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Contributor
woozy
Posts: 99
Registered: ‎02-12-2010

Re: will a cli help my fico score?

Thanks, that's very helpful.

 

I'm applying for a mortgage, and definitely squeezing!

Valued Member
climbinghigher
Posts: 43
Registered: ‎12-09-2010

Re: will a cli help my fico score?

I pay my cards on the due date. I work close to the bank, so I walk in and pay to get credit for my payment that day. It took a little practice getting use to timing the use of the cards. I don't use them for three days after that. My report shows the $10 or so balances on them. I made the mistake at first of using them right after payment and it showed on my statement and was reported for the month on my report.

Established Member
raleighmortgagegals
Posts: 20
Registered: ‎01-26-2011

Re: will a cli help my fico score?

A credit limit increase will help your score if you convince the credit card company not to do a hard pull on your credit in order to authorize the increase.

Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: will a cli help my fico score?

[ Edited ]

marinevietvet wrote:

lazcop9991 wrote:
Just want to know if getting a cli will help my fico score climb higher? Thx

Hello there.

 

CL's themselves are not scored only the percentage of usage of the CL's. However a higher CL can lower your utilization which could help raise your score.

 

You can also lower your balances to achieve the same effect.

  


Yep.  What MVV said.  :smileywink:

Just puttin' syrup on something, don't make it pancakes.
Member
missjade
Posts: 15
Registered: ‎05-16-2008

Re: will a cli help my fico score?

 


haulingthescoreup wrote:

 The tipping point may or may not be the combination of:

  • half or fewer of all open accounts (revolving, installment, mortgage, other) reporting a balance
  • fewer than half of all open revolving accounts reporting a balance
  • but at least one revolving account reporting a balance

If someone has a mortgage and two auto loans, that's three accounts that by definition will always have a balance as long as they're open. To meet the condtions bulleted above, you'd then have to have 3 CC's without a balance (half or fewer of all open accounts with balances.) But then you'd get dinged for no CC's with balances, so you'd want to have 4 open CC's, one reporting a balance, to meet all three conditions.


I have a number of old, paid off accounts still reporting, many of them past the 7 year mark since they have been paid.  Do those count as "open accounts" for above purposes?  The majority of accounts I have reporting are student loans, many of which have been consolidated and reconsolidated over the years.  Five of them actually have a balance (that I am paying off), but the rest do not.  Can I ask to have the ones that have been paid more than 7 years ago removed?  Will this affect my score?

 

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: will a cli help my fico score?


missjade wrote:

 


I have a number of old, paid off accounts still reporting, many of them past the 7 year mark since they have been paid.  Do those count as "open accounts" for above purposes?  The majority of accounts I have reporting are student loans, many of which have been consolidated and reconsolidated over the years.  Five of them actually have a balance (that I am paying off), but the rest do not.  Can I ask to have the ones that have been paid more than 7 years ago removed?  Will this affect my score?

 


Open accounts are only those that are active and in the case of installment loans still being paid on.

 

After an account is closed it generally will stay for up to 10 years which continues to help your AAoA (Average Age of Accounts) and credit length history. Some closed acounts will drop off before the 10 year mark but most average the 10 years.

 

In rare cases closed acounts will remain after that 10 year period and that's a good thing. As long as they are on your reports they are helping you. You should never disturb any old account that is in good standing.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Established Member
raleighmortgagegals
Posts: 20
Registered: ‎01-26-2011

Re: will a cli help my fico score?

I agree.  Old accounts that have been paid do not need to be disturbed.

 

When you apply for a mortgage, we look to see if you have had any problems in the last couple of years.  Bankruptcies are a different issue.  Any problems after a bankruptcy are a problem.

Member
missjade
Posts: 15
Registered: ‎05-16-2008

Re: will a cli help my fico score?

 


marinevietvet wrote:

Open accounts are only those that are active and in the case of installment loans still being paid on.

 

After an account is closed it generally will stay for up to 10 years which continues to help your AAoA (Average Age of Accounts) and credit length history. Some closed acounts will drop off before the 10 year mark but most average the 10 years.

 

In rare cases closed acounts will remain after that 10 year period and that's a good thing. As long as they are on your reports they are helping you. You should never disturb any old account that is in good standing.


I thought I read somewhere that having too many things reporting has a negative effect.  What about in case of old, paid collections?  Do those hurt the score and should be requested off?  Or is it better that they stay to help average age?  How is average age calculated anyway?  Is it the sum of months reporting for all reporting accounts beginning with the date open divided by # of accounts?  

 

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: will a cli help my fico score?


missjade wrote:

 



I thought I read somewhere that having too many things reporting has a negative effect.  What about in case of old, paid collections?  Do those hurt the score and should be requested off?  Or is it better that they stay to help average age?  How is average age calculated anyway?  Is it the sum of months reporting for all reporting accounts beginning with the date open divided by # of accounts?  

 


I have I believe 36 accounts showing on one of my reports and it doesn't seem to hurt anything.

 

Collections do hurt your score but remember I said accounts in good standing should be left alone. Collections can report for up to 7.5 years from the DoFD (Date of First Delinquency) on the OC (Original Creditor) account that led to the collection.

 

Your AAoA is the sum of the ages of every account (except CA collections) on your report, whether open or closed, calculated in months, divided by the number of accounts and then divided by 12. I use the division by 12 to make it easier to convert into years. This is measured from the time each account was opened until present.

You’ll need to figure the age of each account, open or closed, on each report. If all three reports are identical (very unlikely), you're in luck; otherwise, you'll need to run this for each report.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".



 

 

Established Member
raleighmortgagegals
Posts: 20
Registered: ‎01-26-2011

Re: will a cli help my fico score?

I wouldn't deal with old, paid collections.  How would you go about removing them?  An accurate old, paid collection leaves you with no leverage to remove them.

 

You can sometimes succeed in removing an unpaid collection by offering to pay it off in exchange for removing it.  No leverage with a paid collection.


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