Ok so I'm new to the boards and myfico.com. I ordered my 3n1 yesterday and was pleasantly surprised to find the scores higher (mid 600s) than I predicted (mid 500s).
However even after reading the forums I still have some questions. Here are the ones that relate to this subforum:
* I charted out my accounts and figured out which was considered revolving and which installment.
Revolving: UTI is 57% (all between 1 & 2 yrs old)
CU line of credit - limit is $2500 but due to previous late payments, there's no credit available on it though the balance is ~$1500.
WF line of credit - thought this was a loan but makes sense because it was a financing of a couch and I was approved for $1400 (which listed as limit) and balance is $334.
Best Buy store card - limit is $2400, balance ~$1700
Installment:
Student loans totalling $8700... this is oldest account at 12+yrs
Car Loan (less than a year old, was a refinance to pull equity), thanks to my Dad BT'ing it to one of his cards, balance is $79 on $5015.
CU loan (about 1 yr old) was for $2500, $1400 balance remaining. Will be gone in 1 yrs time thanks to $125/month required payment.
As you can see, a lot of it is from a year period about a year ago. Loans were to cover an employment period, and right before that it was some big ticket items I needed like deposit on a new apt, computer etc.
My questions:
1. The car loan is considered prepaid through 2010. Since it's not revolving, is there any advantage to keeping this open or should I pay the final $79 and get it into the "closed" column? One advantage I can see is that if the number of "on time" payments per month is being factored into FICO, then it's one more in the + column. Is that correct?
2. I'm not sure what to do about the "age" issue. Transunion shows three closed accounts dating opened on 2002/2003/2003, all installment type. EQ shows same +1 more closed installment opened 2002. EX shows 3 of the 4 previously mentioned plus one more that's also closed installment opened 2003. They will eventually all expire off my record by 2010 correct? or is it 2012/2013? When the student loans finish, they'll start to expire too. How do the above factor into considering age? (all except original car loan were paid off & closed within 1-2 yrs, the car loan in 4.5 yrs)
3. Should I be doing anything to try and start any new "clocks"? I figure at best, I can try to keep the CU credit line (if they'll reactivate it) and Best Buy store cards open indefinitely for age but they're only 2 & 1 yr old at this point. If I can qualify for some kind of no annual fee irregardless of interest rate, should I get it and charge some small thing then pay it off and then leave it open at zero balance indefinitely? I know that I'd get a hard hit inquiry plus temporary drop for new credit in the short term. Yet 6 months to a year from now, the advantage of a lower UTI (thanks to the additional credit limit but no balance of this card) and another account to age may outweigh the former or even replace?
4. Going back to the revolving vs installment question. From what I've read, I should be focusing on wiping out the revolving asap and just make the installment payments as scheduled (no prepaying/overpaying). Is that right? And even when I'm done with the revolving, I should then just start saving for a house downpayment?
That's it for my FICO related questions, the rest are going over in Credit Repair.
Thanks! I hope I've given enough pertinent details to help with the answers & advice.
However even after reading the forums I still have some questions. Here are the ones that relate to this subforum:
* I charted out my accounts and figured out which was considered revolving and which installment.
Revolving: UTI is 57% (all between 1 & 2 yrs old)
CU line of credit - limit is $2500 but due to previous late payments, there's no credit available on it though the balance is ~$1500.
WF line of credit - thought this was a loan but makes sense because it was a financing of a couch and I was approved for $1400 (which listed as limit) and balance is $334.
Best Buy store card - limit is $2400, balance ~$1700
Installment:
Student loans totalling $8700... this is oldest account at 12+yrs
Car Loan (less than a year old, was a refinance to pull equity), thanks to my Dad BT'ing it to one of his cards, balance is $79 on $5015.
CU loan (about 1 yr old) was for $2500, $1400 balance remaining. Will be gone in 1 yrs time thanks to $125/month required payment.
As you can see, a lot of it is from a year period about a year ago. Loans were to cover an employment period, and right before that it was some big ticket items I needed like deposit on a new apt, computer etc.
My questions:
1. The car loan is considered prepaid through 2010. Since it's not revolving, is there any advantage to keeping this open or should I pay the final $79 and get it into the "closed" column? One advantage I can see is that if the number of "on time" payments per month is being factored into FICO, then it's one more in the + column. Is that correct?
2. I'm not sure what to do about the "age" issue. Transunion shows three closed accounts dating opened on 2002/2003/2003, all installment type. EQ shows same +1 more closed installment opened 2002. EX shows 3 of the 4 previously mentioned plus one more that's also closed installment opened 2003. They will eventually all expire off my record by 2010 correct? or is it 2012/2013? When the student loans finish, they'll start to expire too. How do the above factor into considering age? (all except original car loan were paid off & closed within 1-2 yrs, the car loan in 4.5 yrs)
3. Should I be doing anything to try and start any new "clocks"? I figure at best, I can try to keep the CU credit line (if they'll reactivate it) and Best Buy store cards open indefinitely for age but they're only 2 & 1 yr old at this point. If I can qualify for some kind of no annual fee irregardless of interest rate, should I get it and charge some small thing then pay it off and then leave it open at zero balance indefinitely? I know that I'd get a hard hit inquiry plus temporary drop for new credit in the short term. Yet 6 months to a year from now, the advantage of a lower UTI (thanks to the additional credit limit but no balance of this card) and another account to age may outweigh the former or even replace?
4. Going back to the revolving vs installment question. From what I've read, I should be focusing on wiping out the revolving asap and just make the installment payments as scheduled (no prepaying/overpaying). Is that right? And even when I'm done with the revolving, I should then just start saving for a house downpayment?
That's it for my FICO related questions, the rest are going over in Credit Repair.
Thanks! I hope I've given enough pertinent details to help with the answers & advice.
