Can someone please point in the right direction to where I can find out some information about how the different types of accounts affect your FICO score? Specifically the difference between installment loans, revolving credit, etc. Thanks!
Scroll down to the little chart on this page: http://creditinfocenter.com/creditreports/scoring/scoringinfluences.shtml
Installment accounts don't have a whole lot of impact one way or another. For example, if you had a $20,000 college loan and a $8,000 car loan, paying of the car loan probable won't affect your score that much. The main thing is to have two to three or more revolving credit cards in good standing with less than 15% utilization. Having an American Express or Diners Club charge card and a mortgage will also help your score.
Re: Re: Different accounts affect FICO? Dug this up from the archives. According to the chart on that page, it shows that having both credit cards and store retail cards are better than having just credit cards. Can anyone confirm this? I currently have just all credit cards.. no store cards. If it'll help my score, I have no problem dropping on or more credit cards so I can add on retail card (don't want too many revolving credit lines). Also on that web page, it says professionals are given more weight. I don't see anywhere on my report that lists occupation.or am I missing something?
Re: Re: Different accounts affect FICO? That chart is curious to say the least. It looks like a very good thing to have both a checking and savings. Do you think balances matter? Or is it just that you have one of each? How do they know? SSN?? Where do you think gas cards fit in to the chart? Under revolving trades? Now for career... that explains a lot. I already said that when DH was an railroad engineer his score was higher. While I'd have thought it would fall under blue collar, I suspect with the amount they make they actually fall under semi or even professional (some of those guys make over $35/hr. plus guarantee wages and overtime). Where do you think self employed fall? Or direct sales? Looks like I am opening a savings account and working toward a major department store card. Do you think Target qualifies?
I had already heard that self-employed and sales hurt your score, so I "dropped" both terms and arranged to be w/2'd. Works for banks too! I'm trying to think of a professional title for myself. Since I can call myself anything I want, within reason of truth with the exception of doctor or lawyer. I, too, was wondering if I needed some store cards besides this silly little target card. Who, oh who, should I apply with?
Re: Re: Different accounts affect FICO? If you own your own business Give your company name as your employer and manager as your job description.
Re: Re: Different accounts affect FICO? Where do you think gas cards fit in to the chart? Under revolving trades? cre8ivegrl ===================== I don't know where they fit but they trash your insurance rates and will get your insurance jacked out of site. Doc. Started a thread about this the other day. Did you read it? What is the purpose of gas cards? PsychDoc http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=332667#post332667 The END ************************* LB 59
Re: Re: Different accounts affect FICO? Way ahead of you LB....I think my brother called me "financial analyst" but wasn't sure if that sounded professional so I called myself an account executive......still sound salesy?? LB, you have sooooooo much stuff to wade through on your posts with your signature and all! wow!
Re: Re: Different accounts affect FICO? I incorporated my little, one person business and I call myself a CEO\CFO lol. Looks good on business cards too... PawMix
Re: Re: Different accounts affect FICO? Rackt3 This chart has created an incredible amount of disagreement about how FICO scoring works. It is my contention that this slide show presentation was an example of how scoring works for getting a mortgage not a FICO score. Remember Fair Isaac make many kinds of scores not just FICO scores. Fair Isaac has stated on their own web site that weather you own or rent, years at address, occupation, and time on job are not part of FICO scoring. http://www.myfico.com/Offers/RequestOffer.asp http://www.myfico.com/myFICO/FAQ/FICOScores.asp http://www.usatoday.com/money/wealth/saving/msw149.htm
Re: Re: Different accounts affect FICO? LB.... I have been following that thread. I understood it to mean several cards related to the automotive industry... like if you had serveral gas cards, maybe a Firestone card, etc. I have one gas card for the sole purpose of rounding out my credit profile. I guess we'll see how it affects my insurance soon enough.
Re: Re: Different accounts affect FICO? One of my negative items on my TU report is that I have "too few retail cards". I don't have any. Then seeing that chart made me believe that perhaps FICO actually does take into account whether or not you have both credit credit cards and retail cards.
