number of accounts

[Anonymous]

I monitor my credit report frequently and although I have a great credit score there is a flag indicating the number of accounts may be negatively affecting my FICO score. My credit history goes back 20 years, all are in good standing, never a late payment and most are never used. I was always told it will negatively affect your score to close accounts. Is there a solution to eliminating this indicator and should I be concerned?

[Anonymous]

Remember that when a creditor pulls your FICO score, FICO provides them with four reason codes associated with that score.  So even when DH's score was in the 800's, they provided four reason codes - or "negatives".  When his score was in the 600's, they still provided four reason codes or "negatives".  It's the FICO way. 

But it kind of surprises us mere mortals when we see ANY negatives (reason codes) associated with our fine scores.

Now, closing an account will not remove it from your reports - it will still report for about ten years.

However, number of accounts seems to be a very minor factor in FICO scores - I wouldn't give it a second thought. 

Your credit report sounds like it may be in great shape.

Now, just because we're a curious group here - how many total accounts are on your report?  And how many of those are open?

And, of course, are you pulling your reports here at myfico?

[Anonymous]

If your total number of open + closed accounts is more than 30, you get that red flag.  From my own experience, the 'penalty' is two points.  As your closed accounts age, they will fall off and one day that flag will go away (unless you keep opening accounts, or you have more than 30 open accounts).

[MarineVietVet]

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@Anonymous wrote:

I monitor my credit report frequently and although I have a great credit score there is a flag indicating the number of accounts may be negatively affecting my FICO score. My credit history goes back 20 years, all are in good standing, never a late payment and most are never used. I was always told it will negatively affect your score to close accounts. Is there a solution to eliminating this indicator and should I be concerned?

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Hello and welcome to myFICO.

I get that same flag and as beamMEup suggested I don't give it a second thought. I have 38 accounts listed (9 open) if anyone is curious.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 8/10-772
You can do the same thing with hard work

[RobertEG]

Fair Isaac has stated in a prior webinar posted on this site that there is no such thing, in FICO scoring evaluation, as too many accounts, or too much credit.

It is how you use what you have that they score.

That indicaton is NOT any derog taken from your credit file.  There is no such thing, anywhere in credit reporting, as "too many accounts."

It is just sometthing that the creators of your commercial credit report throw in, for lack of anything else to indicate, under the three or four comments that their software wants to say, to make them look proactive.  Ignore it.

[Anonymous]

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@RobertEG wrote:

Fair Isaac has stated in a prior webinar posted on this site that there is no such thing, in FICO scoring evaluation, as too many accounts, or too much credit.

It is how you use what you have that they score.

That indicaton is NOT any derog taken from your credit file.  There is no such thing, anywhere in credit reporting, as "too many accounts."

It is just sometthing that the creators of your commercial credit report throw in, for lack of anything else to indicate, under the three or four comments that their software wants to say, to make them look proactive.  Ignore it.

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FICO uses reason code 28 to indicate a high number of accounts.

(Equifax and Experian: "Number of established accounts" / TransUnion: "Too many accounts")

Third party reports may use a slightly modified wording of the text from EQ, EXP, or TU.

[RobertEG]

A "reason code" is not a credit reporting code.  FICO scores your CR, not their own reason codes.

[Anonymous]

Hello all,

Just subscribed to Score Watch after a few years of various sites that provide FAKO scores. I was curious to see what my actual Fico from Equifax was and how it compared to the other credit monitoring services I used.

Just for reference my Equifax score last week with Identity Guard was 796 and my FICO today ( Score Watch ) is 804. I know that this score is fantastic and any rise or small drop at this point won't have any negative effect on future loans but I would still like to see a rise if not just for a buffer for a decline but just to be competitive...Sorry I can't help it , I'd like to see 850.

My original question was in regard to Total number of accounts, FICO is showing 31 of which 11 are active. I too see the red flag that indicated " Marks an aspect of your credit that is hurting your Fico score"

After reviewing this thread you mention that these old accounts will fall off in 10 years , I have 3 that are 12, 14 and 15 years old. These are old CC that I replaced with the same company. Will these really fall off eventually? Would disputing these accounts with all 3 bureaus and hopefully having no response from the granter essentially force these to fall off?

Thank you

My goal is 850 , I can't help myself

[MarineVietVet]

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@Anonymous wrote:

Hello all,

Just subscribed to Score Watch after a few years of various sites that provide FAKO scores. I was curious to see what my actual Fico from Equifax was and how it compared to the other credit monitoring services I used.

Just for reference my Equifax score last week with Identity Guard was 796 and my FICO today ( Score Watch ) is 804. I know that this score is fantastic and any rise or small drop at this point won't have any negative effect on future loans but I would still like to see a rise if not just for a buffer for a decline but just to be competitive...Sorry I can't help it , I'd like to see 850.

My original question was in regard to Total number of accounts, FICO is showing 31 of which 11 are active. I too see the red flag that indicated " Marks an aspect of your credit that is hurting your Fico score"

After reviewing this thread you mention that these old accounts will fall off in 10 years , I have 3 that are 12, 14 and 15 years old. These are old CC that I replaced with the same company. Will these really fall off eventually? Would disputing these accounts with all 3 bureaus and hopefully having no response from the granter essentially force these to fall off?

Thank you

My goal is 850 , I can't help myself

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Welcome to myFICO.

That red flag of "too many accounts" can be ignored as far as I'm concerned. The higher your score is the more nitpicking there seems to be.

For those accounts that have stayed longer than the normal period of 10 years that is the exception to the general rule and you need to leave those alone. As long as they report they are helping you.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[vanillabean]

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@Anonymous wrote:

Just for reference my Equifax score last week with Identity Guard was 796 and my FICO today ( Score Watch ) is 804. I know that this score is fantastic and any rise or small drop at this point won't have any negative effect on future loans but I would still like to see a rise if not just for a buffer for a decline but just to be competitive...Sorry I can't help it , I'd like to see 850.

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There's not a bone of competitiveness in me, but a buffer for a decline seems reasonably practical. Beyond that, I consider it kind of a hobby to figure out what happens if you take this or that FICO step. It's better to have a hobby than have people tell you to get a life.