topic Re: Guys.. in Understanding FICO® Scoring

Guys..

Anonymous — Tue, 08 Sep 2015 15:31:53 GMT

I'm a dummy but here and there reading thru forums I'll see someone say something like for optimal scoring use only between 1-9% on ONE card every month and let only one report a balance then something about when not to use the card. I've seen it quite a few times but cannot find where I seen it.
My utilization is as follows and shows as 8% on my apps
Lowes 500/6000
Walmart 100/3500
ED 30/1000
BCE 50/3500
Cap 1- 300/1250
Target-0/200(SD)
DC- 0/1800 hasn't posted yet.

So if the above comment is really true what the posters were saying is not to have balances on any of those cards but one?
I was a little confused cause all my simulators show the only way to increase my score from here on out is to make on time payments on balances for 2 years which would put me at 748.
Although I can't ever make it a month or two with balances as I get paranoid I just have to keep buying something small or large & pay it cause I hate balances.
Has anyone seen these posts from other members?
Am I doing something wrong?

Re: Guys..

kdm31091 — Tue, 08 Sep 2015 15:33:54 GMT

It is a way to maximize scores but IMO not really worth the time and effort unless you have a loan app coming up. Even then your score may not change enough to make any meaningful difference in the loan rate.

But yes if you want to do it its 1 to 9 percent on one card zero on the rest. I just find other ways to drive myself crazy and dont need to attempt this.

Re: Guys..

Anonymous — Tue, 08 Sep 2015 15:35:48 GMT

Agreed. I always just let statement cut but have so many accounts that it doesn't really affect me. New accounts always hurt my scores worse than utilization. 😾

Re: Guys..

kdm31091 — Tue, 08 Sep 2015 15:37:01 GMT

Forgot to add util has no memory so you can achieve this maximization is one month before an app if you are concerned and otherwise don't worry about it IMO

Re: Guys..

Anonymous — Tue, 08 Sep 2015 15:38:10 GMT

Well I figured I'd use lowes for what it is, home improvement. I figured there was no way to spice it up like buying the grill of my dreams. My BCE is my everyday card so my plan was to pay 80$ a month to my lowes til paid off then buy something big again and keep doing so. So that would mean my BCE & lowes would be reporting a balance every month. Is that not good?

Re: Guys..

CreditMagic7 — Tue, 08 Sep 2015 15:49:29 GMT

The way i see it is that it's a toss up. I try to keep my FICO scores respectable enough but they take second fiddle to my lenders expectations. Every lender has different criteria that they like to see which in turn plays an important role in their internal scoring, and that's what i try to focus on the most. The FICO optimal scores can wait unless you're getting ready for a spree or something similar. FICO scoring is a roller coaster ride

Re: Guys..

Anonymous — Tue, 08 Sep 2015 16:20:22 GMT

If you really do not like balances as your post indicates I would just use one card out of all of them and pay in full after the balance reports. That would allow you optimal fico scoring while not making you feel uncomfortable. I have found that with credit you have to do what you want to do with it in order to maintain it long term. The most important thing I believe is to remain consistent.

Re: Guys..

Anonymous — Tue, 08 Sep 2015 16:30:07 GMT

CM7 no I do not plan on going on any sprees lol. Thank you very much for your input I appreciate the info.

Ghg that's a good idea also, thank you very much. I'll stick with my BCE like I have been. Just have a fear of creditors closing accounts due to non use. So I thought I'd put a little on them. But BCE only from no on. Thank you!

Re: Guys..

Anonymous — Tue, 08 Sep 2015 17:06:58 GMT

major lenders don't close accounts for disuse after a few months, generally the minimum is a year, some even longer (My mom had a card she didn't use for 3 years and then used it one day and it worked!).

Set a reminder to use each card once every six months and you will never have to worry.

Re: Guys..

Anonymous — Tue, 08 Sep 2015 17:27:47 GMT

If you are about to app something big like a mortgage it is worth it, utilization games are short term and juice your score temporarily but have no long term effect.

What you are doing, paying your bills in full every month and using credit responsibly, THAT boosts your score in a more meaningful and permanent way.

But as you know that is a marathon. Ppl talk a lot about utilization only because it has an immediate impact.

Re: Guys..

Anonymous — Tue, 08 Sep 2015 17:50:53 GMT

One thing you need to understand about the "pay your bills on time for 24 months" simulation is that the bulk of that increase is derived from the aging of accounts and inquiries, not CC utilization.

Re: Guys..

Anonymous — Tue, 08 Sep 2015 18:02:11 GMT

@Anonymous wrote:
One thing you need to understand about the "pay your bills on time for 24 months" simulation is that the bulk of that increase is derived from the aging of accounts and inquiries, not CC utilization.

Very good point. The 24 aging of current accounts, baddies, etc really boosts your score more than anything.

My Transunion shows an 835 simulated score because of that very reason

Re: Guys..

Anonymous — Tue, 08 Sep 2015 21:54:51 GMT

Thank you all!