topic Re: How many tradelines do you need? in General Credit Topics

How many tradelines do you need?

Anonymous — Fri, 08 Jun 2007 20:24:29 GMT

I have a unsecured citifinancial loan and a unsecured very high rate 200.00 limit cc. I only opened it about a month ago. It is already reporting and looks as though it will every month. Should I have one other tradeline to help boost my score? Maybe apply for one other cc? And keep it between 1-9 %. We are looking to purchase a house in about a year so even though applying will drop my score some now maybe adding another trade line with between 1-9% with on time payments will boost it in the long run. What do you think?

Re: How many tradelines do you need?

Anonymous — Fri, 08 Jun 2007 20:35:25 GMT

I'm all for getting the thin file status disassociated with my credit profile... The more TLs the better.

Rob

Re: How many tradelines do you need?

Anonymous — Fri, 08 Jun 2007 20:39:17 GMT

Yes get another. Charge them up near the limit. Then pay them down and keep your usuage under 10 percent at least the last 4 months before you apply for your mortgage.

Re: How many tradelines do you need?

Anonymous — Fri, 08 Jun 2007 21:58:24 GMT

rhinocl wrote:
Yes get another. Charge them up near the limit. Then pay them down and keep your usuage under 10 percent at least the last 4 months before you apply for your mortgage.

It's fine to charge a CC up near it's limit, but pay it down under 10% util before the statement closes. You don't want the near maxed out balance reported to the CRAs.

Re: How many tradelines do you need?

Anonymous — Fri, 08 Jun 2007 23:47:23 GMT

What is your FICO score now? How many accounts do you have total open and closed of all kinds.

Re: How many tradelines do you need?

Anonymous — Sat, 09 Jun 2007 01:22:06 GMT

My Equifax score is 506. I have not pulled the others. I have two accounts closed in good standing always paid on time. I have 2 open in good standing always paid on time, one low limit credit card and the installment loan. I have 2 accounts closed by credit grantor they are showing as open though with past dues one will be aging off in 3-2008 the other I have sent a PFD to, just haven't heard back yet.

Re: How many tradelines do you need?

Anonymous — Sat, 09 Jun 2007 02:47:28 GMT

@Anonymous wrote:

@Anonymous wrote:
Yes get another. Charge them up near the limit. Then pay them down and keep your usuage under 10 percent at least the last 4 months before you apply for your mortgage.

It's fine to charge a CC up near it's limit, but pay it down under 10% util before the statement closes. You don't want the near maxed out balance reported to the CRAs.

I recommended he do this as his need for a good score is two years away. In the mean time he should show some higher balances and the ability to pay them off. If he pays them off before they are reported would they count towards high credit used? Yes you want the utilization in the period before you need credit low to give a good score, but some one who has only borrowed 9% on a $200 limit card will never be seen as equal with someone who has borrowed $5000 a few times and paid it off.

Re: How many tradelines do you need?

Anonymous — Sat, 09 Jun 2007 04:45:38 GMT

rhinocl wrote:

I recommended he do this as his need for a good score is two years away. In the mean time he should show some higher balances and the ability to pay them off. If he pays them off before they are reported would they count towards high credit used? Yes you want the utilization in the period before you need credit low to give a good score, but some one who has only borrowed 9% on a $200 limit card will never be seen as equal with someone who has borrowed $5000 a few times and paid it off.

You don't get credit for having a high high balance. You don't get credit for letting a near max balance report to the CRAs. Creditors don't report how much you charged--only what you owed when the statement cycle closed.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Re: How many tradelines do you need?

fused — Sat, 09 Jun 2007 04:54:31 GMT

Noah_Bodie wrote:

rhinocl wrote:

I recommended he do this as his need for a good score is two years away. In the mean time he should show some higher balances and the ability to pay them off. If he pays them off before they are reported would they count towards high credit used? Yes you want the utilization in the period before you need credit low to give a good score, but some one who has only borrowed 9% on a $200 limit card will never be seen as equal with someone who has borrowed $5000 a few times and paid it off.

You don't get credit for having a high high balance. You don't get credit for letting a near max balance report to the CRAs. Creditors don't report how much you charged--only what you owed when the statement cycle closed.
http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

I have only experienced one of my cc's reporting what I owed when the statement cycle closed and that's my Amex gold charge card. My other cards do not do this. I have spent months monitoring this very closely.

Re: How many tradelines do you need?

Anonymous — Sat, 09 Jun 2007 05:37:53 GMT

fused111 wrote:

I have only experienced one of my cc's reporting what I owed when the statement cycle closed and that's my Amex gold charge card. My other cards do not do this. I have spent months monitoring this very closely.

Every card is different, but all of mine report the balance when the statement closes. If a CCC reported something else, I would think that might open them up to lawsuits for FCRA violations.

Re: How many tradelines do you need?

fused — Sat, 09 Jun 2007 20:41:08 GMT

Noah_Bodie wrote:

fused111 wrote:

I have only experienced one of my cc's reporting what I owed when the statement cycle closed and that's my Amex gold charge card. My other cards do not do this. I have spent months monitoring this very closely.

Every card is different, but all of mine report the balance when the statement closes. If a CCC reported something else, I would think that might open them up to lawsuits for FCRA violations.

Let me illustrate this better:

My personal bank Visa: statement date usually btw the 1st and 3rd of every month and due btw the 22nd and 24th. I usually pay around the 10th or 11th. New balance is refelcted online or by calling automated phone system the next day. Then they report to the cb's late in the month around the 29th thru the 31st. Statement bal 825, payment 200, reports as 625 on my cr's. The same thing happens with my FIA card and Macy's just at different times during the month.

Re: How many tradelines do you need?

MidnightVoice — Sat, 09 Jun 2007 21:00:27 GMT

My store card, a Chase airline card and a Credit Union card all report the day my statemment comes on line. So unless I pay off BEFORE the statement, I appear to have high utilization.

Re: How many tradelines do you need?

fused — Sat, 09 Jun 2007 21:17:40 GMT

MidnightVoice wrote:
My store card, a Chase airline card and a Credit Union card all report the day my statemment comes on line. So unless I pay off BEFORE the statement, I appear to have high utilization.

My Amex Gold charge does that! So yes I too now have to PIF this card before the statement date. I did this earlier this month and it worked on this card. Hopefully it will report a $0 balance later this month.

Re: How many tradelines do you need?

MidnightVoice — Sat, 09 Jun 2007 21:22:33 GMT

I got the TrueCredit thingie for a while so I can track this sort of thing, and get the hang of who reports what when

Re: How many tradelines do you need?

smallfry — Sat, 09 Jun 2007 22:41:24 GMT

Some like HSBC report the balance on the last day of each month regardless of cycle date balance. So I'm told. I'll find out soon.

Re: How many tradelines do you need?

Anonymous — Sat, 09 Jun 2007 22:44:50 GMT

In response to the thread subject, when you get your AMEX Centurion then you know you have enough TLs.