Credit scores –

As of March
2005

A) Any accounts not used (regardless
whether left open) over the previous 6 months will have NO EFFECT on current
credit scores.

Someone with perfect
credit on all accounts, but accounts have been unused for 7 months, and one
single 30 day late payment within the last 6 months will be whacked for that
late more than all good credit built
up.

ON THE OTHER HAND… simply
buying a cheap lunch & then paying off each card immediately, once a month,
continues the useage of that account in your credit score
calculations!

B) Account size has no
bearing on scores. If one newbie person has 5 new revolving accounts at $500
limits each, and another experienced person has 5 new accounts with $100,000
limits… all else being equal, neither will calculate better nor
worse.

C) The total numbers of open
accounts is irrelevant… rather, what matters is the number of accounts ACTIVE
in the last 6 months.

D) The OPTIMUM
number of active revolving accounts is now
TWO.

E) There is SUPPOSED to be a
30-day rolling window for mortgage inquiries that count as a single hit, and a
rolling 14 day window for automotive
inquiries.

F) “An inquiry can cost a
consumer 2 points to 50+ points off their score depending on the other variables
in the report (the average is 3-35). Be aware, there is no specific
value.”

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