@Anonymous wrote:I understand that having your revolving accounts report that you pay on-time each month is critical to increasing your score. Payment history makes up a chunk of about 1/3 of your score.
So for instance, say you've made 90/100 revolving account payments on time---90%---and you have 1 open revolving account. Each month going forward that you pay on time, your payment percentage increases. 91/100 = ~90.1%.
Now suppose you have 4 credit cards and you pay each of these on-time. Does this increase your credit score faster? Whereas the previous example increased the percent of on-time payments by 0.1%, 94/104 = ~90.4%.
My current revolving account count is at 3, with one checking line of credit and 2 CCs. I was just wondering if it would be more beneficial to my score to have more CCs that got PIF each month; that is, would my score rise faster?
I would think paying on time has the biggest positive impact, regardless of the number of accounts. Having more accounts can help, but any number of cards with good payment history, as that history lengthens will improve the FICO score.
Regarding Late Payments, I think that's more a function of: Is there one? Are there more than one? How far in the past? This is because even a single recent late payment is taken as a bad sign by the lenders, by the FICO modelers. The presumption in the model is, to get a good score, the borrower is going to pay as agreed. Anything less than that takes time to repair.
