How many tradelines do you need?

Anonymous · ‎06-08-2007

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?

Anonymous · ‎06-08-2007

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

Rob

Anonymous · ‎06-08-2007

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.

Anonymous · ‎06-08-2007

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.

Anonymous · ‎06-08-2007

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

Anonymous · ‎06-08-2007

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.

Anonymous · ‎06-08-2007

@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.

Anonymous · ‎06-08-2007

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

fused · ‎06-08-2007

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.

Anonymous · ‎06-08-2007

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.