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number of accounts and on time payment history

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Bankrupt2019
Established Contributor

number of accounts and on time payment history

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?









Message 1 of 8
7 REPLIES 7
RobertEG
Legendary Contributor

Re: number of accounts and on time payment history

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.

Message 2 of 8
Bankrupt2019
Established Contributor

Re: number of accounts and on time payment history


@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.









Message 3 of 8
J91605
Frequent Contributor

Re: number of accounts and on time payment history

On CK it shows a category for percentage of on time payments. CK however uses a vantage score not a FICO score. 

Starting Score: 6/30/15 EQ 554 TU 534 EX 608
Current Score: EQ 630 TU 635 EX 653
Goal Score: 680 across the board

Take the myFICO Fitness Challenge!
Message 4 of 8
Bankrupt2019
Established Contributor

Re: number of accounts and on time payment history


@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.









Message 5 of 8
Anonymous
Not applicable

Re: number of accounts and on time payment history

Having more accounts can help, but not in that way. FICO looks at the number of negative accounts, and gives score points if you have more positive accounts than negative.
Message 6 of 8
J91605
Frequent Contributor

Re: number of accounts and on time payment history

It looks to me like your headed in the right direction.

Starting Score: 6/30/15 EQ 554 TU 534 EX 608
Current Score: EQ 630 TU 635 EX 653
Goal Score: 680 across the board

Take the myFICO Fitness Challenge!
Message 7 of 8
Anonymous
Not applicable

Re: number of accounts and on time payment history

Average Age of Accounts is affected by more accounts. A person with 7 years of history on one account would decimate that by adding 4 new accounts. That would drop AAoA to 1 year 5 months. On the other hand, someone with more accounts during that seven years would end up with a better Average Age. That's where more accounts can be a plus. Don't get credit just to get accounts, but craft your credit to get it where you want it to be in the long run.
Message 8 of 8
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