How Do I Max My Score?

[Anonymous]

I currently use 30% of my credit limit on each card which amounts to $37k.  I am able to pay off most if not all of the $37k.  How should I pay off the amount?  Is PIF the bast way to get a maximum score?  Or, would paying it off over 2-3 months put the score higher?

My average score is: 718.

[haulingthescoreup]

For scoring purposes, there's no benefit in dragging it out. Be sure to leave one card reporting a very low balance, 1-9% (closer to 1% if you're able to.)

For keeping your cards, you should know that some CCC's have been dropping CL's or closing cards when they're suddenly paid off. Why, I don't know, but there you are. If you're not in a hurry for scores, you might want to pay them down a third of each balance at a time. So if one has a balance of $3K, pay down $1K each month.

And be sure to keeping using them while you're paying them down. I'm hoping that will signal that you're not abandoning them. We're trying this tactic on DH's balance transfer card, which we need to pay off next month. Despite the warning to never charge while there's a 0% balance still showing, we want them to keep it open, with his nice high CL.

[Anonymous]

Also only have 50% or less of revolving trades reporting a balance helps-

With the UTL change and this above- I would expect a 40 to 80 point jump-

[Anonymous]

Thank you for your answers.  I will pay them off in thirds and leave one with a 1% balance while continuing to use them.  I also think that's good advice to not allow more than 50% of the CC's reporting a balance.  So after I'm through PIF, I'll rotate the use of my cards through out the year.

On a side note, I have noticed that 1st National Bank of Omaha likes to drop my CL each month if I'm paying off more than the minimum due.  That way my balance was always running above 50% of the CL.  I called them to complain about it and they acknowledged it would hurt my credit score and that they would keep doing it.  They did it for 3 months in a row.

It will be interesting what they do when I pay it off.

[haulingthescoreup]

---

@Anonymous wrote:
On a side note, I have noticed that 1st National Bank of Omaha likes to drop my CL each month if I'm paying off more than the minimum due.  That way my balance was always running above 50% of the CL.  I called them to complain about it and they acknowledged it would hurt my credit score and that they would keep doing it.  They did it for 3 months in a row.

It will be interesting what they do when I pay it off.

---

They're trying to get rid of you. Go ahead and start researching a replacement card. There's another thread by a VERY angry American Express soon-to-be-former cardholder going through this:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=52445

[marty56]

So it seems that CCCs get you when you pay too much are pay too less.  Goes back to my point that soneone who has all their CCs maxed out, pays on minimum, maybe a few days late just to rack up those late fees/OTL fees should have the best FICO score since those are the people we want to give our cards to.  Default risk?  I say no pain no gain.

I agree with Hauling, find a replacement.  Then use the old card to charge say a pack of gum once in awhile.

[Anonymous]

---

@haulingthescoreup wrote:

---

@Anonymous wrote:
On a side note, I have noticed that 1st National Bank of Omaha likes to drop my CL each month if I'm paying off more than the minimum due.  That way my balance was always running above 50% of the CL.  I called them to complain about it and they acknowledged it would hurt my credit score and that they would keep doing it.  They did it for 3 months in a row.

It will be interesting what they do when I pay it off.

---

They're trying to get rid of you. Go ahead and start researching a replacement card. There's another thread by a VERY angry American Express soon-to-be-former cardholder going through this:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=52445

---

Well...I'm about to get rid of them!  It seems I'm not alone in this based on the AMEX experience above.  1st Nat'l just sent me a rate notice change.  My interest is going up almost 10%.  I've had this card for 7 years.  I never missed a payment nor was I ever late on any of my cards.  I guess they think I'll roll over and ask for more.

[haulingthescoreup]

I think that what is causing all of this AA (adverse action) among the various CCC's are internal review processes that flag certain customers as non-desirable. From the variety of reports I've read, these fall into these two extremes:

- PIF'ers who aren't using their cards much, and therefore the CCC isn't making money off of either interest or transaction charges

- others who look a bit scary, pick any or all of the following: high balances on the CCC's card; high balances on other cards; suddenly not paying balances down or off as briskly as in the past; big drops in credit scores; a lot of new credit activity; living in an area with lots of housing problems and/or layoffs; having an ARM or other risky mortgage. How they can determine this item from a credit report, I don't know, but I do know that the reports they see have stuff that we can't see, even with the full reports from the CRA's.

The credit industry in general has been pretty foolish in recent years, and now surprise, surprise, they're having problems. So they have to have some sort of Plan that they can report to their shareholders to show that they're on top of things, because no CEO or senior management people want to have to deal with a shareholder revolt.

So we're the chumps that get our credit lives turned upside down, so that the lenders can once again engage in the fine art of CYA.

[Anonymous]

---

haulingthescoreup wrote:

So we're the chumps that get our credit lives turned upside down, so that the lenders can once again engage in the fine art of CYA.

---

Agreed, but what is CYA?

[Anonymous]

Cover Your A (tail)

---

TimeToStartOver-Again wrote:

---

haulingthescoreup wrote:

So we're the chumps that get our credit lives turned upside down, so that the lenders can once again engage in the fine art of CYA.

---

Agreed, but what is CYA?

---