Status Update: You
are in the first round of challenges. We are awaiting responses
from Trans Union, Experian, and Equifax.
Those first updates
typically won't come in your mailbox until weeks 4-6, oh wait, we just
finished week 4 - hurray! Now be diligent for us about looking for
those letters. Typically, they come between weeks 4 and 6 - as in
NOW!
Remember that in the
FICO model the "ideal" person has 3-5 credit cards. If
you still are not in this range, shoot us an email and we will reply with
ways and strategies to get more revolving accounts.
Remember to try to
keep your revolving accounts at no more than 30% usage to have the best
scores. That means no more than a $100 balance on a $300 limit card
or no more than $300 balance on a $1,000 limit card. Most cards
report to the credit bureaus once per month right after your statement
cuts. If you have a $1,000 credit card and each month you charge it
up to $800 or so then pay it off when the bill comes, remember the credit
bureaus only see updates once per month so they never know you are paying
it off. To them you are always carrying roughly a $800 balance
which in this case is 80% utilization! If you fit this scenario,
then adjust your habits by paying off the card just before your
statement cuts. This technique is often helpful with small limit
cards where it is hard to stay under 30% utilization! The bureaus are
beginning to track how much you pay on your credit cards monthly (called
time series payments or payment trend data). This data is still
many years away form being used in the FICO score models so make sure
your balances are 30% of the limit or under when those statements cut.
Reminder:
send us any letters you receive from Trans Union, Experian, or
Equifax. Also send us any letters you receive from the original
creditors. Send them by email, fax, or mail.
