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Have you tried to reduce to 4 or less balances for all accounts including installments? Your answer would be very useful. If your scores are 792, 785, 734 now, what were your scores after you limited to a total of 4 balances including installments. If you have not tried this, please do if you can. You might be surprised to see 800's.
@fused111 wrote:Too many accounts with balances = FICO scores of 792, 785, 734. I'm not buying what you're saying!
I agree with fused. every charge will lower score IF you already have high UTIL. DH had that. I opened new CC (5) CL added $25,000 for a total of $45,000. score went from 612 up to 688. These new cards are just starting to report. I expect score to go down only a little untill payments on all accounts are in.New cards are used for ...transfer 00% intrest and others for drug store & groceries then PIF. Put in sock drawer. There is 1 new auto loan which showed no change in scores.
ilovepizza wrote:
Too many accounts with balances.
What does this mean? If you get flagged for this your number of balances combined is hurting your credit score. The balances can be $0.01 cent and up, doesn't matter. From what I have learned the limit is 4 balances before scores drop.
You can use 50 credit cards at the same time and pay them in full. This should report a $0 balance unless there is interest added.
You can use 5 credit cards and pay minimum payment on them. This will leave you with 5 balances.
Questions. If you have open installment loans are they counted in this limit of 4 balances. I don't know. When I tested this I did not have any open installments. Since some people say when they limited to 4 credit card balances and score did not increase it leads me to believe installments might be counted. So if you have 2 installments try to limit other accounts to a max of 2 balances. See if anything changes.
Each time I put a tiny charge on my 5th credit card and carried a reported balance my score dropped -18 points. Paid that one balance off score went up +18 points.
Keep in mind that even if you pay your credit cards in full, if you charge anything new before the CRA update is sent, it will be reported as a balance. This is where it becomes tricky for those that pay in full.
Example.
If your balance was $50.
Your payment due date was 10th.
Statement closing date was 15th.
And that bank reports to the CRAs on the 17th.
And you send in a payment of $50.
And then charge something for $10 before the 17th,
your credit report might show a payment of $50 and a $10 balance.
So just be aware how it works. Keeping under 5 balances can raise your credit score by as much as +18 points as it does in my case.
Please post score changes from your own tests here. Thank you.
@fused111 wrote:Too many accounts with balances = FICO scores of 792, 785, 734. I'm not buying what you're saying!