Improve FICO score - usage

[Anonymous]

I'm new to this board and have a couple of questions.  I know I've read that in order to increase your %debt/usage ratio, you should not open new credit lines to increase that ratio and that may actually backfire on you.  Would it have the same impact if my husband added me to his large line of credit($90,000) with a zero balance.  That would bring my ratio way down but could it damage my FICO score (at least in the beginning until they can see a trend of keeping it at a low to zero balance).? 

 I'm trying to get my credit score up and its just creeping up and then one little negative thing (like a notice that I'm over my credit limit even though its only for a day or two) brings it down several points.  It seems like any negative activity brings it down immediately but any positive activity takes months.  It's very frustrating.  I don't have a lot of extra money to get my ratios down immediately and with the high interest rates I'm paying on the o/s credit card, it will take at least a year to make any significant headway on my usage ratio - and that's only if nothing happens that I have to use them again. 

Finally, one last question - I know that there can be a difference in your credit score between Transunion, Equifax and Experian, but I'm finding another fluctuation that I'll try to explain.  If I order my FICO sores (all three of them) from an Equifax product, I get one set of scores, if I order all three scores from a Experian product, I get another set of scores , same with Transunion.  For example, right now if I order from an Equifax product, my scores are 671,668 and 638.  If I order from an Experian product, my scores are 688,653, and 624 respectively.  From TransUnion, its 696,699 and 672.  These were all pulled on the exact same date (I know I'm a little obsessive!) 

I feel like I'm in a never ending struggle.  I want to increase my FICO score so that I can negotiate for better interest rates from my credit card companies.  But I can't increase it unless I pay down significantly and I can't make significant progress with these high interest rates.  Its a never ending cycle. 

Any suggestions?

[Anonymous]

Welcome to the FICO Forums, jannikins!

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jannikins wrote:

I'm new to this board and have a couple of questions.  I know I've read that in order to increase your %debt/usage ratio, you should not open new credit lines to increase that ratio and that may actually backfire on you.  Would it have the same impact if my husband added me to his large line of credit($90,000) with a zero balance.  That would bring my ratio way down but could it damage my FICO score (at least in the beginning until they can see a trend of keeping it at a low to zero balance).? 

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Why do you think it might backfire on you?  Because of the new accounts and inquiries?

If you add an AU account from your DH, as soon as it reports, you will inherit all the history on that card, so if it's not a new account to him, it won't be a new account to you either.

You will get the benefit of the additional available CL immediately.  Also, there is no consideration of "utilizations trends" in FICO scoring.  You are scored on your utilization at the moment the score is generated, and not on any historical aspect of your utilization at all.

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jannikins wrote:

 I'm trying to get my credit score up and its just creeping up and then one little negative thing (like a notice that I'm over my credit limit even though its only for a day or two) brings it down several points.  It seems like any negative activity brings it down immediately but any positive activity takes months.  It's very frustrating.  I don't have a lot of extra money to get my ratios down immediately and with the high interest rates I'm paying on the o/s credit card, it will take at least a year to make any significant headway on my usage ratio - and that's only if nothing happens that I have to use them again. 

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Being over the limit hurts as soon as it reports, because, as you already know, utilization is a major factor in your score.  When you are over the limit, that CC is reporting greater than 100% utilization at that moment, which will hurt.

Once you pay it down, however, then you have to wait for the payment to post, and for the creditor to report the new balance to the CRAs, and for the CRAs to update your reoprts.  It can seem like an eternity while you're waiting.

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jannikins wrote:

Finally, one last question - I know that there can be a difference in your credit score between Transunion, Equifax and Experian, but I'm finding another fluctuation that I'll try to explain.  If I order my FICO sores (all three of them) from an Equifax product, I get one set of scores, if I order all three scores from a Experian product, I get another set of scores , same with Transunion.  For example, right now if I order from an Equifax product, my scores are 671,668 and 638.  If I order from an Experian product, my scores are 688,653, and 624 respectively.  From TransUnion, its 696,699 and 672.  These were all pulled on the exact same date (I know I'm a little obsessive!) 

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Please see my post in this thread, posted earlier today.  It answers your questions, as well.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&message.id=25692#M25692