"Too many accounts" FICO red flag

[Twix]

Does anyone know once you get the "Too many accounts" FICO red flag - does it go away if some accounts get closed?  Or does it still say you have too many even if most of them get closed?

[Anonymous]

What is the exact message verbatim?

[haulingthescoreup]

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Twix wrote:
Does anyone know once you get the "Too many accounts" FICO red flag - does it go away if some accounts get closed?  Or does it still say you have too many even if most of them get closed?

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If you're talking about the flag on screen three for having thirty or more accounts, both open and closed, it can be ignored. The accounts would have to be removed, not just closed, and that affects your average account age, which is a much more important factor.

From what other members have experienced, this one is a warning without teeth.

If you're talking about "too many accounts with balances", that's a different area entirely.

[MattH]

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@haulingthescoreup wrote:

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@Twix wrote:
Does anyone know once you get the "Too many accounts" FICO red flag - does it go away if some accounts get closed?  Or does it still say you have too many even if most of them get closed?

---

If you're talking about the flag on screen three for having thirty or more accounts, both open and closed, it can be ignored. The accounts would have to be removed, not just closed, and that affects your average account age, which is a much more important factor.

From what other members have experienced, this one is a warning without teeth.

If you're talking about "too many accounts with balances", that's a different area entirely.

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My TU is sometimes 800 or over, sometimes less; when my TU is below 800 it always lists "too many accounts with balances" as my top negative factor.  When my EQ is below 800, it nearly always lists total amount owed on my revolving accounts as my top negative factor.  My EX, when I could pull my EX FICO score, was always above 800 so I never saw what it deemed to be my top negative factor.  My wife and I have plenty of savings, carry very lttle cash, put almost all purchases on plastic, and pay in full when the bill arrives.  As a result our CC balances fluctuate a fair amount, which I believe to be the primary driver of variation in my FICO scores.  Based on these and on what others have said, I have formed the hypothesis that TU cares more about number of accounts showing a balance, EQ cares more about total dollars owed on revolving accounts, and EX does not seem to care as much about numbers or totals so long as percentage of revolving credit utilization is low enough.

I suppose before the next time we apply for credit, which won't be any time soon, for a couple months beforehand I can make online banking payments just before reporting dates to zero-out most of my credit card balances and let one or two report small balances.

[Anonymous]

Matt with scores like those I don't think you need to tweak before a credit application. Your findings also jive with what many others have experienced with their scores. Good general knowledge for those trying to tweak.