Credit and Credit Scores: A short lesson

[Cubswin]

Good Credit Info

[The X-Factor]

[ QUOTE ]
[ QUOTE ]
What he is saying is to build your credit and get it started its not a bad idea.

[/ QUOTE ]

I completely agree that building your credit sooner than later is a good idea. I do not agree that spending money to increase your credit score is the best method.

[/ QUOTE ]

Well you would be better off doing a CD secured loan than an unsecured loan or credit card as far as saving money goes. I work at a bank and on a CD secured loan where I am at the bank charges your CD rate plus like 4% so in reality you are only paying 4% intrest because of what you are making on the CD. Credit cards are normally in the teens unless you have good credit and unsecured loans are in the upper teens.

[alphatmw]

how do you go about getting a CD? whats the minimum (if there is one) that you can deposit it for?

[KMac4]

How much do things like late payments to utilities or cable companies hurt your credit, yet never having a late payment on any type of loan or credit card bill.

[skunkworks]

PokerFox, thanks for sharing.

[Lestat]

Hey Ace,

What's a decent credit score? I was recently told mine was like 760, but I had a house go into forclosure in the middle of my divorce (it was PAID right away). I know that really screwed me up. Any ideas on how to get that taken care of? Will haunt me forever? I know no one is gonna believe it was my stupid ex-wife's fault (actually, it was my lawyer's who advised me to stop paying the mortgage until she got a job).

Anyway, what's a borderline score, an average score, a good score, and a great score?

[tom10167]

Is it true that if I have 10 credit cards but I NEVER use them that it won't help my score?

[chesspain]

[ QUOTE ]
Is it true that if I have 10 credit cards but I NEVER use them that it won't help my score?

[/ QUOTE ]

I believe that having this many unused cards could actually hurt your score, since having this many cards means that the potential is there for you run up large debts.

[Cubswin]

[ QUOTE ]
Well you would be better off doing a CD secured loan than an unsecured loan or credit card as far as saving money goes.

[/ QUOTE ]

Credit cards cost you nothing if they are paid off in full each month... plus if you get a rewards card you will start earning cashback for your purchases. This CD idea is just plan stupid in my opinion. Why would you pay money to 'build' credit when you you can open a credit card and do it for no charge at all?

[Cubswin]

[ QUOTE ]
I believe that having this many unused cards could actually hurt your score, since having this many cards means that the potential is there for you run up large debts.

[/ QUOTE ]

As long as your utilization remains low, having a large number of cards should not have an adverse effect on you score. Of course, appplying for new cards will have a short term effect on your score as the result of the hard query... as will having a bunch of newer cards as this will decrease the average age your accounts have been open.

I have 14 revolving lines of credit at the moment but keep my utilization very low and my score is plenty good (good enough for the lowest rates available).