FICO Credit Score Check

As you know, my parents have been quite active with the credit cards over the past several years earning a ton of frequent flyer miles, hotel points and even cash back.

Though in the past 12 months, however, they've stopped applying for new cards and have focused on retention offers instead. Why? So that their credit history will be clear of any "hard inquires" as they prepare for the day we become home mortgage owners.

Plus, many of the banks have been getting more restrictive with card applications so it's unclear if they'd get approved for new card anyway with all the active accounts (about 25 across both my parents).

Many of my parents' friends have inquired about this game they play and always ask if our FICO credit score is impacted in anyway.

The answer is Absolutely! But not in the direction you'd think. Remember what factors into the FICO scores.

1. Payment History (35%)
2. Debt Ratio (30%)
3. Credit History (15%)
4. New Credit (10%)
5. Types of Credit (10%)

Because (a) the Debt Ratio is such an important factor and (b) we don't spend more because we have extra credit cards, the more Available Credit you have, the better.

The scores range up to 900, but if you have anything over 740, then you're getting the best rates for a car loan or mortgage, so it doesn't matter how much over 740 you are.