Are you aware that you have at least 49 FICO scores?
Check out this infographic.
I'm always amused by the differences in the ways lenders look at credit history. For instance, if you have five credit cards with an aggregate credit line of $60,000 and a total balance of $1,500, a lender considering your request for a car loan tends to think, "She manages her credit very well -- quite a bit available, only a small percentage of it being used, and always pays as agreed."
A mortgage lender, on the other hand, will often think, "OMG! What if I write this loan today and she goes crazy tomorrow and maxes out all those cards!"
There's a limit to how much time and effort anyone should invest in worrying about credit scores, and articles such as the one cited above have a tendency to blow the entire concept way out of proportion.
As much as possible, try to have a history that includes a credit card or two, an unsecured/signature/personal loan, and a vehicle loan. Lenders like to see a range of loan types. Even if it means you have to eat PB&J sandwiches for a month, NEVERread more collapse
[cont'd] make a late payment (30 days or more) on a loan. Try to keep average outstanding balances on credit cards at or below 30% (some lenders use 50% as a marker), and pull your credit reports once or twice a year for review.
I've never seen any real need for paying for a "credit monitoring service" that sends you monthly reports unless you've had a serious loss of personal data.
I find the info from Experian about how credit scores are calculated and how they might be negatively impacted to be helpful:
Payment History (30%)
Amount of Credit Used (20%)
Amount of Cash flow (15%)
Types of Credit (10%)
Credit Balances (10%)
Amount of Available Credit (5%)
New Credit Lines Opened (5%)
Length of Credit History (5%)
-5 points Applying for new credit could cost 3-5 points
-80 points One 30-day late hurts your payment history by a 60-80 point drop in your score.
-30 points Maxing out your utilization on just one card could result in a loss of 10-30 points.read more collapse
- Aug 28, 2012 1:02 PM
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