What counts more on credit score?

iVillage Member
Registered: 12-12-2004
What counts more on credit score?
3
Sun, 04-02-2006 - 3:07am
Hi, everyone and happy April. Q--What counts more on a credit score? Paying on time? Paying ahead? Paying more on monthly bills? For example: We pay mortgage on time. But--what if you pay "extra" on credit cards, cell bills, gas and electric? Does that count somehow (i.e., snowflaking, rounding up, etc.). What has the most impact? 2)WOuld you close a cc that you dont use at all? I have a B of A Visa CC I never use. Havent used in about two yrs. Forgot I even had it. They send a statement of "0" balance. Should I close it? I'd rather have one cc with a big limit (for an extreme emergency, ie., flood in house, etc.) than two or three I dont use with $500-$1000 limits. Of course, the ideal would be not to have any cc's at all, which is what I am working toward, but do you need to have "one" for credit-worthiness? Thanks. WHiz.
Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Sun, 04-02-2006 - 3:43am

Hello Whiz,


I found this information on credit scoring on www.myfico.com:


Five parts to your credit score:


1. Your payment history - about 35% of a FICO score
Late payments, bankruptcies, and other negative items can hurt your score. But a solid record of on-time payments helps your score.

Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished

iVillage Member
Registered: 12-12-2004
Sun, 04-02-2006 - 1:44pm
Hi, Lindsay---Thanks for the great info. I think I might close the B of A account, and one store card that I never use. DH has a whopping $19K limit on one of his, but mine are here and there. I just thought that paying only the extra amounts on cc and mortgage count, not necessarily the gas bill, cable bill,etc. I am going to print out this info. BTW---is there any info that anyone knows of, with the new rating scale they want to use--i.e., ABCDEF? Cant find anything on it. Whiz.
Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Sun, 04-02-2006 - 5:38pm

Hello,


Paying extra on credit card and loan accounts *does* make a difference in the credit score, because the balances are slowly going down. However, if you target *one* debt and pay extra on it, you'll have a much quicker effect, as the balance goes below the 50% mark. I've seen my credit score go up 5 points just for bringing one credit card under the 50% mark for debt vs available credit.


Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished