Trying to raise my score

[Anonymous]

i am new to fico scoring i am only 20 yrs old and i have $4300 in overall revolving credit no late payments and out of that $4300 i have used in total credit card debt $407 is that good? is it better to have no debt at all or better to have very very little?

[FocusOnFICO]

M----welcome to the forums!

Your goal would be to pay off any credit card debt, if possible.

Keeping your "reported" balances (amounts that show up on your statements) to about 1% would be optimal for FICO scoring.

There are a number of great threads that outline the strategies, including the Credit 101 and High Achievers threads.

[marty56]

You can use as much of the CL as you want as long is you control how much is actually reported.  To do that you need to know what the statement drop date is and pay down the putstanding balance so that only 1% to 9% reports.  The rest of the balance you would PIF before the due date so you dont get charged interest.

Never ever pay late and do online payment directly with the CCC if they offer.  Ypu can use your bank's Bill Pay if the CCC doesnt offer it but its slow.

[RobertEG]

Hi mgeorges!

Your % util is not only good, it is GREAT!  Just over 10%.  That shows real control, and the ability to get your score to what is needed, when you need it.  It is neat that you, at 20yrs of age, recognize what FICO is all about.

Dont fret about monthly % util.  Whether it is 0% or 90% means nothing this month, unless you are applying for new credit now.

Percent util has absolutely no memory in FICO scoring.

Your FICO strategy is clear.  Have no lates.  Dont go over your credit limit.

Then determine when you want to apply for new credit.  %util means nothing up to that critical point. 

About two months before you decide to aoply for new credit, get your overall %util below 10%, you %util of each CC below 10%, and have less than half of your CCs reporting a balance.

Dont fret it until you want to app for new credit.  Until then, it is all academic nonsense.

Message Edited by RobertEG on 08-04-2009 11:42 PM