Epic Contributor
Posts: 25,101
Registered: ‎03-19-2007
Re: The MyFICO Forums 12 Step Program (For FICOholics)

This FICO forum is absolutely the best source of credit advice that exists in all of the Western World!  The knowledge given on here is fantastic.  I just have a simple observation.  I hate to categorize, but I must offer my comments, for it is important for one to know his goals before he can plot his path.

I see two broad categories of posts on here.  The first is from those who seek long term FICO increases, and the second from those who seek immediate point-pumps in order to secure immediate credit.

When you read these forums and their advice, it is important that you know what you are seeking.  Short term score boosts are usually secured at the expense of longer-term hits, but if instant credit is what you need, then go for it!  Get a quick  gator-aid, steroid boost in your current score, and get the new credit card or loan you need!  If you are in that category, then take the new credit inquiry hits, and increased % utililzation that will lag your newly secured credit by one to two months.  So it don’t matter, once you have the new princess bride in your bed!

But if a fix of months or more into the future is what one seeks, then the strategy is quite different.  New credit will catch you within two months, adding new inquiries at 10 points per pop, and if that new credit is used, it may individually be at a high %util that will kill.  Get a new $500 card, charge $400, and the short term effect is a 10-point inquiry hit that wont go away for a year, and new 80% util of that card. It may only be a perceived as a pimple on your overall %util, but %util of each card also counts.

I had a FICO score of 780 five years ago.  But then I had a divorce.  My FICO has not dipped much from then, but my financial situation clearly has, and I would not use my high FICO score now to obtain further debt!

I am a category 1 guy now, who wants to retain his FICO, but does not need it for immediate credit.  However, my younger ‘bro has a FICO more than 100 points lower than mine.  His FICO counts, for he wants to buy a new car, and a new house. NOW!

You reap what you sow, and can only harvest what you have reaped.