My FICO scorecard shows that I have actually "too few accounts via payments as agreed". So I came on below to look at the wiki, but that didn't really clarify much for me either. Is the scorecard saying that I can improve my credit score by opening one more crmodify card?
Yeah, it's basically saying that you don't have many type of companies reporting in to your credit file, or that you have actually a "thin file".
You are watching: Too few accounts with payments as agreed
Is this necessarily a bad thing? When I check my FICO through Amex, they tell me the very same point (“also few accounts”) but likewise report a >800 score. I recognize in my case it’s because I don’t have any mortgage or auto loan background, and just have 2 years of student loan repayment. Will this absence of debt history hurt me when I begin using for mortgages?
If you just have one line of credit it shows to lenders that you are just trusted through one line of crmodify. Compare that to someone who has actually five lines of crmodify, and no missed payments, they seem safer to lend to. Nopoint wrong with just having one, but having actually a more broad selection of crmodify obtainable to you will look great.
Opening an additional credit card has actually the complying with effects on your score:
Increases it by including an additional account (even more is better) and by reducing in its entirety crmodify utilization (much less is better). Reduces it by lowering your average age of accounts (greater is better).
Overall, it’s a great concept to have more cards to improve your score in the medium to lengthy term. Short term can go either means.
This is what's called a "thin file." FICO scoring likes to view that you have successfully handled different kinds of credit:
- revolving credit (crmodify cards)
- installment debt (car loans, individual loans)
- mortgage loans
- student loans
If you drive and buy gas, consider acquiring one or 2 crmodify cards from gas carriers - buy all your gas on them and also pay in complete each month. The cards are low limit (so you are unmost likely to get in over your head), they are actually issued by substantial banks prefer Citi and Synchrony, they report to the credit bureaus. I have actually a 35-year-old Conoco Phillips card with a spotless payment history that is doing wonders for my 800+ credit score.
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· 2 yr. ago
I was hovering around 802 for a handful of years, then paid off my vehicle loan and the just point on my credit line were a bunch of credit cards that I pay off in complete each month. Crmodify Fate dinged me for having as well few account kinds. my one amex discussed 10k throughout our current relocate right into our new residence and CK dinged me for 60 pts together with 2 tough inquiries. Next off point you recognize, the mortgage mirrors up on my crmodify report and miraculously my credit score climbed earlier as much as 790.
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Comment deleted by user · 2 yr. ago
· 2 yr. ago
Except a key item of indevelopment that OP didn't particularly contact out yet remained in the screenswarm is that they have no missed payments.
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