vbclown Posted May 1, 2007 Report Share Posted May 1, 2007 I've had a checkered past in terms on on-time payments, but never had anything over 60 days, no charge-offs, no collections, etc...Today I have $0 consumer debt. I have three active credit lines$8200 Wells Fargo Visa (6 years old, pay in full every month)$5000 Discover Card (18 years old, pay in full every month)$1000 Nordstrom (18 years old, pay in full every month)I have about 7 other trade lines that are closed (all paid in full), 2 car loans via credit union, Macy's, etc...I currently only have 2 trade lines with any negatives in past two years. I have a single 30 day late with Nordstrom 1 year old. I have a recent (60 days ago) 30 and 60 day late, and two older 30 days late (12-18 mo old) with BofA on an installment signature loan (bought from MBNA) that I recently paid-off.My credit stores are in the 680-710 range. I'm working with BofA/MBNA to get the two lates off and I assume if I can, they will cause a nice jump.When I look at my fako scores with truecredit, it makes the following suggestions:# Not enough revolving debt experience. [TransUnion, Experian, Equifax] A healthy balance of credit and loan accounts is key to achieving a high credit score. It is important to build a record of responsible credit use over time with different types of accounts. Consider opening a new account to strengthen your credit report and improve your score.# There was recently a late payment posted on your credit report. [TransUnion, Experian, Equifax] Payment history is a significant factor in the credit scoring process. Regular on time payments make you appear more creditworthy to potential lenders. On the other hand, late payments indicate that you may be in financial distress. If you have trouble remembering to make payments, consider signing up for an online bill payment service that will make it easier to pay on time.# There are not enough premium bankcard accounts on your credit report. [TransUnion] A healthy balance of credit and loan accounts is key to achieving a high credit score. It is important to build a record of responsible credit use over time with different types of accounts. Consider opening a new account to strengthen your credit report and improve your score.# There are too many late payments on your credit report. [Experian, Equifax] Payment history is a significant factor in the credit scoring process. Regular on time payments make you appear more creditworthy to potential lenders. On the other hand, late payments indicate that you may be in financial distress. If you have trouble remembering to make payments, consider signing up for an online bill payment service that will make it easier to pay on time. Obviously, I'm doing what I can on the late pays, but these notes seem to suggest I should open another line of credit with a premium lender. I'd really rather not get any more credit, and I'd rather not add inquiries (I have 1 inq on all three reports at the moment).I'm trying to get int he mid 700's before I buy a condo.Should I really open another credit card? If so, what's my best option? AmEx? Chase/United Millage card (I fly a lot on United)? Something else? Should I ignore the advice on new accounts and just focus on lates?Thanks!Jason Link to comment Share on other sites More sharing options...
stancil1 Posted May 1, 2007 Report Share Posted May 1, 2007 At this point, I would focus primarily on the lates. Adding another card will most likely cause your scores to drop a bit at first so if you do get another card, just remember that. Do you have a target date yet for the condo purchase ?D Link to comment Share on other sites More sharing options...
willingtocope Posted May 2, 2007 Report Share Posted May 2, 2007 The other thing to remember is that they're called FAKO scores for a reason. They're not real. And, they're really flavored more towards answering "can a creditor make money off you" rather than "will you pay your creditors back".A mortgage lender will use true FICO scores. And, since FICO has about 17 different scoring models, they WILL pick the one that says "will you pay your mortgage". Since the exact algorithm is secret, its difficult to be exact, but...I would bet that FICO model would look kindly on NOT having another credit card.Work on removing the lates, and then talk to a broker...see what FICO really says. Link to comment Share on other sites More sharing options...
UNCForest Posted May 2, 2007 Report Share Posted May 2, 2007 haha i love calling them "fake-o" scores too. Link to comment Share on other sites More sharing options...
Recommended Posts