I like these changes.
http://articles.moneycentral.msn.com/Banki...008.aspx?page=1

What does "Having both revolving and installment accounts on your report could help you more, as the new formula is more sensitive to your ability to handle different types of credit." this mean?

(I still have the rest of article to read, but what does that sentence mean?)

Aren't the following 2 paragraphs contradicting each other - is it better to have 1 cc that you use and pay or have multiples (and cause more confusion than necessary?)
Paragraph #1: Keep your accounts active. In the past, the biggest risk from letting accounts be inactive is that your lenders might close them, thus dinging your scores. Now simply having too many inactive accounts could count against you in some circumstances. Once again, the new scoring formula is looking for evidence you can responsibly manage credit. Consider keeping your oldest and highest-limit cards active by charging something to them each month (making sure to pay the balance off in full, of course).

Paragraph #2: That doesn't mean you should march out and get a loan you don't need. Loans you've already paid off will continue to help your scores as long as they're still on your credit reports, and many lenders continue to report closed installment accounts for 10 years. But if you're trying to improve a low score, an installment loan is likely to help you even more under FICO 08 than it did under the classic FICO score.

Revolving accounts are accounts such as credit cards that once you pay it off your limit goes back up to a certain number.
Installment accounts are mortgages and student loans that you pay off gradually.

revolving = credit card
installment = loan

Thank both of you, but isn't it better to not have loans and pay off your bills? Why is it advantageous to have a loan?

Basically they are saying if you have a mortgage it's good. If you have an older credit card, try to keep it open. Charging something once every so often will keep it active and deter the cc company from closing the account. Any account that reads "closed by issuer" looks bad.Because it shows you can handle paying one off.

Why is a mortgage good? What if one has ability to pay in cash, wouldn't that be better?
Ahh..I get it..


So is it bad to have only one cc and use that constantly?

As long as you are paying it on time it's not bad.

so it's better for one to be paying a ton of interest to bank to keep FICO score up than to pay it off if one has the cash immediately?

Not necesarily, that's a totally seperate question and won't affect your score too much.
Additionally, it would be idiotic to consider your FICO score when making that decision.
FICO scores are mainly important for people who will be needing to buy a house or a car in the coming years. From what I understand you aren't in that category.

OK, I still don't get it 100% but have a better picture of what you mean.
Huh?!?!

huh what?

Why won't I be needing a house or car in the coming years?

Ok maybe you will be. I thought you had a mortgage already.

Why is it inconsistent to have a mortgage already and need to buy a home in a few years?

It's not. Excuse me, I'm a little under the weather today. (Feeling dizzy)

Interesting... Thanks for posting the article.

no problem and refuah shleimah (I just thought I was the one who was confused?)

And for shidduchim.

I would have no idea.
That would be interesting if they did need to submit their score to get a shidduch.

I replied to this one.

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Low FICO --> More Interest --> More Debt --> Late Payments --> Low FICO |