Re: Do the Type of Creditors Affect your Score?
09-16-2012 08:33 AM
I remember back in the days of Norewest financial and American General (showing my age I know - lol!) that the type of creditor factored into your overall credit score. Does this still ring true? Does it make sense to close sub-prime cards (like Orchard and First Premier) and open a secured card w/ a CU? How many and what type of tradelines are optimal now?
Thanks for your input.
Hey K and Welcome to the forums!
From a pure FICO perspective, the backers of the different types of revolving debt you have does not matter. All FICO takes into account is how much credit you have and how you use it, how well you repay it and how long you've had it (plus other minor nuiances). However, it has been noted from certain lenders that whom you have credit with can matter with regards to approval. For example, Amex has listed on denial letters their dislike of certain lenders
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