Number of Accounts with Balances

[Not_the_Point]

Why would my report say that on one hand my score is reporting too few accounts with balances (and implying that I am not able to manage a variety of credit) and at the same time say that I have too many balances carrying a balance (and thus I'm over-extending myself).

FICO seems to be confused about what to think about me. Too few or too many? Both?

[Junejer]

Too few accounts or too few accounts with balances? That would be goofy if it were the latter. I have never heard of that entry.

[Anonymous]

Do you have revolving and installment loans on your report?

The comment could be suggesting that you don't have a good mix of credit.......

......and no I am not suggesting you take out an installment loan to fix it!

This isn't a big deal...your scores are still fantastic!!! 

[marty56]

I have seen that comment from TC TU FAKO score.  Sometimes my CR show 0% util and I dont see that comment.

[haulingthescoreup]

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Not_the_Point wrote:

Why would my report say that on one hand my score is reporting too few accounts with balances (and implying that I am not able to manage a variety of credit) and at the same time say that I have too many balances carrying a balance (and thus I'm over-extending myself).

FICO seems to be confused about what to think about me. Too few or too many? Both?

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Can you copy/paste the comments here? Are they on two different FICO scores? (and as marty mentioned, that sounds an awful lot like a TC comment)

[Anonymous]

Maybe they are trying to say that of the accounts that you have to many of them have balances and that if you had more and they didn't have balances then that would be better????

I've got nothing... I tried

Something is off grammatically.... maybe you misunderstood what you read and paraphrased. Try copy pasting EXACTLY what it said and I will give it another stab.

ME = Not so good with credit but a most EXCELLENT analyst!

Edited to correct spelling

Message Edited by AmyBoo on 10-18-2008 01:05 PM

[Anonymous]

Are your only balances reporting on installment loans? They get pinged when the formula needs to be picky about something and you could take a ding for not having a revolving account report a balance. ( 20 points in some cases)

[Anonymous]

I'm thinking too few accounts and too many balances.

Message Edited by ilovepizza on 10-19-2008 09:20 PM

[Anonymous]

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@Junejer wrote:
Too few accounts or too few accounts with balances? That would be goofy if it were the latter. I have never heard of that entry.

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Here's my latest ding excuse from fico:  notice in the "What to do about it"  they basically say I don't have enough activity...in essense, "not enough accounts with balances":

What’s hurting your FICO® score

The negative factors listed here are reasons why your FICO® score is not higher. You should focus on changing the behavior that caused these negative factors. These factors are listed in order of their impact to your score, the first has the greatest negative impact and the last has the least.

Please note that a negative factor can be provided even if you are better than the national average of FICO® high achievers on that factor. In all likelihood, this means that your FICO® score is already quite high. The fact that you are still receiving a negative factor means that there is still some room to work on that factor.

1. There is no recent activity on your revolving accounts.

   Your credit report shows no open revolving accounts [?] or it does not report recent information (such as balance or credit limit) about any of your revolving accounts. Your FICO score evaluates your mix of credit cards, installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders.

   What to do about this: You might want to show new activity on any credit card. If you already have a credit card, you can do this by using it and paying it back on time. If you don't have a credit card, consider opening one. However, be aware that the credit inquiry associated with applying for a new card may lower your FICO score in the short term.

[Junejer]

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gbreadman wrote:

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@Junejer wrote:
Too few accounts or too few accounts with balances? That would be goofy if it were the latter. I have never heard of that entry.

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Here's my latest ding excuse from fico:  notice in the "What to do about it"  they basically say I don't have enough activity...in essense, "not enough accounts with balances":

What’s hurting your FICO® score

The negative factors listed here are reasons why your FICO® score is not higher. You should focus on changing the behavior that caused these negative factors. These factors are listed in order of their impact to your score, the first has the greatest negative impact and the last has the least.

Please note that a negative factor can be provided even if you are better than the national average of FICO® high achievers on that factor. In all likelihood, this means that your FICO® score is already quite high. The fact that you are still receiving a negative factor means that there is still some room to work on that factor.

1. There is no recent activity on your revolving accounts.

   Your credit report shows no open revolving accounts [?] or it does not report recent information (such as balance or credit limit) about any of your revolving accounts. Your FICO score evaluates your mix of credit cards, installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders.

   What to do about this: You might want to show new activity on any credit card. If you already have a credit card, you can do this by using it and paying it back on time. If you don't have a credit card, consider opening one. However, be aware that the credit inquiry associated with applying for a new card may lower your FICO score in the short term.

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That's a common entry AND different from what the OP was suggesting. Your entry suggests that you have revolving accounts and NO activity. In other words, FICO looks at it as though you are afraid of using credit...a definite ding to your score.