Correct me if I am wrong Josh, but as far as revolving credit affecting a credit score, it depends on finding that balance between open trade lines, balance on those trade lines and percentage of available balance.

 

I think it depends on what bureau you are talking about however what they say is true but as far as having an open account that isn't used often. The way it is looked at is if you don't use it in over a year the "trade line" so to speak, some lenders won't use it, however your score will still be the bomb diggity because you have good payment history so to speak. I'll do a basic break down of the very very basics.............


Good:

Having at least 3 or 4 open trade lines at any given time, shows that you know how to manage your credit

Student loan over 10,000 dollars - shows dedication to finishing something and you are using the money responsibly for school

Having a roll over balance on your credit cards. Depending on what your limits and income are usually I tell customers about 1000-1500 is a good rolling balance.........however I myself have about 5,000 in roll over but it hasn't adverseley affected my credit since I have a lot of open trade lines

mortgage - probably the best next to a student loan and having good mortgage payment history is really the only way to get over the 800 credit mark.........sure some people out there may have a high credit score of over 800 but to get a middle fico of 800 which is what everyone looks at unless otherwise specified, its hard without a mortgage. Highest middle credit score i have ever seen was my father's at 827...........but he is a unique situation........

Only using half your balance........say your card limit is 10,000 you only have 5,000 on it, they don't like it when you are always close to your limit


Bad:

Opening 2 or 3 of the same kind of account in the same 3 month period. If you open 3 credit card accounts whether it be a visa, victoria secret, best buy.......its still all looked at the same and it shows on your credit report who is looking at your credit and how often. While you don't suffer adversely with multiple views of your account you do suffer if the views are all for the same type of credit...........

Paying off loans in less than 12 months........it shows erratic payment history, whereas if you wait at least 12 months then you have a solid year of payment history. My credit got hit the hardest because of this, I have gotten I think 3 auto loans in the last year and pay them all off so that is showing bad payment history

Not opening any new trades...........my mom has a 802 credit score and it probably would be higher but she didn't have any trade history really because she even paid off her mortgage. They look at that like "well is this person just going to spend all their credit all at once?"

Bad mortgage history - this one is killer..........this one will seriously bury you. They figure "well if he doesn't care enough to pay for where he lives and where he has roots why the hell would he pay off his car?"



Again this is a very short very compacted list there are a lot more factors but that is a basic run down

 

correct, it all depends on income and situation but what i gave was more of just a general guideline without really knowing his situation or past history

 

What is a rolling balance? A balance you carry from month to month?

 

flyromeo - Yeah, your score is probably low because of the number of trade lines and their balance proportional to the total limit. I am guessing your HSBC card has a $1500 limit as well? You also have a few late payments which will drop your score as well as the tax liens. I am assuming your liens are still listed on your credit report as FED TAX REL or CO LIEN REL or CITY LN REL depending on where the lien was filed. If they are on your return without the "REL" make sure you contest them if you did in fact pay them.

 

This is what it shows for my Tax lien:
State Tax Lien
Status: Released
Date Filed/Reported: 02/17/2004
How Filed: Individual
Reference #: 844346
Released Date: 07/14/2004
Court: QUEENS BOROUGH, JAMAIC
Amount Owed: $722



& then it shows this one:

State Tax Lien
Status: Released
Date Filed/Reported: 02/09/2004
How Filed: Individual
Reference #: E022828735
Released Date: 07/14/2004
Court: QUEENS BOROUGH, JAMAIC
Amount Owed: $721

It shows that there were two liens but it was only one. They both have didnt reference numbers though.

HSBC limit is 15,000

 

Yeah, that looks good. The credit reports we run here are all text based so the "REL" means that they have been released. You can try to contest the second one if they are in fact the same.

Surprised on having such a high limit on that one card since it says you have a 65% total revolving balance which would put your credit line limit at about $3200 total.