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So Im about to finally settle all of my charged off accounts.
Will having 7 credit card accounts and 2 installment loans improve my credit score over say, 2 installment accounts and 3 credit cards? I make the assumtion that simply having more accounts paid on time will improve the average % of on time payments.
I plan on having a zero balance on all but one account and util under 9% on the one revolving account that I do use.
obviously I will be attempting to GW anything I can, but for now I think this is the best possible thing I can do for my credit. It will be 4 more years before my negatives fall off, so the best I can do for now AFAIAC is to pay everything to zero balances.
suggestions? thoughts?
Average % of on-time payments is not a scoring item in the FICO algorithm.
Consumers improve scoring by paying on time primarily by increase in average age of their accounts, and do not specifically "gain" positive points by doing what is expected.
They are rewarded in the length of credit category.
@RobertEG wrote:Average % of on-time payments is not a scoring item in the FICO algorithm.
Consumers improve scoring by paying on time primarily by increase in average age of their accounts, and do not specifically "gain" positive points by doing what is expected.
They are rewarded in the length of credit category.
So having more on time payments will have no effect on score? I dont plan on using anything for the next year other than to show activity, I just want to establish a positive history I figured more accounts being scored would be beneficial as it would show more payments being made as agreed. My only issues are a few 3 year old charge offs and 2 settled collection accounts. and 2-30 day late payments 14 months ago. the 30 day lates were my own stupidity. however my credit union has informed me that after 24 months they would consider a courtesy adjustment on the account.
On CK it shows a category for percentage of on time payments. CK however uses a vantage score not a FICO score.
@J91605 wrote:On CK it shows a category for percentage of on time payments. CK however uses a vantage score not a FICO score.
yeah I realized that's what I was referencing after I made the post, I figured however that being that "payment history" is 35% of the fico score, more accounts being paid on time would be a good thing.
It looks to me like your headed in the right direction.