Advice needed - close credit cards vs. reduce credit limits

GCinFLA · 08-05-2017, 12:43 PM

Quote:

Originally Posted by B58togo

There is no "high" 800's unless you're talking about some bogus Vantage score or something other than a true FICO score. FICO is capped at 850. FICO is the only score to be concerned with. You have one with Trans Union, one with Experian and one with Equifax.

Incorrect.

Of the roughly 28 FICO formulas, the general Scores range from 300 to 850, but the Industry Specific Scores (such as Credit Cards and Auto Loans) used by BMWFS and other Automobile Financial Firms, range from 250 to 900.

upstatedoc · 08-05-2017, 01:16 PM

Quote:

Originally Posted by Doc Oc

Quote:

Originally Posted by jgoens

The way to increase your score is to have a card, use it for everything and pay off almost all the balance each month. You will pay interest each month but what increases the score is demonstrating that you can have debt and always pay on it. I learned this from a credit guy. I currently have a score of 920( have been at that or higher for ten years) and used this method for my wife and got her score to 890.
That only applies to the score and not how large a loan or credit you are qualified for.

I'm lost, 850 is highest possible, no?

I could swear that when my wife and I refinanced our mortgage one of our credit scores was in the 900s.

David70 · 08-05-2017, 02:39 PM

Quote:

Originally Posted by BayMoWe335

I'd advise never closing a line of credit. Why do it? I'd also never open store credit cards...just stick with the major banks.

My Experian score is 848 and TransUnion is 847 as of this morning.

I have over $100,000 is credit card credit, but my current balance is like $500. The thing that is "hurting" my near perfect score is my relatively short length of credit history. I have no idea why I can't get a perfect score. I think one month, it was literally 849 and it's been bouncing between 845 and 849 for like 2 years. The credit/balance ratio I think really helps my score.

http://www.experian.com/blogs/ask-ex...coring-ranges/

I would counter that with your credit score I can't see any reason to have credit cards open that you aren't using, just another hassle for something you will never go back to. Even if your credit score dropped a few points will have no affect on any loan you plan on getting.