CC Scoring Question

[Anonymous]

According to myFICO reports it says the average "high achiever" has 6 open CC accounts. What is the maximum way to earn points, let just one report a balance or three report a balance? 

The reason I ask is because my TU said I am using "too much" credit (letting 66 percent of my accounts report - not utilization, that is only 14.89%). The EQ says I show "good use" of available credit (I guess because my utilization is under 15 percent). My last EX said nothing about how much I use or percentages (either negatively or positively).

So ideally, if for example one had 5 accounts how many should you let report a balance? If one has 6 accounts how many should you let report a balance?

I have read a few threads and am still confused. Some say it hurts to only let 1 CC report a balance, others say you need to have at least 50 percent show a balance to show good use of credit.

Sorry this is a bit long, but I am trying to get to 700 this year and appreciate your help.

[score_building]

ideally let your reports show less than 1/2 of all of your (revolving and installment) accounts with a balance, and for those that do have a balance under 9% uti is a mark to reach.  some say 1-3% uti gives even more lift but that is not a certainty.

so, if you have 10 accounts and 2 are installment accounts you should have less than 3 cc's report a balance to stay under 50% of all your accts. showing a balance.  capiche?

[oracles]

Hi Pappy

I think you must have read some old posts concerning this.

You should have less than half of total overall accounts reporting a balances.

I.E. - You have 1 mortgage, 1 auto, and 6 cc's.

You have 8 accounts, and because you already have the auto and mortgage reporting a balance, that is 2 already, You only let 1 cc report a balance. therefore you will be under the 1/2 threshold.

This is maxing out your fico points. Also, on that 1 card, you should only allow 1-5% reporting a balance. Some say 1-9, i say 1-5%.

Of course use the other cards so they do not go inactive but pay it off before the next statement cut date so it will report a 0 balance.

Hope this helps

Message Edited by oracles on 02-18-2009 02:12 PM

[Anonymous]

Thanks to both of you.

Now I will be in great shape!

[oracles]

No problem Pappy, you are on your way to a great cc.

[marty56]

I find the single CC reporting a balance of 9% or less gives me the best result.  No difference at 1%, 3% or 9%.

Message Edited by marty56 on 02-18-2009 03:16 PM