Re: How maxed out cards affect your FICO
04-17-2007 07:48 AM
Hello Ladyfico! I don't believe that sitting and waiting is the best method for increasing a score. In another forum I mentioned that I boosted my score from 585 to 718 in one year. First of all, I never pay the minimum anymore (the 3 months I did pay the minimum, I watched my score drop steadily). Also, whenever I get extra cash I make big paydowns on my accounts. Several months ago I paid several revolving accounts off completely and am still seeing the positive effects of this action. I would never consider closing my unused accounts, because this is known to lower your score, sometimes significantly. The reason for this is that when you close accounts, you wind up changing your available credit to balance ratio (one of the things a fico score strongly considers). Also, it's a wise idea to think ahead whenever you charge a purchase to a revolving account. Before I make such purchases I ask myself, "how long will it take me before I will be able to pay this off and how much will I be able to pay off on this purchase next month?". Being proactive with ones accounts can definately make a huge difference with ones credit score. One of the things presently effecting my score is that my oldest account is just two years old. I look forward to my accounts aging and thus increasing my credit score. Finally, I think the best thing people can do in relation to their credit scores is to educate themselves as much as they can about the credit scoring process. Knowledge brings power and allows people to actively effect the outcomes of their future.