FICO's Blacklist

[want2b_800s]

ok...thanks for listening. I will keep working on my goal of 7 cards with 0 balance and the rest below 10%. I hope I'll see a difference. I guess it could be worse.

[Anonymous]

You need to be less concerned with what FICO says are things in your favor and not in your favor (some of those messages can be flakey) and more concerned about learning what aspects of your credit FICO places the most value on. Did you read Tuscani's Credit Scoring 101 sticky? This part is taken directly from the sticky:

"-30% affects Utilization. It is best to have several accounts with low balances distributed then it is to have fewer accounts maxed out. To figure utilization: Balance (divided) by Credit Limit = percentage. Lower than 10% recommended per account, this is one of the fastest means for increasing the over all credit score."

In another one of your threads you listed your cards along with the CL and balances on each. Your utilization is high and is the number one thing you can control to increase your score! FICO looks at your overall utilization (total available CL on all CCs combined, versus total balances on all CCs combined) and the utilization of each card individually (CL versus balance). You are taking hits on both of those factors. It's the second most important scoring point in the FICO system, with paying on time coming in first. Since you are already paying on time, utilization is the next logical thing for you to aggressively work on for a big score increase.

I understand it's frustrating to be given credit limits, pay on time, and then find out that it still hurts your score to actually use them beyond a small percentage of available credit. I didn't know that myself for years and years. But I read everything I could around here, got POed (lol), and then took the steps recommended by those who have learned the hard way. Lowering my utilization to below 10% increased my scores by almost 100 points in 3 months! Why not try it before you assume you have been somehow blacklisted? FICO doesn't know you personally and can't single you out - you're just another number in their computer system and another set of numbers to plug into their algorithm.

Remember, even after you pay the balances down and those payments are reflected on your individual CC statements, it takes some time for those balances to be reported to the CRAs. I know patience isn't easy, but it is absolutely necessary when trying to rebuild your scores and it pays off in the end. Good luck!

[Anonymous]

How many cards do you have?

FICO wants less than half your cards reporting a balance and your overall util between 1-9%.

If you are at extremely high util, you could be costing yourself 50 or more points.

If you have "too many" cards, I think that dings you as well.

Having balances on all of them, yep- that dings you too.

[Anonymous]

You've also mentioned a large mortgage. Was that obtained fairly recently? I have read posts from some members, who have been told directly by CC companies, that they are not opening accounts for anyone who has obtained a mortgage in the last 3 years (give or take). The theory is that with the mortgage meltdown and the economy tanking, creditors are worried about all of those adjusting mortgages and increasing payments. They don't want to be the bank that takes another huge hit if a person suddenly has to max out their cards to pay for day to day expenses, if and when they are struggling to make a huge mortgage payment.

I'm not saying it's fair to exclude an entire group for that reason without examining other factors (like income), but apparently some creditors are doing it, so it may be another explanation for one or more of your CC denials.

[want2b_800s]

Optimistic---you have given me such hope!!!! You are my idol! Thanks I really needed that boost and a couple of happy pills!