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It does not matter how many open CC accounts you have as long as you pay on time and keep your util very low (1-9% util). Same goes for installment loans: mortgages, autos, student loans and unsecured/secured loans it's all about paying on time, forget about the outstanding balances, it's about making timely payments.
@smallfry wrote:
@fused111 wrote:
the second one is better. 1-9% util on all for max fico points.
@Anonymous wrote:
Can anyone tell me if:CC1 $10CC2 $10CC3 $0CC4 $0CC5 $0CC6 $0Is better then:CC1 $10CC2 $10CC3 $10CC4 $10CC5 $10CC6 $10?
I don't agree. Too many accounts with balances. Leave no more than 4 accounts showing a balance including mortgages, car loans and credit cards.
@fused111 wrote:It does not matter how many open CC accounts you have as long as you pay on time and keep your util very low (1-9% util). Same goes for installment loans: mortgages, autos, student loans and unsecured/secured loans it's all about paying on time, forget about the outstanding balances, it's about making timely payments.
@smallfry wrote:
@fused111 wrote:the second one is better. 1-9% util on all for max fico points.
@Anonymous wrote:Can anyone tell me if:CC1 $10CC2 $10CC3 $0CC4 $0CC5 $0CC6 $0Is better then:CC1 $10CC2 $10CC3 $10CC4 $10CC5 $10CC6 $10?
I don't agree. Too many accounts with balances. Leave no more than 4 accounts showing a balance including mortgages, car loans and credit cards.
Message Edited by fused111 on 08-07-2007 07:57 PM
@Anonymous wrote:Hi,Just wondering...Say I have a credit limit of $8,000 on a credit card, and I have a current balance of $7,000. My debt ratio would be 87.5%, right? But, if I have other credit cards that aren't in use, and all together my credit lines equal say $50,000 my debt ratio wouldn't be so bad. This won't hurt my credit score, right? They look at your entire credit line, not just one particular card, right?Thanks!Steve
Well it's a stalemate then! You say it does matter and I say it doesn't. I use to PIF all of my CCs with no ill effect. Now I have 6 open CC's and all of them are reporting about 4-6% util and my scores improved some. In fact two of them are in the 755-792 range. I think the point of all of this is max fico points. For some members a few extra points earns them a better mortgage rate or an approval for a CC or some other loan. If your not planning on applying for credit in the near future, then I think like you, PIF.
@smallfry wrote:
@fused111 wrote:
It does not matter how many open CC accounts you have as long as you pay on time and keep your util very low (1-9% util). Same goes for installment loans: mortgages, autos, student loans and unsecured/secured loans it's all about paying on time, forget about the outstanding balances, it's about making timely payments.
@smallfry wrote:
@fused111 wrote:
the second one is better. 1-9% util on all for max fico points.
@Anonymous wrote:
Can anyone tell me if:CC1 $10CC2 $10CC3 $0CC4 $0CC5 $0CC6 $0Is better then:CC1 $10CC2 $10CC3 $10CC4 $10CC5 $10CC6 $10?
I don't agree. Too many accounts with balances. Leave no more than 4 accounts showing a balance including mortgages, car loans and credit cards.
Message Edited by fused111 on 08-07-2007 07:57 PM
It absolutely does matter how many accounts you have balances open with. A page out of the FICO handbook. FICO high achievers have an average of 3 accounts reporting balances. If you have high scores your way have at it. Rather than do it that way each month why not try paying it down to 0 one time and see if you notice any difference. You telling me that CW's with 25 cards won't see their score suffer if they left a $20 balance to report on all their cards? Check the scoring manual and you'll find 3 is optimum.
Correct. I tried it. Lost 18 points for too many cards with balances. FICO through EQ. I put a silly little balance on a card to get it to report and score went down 18 points. I paid it off and score went up 18 points. Well at least my credit report works that way. Also confirmed at BankRate.com with the FICO simulator. It might not be accurate but still some things on there I have tested to be true with my credit reports and scores.
@smallfry wrote:Every FICO report I have pulled likes under 5 accounts reporting. Three is best. You can get away with four. Try it YMMV.
@Anonymous wrote:Well, that brings me back to #1, since I have other accounts. I wish we could find out for sure...
@Anonymous wrote:Hi,Just wondering...Say I have a credit limit of $8,000 on a credit card, and I have a current balance of $7,000. My debt ratio would be 87.5%, right? But, if I have other credit cards that aren't in use, and all together my credit lines equal say $50,000 my debt ratio wouldn't be so bad. This won't hurt my credit score, right? They look at your entire credit line, not just one particular card, right?Thanks!Steve
Tusc, Barry care to chime in!