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increasing FICO score

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Anonymous
Not applicable

Re: increasing FICO score

Hey guys, I'm new to posting here but I'm a real big fan of the forum. I do hope you don't mind a few basic questions.
 
  Does anybody know for sure if FICO scoring makes a distinction between having all cards PIF monthly and those carrying a modest balance of say, 1% to 9% over time and paying occassional interest?   Is there any credible documentary evidence that FICO favors carrying a modest balance? May I see a credible link that indicates one way or another how FICO reacts.
 
In my personal experience,  my 4 cards are always paid in full and rotated on a monthly basis.  I use each for the stuff I would normally buy anyway and always for quite a bit less than 9% utilization. The bill is then paid in about 72 hours.
 
Since November of 2007, I've gone from 681 to 701 as of 2 Feb 2008.  In effect, my scores are currently rising about 5 pts a month, like clockwork.  Is this unusually slow or fast in your considered opinions?
 
I do have 5 inquires of record in the last 12 months. How many FICO points do y'all suppose can be gained if these onerous inquires were erased in the next 12 to 24 months? 
 
I'm shooting for 760+ in the next 24 months. Is this a realistic goal assuming I continue acting responsibly with credit?
 
My credit lines are brand new...1 year on the oldest and 6 months on the other 3. No black marks of any kind. 20 years ago I swore off my credit cards after the bitter experience of my irresponsible youth.  I had no idea what I was doing at age 21 with 22 credit cards and a mountain of debt....
 
After that, It was cash for everything for many years--until I looked into buying a home...What a shock to discover what 20 years of closed credit lines had done to my credit worthiness. And I only recently discovered just how time consuming it is to really establish good credit. .
 
But thanks to this forum, I am much better armed--and informed--to tangle with the Powers of Finance that be--once again. 
 
 Yeah, I was way too reckless in my tender years. But I think I finally have enough of this game figured out that I can make credit my trusty servant and not the fearsome master it had once been. 
 
Regards
 
Cato 
 
 
 
 
 
     
Message 31 of 33
RobertEG
Legendary Contributor

Re: increasing FICO score

Inquiries stay on  your actual credit report for 24 months, but they only count in your score calculation for 12 months.  They drop off in month 13 from scoring.  If  you assume a -10 hit for each inquiry in the first month after it is made, and then a linear regression down to 0 at 13 months, I think you can get a good approximation idea of their combined effect.  So it depends on how long it has been since each inquiry has hit.  If your strategic goal is to apply for new credit in 24 months, they will all be gone, and not of concern.
 
Message 32 of 33
Anonymous
Not applicable

Re: increasing FICO score

INQ's seems to count 100% for the full 12 months-
No "Fade"

RobertEG wrote:
Inquiries stay on  your actual credit report for 24 months, but they only count in your score calculation for 12 months.  They drop off in month 13 from scoring.  If  you assume a -10 hit for each inquiry in the first month after it is made, and then a linear regression down to 0 at 13 months, I think you can get a good approximation idea of their combined effect.  So it depends on how long it has been since each inquiry has hit.  If your strategic goal is to apply for new credit in 24 months, they will all be gone, and not of concern.
 



Message 33 of 33
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