% of balances to credit limits is too high on revolving accounts

FICO - Understanding the numbers?

% of balances to credit limits is too high on revolving accounts

% of balances to credit limits is too high on revolving accounts

% of balances to credit limits is too high on revolving accounts

% of balances to credit limits is too high on revolving accounts

08 - TOO MANY INQUIRIES LAST 12 MONTHS

05 - TOO MANY ACCOUNTS WITH BALANCES

09 - TOO MANY ACCOUNTS RECENTLY OPENED

05 - TOO MANY ACCOUNTS WITH BALANCES

09 - TOO MANY ACCOUNTS RECENTLY OPENED"

05 - TOO MANY ACCOUNTS WITH BALANCES

09 - TOO MANY ACCOUNTS RECENTLY OPENED"

You've added balances to accounts that did not have a balance last month.

You've had new inquiries since last month.

You've opened new credit cards/loans since last month.

HiLine said: A couple of potential causes:

You can address the "too many accounts with balances" by pre-paying your credit cards (before the statements cut, so that the balance on the statement is "0" or slightly negative) for 2 months. 2 months should allow time hopefully for them all to post to the CRAs, because the different companies have different schedules of when they update the information.

Any time you add a new account - even if it's due to a refinance - you are potentially re-aging your credit history. younger. Old accounts don't just get deleted due to refinances, nor should you want them to be. They simply get closed, in this case paid. which is good. But, you simply have to accept that every time you add a new account - with no history showing - it will temporarily lower your credit score, for at least six months to a year, in order to establish your payment history.

Look at it this way. In Fico calculations. Closed accounts cannot significantly help your fico. they can really only potentially hurt your fico, if unpaid. Fico does not acknowledge closed monthly history, as it does for open accounts. That is why - if you close your oldest account - your fico score will tend to drop considerably. It is also due to having less available credit, therefore, higher utilization.

Perhaps I've conflated utilization, with history. Hey, what can I say. I'm rusty. Either that, or I believe in conspiracies.

I did not realize this was the case; I guess I assumed if I paid the balance off each month, my score would be reflective of that.

Ah, so my habit of opening the sock drawer only once a year to make a small charge on every one of my idle cards is probably not a good strategy?

Ah, so my habit of opening the sock drawer only once a year to make a small charge on every one of my idle cards is probably not a good strategy?

No, it's fine. It only really matters when you are trying to maximize your score ahead of a mortgage, auto, or refi application and might need every point possible.

Ah, so my habit of opening the sock drawer only once a year to make a small charge on every one of my idle cards is probably not a good strategy?

No, it's fine. It only really matters when you are trying to maximize your score ahead of a mortgage, auto, or refi application and might need every point possible.

not sure what thatE means. About banks. has nothing to do with score . Zero balance debt is zero balance, whether its 1 mo or 10

2. Auto industry FICO,

3. Mortgage industry FICO.

I just got 3 credit report from the refinance (Amerisave) and they are saying the following:

"Credit Score Disclosure Statement"

EQUIFAX. SCORE. 794. 00010 PROPORTION OF BALANCES TO CREDIT LIMITS IS TOO HIGH ON BANK

REVOLVING OR OTHER REVOLVING ACCOUNTS

00011 AMOUNT OWED ON REVOLVING ACCOUNTS IS TOO HIGH

00006 TOO MANY CONSUMER FINANCE COMPANY ACCOUNTS

EXPERIAN. SCORE. 807. 01 AMOUNT OWED ON ACCOUNTS IS TOO HIGH

10 PROPORTION OF BALANCE TO HIGH CREDIT ON BANK REVOLVING OR ALL

TRANS UNION. SCORE. 797. 006 TOO MANY CONSUMER FINANCE COMPANY ACCOUNTS

011 AMOUNT OWED ON REVOLVING ACCOUNTS IS TOO HIGH

014 LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED

I have 16 credit card that have been "paid Closed" and non of them are listed as Late or Past due.

Should i get rid of the credit cards that say closed?

Are these statements (above) hurting my scores?

How do I get rid of them?

I just got 3 credit report from the refinance (Amerisave) and they are saying the following:

"Credit Score Disclosure Statement"

EQUIFAX. SCORE. 794. 00010 PROPORTION OF BALANCES TO CREDIT LIMITS IS TOO HIGH ON BANK

REVOLVING OR OTHER REVOLVING ACCOUNTS

00011 AMOUNT OWED ON REVOLVING ACCOUNTS IS TOO HIGH

00006 TOO MANY CONSUMER FINANCE COMPANY ACCOUNTS

EXPERIAN. SCORE. 807. 01 AMOUNT OWED ON ACCOUNTS IS TOO HIGH

10 PROPORTION OF BALANCE TO HIGH CREDIT ON BANK REVOLVING OR ALL

TRANS UNION. SCORE. 797. 006 TOO MANY CONSUMER FINANCE COMPANY ACCOUNTS

011 AMOUNT OWED ON REVOLVING ACCOUNTS IS TOO HIGH

014 LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED

I have 16 credit card that have been "paid Closed" and non of them are listed as Late or Past due.

Should i get rid of the credit cards that say closed?

Are these statements (above) hurting my scores?

How do I get rid of them?

Your scores are good. Trying to remove positive closed accounts May have unintended consequences like lowering your average age of accounts. You will find if you browse creditboards that these reasons often Have little basis in reality, particularly for very high scores like yourself. Some things like only having a smaller Number of accounts actually reporting balances or decreasing your overall utilization can be addressed, but don't mess with the positive trade lines.

I just got 3 credit report from the refinance (Amerisave) and they are saying the following:

"Credit Score Disclosure Statement"

EQUIFAX. SCORE. 794. 00010 PROPORTION OF BALANCES TO CREDIT LIMITS IS TOO HIGH ON BANK

REVOLVING OR OTHER REVOLVING ACCOUNTS

00011 AMOUNT OWED ON REVOLVING ACCOUNTS IS TOO HIGH

00006 TOO MANY CONSUMER FINANCE COMPANY ACCOUNTS

EXPERIAN. SCORE. 807. 01 AMOUNT OWED ON ACCOUNTS IS TOO HIGH

10 PROPORTION OF BALANCE TO HIGH CREDIT ON BANK REVOLVING OR ALL

TRANS UNION. SCORE. 797. 006 TOO MANY CONSUMER FINANCE COMPANY ACCOUNTS

011 AMOUNT OWED ON REVOLVING ACCOUNTS IS TOO HIGH

014 LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED

I have 16 credit card that have been "paid Closed" and non of them are listed as Late or Past due.

Should i get rid of the credit cards that say closed?

Are these statements (above) hurting my scores?


wiseGEEK: What is a Revolving Credit Limit?

A revolving credit limit is a line of credit open to the limit agreed upon that you can borrow. This is common in two types of loans, those of credit cards and in certain home equity loans. Although you may have a maximum limit of credit available to you, this may be called "revolving" because paying back anything you borrow leaves you continual access to credit.

Most credit cards work on the principle of the revolving credit limit. You have a set limit of credit. As long as you make payments, or pay back whatever you owe, you continue to have access to the credit up to its limit.

This limit is revolving because your access to borrowing money hinges on your paying back what you owe, thus credit limits will change. Say for example you have a credit card of this type. You can borrow up to a maximum of $1,000 US dollars (USD) on the card. You have spent $500 USD already. Your credit limit, the amount you can currently borrow provided you are making regular payments, is now $500 USD.

If you make a $250 USD payment on the $500 USD you owe, your credit available now changes to $750 USD. If you pay off the total amount owed, you can again borrow up to $1,000 USD. On the other hand, if you don’t make payments, the bank may decrease your limit, declare you in default, and refuse to extend any more credit to you. You only have access to the credit so long as you abide by the terms of your agreement with the lender.

Another form of revolving credit limit is based on the equity you have in your home. This is called a secure loan, rather than an unsecured one. When you borrow money, the lender now owns part of the equity in your home until you repay it. When people have a lot of equity in their homes, they may occasionally use this form of credit rather than using the unsecured loan provided by a credit card company.

Financial experts caution against using credit when you don’t absolutely need to. Homeowners who borrow on their equity can find themselves with very little equity left in their homes when they overspend. This can create a financial crisis if you suddenly become unable to make your payments on the revolving credit limit or on your house. Especially when housing markets become unstable, you might end up owing more on your home than it is actually worth if you take too much equity from your home.

If you do plan on using a revolving credit limit that is supplied by equity in your home, it’s a good idea to set your maximum spending limit fairly low. Also resist offers from banks to increase that limit. Certainly there are times when you might need to borrow on the equity of your home, but this may be more cheaply accomplished through refinancing your home, where you lower your home interest rates, than it might be if you have a standing revolving loan with a bank. Revolving credit often poses a great temptation to overspend.

2) Suntan12- I agree with you, but homeowners also benefit from a revolving credit line. If for example a home equity line is opened against the homeowners home and is used strictly for emergencies this can be particularly helpful.

If a homeowner who has a job takes out a home equity line of credit and then suddenly loses his job, then the home equity line of credit could be used once the savings have been absorbed. This gives an additional cushion for the homeowner until he finds another job.

Also, if the line is interest only, then the payments are even lower than a conventional loan, so this is another reason why the home equity line of credit can come in handy in case of an emergency.

1) Revolving credit accounts are also ideal for businesses.

Since business needs change from time to time a revolving credit account allows the company the ability to make purchases only when necessary and still have the available credit in case of an emergency.

As long as you are careful, a revolving credit line or credit card can be a useful tool in any business.