Unusual tactics for increasing your FICO scores

[seattlecredit]

http://finance.yahoo.com/banking-budgeting...=bb-creditcards

 

Interesting read although some advice seems to be clearly misleading. For example, there is no mention about trying to simply pay all revolving balances in full to decrease utilization.

 

Also, an obvious question: What does the author mean by "Closed a Card? Don't Pay It Off"? Wouldn't the account be charged off if one does not pay it? I think I am missing something obvious.

 

Thanks.

[Elizabeth_Speaking]

http://finance.yahoo.com/banking-budgeting...=bb-creditcards

 

Interesting read although some advice seems to be clearly misleading. For example, there is no mention about trying to simply pay all revolving balances in full to decrease utilization.

 

Also, an obvious question: What does the author mean by "Closed a Card? Don't Pay It Off"? Wouldn't the account be charged off if one does not pay it? I think I am missing something obvious.

 

Thanks.

 

They just mean pay it off gradually:

 

"In a little-known quirk, FICO counts the credit limits of closed accounts towards utilization ratios only as long as there's a balance on that account."

[The Dude47]

Not sure if this is common, but it did happen in my situation. I closed a cc acount with a balance on it and paid the balance down monthly for about 6 months. It didn't report the account closed on my credit reports until I paid off the entire balance.

[In Maryland]

http://finance.yahoo.com/banking-budgeting...=bb-creditcards

 

Interesting read although some advice seems to be clearly misleading. For example, there is no mention about trying to simply pay all revolving balances in full to decrease utilization.

 

Also, an obvious question: What does the author mean by "Closed a Card? Don't Pay It Off"? Wouldn't the account be charged off if one does not pay it? I think I am missing something obvious.

 

Thanks.

 

They just mean pay it off gradually:

 

"In a little-known quirk, FICO counts the credit limits of closed accounts towards utilization ratios only as long as there's a balance on that account."

 

Now that is good to know. I will be paying off a few other accounts first instead of a few closed ones I have.

[GEORGE]

It is all a GAME

 

Too bad the CRA's and F.I.C.O. play games back on you

[jack1212]

Ok, im confused.

 

Is it not good to PIF each month anymore?

[LustfortheMoment]

Ok, im confused.

 

Is it not good to PIF each month anymore?

 

Absolutley NOT. Just don't close cards which offer high CLs which contribute towards your overall utilization.

[adenbell]

It is all a GAME

 

Too bad the CRA's and F.I.C.O. play games back on you

 

Do banks really care about FICO???? They have their own system to evaluate your credit.

[pryan67]

It is all a GAME

 

Too bad the CRA's and F.I.C.O. play games back on you

 

Do banks really care about FICO???? They have their own system to evaluate your credit.

 

 

 

some have their own internal system....most don't

Edited March 18, 2010 by pryan67

[CTSoxFan]

Ok, im confused.

 

Is it not good to PIF each month anymore?

 

 

It is absolutely in YOUR best interest to PIF every month, as paying interest is a waste of money.

 

Too many people let FICO dictate what they do, instead of worrying about the $$ impact.

 

Don't let the tail wag the dog.

[encoder]

I'd wager that every large bank has internal scoring for credit applicants. I'd also wager that every one of those scoring systems uses Fico as an input. (Along with, say, Income, DTI ratio, some quantitative measure of your current/past history with the institution, etc)