You have few accounts that are in good standing?

[Anonymous]

So my personal loan reported paid and closed today and it cost me 9 points (assuming that all 9 came from that since none of the three bureaus have been penalizing for me new accounts since March although my PayPal cashback did report today as well) and I looked at my Experian reason codes and I have had the same one in 4th since I started actually checking my Experian FICO in like January of last year. “You have few accounts that are in good standing.”

How does this one work? It says I have 4 accounts that are currently paid as agreed but I have 7 total accounts reporting open and satisfactory. Do I have to let a balance report and then pay off that balance to get this updated to 7?

I can’t do anything about the first reason code since it’s my BK, second reason code is non-mortgage installment which I may do an SSL with NFCU if I go for any more apps but for now I’m fine with the 9 point loss since I’m now gardening, third is AAoA (3y8m), and this is the fourth. 

I have three derogatory accounts that I can’t do anything about but wait them out. One will be falling in July, one is in dispute because the payment dates are wrong - if I succeed in getting it fixed I’ll lose about 10 120 day lates in March otherwise the way it’s reporting I’ll have lates start falling in 2020 and then the last will fall in 5/2021, and one is a $65 med collection that the hospital won’t let me pay to have them take off because of the other balances I owe them that are no longer reporting. 

[NRB525]

I would guess that is just a repeat of the BK/Late related issues. From your theory, when was the last time each of the other three reported any statement balance?

I see reason codes related to New Accounts, Number of Accounts with Balances, and at times, Utilization. You seem to have none of those.

Expect four Reason Codes in most situations. From that list of reason codes, it seems like there's not much else you could do to optimize scores.

Since you don't have other reason codes, no new accounts, number of accounts and utilization are in control, it would be a worthwhile game to try letting small balances report on the other three accounts to see if that triggers any changes. You might get something related to "too many accounts with balances" at some point.

[Anonymous]

Yeah that’s what I was thinking is to actually let balances report on the new accounts. They are literally brand new so no balances were reported when they were opened.  I really don’t like that though, especially since 2 of those new accounts are my first two Sync accounts and they’re known to be skittish when they are getting to know you, I also have two more yet to report (NFCU should be reporting my new Platinum which has the BT of the personal loan I paid off and I’m definitely going to get smacked for single card utilization >28.9% (31.8%) and BBVA said they will report my new card in March) and both of them will inevitably be reporting balances since I’m trying to hit my SUB for BBVA so it may be a moot point. 

I do find it interesting that I don’t have the new accounts codes on any of my reports considering that since I started adding in March of last year, I’ve added 7 that are reporting on Experian, 6 that are reporting on the other two, but I’m sure I’m going to get that reason code on all three by the time BBVA reports. 

Utilization will still be under 8.9% aggregate so I’ll get points knocked for the NFCU balance but it shouldn’t be too bad. 

Equifax only has three negative codes:

1) Derogs/BK

2) Short credit history

3) Missed payments or derogatory indicators

Transunion has:

1) Derogs/BK

2) Have not established a long revolving and/or open-ended account history

3) The remaining balance on installment loans is too high (not updated yet)

4) Too few accounts in good standing (not updated yet, I actually had EE on 3 of my derogs on Saturday so my BK and $65 med collection are all that’s left here)

[Anonymous]

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@Anonymous wrote:

I have three derogatory accounts that I can’t do anything about but wait them out. 

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IMO this is the cause right here.

I think when reading that reason statement that you referenced, it's common to consider your good standing accounts more than the negative ones, but that's really not what matters.  Someone can have just 5 total accounts or 50 or 100 and all it takes is one negative account to do harm.  I had that same negative reason statement you referenced when I had just 1 dirty account across > 20 clean accounts.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

I have three derogatory accounts that I can’t do anything about but wait them out. 

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IMO this is the cause right here.

I think when reading that reason statement that you referenced, it's common to consider your good standing accounts more than the negative ones, but that's really not what matters.  Someone can have just 5 total accounts or 50 or 100 and all it takes is one negative account to do harm.  I had that same negative reason statement you referenced when I had just 1 dirty account across > 20 clean accounts.

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That's what I figured was going on. I will just wait it out then. I think at this point I've done the most optimal things I can for my situation (I realize that closing my only installment loan is a credit negative but I'll be out of debt and that's more important to me than 9 points on my FICO score, especially since I've got all the credit products I want until my BK is gone and I am under 5/24 when I will go for Chase Freedom and then USB Cash+) and now its just a matter of letting everything age. 

My repo is falling off in July and given that getting my repo removed along with two student loans with a 60 day late in 2012 resulted in a whopping 54 points on TU this past Saturday when I asked for an EE, I think I will still probably gain at least a few points from my repo falling in July on EQ and EX regardless of whether or not my ACS student loans get their dates fixed and fall in March (ACS never reported to TU). 

[HeavenOhio]

I get that code with no baddies. All I can figure is that FICO would like me to have a thicker file. I'm not about to apply for credit because of a reason code.

[Anonymous]

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@HeavenOhio wrote:

I get that code with no baddies. All I can figure is that FICO would like me to have a thicker file. I'm not about to apply for credit because of a reason code.

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You get it with no baddies? Okay then, definitely will disregard lol

[GApeachy]

@Sarean
Where do I find the codes? I have an Experian acct. but never saw codes.

[Anonymous]

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@GApeachy wrote:
@Sarean
Where do I find the codes? I have an Experian acct. but never saw codes.

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Get the Experian app, log in, tap your credit score and it will show you the positive and negative factors influencing your Experian FICO score.

If you have CreditWorks Premium, you can tap the tabs for Equifax and Transunion and see the info for them as well.

[Anonymous]

I like NRB's suggestion, which was to let a small positive balance report on every open account, and see if that particular reason code goes away after that.

I do notice that you have accounts that have never reported a positive balance.  Personally I think a good part of anyone's "new card hygine" should be to activate and use a new card soon after receiving it, and then let it report a small balance.  That doesn't have to be done every month, of course.  Just once upon receiving it.  The "let it report a small balance" might not be necessary but it can't hurt for sure.