Someone asked for my proof about how I know what the optimal credit score / credit model is. I believe I posted that the simple answer is to have 4 major credit cards, 1 department store card and 1 installment loan paid off in full. No lates.Well, here is my proof. I was looking for the chart and someone else just sent me the link.http://www.ftc.gov/bcp/creditscoring/present/img008.gif This clearly shows that 3-5 revolving credit lines is the optimal number for max FICO point score.Other items that max your score:Owning a paid off houseLiving at your current address for more than 10.5 yearsReporting a professional type of employmentBeing retiredHaving both a department store and major credit cardHaving a checking and savings accountDebt ratio of 15number of recent inquiries at exactly 1 (that is funny that 1 inquiry is better than zero inquiries)Being recorded with that credit bureau for more than 8 years# of revolving trades outstanding at 1 or 2 (Does this mean carrying a balance on 1 or 2 of your 5 cards?)Percent credit utilization of 0% to 15% (use of credit limits)Having 3 positive tradelines that report paid as agreed with no lates, less than 3 tradelines does not remove points, but it does keep you from maximizing your score.
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