Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
Re: Trying to understand Fico scoring
[ Edited ]

Oh, I didn't realize that you had so many closed accounts on your reports.


That means that you don't have a thin file, per se, but you also don't have a lot of new clean history coming in, so that still might be a factor.


As for when things drop off, it takes 7 years, not 5 for negatives to fall off. If the accounts are closed, they should continue to report for 10 years after they were closed, meaning that a closed account would have at least 3 years of clean history after the last negative fell off, depending how soon after the negative the account was closed. If the account is open, if course, it keeps reporting, but as a clean account.


I have to admit that I'm stumped. The only other factor that I can think of is maybe having one or two more open revolving accounts to generate new clean history, and also to specifically increase the number of open CC's, which are a pretty big driver of scores. But as I said above, just opening accounts in hopes of improving scores doesn't seem wise. But if you do plan to get into real estate, you'll want to qualify for the best rates, so it might be worth it.


As for interest rates, if you can get into the mindset of using your CC's as if they were debit cards, only using them to buy things that you can pay off immediately, then the APR's don't matter. I genuinely don't know what any of my APR's are, because except for an occasional 0% BT, I don't even look. (And even then I calculate the BT fee over the timeframe of the offer to figure what the effective "interest" really is.)


Anyone else out there with some useful ideas?

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007