I have a question , my problem is to much credit ,all up to the limits .We are doing better now and paying more then the min. used a debt calculater and did the 2 year option, so we are sticking to it. my ques is , how long of good pays will help with the lates. and of course how many credit lines to keep open?? we want to buy another house in 2 or 3 years. we never paid our mortgage late. but we want our scores to be better ,,,,, you all are wonderfull and great help thank you again julie
Your past behavior is less of a predictor of your credit worthyness than present behavior. So your paying on time every time NOW has already helped out with your scores. If you are giving yourself 2-3 years and continue to pay on time you will have plenty of good credit to show you're credit worthy. Also your debt balances will be much lower as you have planned to pay things off in that 2 year time frame - THAT will be a big help. As far as how many credit lines to keep open...a good credit mix is not clearly defined, but it does count for about 10% of your score: Below info is from myfico.com Category 1- Payment History 35% of your score Category 2- Amounts Owed to Lenders 30% of your score Category 3- Length of Time Credit Established 15% of your score Category 4- Search for/Acquisition of New Credit 10% of your score Category 5- Types of Credit in Use (Credit Mix) 10% of your score Is it a "healthy" mix? APPROXIMATELY 10% OF YOUR SCORE IS BASED ON THIS CATEGORY. The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It is not necessary to have one of each, and it is not a good idea to open credit accounts you don't intend to use. The credit mix usually won't be a key factor in determining your score â?? but it will be more important if your credit report does not have a lot of other information on which to base a score. Your score takes into account: What kinds of credit accounts you have, and how many of each. The score also looks at the total number of accounts you have. For different credit profiles, how many is too many will vary. Hope that helps. Good Luck. -Peace, Dave
Your past behavior is less of a predictor of your credit worthyness than present behavior. Nave ==================== So why report anything over 3 years old?
