cancel
Showing results for 
Search instead for 
Did you mean: 

Question on scoring involving negatives

tag
Anonymous
Not applicable

Question on scoring involving negatives

My three scores are now above 700 thank goodness.  My question is on two of the bureaus negative factors it states my ratio of revolving balances to credit limits is 5% and high achievers have 7%.
 
Why is this still a negative?  It also says I have too many financial institution loans or whatever that says and I have paid off everything. 
 
Could someone tell me why these two negatives are still there  
Message 1 of 7
6 REPLIES 6
MidnightVoice
Super Contributor

Re: Question on scoring involving negatives

They always try and find something for scores below 800  Smiley Happy
 
And FICO is a little wary of Consumer Finance Loans (usually loans from companies with financial in their name - CitiFinancial, Wells Fargo Financial - these are usually arms of Prime Lenders that cater for the higher credit risks).
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 2 of 7
Anonymous
Not applicable

Re: Question on scoring involving negatives

That is why I am asking, the finance company has been paid off.  The only loan I have is my credit union and it isn't a finance company.
 
Do they just leave that on there until I establish the fact that I won't go back to finance companies????
Message 3 of 7
MidnightVoice
Super Contributor

Re: Question on scoring involving negatives

Closed TLs stay on your report for 10 years after closing usually.
 
And contribute to your average age and credit mix
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 4 of 7
Anonymous
Not applicable

Re: Question on scoring involving negatives

Thank you for your quick replies, I do appreciate that!
Message 5 of 7
RobertEG
Legendary Contributor

Re: Question on scoring involving negatives

Midnight, some clarification please on your post.  I agree that closed acounts continue to be averaged into your length of credit history until they are dropped from the CR, but is the same true of credit mix?  I remember seeing many posts on this site that say paying off, for example, an installment loan drops it from your credit mix as of the date it is closed, even though it continues to report on  your CR??  This can be important in FICO vs. financial planning.
Thanks for any clarification you can provide.
Message 6 of 7
haulingthescoreup
Moderator Emerita

Re: Question on scoring involving negatives

I'm not Midnight, I'm barely early evening, but installment loans only help mix while they're open.

That's why we sometimes have angry members post that they paid off their last loan (car loan, student loan, whatever) and lost XX number of points.

Mix looks at your open accounts.

I don't think it's a huge issue if you have a really long credit history, though. Even the FICO wonks don't expect 70-year-olds to have mortgages and car loans, although one day they might still have student loans, the way those are going. At any rate, there are plenty of people with 20+ year histories and their only open accounts are revolving, and their scores are doing just fine.

And OP, yes, it's absurd, but the very presence of CFL's, open or closed, is a ding on your scores. But it's a small ding. And if carping about 5% util and closed CFL's is the best that your reports can come up with, I'm thinking that you're doing very well.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.