topic Re: MyFICO says TOO MANY ACCOUNTS on CR. in Understanding FICO® Scoring

MyFICO says TOO MANY ACCOUNTS on CR.

Anonymous — Thu, 20 Sep 2007 08:56:35 GMT

MyFICO SW says this is hurting the score. Best to rid youngest revolving closed accounts first I would believe? Ones with the smallest amount of history.

Has anyone reduced below 30 accounts and seen an increase in score? How much did your score rise?

Thanks

Re: MyFICO says TOO MANY ACCOUNTS on CR.

Anonymous — Thu, 20 Sep 2007 14:53:48 GMT

Does it say too many accounts, or too many outstanding accounts?

Re: MyFICO says TOO MANY ACCOUNTS on CR.

Anonymous — Thu, 20 Sep 2007 15:20:06 GMT

@Anonymous wrote:
Does it say too many accounts, or too many outstanding accounts?

Too many accounts open and closed combined.

Message Edited by ilovepizza on 09-20-2007 08:20 AM

Re: MyFICO says TOO MANY ACCOUNTS on CR.

Anonymous — Thu, 20 Sep 2007 17:03:40 GMT

I have the same problem . Can get them to go away most were in good standing so they'll be there for ten years

Re: MyFICO says TOO MANY ACCOUNTS on CR.

Tuscani — Thu, 20 Sep 2007 18:14:41 GMT

This has always been a common misunderstanding, not just among consumers but also among lenders, mortgage brokers, etc. -- equating number of accounts on file with the number of "open" accounts on file. To be clear, while the FICO scoring formula considers the number of accounts on file and the mix of different types of accounts, it does not specifically look at the number of open vs. closed accounts.

In fact, FICO scores and the myFICO site have never actually had any negative factors or explanations that refer to "open" accounts as having a negative effect, but people seem have taken "number of accounts" to automatically mean "number of open accounts".

Re: MyFICO says TOO MANY ACCOUNTS on CR.

MidnightVoice — Thu, 20 Sep 2007 19:56:24 GMT

ilovepizza wrote:
MyFICO SW says this is hurting the score.

Well, 40 new CCs in a year is a little excessive

Re: MyFICO says TOO MANY ACCOUNTS on CR.

Anonymous — Thu, 20 Sep 2007 19:58:07 GMT

It flagged this for Total number of accounts and mostly these are all closed accounts. I was planning on trying to get the weakest revolving closed accounts delted from the CRA via dispute. They are in good standing. Just wondering how many points could be gained if the number of accounts were to drop below this flag which I think is 29 or 30 total accounts?

Re: MyFICO says TOO MANY ACCOUNTS on CR.

Anonymous — Thu, 20 Sep 2007 20:07:56 GMT

Tuscani wrote:

This has always been a common misunderstanding, not just among consumers but also among lenders, mortgage brokers, etc. -- equating number of accounts on file with the number of "open" accounts on file. To be clear, while the FICO scoring formula considers the number of accounts on file and the mix of different types of accounts, it does not specifically look at the number of open vs. closed accounts.

In fact, FICO scores and the myFICO site have never actually had any negative factors or explanations that refer to "open" accounts as having a negative effect, but people seem have taken "number of accounts" to automatically mean "number of open accounts".

To muddle things further: the TransUnion report may give the negative factor "too many credit accounts with balances."

Re: MyFICO says TOO MANY ACCOUNTS on CR.

haulingthescoreup — Thu, 20 Sep 2007 21:06:52 GMT

Is this possibly an example of what happens when scores start getting higher, and ScoreWatch really has to scramble to come up with some sort of negative comment? I know that Pizza is trying to squeeze the last few available points out--maybe ScoreWatch is just running out of scoldings.

I got one yesterday about an account showing a new balance. We're talking $57 total balance on a $7000 CL.

Re: MyFICO says TOO MANY ACCOUNTS on CR.

MidnightVoice — Thu, 20 Sep 2007 21:11:07 GMT

haulingthescoreup wrote:
Is this possibly an example of what happens when scores start getting higher, and ScoreWatch really has to scramble to come up with some sort of negative comment? I

See:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=9508