How to manage CC & SL for score optimization?

[Anonymous]

I have a couple student loans on my credit report (in deferment since I'm still in school), and I'm wondering what the best strategy would be to increase scores by using or sockdrawering my CC. One loan is for $6000, and the other is $17,000. I currently have 6 credit cards:

BP gas card $0/1200

Best Buy store card  $0/1800

BOA MC $0/4000

Chase Freedom Visa $275/3000

Citi Amex $2/8100

USBank Visa $122/11,250

I've been trying to only let a max of 3 cards report a balance each month, and the overall usage you see here is pretty typical - my revolving util is always less than 10%. Is the fact that I have $23,000 in SL and only $29,350 available credit making my overall util look like it's over 80%? Should I never let any CC report more than a few dollars' balance at the end of each month? I'm not planning on getting any more credit cards, so I'm wondering how I should manage all of these TLs to best benefit me. 

[Anonymous]

I'd like to know this as well. 

[oracles]

Hi Pez

You have done a great job with handling your credit.

First - When util% is spoken about it is only in regards to your CC's and its utilization. It has nothing to do with your loans. Therefore your util% is seen as less than 10%, as you have stated and not 80%.

Also, there is a stipulation that you should have less than 1/2 of all tradelines reporting a balance in order to maximize your fico points.

That would mean 2 sl's and 6 credit cards = 8 tradelines

You will have 2 sl's reporting therefore I would allow only 1 cc to report a balance to maximize fico points.

This does not mean you should not use the other cc's, just pay before the statement date so it will report a 0 balance, Only on one cc should you let it report a balance.

Hope this helps and keep us updated

ETA: Make sure you still use your other cards once every 2-3 months so it is not closed by the CCC due to inactivity. Just make sure you PIF before statement cut date.

Message Edited by oracles on 02-04-2009 02:59 PM

[Creditaddict]

With over a 750 I would not worry to much about what your doing, especially if you are not about to buy a house, but then even then, you are by far Tier 1!

[Anonymous]

Yea, I'm definitely not concerned - more curious than anything. I'm only 23 and don't plan on buying a house for around 5 years. Five of my CC are new within the last year and the 2 SL are within the last 2 years, so my TL will age all together to give a pretty good AAA by the time a mortgage comes up.

Thanks for the advice, oracles. It was just the insight I was looking for.

[Anonymous]

Can the amount of student loans in derrment still be a negative on a manual review?

[haulingthescoreup]

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lawskool09 wrote:

Can the amount of student loans in derrment still be a negative on a manual review?

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I suppose that lenders could freak out at anything these days, especially if you're getting something like an auto loan or mortgage, that would have fixed monthly payments. But otherwise, CCC's don't see as concerned with debt-to-income, or potential cash flow problems from SL repayments.

Again, the rule book is being rewritten daily.