@Anonymous wrote:Hi,
I am new to this, I have been reading everything I can on increasing my score. At this time, I'm only short 11 points. I have 1 major credit card with a zero balance. One of the 4 au credit cards are hitting EQ, but not the other two. The 3 additional au will be hitting on the 8th, 12th, and 19th. Do you think the 8th will increase me. None of these cards have balances. Thanks in advance
@Anonymous For EX2, you want true AZEO All Zero Except One card reporting a small balance, e.g. $10. I presume the same for TU4, EQ5 if it follows the older scoring algorithm.
Not knowing your exact details, below are benchmarks for FICO 8. Scores lenders use for mortgage are EX2, TU4, EQ5; should react similarly.
Remember these aggregate utilization thresholds: 9%, 29%, 49%, 69%, 89%
Remember these individual utilization thresholds: 29%, 49%, 69%, 89%
You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.
I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?
From Birdman7
General Scoring Primer and Version 8 Master Thread, pub.5.17.20
@Anonymous wrote:Hi,
I am new to this, I have been reading everything I can on increasing my score. At this time, I'm only short 11 points. I have 1 major credit card with a zero balance. One of the 4 au credit cards are hitting EQ, but not the other two. The 3 additional au will be hitting on the 8th, 12th, and 19th. Do you think the 8th will increase me. None of these cards have balances. Thanks in advance
If your only card is a bankcard and is not reporting a balance, that is costing you a few points due to the all-zero penalty. Depending on your profile, that could be your 11 points right there. It looks like you are asking whether 4 AU cards that were not on your reports before will increase your scores when they report. Is this correct? If they all have and will continue to have $0 balances, then it will mostly depend on what the ages of those AU accounts are and what the ages of your primary accounts are. To give you any more advice than this, we would need a more complete picture of your profile, if you would like to post it.
Since you posted this in the mortgage forums, I assume you're looking to increase your score for mortgage rates? If so, which mortgage score is the one that needs 11 points, is it your middle score, and what is your source for the score?
@Anonymous wrote:So all the AU cards are over 2 years or more. Ranging from 1500-3500. I am hoping the one reports on the 8th, will increase me enough on my median score . However, if not are you stating I should purchase something about $10 on a bank card that will report on the 12th? I'm new on obtaining credit and in the middle of purchasing a house.
If you're in the middle of purchasing a house you should not obtain any more credit. The advice to have a small balance report on your one bankcard to avoid the all-zero penalty was independent of the AUs you have added reporting. FICO penalizes you for having no revolving balances reporting, so having a small balance on at least one card removes that penalty, no matter the number of reporting cards you have. Since balances aren't a consideration here and the AU accounts are all over two years old, what effect adding them will have on your mortgage scores will depend primarily on the ages of those cards, the age of the one reporting card on which you are primary, the age of any installment loans you might have on your reports, and the age of any closed tradelines on your reports. (This is assuming that the AU lines have a clean history, ofc.)