Please tell me if I am understanding...

[rodeogal]

OK... is my understanding correct of how this affects your credit scores:

1-It doesn't matter how much credit you have available on a cc, only how much you are using? ie, lower avail with 100% free is better than giant avail used at 90%.

2-The older a neg is, the less it affects your score.

3-If you pay an old neg collection account without a delete, your score will take a hit.

**Also, if you have had trouble in the past, but the last 3-4 years looks perfect with a mortgage, car, cc mix, will that buy any favor with a lender or do they look ONLY at the scores?

[willingtocope]

1. Not a yes or no question. Depends on which score. The FICO Bank Card score (the "sucker" score) does care about "utilization". The FICO Mortgage score cares about available unsecured credit.

2. Generally true, but, again, depends on which score. BK affect the sucker score longer than the mortgage socre.

3. Generally true, but, your mortgage score (or at least the mortgage underwriter's approval) will improve.

**Depends on the lender. CCs will probably issue you high interest rate cards. Mortgage companies will give you a mortgage, but the rate may be a bit higher. New cars won't care.

[rodeogal]

Yikes. I did not know there were 2 different FICO scores. Man... oh well, I am interested in buying another house at some point in the future and trying to raise my scores. Thanks!

[rodeogal]

Ok..one more question please:

If I am able to get PFD on any of the old collection account will that help either score?

[willingtocope]

PFD always helps. In fact, a mortgage underwriter will insist that any outstanding collection accounts be paid.

And, for the record, there are like 17 different FICO scoring models covering everything from the sucker score, to mortgages, to car finanacing, to medical billing, to insurance premiums....