topic Re: CC ?? in Credit Cards

CC ??

Cheryla18 — Sat, 18 May 2013 20:18:50 GMT

I've read some reponses from people about how to get the highest score possible by having at least 2 CC...having 1 report $0 and the other keeping it 1-9%.....

I am joint on a CLOSED CC with my mom showing CL 1,500....balance 404.00...however I paid that off 3 weeks ago and waiting for it to update so balance is actually zero....and I now have a secured CC with a 1,000.00 CL and i have charged only $24.85 and i plan to keep it at that. So my question is....Will this closed acct "act" as having a 2nd card since it is showing a CL even though it is closed...Because i don't understand how having a balance on a closed card can be factored into your Ulti...but not help out in the manner that i've asked.

Thanks

Cheryl

Re: CC ??

Anonymous — Sat, 18 May 2013 20:26:13 GMT

The closed CC will report as closed, so it will have no impact at all on your util. However, it will contribute to your AAoA for 10 years before falling off, so in that respect it will help your score.

There is no magic number of active TLs that will make your score better, but generally, having many old TLs in good standing will be better than having only a handful.

Re: CC ??

LS2982 — Sat, 18 May 2013 20:41:18 GMT

@Anonymous wrote:
The closed CC will report as closed, so it will have no impact at all on your util. However, it will contribute to your AAoA for 10 years before falling off, so in that respect it will help your score.

There is no magic number of active TLs that will make your score better, but generally, having many old TLs in good standing will be better than having only a handful.

Good info. Its the age of the accounts that matters the most.

Re: CC ??

pizzadude — Sat, 18 May 2013 20:53:29 GMT

----> The closed CC will report as closed, so it will have no impact at all on your util.

Just to clarify, in this case the credit card is factored into revolving utilization even as closed ~ because both the credit limit and balance are reported.

Re: CC ??

DaveSignal — Sat, 18 May 2013 21:09:08 GMT

There is also a few points to be gained, though, by having a ratio of active cards being used. For instance, if I have 10 open revolving accounts, and I have 3 of those cards with a small balance and the others at $0, my score will fair better than if I have a balance on all 10 of my 10 open accounts... even if total utilization is exactly the same.

This factor of utilization (not the % of total CL but the % of open cards being used) is why you should have 2 OPEN revolving accounts.

Re: CC ??

KIPPIE12 — Sun, 19 May 2013 02:15:39 GMT

@DaveSignal wrote:
There is also a few points to be gained, though, by having a ratio of active cards being used. For instance, if I have 10 open revolving accounts, and I have 3 of those cards with a small balance and the others at $0, my score will fair better than if I have a balance on all 10 of my 10 open accounts... even if total utilization is exactly the same.

This factor of utilization (not the % of total CL but the % of open cards being used) is why you should have 2 OPEN revolving accounts.

My score from EQ factors much better with 2-3 credit cards reporting a balance.. This month all my cards have reported, and EQ dropped 15 points, because i left only 2 reporting, but TU went up. I've managed to keep it this way for awhile now. But, for optimal scoring purposes, it's best to be 1-9% total util, but even this varies per person, per bureau.

Re: CC ??

DaveSignal — Sun, 19 May 2013 07:04:48 GMT

@KIPPIE12 wrote:
@DaveSignal wrote:
There is also a few points to be gained, though, by having a ratio of active cards being used. For instance, if I have 10 open revolving accounts, and I have 3 of those cards with a small balance and the others at $0, my score will fair better than if I have a balance on all 10 of my 10 open accounts... even if total utilization is exactly the same.

This factor of utilization (not the % of total CL but the % of open cards being used) is why you should have 2 OPEN revolving accounts.
My score from EQ factors much better with 2-3 credit cards reporting a balance.. This month all my cards have reported, and EQ dropped 15 points, because i left only 2 reporting, but TU went up. I've managed to keep it this way for awhile now. But, for optimal scoring purposes, it's best to be 1-9% total util, but even this varies per person, per bureau.

I am not saying that any specific number of cards reporting is the correct answer, simply that I have noticed score changes based on the ratio of cards being used (cards reporting greater than $0 balance). There is some scoring factor here that is seperate from the total utilization %. The same number of cards reporting might not generate the same points for every credit profile, but there is definately some kind of change when all of the cards have a balance vs only a few. Someone trying to play with this factor in order to try to get the highest score would not be able to do much if they only had 1 open tradeline.