WSJ Article: How to Perfect Your Credit Score

[ari2955]

So I'm not clear enough..  He says that using a charge card like the premier rewards gold card isn't reflect in the utilization.  I just took a look on my report and I see that my balances from my charge card is there..  Can someone explain more..

Consider using charge cards, such as those issued by American Express , as their balances often aren’t included in the credit-card debt-to-limit ratio in certain FICO scores that lenders use, says Mr. Dornhelm of FICO.

Some lenders do include it, and some don't

[benjie1305]

Well yeah. All it means is that you should try to pay off the balance before the statement closes on all but 1 or 2 cards if a few points on your score are critical to you...

Right - but to anyone that is into churning cards consistently this really doesn't matter from the way I understand it. If this is really only for the thin line between very good - perfect score then no churner falls into that due to the points it "costs" to churn and pull consistently.

[Achas Veachas]

Right - but to anyone that is into churning cards consistently this really doesn't matter from the way I understand it. If this is really only for the thin line between very good - perfect score then no churner falls into that due to the points it "costs" to churn and pull consistently.

Some people will withhold from applying for new cards a few months before applying for a loan or mortgage for this very reason...

[benjie1305]

Some people will withhold from applying for new cards a few months before applying for a loan or mortgage for this very reason...

myself included

[Achas Veachas]

myself included

So you're considering a new house? There's a nice one down the block from me just went up for sale...

[Cowboysuk]

Yep. You can think of it from the credit issuers' perspective: the more accounts you're tapping in a month, the less likely you are to pay them all back.

It's doubtful that this has much of an impact on the FICO score but for some people that are on the bubble of 800 or another threshold it could make a difference of $1000s on a home loan as the article noted.

I can confirm as I have been declined in the past for "too many accounts with balances".

[benjie1305]

So you're considering a new house? There's a nice one down the block from me just went up for sale...

Send me the details

Never hurts to look around.

[TimT]

I can confirm as I have been declined in the past for "too many accounts with balances".

Large balances or $5 balances ?