available credit shouldn't affect your score...


Your available credit affects your score, because you could charge everything up to the limit and not pay or file bankruptcy.  The longer you have the credit and use it wisely, the less this will affect you in a negative way.  From their standpoint, they could be looking at someone new to credit that has no idea of how to handle it wisely and my use it to pick up tabs for people when they're in a bar or pay for everyone else's meal at a resturant, just to show off.

 

Hey, I've seen it happen, so I'm sure credit companies have seen a lot more.



Current Score: EX 839 EQ 794:TU 792 on 7/4/14; EQ from myfFico on 6-26-14
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Goal Score: 800+ on all three Bureaus
Garden since 11/26/14 -- In the garden until 6/2016

Member
Posts: 12
Registered: ‎08-01-2013
0

Re: What's impacting my score: Total Balance for open national trades....

Then how does it work? there are people with $300,000 credit limit and spend $10,000 per month...

 

Are they a major risk then?

 

Meanwhile, I only have $40,000 credit limit and I already have "too much credit"?

Valued Contributor
Posts: 1,794
Registered: ‎07-01-2010
0

Re: What's impacting my score: Total Balance for open national trades....


techcrium wrote:

 

This is what is impacting my score according to equifax:

 

1. Percentage trades opened within the last 2 years to total trades.
2. Percent of national credit cards trades opened within the last 2 years.
3. Total balance for open national card trades.

 

 

First 2 I understand, you open alot of cards in 2 years, it affects your score. 

 

Why is the third one impacting my score? I thought your available credit shouldn't affect your score...


Is this a score you obtained at the Equifax site?

 

For FICO scoring, the size of your credit limits does not directly affect scores.

 

What does have a big impact is utilization -- your balances relative to your limits.

 

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.