Valued Contributor
Posts: 1,671
Registered: ‎05-24-2007
Re: Trying to understand Fico scoring

I read it as the delinquent payments are 3 year 11 months so in 3 years they will drop off - or actually drop off a month or so after that. I have to believe that the negatives are hurting a lot with the small number of open accounts. That is mostly based upon there being nothing else that seems to be a reason, which isn't very solid.


If you are buying a car for cash, it might be better to finance and then pay off quickly so you have little interest. Since interest is based upon the open balance, a big chunk extra with the first payment will give you a high original amount and little spent on interest. I'm thinking this might help credit mix with a recent installment loan.


Never any reason that it makes sense to pay 22% on a CC if you can possibly avoid it.