Too many accounts with balances

FICO code numbers

Code numbers can differ by bureau and score version. The wording of the statement is what to match.

What puts this reason on your score

FICO counts the number of accounts with balances as part of amounts owed and says a larger number can indicate higher risk of over-extension. Five cards each reporting $100 can trigger this code even though the total is only $500.

Installment loans with balances count too. Someone with a car loan, two student loans and three cards in use has six accounts with balances. The model reads debt spread across many lenders as a sign of strain, whatever the dollar total.

What to check on your credit report

• Count every account on that bureau's report with a balance above zero, cards and loans both.
• Find the cards that reported a balance only because the statement closed before you paid.
• Look for tiny leftover balances, such as an unpaid annual fee, that keep a card in the count.

What you can do about it

• Before an application, pay cards to zero before their statement closing dates and let one card report a small balance.
• Clear small balances completely. For this code a $3 balance counts as one more account with a balance, the same as $300 would.
• Put everyday spending on one or two cards in the months before you apply.

The free statement date planner can help with this step.

How soon a change can show

Each card updates on its own reporting date, so the count drops card by card over about a month. Line up payments before each statement date and the next full round of updates shows the lower count.

If you are applying for a mortgage

A week or two of payment timing before the lender pulls credit can clear this code, because only reported balances count. If your credit was already pulled, a lender can use a rapid rescore with proof of the zero balances.

Guides that go deeper

• The AZEO method, with the math and the trade-offs shownAZEO means letting every card report $0 except one with a small balance. A worked 3-card example, what it costs, and when it's worth doing.
• Statement closing date vs. due date: which one sets your utilizationYour card usually reports your balance on the statement closing date, weeks before the due date. See the timeline, the math, and how to time payments.
• When card issuers report to the credit bureaus, and how to checkMost card issuers report once a month, usually around the statement closing date, but schedules vary. How to find out exactly when your cards report.
• What your credit score reason codes are telling youReason codes list what held your score back the most, in order. What the common ones mean, which you can act on, and which to leave alone.