True. I understand sometime you have to pay off certain accounts no matter what. This credit card algorithm has so many factors that could affect anything that we do. As long as you have some revolving credit balances with 10 to 15% preferably 15% for sometime you can apply for new credit account with only small drop of credit scores.
That is a good idea by using a 0% APR to keep the revolving credit account balance while earning positive scores. It is also good to spread it out all across the accounts so none of them is beyond or close to 30%. As long as it is 15% and below it would be good. If I am only using a single account or two then I have to use a bit more utilization. After not paying attention to my fico scores for a while I had big drop of my scores. If my schedule payments workout like I did years ago, i should be gaining 80 points in 2.5 months.
*sneaks in the back door and looks around*
Ok, I had 2 scores above 760 before I decided to joyride with a mini app spree around Christmas time. Now, my scores are finally started to recover but I bumped my head and apped a couple more cards. I thought, to stay on track with my goal of getting up in the big cream-of-the-crop section, maybe I should take a seat in the back of the auditorium and let some of your habits rub off on my while my scores recover. I've gotta stop hanging out in the approvals and credit cards sections. So, if you don't mind, I'll be quiet back here in the nosebleed section eavesdropping on those who are doing big things.
#excusetheinteruption #carryon #imcreamtoo #youllsee
Ohjoy, you so funny. Hang in there; lots to learn as you lurk around Myfico.
When I first received my FICO 9 score (6 months ago), it was 823. Since that time I opened a Care Credit account. My current FICO 9 score is 804. I happen to work for one of the three major credit bureaus. I do not have an installment loan, and a very short credit history on my open accounts.
What about on your closed accounts, as they count toward your age of accounts factors and thus your credit score.
It will get back up as long as you keep paying the monthly bill on time. Since you don't have recent history big utilization that's why it had a big drop. It's crazy but company that buying and selling your personal data wether you never authorized them are making money by speculating about your credit purchasing habits. It helps lenders to make quicker decision to offer you a loan based on your credit history and statistic.
If you closed your account, your average age of opened account would drop. That means your credit availability (if it is revolving account) would drop, hence your utilization would go up. Credit Utilization = Credit Used/Credit Availability. That also means your credit scores would drop at least temporary unless you have some credit balances that you are still paying on time to gain positive credit scores. If you have zero balances on all your credit accounts your utilization would remain the same since 0% utilization = $0.00 / Credit Availability. I am not sure if the algorithm would penalized you, but probably not since everything remains the same. The only difference is your credit scores at the time would remain stagnant. It might still grow based on average age of credit accounts but it would be very slow since Length of Credit History only contribute 15% of total credit scores. If you opened a new account like happened to most people, you will get hard inquiry. That means your credit scores would drop again since you don't have any credit activity such positive monthly payment history (35% contribution). However, it would be temporary when you are using some revolving credit accounts to make some purchases and paying on time.
Fico (Score 8)
847 Equifax, 847 Experian and 837 T.U.
I'd like to see if I can obtain a perferct score on one or more of the credit agencies.
Transunion is a toughie for me for some reason.
Started out mid to upper 600's about 10 years ago. Before that, ruined my credit twice. Got married and took it more seriously.
My personal way of doing things?........Yeah, I got caught in the "buy it now and hopefully pay it later" trap, but then I pulled my boots up and paid off over 25k in cc debt in almost 2 years. Now I just use them for bills I pay anyway such as food, gasoline, cable bill, electric bill, ect....I charge them on different cards ( I have 6 and two store cards) each month and I ear mark the money in my bank account and pay it off when the bill comes. zero percent interest, shows credit card activity on my reports and the scores keep going up and up.