@Anonymous wrote:I have 1 mortgage, 1 auto lease and 3 credit cards. My Fico report said "You have too many credit accounts with balances", but mortgage and auto lease can't be not having balances, as a result I cannot implement AZEO (All Zero Except One). What I can do is making the balances of 3 credit cards be zero, but that will cause another hurt "There are no recent balances on your revolving and/or open-ended accounts"...
What I can do now?
Thanks
Welcome to the forums! If we're talking pure optimization, test your scores both ways, see which one produces a better result.
You're right on the older models you may be a little stuck on that, newer ones appear to be on revolvers only so 1/3 is pretty basically everywhere though specific to Equifax FICO 8 I'd want 1/4 revolvers.
I have something like 18 open revolvers when it comes to EX FICO 2 for example and I have to have pretty much everything at $0 to not see that reason code as like you I have an open mortgage and auto loan... and even then the reason code might just be off the bottom of the list for me as I have some minor dings depressing the scores (inquiries, AOYA, CFA).
It's annoying to be sure but on the flipside even EX FICO 2 is gold plated for me at 780 and as such it won't keep you out of the highest scoring tiers.
If you only have a small balance on one card, ignore the reasons.
Time will increase your score.
Do what makes financial sense.
There are tons of documented cases (including mine) where the reasons make no sense based on the profile.
I got denied for too many accounts. Opened 3 or 4 more accounts and then got approved with a LOWER fico and MORE accounts by the same lender that denied me before.
GL!
@Shooting-For-800 wrote:If you only have a small balance on one card, ignore the reasons.
Time will increase your score.
Do what makes financial sense.
There are tons of documented cases (including mine) where the reasons make no sense based on the profile.
I got denied for too many accounts. Opened 3 or 4 more accounts and then got approved with a LOWER fico and MORE accounts by the same lender that denied me before.
GL!
Lenders just have to give you a reason.
Take it with a grain of salt on their reason for denial, it wasn't just for that alone TBH.
Actual reason codes from FICO scores? Legit, not always particularly relevant (short credit history applies to literally almost everyone in the model for example even ones with multiples of mine) but legit.