You are a dip! While working her way through school she takes a job at Target. Not her career, not a career goal, but a job to pay for school. That being or NOT being the case, embarrasment of one's job pales in comparison of the embarrasment one should feel from being a dip. Put that in your pipe and smoke it. -Peace, Dave
I didn't mean to be a dip. I wasn't jabbing at Erica's job whether she's working her way through school or not. There's nothing wrong with working in mgt. at Target. Sorry for the misunderstanding. Now that we have pretty much learned the ins and outs of the FICO system, we have to learn the new NextGen system...
Thanks, Rina! That's the one I was referring to. It does not put 0% utilization in a separate category, the category is 0-15%. Now I personally agree that for scoring purposes, your score is probably better if you did not have a 0 balance reported on every card. But I also know that if I left a small balance on every card I have, my score would plummet and the reason code would be "too many accounts with balances" They would not like to see 10+ accounts with balances. In addition, as much as I care about my score, I care more about my finances. I will have a card near max if it is the best bt offer I have. I care more about paying off my debt and saving money than I do about my score.
True point. 10+ accounts could be a problem as well. I will edit this post in a moment with a link to the nextgen reason codes
Here is a link to the NextGen reason codes. You can expect Equifax and Experian to begin using these very soon. http://www.bayhouse.com/FairIsaac-NextGen-risk-factors.shtml
FULL OF EXCUSES!!!! LACK OF RECENTLY ESTABLISHED REVOLVING ACCOUNTS... NO RECENT BANK/NATIONAL REVOLVING BALANCES... NO RECENT RETAIL BALANCES... TIME SINCE ACCOUNT ACTIVITY TOO LONG... TOO FEW ACCOUNTS WITH BALANCES...
Damned if you do, damned if you don't. But there IS a radar detector to beat the radar. There ARE a series of things that can be done to maximize scores under FICO, and there will certainly be things to do to maximize scores under the new NextGen system as well. Next time I tell someone about the $1-$1.50 system I will also tell them to occasionally max out the card and still pay it online to $1-$1.50 a couple days before the due date. This way the utilization of the credit line will not cause the credit card company to reduce the limit. Personally I think limit reductions happen when they periodically check your score and it drops below a certain level.
You keep a couple of cards "UN-USED" in the sock drawer...for DEBT TO CREDIT LIMIT RATIO HELP...and they BITE YOU FOR IT (F.I.C.O.)!!!
The problem I have with this is: # of accounts with balances. I recently starting paying on my student loans. They have never been late or anything like that. I had a forebearance and they compounded the interest on the prinicipal so now I owe more than I borrowed. If I defer them again with that not count in the fico score? Does anyone know? I think it's having a negative impact on my score.
