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

Member

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...

3 REPLIES
Valued Contributor

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.

Original Mortgage maturity Sept 2044; Refi maturity Dec 2030
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Current Score: EX 849 EQ 835 TU 843
Goal Score: 850


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Member

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

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.