Playing the FICO game

[Anonymous]

To all -

I've read some posts saying that having more CCs and keeping the utilization low, and asking for CLIs every 4 months will increase your scores.  Is this true, and why?  I want to play the game and win...

[MidnightVoice]

I am playing and winning.  Slowly.   Very slowly

In general, the FICO score measures how likely STATISTICALLY you are to repay a loan.  It is a risk calculator.  So it likes:

A balance of different types of credit - revolving (stores gas and CC) and installment loans, all open and active

A long history of credit.

NO lates or Collections

proof that you don't need credit - AKA low utilization (a little counter intuitive) (and increases of CL improve utilization)

Proof that you can pay back revolving credit  - AKA not a bunch of cards that are never used (Also counter intuitive)

Proof that you are not desperate for credit (low number of inqs).

And it DOES work.  It is based on statistics, not you as an individual

Message Edited by MidnightVoice on 06-14-2007 04:06 PM

[smallfry]

It's a complicated formula but a little common sense goes a long way. A mortgage would be nice but not necessary. Car loans help a lot even more so if you can pay it down a little more quickly than scheduled. A mix of different types of cards helps. Credit cards. This is open to discussion and everyone's experience is different. I think it is a good idea to get a fair number of them and rotate their usage from month to month. Since FICO does not like a lot of balances on TL's it might be advisable to pay off all but one credit card before the cycle date each month a let just one card report a balance to the CRA's each month. Keep that % very low as well and PIF before the due date. There is no need to pay interest. Above all do not ever pay anyone late. EVER.

[Anonymous]

TU - 668 - No inquiries

EQ - 659 - 4 inquiries (one coming off in Aug)

Ex - 673 - 3 inquires (2 coming off in July)

2 HSBC cards 1 year OK payments no lates (CLIs $600 & $400)

4 CC COs 2 years ago (2 ea Cap One and WAMU/PROVIDIAN)

1 Sears CO 2 years ago

Midnight and other's as well,

My CC fico score is pretty awful....

Could use a Gas card.

Would like to have one more CC with higher limit

Would like a Store Card.

Based on the number of inquiries, history, and scores could you advise on how I might go forward and improve my score?  I work very hard to get the scores to this point, and I really don't want to back slide.

[smallfry]

Your scores are not bad at all and the inquiries are low. IF you can qualify for a credit union you will find they are the most liberal in handing out nice CL's. Try Navy Federal and Penfed.

[MidnightVoice]

Well, for one I would wait until August and check out cards that pulled Tu and possibly EX.

And I would get my utilization down to the magic number of 1-9%

In my limited experience EQ really hates inqs. 

[Anonymous]

I've been toying around with joining one.  Sound like a good idea.  Thanks.

[MidnightVoice]

I used a local Credit Union, and they were great

[Anonymous]

Thanks Midnight,

I've got the utilization down that low.  I bet when HSBCs scores finally post from last month, I take another jump.  Smallfry suggested joining a credit union which sounds good as well.  August...hmm, may be a good month to target next jump.

[fused]

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MidnightVoice wrote:

Well, for one I would wait until August and check out cards that pulled Tu and possibly EX.

And I would get my utilization down to the magic number of 1-9%

In my limited experience EQ really hates inqs. 

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I thought it was EX that hates inqs and EQ that hates new accounts