It seems strange then that looking for credit and opening a new account are things that are hurting my credit. Does not quite seem to jibe, as it is mentioned on all three accounts and they have different numbers of total accounts
Barry wrote:This has always been a common misunderstanding, not just among consumers but also among lenders, mortgage brokers, etc. -- equating number of accounts on file with the number of "open" accounts on file. To be clear, while the FICO scoring formula considers the number of accounts on file and the mix of different types of accounts, it does not specifically look at the number of open vs. closed accounts.In fact, FICO scores and the myFICO site have never actually had any negative factors or explanations that refer to "open" accounts as having a negative effect, but people seem have taken "number of accounts" to automatically mean "number of open accounts" -- a misconception we're constantly having to clarify.
Here's what it shows exactly on my Equifax report through MyFICO:
Total number of Accounts [?] 30
Accounts with balances [?] 5 Accounts opened in past year [?] 0 Recent inquiries [?] 1 Collections [?] 0 Public Records [?] 0
Accounts with balances [?] 5 Accounts opened in past year [?] 0 Recent inquiries [?] 1 Collections [?] 0 Public Records [?] 0= Marks an aspect of your credit that is hurting your FICO score.
Here's my Experian report:
Total number of Accounts [?] 38 Accounts with balances [?] 7 Accounts opened in past year [?] 0 Recent inquiries [?] 0 Collections [?] 0 Public Records [?] 0
= Marks an aspect of your credit that is hurting your FICO score.
And here's my TransUnion:
Total number of Accounts [?] 35 Accounts with balances [?] 5 Accounts opened in past year [?] 0 Recent inquiries [?] 0 Collections [?] 0 Public Records [?] 0
= Marks an aspect of your credit that is hurting your FICO score.
The flag is for the total number of accounts. It doesn't differentiate between open or closed.
Most of my accounts are student loan accounts with zero blanaces and no payment history. Like some others who have posted here, student loan accounts are generated each smester and each semester you may have loans that are guaranteed and loans that are not guaranteed. So each semester I was in school, I recevied two new loans. Then the original lender was purchased and they generated loans in the new lender's name. Then I consolidated when I graduated and 2 more loans were generated.
It doesn't seem right that I should have a flag for too many accounts given the circumstances. Is my only recourse to wait and let the old accounts fall off after 10 years?
That still begs the question... How many is too many?
Barry wrote:
This has always been a common misunderstanding, not just among consumers but also among lenders, mortgage brokers, etc. -- equating number of accounts on file with the number of "open" accounts on file. To be clear, while the FICO scoring formula considers the number of accounts on file and the mix of different types of accounts, it does not specifically look at the number of open vs. closed accounts.In fact, FICO scores and the myFICO site have never actually had any negative factors or explanations that refer to "open" accounts as having a negative effect, but people seem have taken "number of accounts" to automatically mean "number of open accounts" -- a misconception we're constantly having to clarify.
It depends on which pool you're swimming in these days....
Tuscani wrote:
That still begs the question... How many is too many?
Barry wrote:
This has always been a common misunderstanding, not just among consumers but also among lenders, mortgage brokers, etc. -- equating number of accounts on file with the number of "open" accounts on file. To be clear, while the FICO scoring formula considers the number of accounts on file and the mix of different types of accounts, it does not specifically look at the number of open vs. closed accounts.In fact, FICO scores and the myFICO site have never actually had any negative factors or explanations that refer to "open" accounts as having a negative effect, but people seem have taken "number of accounts" to automatically mean "number of open accounts" -- a misconception we're constantly having to clarify.
@Barry wrote:It depends on which pool you're swimming in these days....
@Tuscani wrote:That still begs the question... How many is too many?
@Barry wrote:This has always been a common misunderstanding, not just among consumers but also among lenders, mortgage brokers, etc. -- equating number of accounts on file with the number of "open" accounts on file. To be clear, while the FICO scoring formula considers the number of accounts on file and the mix of different types of accounts, it does not specifically look at the number of open vs. closed accounts.In fact, FICO scores and the myFICO site have never actually had any negative factors or explanations that refer to "open" accounts as having a negative effect, but people seem have taken "number of accounts" to automatically mean "number of open accounts" -- a misconception we're constantly having to clarify.
Hi Barry
Can you tell us how many for each pool and let us guess what pool we are in? Or you could just tell us everything.
I would tell you but then I'd be in the unemployed pool!
@Anonymous wrote:
@Barry wrote:
It depends on which pool you're swimming in these days....
@Tuscani wrote:
That still begs the question... How many is too many?
@Barry wrote:
This has always been a common misunderstanding, not just among consumers but also among lenders, mortgage brokers, etc. -- equating number of accounts on file with the number of "open" accounts on file. To be clear, while the FICO scoring formula considers the number of accounts on file and the mix of different types of accounts, it does not specifically look at the number of open vs. closed accounts.In fact, FICO scores and the myFICO site have never actually had any negative factors or explanations that refer to "open" accounts as having a negative effect, but people seem have taken "number of accounts" to automatically mean "number of open accounts" -- a misconception we're constantly having to clarify.
Hi Barry
I hate pools. 
I love pools - used to play water polo
Tuscani wrote:I hate pools.
