|
|
#31
12-27-2006, 01:35 PM
|
|||
|
|||
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
[ 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). [/ QUOTE ] What's good? Do you know what your score is? 
|
|
#33
12-27-2006, 01:52 PM
|
|||
|
|||
|
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
Could anyone explain how to do this yourself? Around 98-00 I got myself into some bad credit issues. I was in college and effed it bad. I had 2 CC's, one for like $500 and one for $700. Maxed them both out and never paid them off, they went to collections=My score suxs. [/ QUOTE ] believe it or not it's a good thing you never paid them back. if you contact them you may be able to work out a deal where you pay back some amount (50-100%) in exchange for them removing the entry from your report.
|
|
#34
12-27-2006, 02:17 PM
|
|||
|
|||
|
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
[ QUOTE ] Could anyone explain how to do this yourself? Around 98-00 I got myself into some bad credit issues. I was in college and effed it bad. I had 2 CC's, one for like $500 and one for $700. Maxed them both out and never paid them off, they went to collections=My score suxs. [/ QUOTE ] believe it or not it's a good thing you never paid them back. if you contact them you may be able to work out a deal where you pay back some amount (50-100%) in exchange for them removing the entry from your report. [/ QUOTE ] Yeah I got something a long time ago from the collection agency, I may have it somewhere in my shoebox of records. Also OP said 30+ late day payments stay on record for 7 years, is it same for collections? My accounts were closed and sent to collections probably in late 2000.
|
|
#36
12-27-2006, 02:48 PM
|
|||
|
|||
|
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
[ QUOTE ] [ QUOTE ] The best way to build credit, if you have none, is to get a CD and take out a loan against the CD, paying it off, establishing credit. [/ QUOTE ] huh? [/ QUOTE ] You deposit $5000 (arbitrary amount) into a 6 month Certificate of Deposit earning 6%. You go for a secured loan at a lower interest rate (may need a cosigner). You pay off the loan, and earn some small interest in the process, and increase your credit. [/ QUOTE ] I think it has been pointed out already, but you will not get a loan at a lower rate. There is a spread on what interst % you are earning and what interest % you pay. My insitutions spread is 2%, so CD pays you 5%, you pay 7%.
|
|
#37
12-27-2006, 02:58 PM
|
|||
|
|||
|
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
[ QUOTE ] what about credit consolidation programs? Are they worth it and how do they affect your score? [/ QUOTE ] bump 'cause I need an answer [/ QUOTE ] Dom, I am not really qualified to answer this, but I am pretty sure these programs do hurt your score.
|
|
#38
12-27-2006, 03:00 PM
|
|||
|
|||
|
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
You deposit $5000 (arbitrary amount) into a 6 month Certificate of Deposit earning 6%. You go for a secured loan at a lower interest rate (may need a cosigner). You pay off the loan, and earn some small interest in the process, and increase your credit. [/ QUOTE ] Please point me to a bank that loans money at a lower interest rate than their CD's.
|
|
#39
12-27-2006, 03:02 PM
|
|||
|
|||
|
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
[ QUOTE ] You are entitled to 1 free credit report per year from each agency (obtainable at annualcreditreport.com), therefore, the smart consumer pulls his credit once every 4 months, each time from a different agency. [/ QUOTE ] Nice. It never occurred to me to do it this way. I was ordering all 3 at the time 1/year. Your way is much better. [/ QUOTE ] Not really. Each bureau could have different info. Some of which may not be accurate and actually hurting you. Not all credit issuers report to all 3 agencies. So, if someone happens to open an account in your name you may not know by just pulling one report. Same goes for collection accounts. You may be in collections for something you know nothing about. Granted, these scenarios are unlikely but certainly not out of the question.
|
|
#40
12-27-2006, 03:03 PM
|
|||
|
|||
|
Re: Credit and Credit Scores: A short lesson
[ QUOTE ]
Is it true that if I have 10 credit cards but I NEVER use them that it won't help my score? [/ QUOTE ] Somewhat true. One of the factors in determining your credit score is the ratio of available credit to used credit. Simply put, it would be a concern to a lender if you had $20,000 in available credit, but only had $400 out at a time. You could easily run up the other $19,000+ credit, get in a pinch, and default on the loan you're applying for.
|
 |
|
|
Linear Mode
