Mortgage delinquency help Q: My mortgage broker said that my credit score was poor (and the interest rate I had to pay was high as a result) because of a number of credit card delinquencies I had during the last year. So I paid off all the delinquent accounts and consolidated the remaining balances into 2 cards. But when I reapplied, my score was lower rather than higher! What is going on? ------------------------------------------------------------------------------ A: Delinquencies reduce your credit score because they are viewed as evidence of a weak commitment toward meeting your obligations. While they are far from a perfect indicator, whatever value they have as evidence of your attitude toward debt is not wiped away when you repay them. The only thing that will wipe them away is the passage of time along with a better payment record. While this explains why your credit score did not improve, it does not explain why it went down. No doubt this was due to the consolidation of your balances, which raised the ratio of your balances to your available credit lines. The computerized genie who scores credit does not like a high ratio of balances to credit lines because it may indicate financial distress. But don't run out tomorrow to open some more lines, because the genie also has a strong distaste for multiple new accounts in a short period of time. That can be another indicator of financial distress. Here is the best and the worst of credit card usage as seen by the genie who scores credit. BESTWORST 4 Cards 15 Cards No Delinquencies in Past Two YearsMany Delinquencies in Past Two Years Balance Below 75% of Line On All CardsMany Cards Maxed Out No Cards Acquired in Last Two YearsThree New Cards Acquired in Last Month Quelle "Mortgage delinquency help" : General Main page for "Mortgage delinquency help"