Help!

[Anonymous]

How did I never know this?! I was always under the impression that it shouldn't be greater than 20% on each card!

[Anonymous]

---

@Anonymous wrote:
How did I never know this?! I was always under the impression that it shouldn't be greater than 20% on each card!

---

Many people when not applying for anything don't care if their scores have dropped a little.  When you know that you will be applying for something in the future, many people do the AZEO method to shave as many points as possible(All Zero Except One).  The guidelines I mentioned previously still apply.  Remember what I said earlier, you CAN have a balance on a card no greater than 28.9% without any major scoring penalties as long as your total aggregate UTI across the board is no greater than 8.9%

[Anonymous]

Ok next question one month I did let my very first card (at the time my only card) report 0 dollar balance is that bad?

[Anonymous]

It's good. AZEO... All Zero Except One. You have five cards, so 4 reporting a zero balance, and one with a balance of 8.9 or less.

AZEO optimizes your score. It isn't necessary for general use of credit. But when you want your very best score, like for a home loan, do AZEO.

If I'm AZEO, allow all cards to report a zero balance, my score drops 16pts. I get one card to report a small balance, I gain the 16pts bsck.

---

@Anonymous wrote:
Ok next question one month I did let my very first card (at the time my only card) report 0 dollar balance is that bad?

---

[Anonymous]

It amazes me how much I dont know! I'm so glad i found myfico! As far as the "mix" credit cards & loans how important is that really?

[Anonymous]

---

@Anonymous wrote:
It amazes me how much I dont know! I'm so glad i found myfico! As far as the "mix" credit cards & loans how important is that really?

---

It makes up 10% of your score.  The lack of an installment loan(auto, mortgage, personal) deducts points from your score because you are not actively managing different types of credit.  You can still have good credit without an installment loan.  

[Anonymous]

The other part I’d like to see clarified goes back to your first post. You mentioned scores from Credit Karma, and that you then opened the cards and saw drops in your FICO scores. It’s possible that they actually didn’t fall as CK doesn’t report FICOs. I know when I opened my first few cards my scores improved because I now had active lines of credit to report as tradelines. Unless you quickly ran up the balances, your score probably should’ve increased.

Regardless, the advice above is solid. Since you’re going for a mortgage, go for AZEO, and be sure the card that’s reporting is a major, not a store card.

[Anonymous]

Another possibility is that in opening 5 cards so close together, the inquiries on your report are high enough to dent your score some.

[Anonymous]

I dont have a major card my credit card but I do have a secured card? If I have the the others at a 0 balance will the also report current?

[Anonymous]

By major, I just mean Visa/MC/Discover/AmEx. Whether it’s secured or unsecured, it counts as long as it’s a general-use card that you can use to purchase anywhere, as opposed to something like a Kohl’s store card that’s only good at a specific store. In your case, report zero on all accounts except your secured card - let that be the one with the small reporting balance.