fybpm

96 POINT FICO DROP!!!!!!

Recommended Posts

HELOC's and inquiries are credit score napalm to RE Investors. You can't do anything about the inquiries, but HELOC's are another matter. Now that you know what these can do to your score, you need to weigh the benefits of this easy (and inexpensive) way to access equity against future loan needs. Only you can determine if the cost (in points) is worth it for your particular situation.

My recommendation is to keep stepping on heads with a GW letter to the higher ups at the creditor. Who knows, you just may find a sympathetic ear. Offer to allow them to re-open the account if they will remove the late. They want your business, after all.

You also need to understand utilization. Zero balances actually work against you. Keep at least 1% (of the available credit amount, or highest amount reported) showing.

Link to post
Share on other sites

I've ready frequently that zero balances hurt your score. Presently my top negative factor is that I have too many accounts with a balance (5). It says that, on average, consumers only have 4 accounts with a balance and having a balance on too many accounts is considered a risk factor.

Maybe it depends upon the score card - in same cases it's a negative and some a positive?

Link to post
Share on other sites

"...having a balance on too many accounts is considered a risk factor..."

Absolutely. So is having too many accounts. That indicates the POTENTIAL for getting into credit trouble. The target range is between 2 and 4 revolving accounts, and like someone in the thread found out, that includes HELOC's. But my comments were directed to carrying a balance (for maximum points from utilization) on those few accounts. The reason you get a deduction for carrying a zero balance is that it doesn't provide the scoring software with information. So, it's not necessarily a negative, just doesn't provide as many points as showing a low balance in relation to a high credit limit.

This is also the reason behind the recommendations to avoid store CC's. For best utilization #'s, the consumer needs to USE their revolving accounts each month. With most store cards, that may mean buying something you wouldn't buy otherwise (not a wise financial move). I personally recommend two "all-purpose" CC's which can be used for things you need anyway.

Link to post
Share on other sites
With a brand new late, this can and will tank your score like that. As far as FICO is concerned, you have a late and so you are now, immediately, in a high risk group......the first sign of problems is that first late. That is how it is viewed and that is scored.

Too true. I have pretty groovy credit, and the FICO score simulator showed that a single late payment would drop my score by 100 pts. :cry:

Link to post
Share on other sites
Guest
This topic is now closed to further replies.