Re: Credit Score/FICO question



How long does it take for my credit score/FICO to change?

Satan (Equifax) only knows.

I just checked my score with Equifax and its a lot lower than I
expected.
2 years ago with Equifax it was: 810 out of 850
it said: Key Factors Affecting Your Score:
The amount owed on your revolving/charge accounts is too high
There is a lack of recent (non-mortgage) installment loan information
being reported on your credit file.

Do you *have* any installment loans? (e.g. car payments)?
I'm not sure whether a student loan counts as an installment loan or not.

I just checked on Friday and my score is: 766 out of 850! So it went
down 50 points!

Are you planning on getting a big-ticket loan like a mortgage or
car loan any time soon? If not, is 50 points even something to be
concerned about?

For: Key Factors Affecting Your Score:
It said the two same things...BUT there is now a third one:
You have too many bank/national revolving accounts with balances being
reported.

I ALWAYS pay my bills in full every month on time.

Credit bureaus don't know that.

The ONLY change is:
a couple of my cards were cancelled due to inactivity, so I called
them and got them re-instated.
So in the past, I used mainly 2 cards, now I rotate between 4-5 cards.

Did you get more cards, or did you just start using the ones you
have? Regularly using 4-5 cards is probably a bit more than the
norm. There may be suspicion that you are using one card to pay
off another because you can't come up with the minimum payment
(regardless of whether it's true or not).

Note that your balances as seen by the credit bureaus may vary a
lot. If you pay off your balances every month, the relationship
between monthly reporting time and payment due date can have your
reported balances vary from the high point to zero.

Balances are the same, but now its spread out.

So I guess that looks worse.
So now I will go back to using only 1 or 2 cards, and keep the rest in
reserve.

So couple of questions:
1. How long does it take for my credit score/FICO to change? Once I
go back to only using 1-2 cards, how long before my score goes up?

It probably takes at least two months before even the first zero balance
on the cards you decide not to use regularly. It may be a year or two
before Satan (Equifax) decides the card is idle.

2. from the key factors, it said: "The amount owed on your revolving/
charge accounts is too high"
I dont understand this.
According to my credit report: I have a balance of $650, and I have
$143,550 available.
So how is my amount owed that high? So $650 out of $143,000 is not a
high balance. If my balance of $100k out of $143k, then thats a high
balance.
3. "There is a lack of recent (non-mortgage) installment loan
information being reported on your credit file."
So they are refering to a car loan? or a student loan?

IMHO, it is a poor idea to try to "buy" a good credit rating, unless
you have immediate plans to get a big-ticket loan. You should avoid
the obvious ways of dinging credit: late payments, charge-offs,
bankruptcies, etc.
(Except for #2, I don't think the OP is doing this.)
This would include:
- Borrowing money you don't need to, in order to get something on
your credit report.
- Spending money purchasing credit scores.
- Paying annual fees on credit cards you don't use just to keep
them on your credit report.
- Buying stuff you otherwise wouldn't buy to keep a card active.


.



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