roadsterboy wrote:First, you can't get credit without credit, the infinite loop scenario, there is a process to fix this though. check
It's a catch-22 not an infinite loop and there are ways to get one's foot in the door. Secured and/or creditors with more lax approval criteria such as some credit unions are the typical suggestions.
roadsterboy wrote:Fifth, Utilization, Not enough use = BAD, too much use = VERY BAD
That one's not too difficult. Don't allow all your balances to report as zero. Don't exceed 30%. If you want to eke out every possible point then allow only one balance to report at 10% or less.
roadsterboy wrote:Carrying a balance is revenue to the CC cos, too much Utilization means lots of interest for CC Cos but they also feel risky with you so they come up with <30% as 'preferred' use.
Swipe and other fees are also revenue but what generates revenue isn't relevant to how one's credit is assessed. I've never had problems since I've been able to get my reported utilization to around 10% (closer to ~12% right now). The problems I had were back when my utilization exceeded 60% for long periods of time. That said, utilization is just consideration and the rest of my credit was pretty clean.
roadsterboy wrote:Large credit lines lower Utilization and then the banks say "You have too much available credit" for mortgage considerations. "Too many accounts", "too many accounts with balances", "Too many inquiries", "heavy use of revolving credit", many have heard these before. Then there are people so obsessed with their scores or acquiring more credit/cards. Hard Pull/Soft Pull, the whole thing is a complex as a middle east peace accord!
The reasons really don't matter unless they're cited as denial reasons. My scores go over and under 800 and I get "too many accounts with balances" and "balances too high". However, none of those have been cited as denial reasons. If one is applying for a mortgage then one needs to do whatever it takes.
It's really not all that complicated once you're familiar with the usual factors and what the scoring models tend to favor.