Someone posted about this somewhere. I know what a ripoff those"GOLD" cards are that always pop up on this server. My question is they give you a ridiculous credit line after you pay thier fees. Somebody mentioned that thier FICO went up because the big tradeline showed up on thier reports and they never actually used the card to buy anything. My FICO says my score would climb up quite a bit with a bigger open balance(because of credit to debt ratio on card)Can anybody clear this up for me?
Whats to clear up? FICO uses statistical models to compare your debt/credit practices in order to divine a rating of relative credit risk not worhtiness. A higher score simply means that you are less of a credit risk than someone with a lower score. In terms of credit/debt ration, the 'sweet spot' or percentage of credit-to-debt can and will vary depending on a variety of demographic and geographic national averages, most of which we have little if any direct control over. If you use the FICO simulator, notice what happens when you simulate reducing your debt load by 30-50-70-90%. Although all of these scenarios will indicate an increase in FICO score, notice that the proportion of score increase decreases as you approach 0 balance on your accounts. In my experience, this tells us that the scoring model considers a person who carries relatively low balances on accounts with high credit limits to be more of a credit risk than someone who carries a median balance (between 15-25%) with similar credit limits. Others have said this before and I have to agree that other than working to correct inaccurate/derogatory information on your credit history, the only effective way to influence your credit score is to continually exercise sound money management skills in the use of credit from the very beginning! If you fail to do this, then the best you can do is play catch up because time works against you when a closed account will not come off your credit history for 10-years from the date of last activity! Michael
time works against you when a closed account will not come off your credit history for 10-years from the date of last activity! ms6073 =========================== Where'd you get 10 It's 7 Yrs. The END ************************* LB 59
Well thanks for the info. I am ridding old lates etc. But also need to raise my FICO for a mortgage next year.....
