[Steve Carlton]

The formula for a FICO score is secret, sort of like the formula the IRS uses to pick you out for an audit. But the general principles have been sussed out. A credit balance of around 5% of your limit is said to generate the best scores, better than an zero balance. The balance that's reported to the bureaus is the balance on your billing statement, so if you have a card with a $5,000 limit, it's best to get the balance around $250 or so before the statement is generated. Then a $250 balance will be reported. It's good to have a few accounts (I think a mortgage lender will want to see maybe 4 active accounts), but not too many accounts. They also score you on recent inquiries, recently opened accounts, too many accounts, too few accounts. Having a mortgage or installment loan (like a car loan) is good. It takes a while for things to stabilize, as opening and closing accounts will run down your score. You might want to take out an installment loan on a car or boat that you have. HELOCs can be tricky- I think they can count as revolving debt. There's several websites that will coach you on building a good score. I just don't know which ones are good.