No. of Recommendations: 5
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 house
Living at your current address for more than 10.5 years
Reporting a professional type of employment
Being retired
Having both a department store and major credit card
Having a checking and savings account
Debt ratio of 15
number 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.
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement