Ask me anything about your Credit Score
 

I've been meaning to do this for a while and I keep getting PMs about it, so have at it.

Re: Ask me anything about your Credit Score
 

Hey Soss --

I've had only one credit card for nearly 8 years now. My credit score is 780. I've heard that 2-3 cards boosts your score as opposed to only one. Is the true, and is this really necessary as my score is already pretty high?

Re: Ask me anything about your Credit Score
 

what did I do to make mine so good? Or am I just a lucky SOB?

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
Hey Soss --

I've had only one credit card for nearly 8 years now. My credit score is 780. I've heard that 2-3 cards boosts your score as opposed to only one. Is the true, and is this really necessary as my score is already pretty high?

[/ QUOTE ]

I will probably say this over and over again, but the single biggest factor is making timely payments.

That being said, the difference between someone who never has any missed payments, no derogatory credit, etc..and has a 700 vs. someone who has a 780+ is simply length of accounts. Adding a couple more will temporarily hurt your score due to the inquiries and the new accounts, but that will eventually go away (4-6 months before they start helping you). Whatever you do, don't close the one you have had for 8 years. That's gold. Keep it active and make sure you use it enough to have the company continue to report activity on it to the CBs.

One of the biggest mistakes people make is to consolidate their older cards with great deep history onto a new card because of some 0% balance transfer or something. You can do the balance transfer, just don't close out the old account.

That being said...if you have a 780, you are likely fine so long as you have a few other tradelines (auto loan, mortgage, etc...)

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
what did I do to make mine so good? Or am I just a lucky SOB?

[/ QUOTE ]

You live in Indiana. I mean, how much debt could you possibly rack up. I've heard that you can get hookers and blow out there for the price of a 6 pack of Coors Original out here.

Re: Ask me anything about your Credit Score
 

Is it true that to get a great credit score u have to take out actual loans and not just use and pay your credit cards?

Re: Ask me anything about your Credit Score
 

so I still don't understand why late payments hurt your score so much - I have a truly godawful credit score - like 560 last time I checked - because and only because I have gone through periods of life where I am unable to pay a bill on time (through irresponsibility not lacking the funds)- yet I always end up paying (no defaults) so in essence credit card companies make even MORE off me than the already outrageous interest rates they charge me (25.6% booyah) because I pay once every 3 months everything that is due plus all their crappy late payment fees. i know its supposedly a risk-metric, but i wonder if late payments correlate so strongly with risk of default.

also, i have a car repossession (that I paid off with cash but it shouldnt have been repossessed in the first place) that i have been fighting for 6 months to get taken off my credit record - the car leasing company agrees that they made a mistake (at least verbally) but they say now that they have reported it it can't be taken off - true or untrue?

i don't really care about my credit score as i feel pretty strongly about never going into debt again beyond student loans - even to buy a house - but it might be nice to have that option at somepoint -

also i have 17 traffic tickets (don't ask) from 5+ years ago (that were paid off) that JUST went to a collection agency a couple months ago and now show up as defaulted debt - i'm not planning on paying them (again) nor flying across the country to fight them in court and will just ignore them until they stop sending notices - why does this show up on my credit history when it wasn't a loan that i'm failing to pay back but contested civil penalties?

Re: Ask me anything about your Credit Score
 

If my credit is busto... How do I fix is ASAP?

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
so I still don't understand why late payments hurt your score so much - I have a truly godawful credit score - like 560 last time I checked - because and only because I have gone through periods of life where I am unable to pay a bill on time (through irresponsibility not lacking the funds)- yet I always end up paying (no defaults) so in essence credit card companies make even MORE off me than the already outrageous interest rates they charge me (25.6% booyah) because I pay once every 3 months everything that is due plus all their crappy late payment fees. i know its supposedly a risk-metric, but i wonder if late payments correlate so strongly with risk of default.

also, i have a car repossession (that I paid off with cash but it shouldnt have been repossessed in the first place) that i have been fighting for 6 months to get taken off my credit record - the car leasing company agrees that they made a mistake (at least verbally) but they say now that they have reported it it can't be taken off - true or untrue?

i don't really care about my credit score as i feel pretty strongly about never going into debt again beyond student loans - even to buy a house - but it might be nice to have that option at somepoint -

also i have 17 traffic tickets (don't ask) from 5+ years ago (that were paid off) that JUST went to a collection agency a couple months ago and now show up as defaulted debt - i'm not planning on paying them (again) nor flying across the country to fight them in court and will just ignore them until they stop sending notices - why does this show up on my credit history when it wasn't a loan that i'm failing to pay back but contested civil penalties?

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I don't understand this post. You are wondering why you are considered a credit risk? You regularly pay late, you had a car repossessed, and you have 17 traffic tickets.

Don't you think the odds of you saying "f it I'm not going to pay my bills" are a bit greater than the average random guy who's always paid his bills on time?

You understand that lenders don't know why you didn't pay on time, and probably don't care? Not paying because you don't feel like it is probably worse than not paying because you are broke.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
Is it true that to get a great credit score u have to take out actual loans and not just use and pay your credit cards?

[/ QUOTE ]

Somewhat. They are looking for good credit mix. Having an auto loan, two credit cards, a mortgage, and a student loan all paid on time and not just recently opened is close to ideal. Every situation is different, though. In general, it will help if you get a good mix of obligations without overdoing it (after the initial dip for having a new account).

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
so I still don't understand why late payments hurt your score so much - I have a truly godawful credit score - like 560 last time I checked - because and only because I have gone through periods of life where I am unable to pay a bill on time (through irresponsibility not lacking the funds)- yet I always end up paying (no defaults) so in essence credit card companies make even MORE off me than the already outrageous interest rates they charge me (25.6% booyah) because I pay once every 3 months everything that is due plus all their crappy late payment fees. i know its supposedly a risk-metric, but i wonder if late payments correlate so strongly with risk of default.

also, i have a car repossession (that I paid off with cash but it shouldnt have been repossessed in the first place) that i have been fighting for 6 months to get taken off my credit record - the car leasing company agrees that they made a mistake (at least verbally) but they say now that they have reported it it can't be taken off - true or untrue?

i don't really care about my credit score as i feel pretty strongly about never going into debt again beyond student loans - even to buy a house - but it might be nice to have that option at somepoint -

also i have 17 traffic tickets (don't ask) from 5+ years ago (that were paid off) that JUST went to a collection agency a couple months ago and now show up as defaulted debt - i'm not planning on paying them (again) nor flying across the country to fight them in court and will just ignore them until they stop sending notices - why does this show up on my credit history when it wasn't a loan that i'm failing to pay back but contested civil penalties?

[/ QUOTE ]

They aren't just going to stop sending notices they will eventually issue a warrant for your arrest if you don't get those tickets resolved.

Re: Ask me anything about your Credit Score
 

I heard checking your credit score online can affect your score, depending on the site, is this true?

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
so I still don't understand why late payments hurt your score so much - I have a truly godawful credit score - like 560 last time I checked - because and only because I have gone through periods of life where I am unable to pay a bill on time (through irresponsibility not lacking the funds)- yet I always end up paying (no defaults) so in essence credit card companies make even MORE off me than the already outrageous interest rates they charge me (25.6% booyah) because I pay once every 3 months everything that is due plus all their crappy late payment fees. i know its supposedly a risk-metric, but i wonder if late payments correlate so strongly with risk of default.

also, i have a car repossession (that I paid off with cash but it shouldnt have been repossessed in the first place) that i have been fighting for 6 months to get taken off my credit record - the car leasing company agrees that they made a mistake (at least verbally) but they say now that they have reported it it can't be taken off - true or untrue?

i don't really care about my credit score as i feel pretty strongly about never going into debt again beyond student loans - even to buy a house - but it might be nice to have that option at somepoint -

also i have 17 traffic tickets (don't ask) from 5+ years ago (that were paid off) that JUST went to a collection agency a couple months ago and now show up as defaulted debt - i'm not planning on paying them (again) nor flying across the country to fight them in court and will just ignore them until they stop sending notices - why does this show up on my credit history when it wasn't a loan that i'm failing to pay back but contested civil penalties?

[/ QUOTE ]

I get this all the time.

"If CC companies make more money from late fees, then why do they care, as long as I end up paying it eventually"

In a bubble, maybe they make more off someone like you who pays w/ penalties and accrued default interest on a quarterly instead of a monthly basis. But in practice, you are lumped in with people who happen to share your characteristics. People who default on their debts share one common habit moreso than any other trait: they don't make timely payments. It indicates a cash-flow problem or an indifference to debtor problem. If you share these characteristics, then you are going to be lumped in with the people who eventually say 'eff you' to the CC company.

[ QUOTE ]
also, i have a car repossession (that I paid off with cash but it shouldnt have been repossessed in the first place) that i have been fighting for 6 months to get taken off my credit record - the car leasing company agrees that they made a mistake (at least verbally) but they say now that they have reported it it can't be taken off - true or untrue

[/ QUOTE ]

untrue. if you get something in writing from them, you can submit it to the credit repositories and it will come off your credit.

www.annualcreditreport.com

[ QUOTE ]
i don't really care about my credit score as i feel pretty strongly about never going into debt again beyond student loans - even to buy a house - but it might be nice to have that option at somepoint

[/ QUOTE ]

There are other things in life that require a credit score other than going into debt. Lots of employers pull your credit before offering you a job, for instance.


[ QUOTE ]
also i have 17 traffic tickets (don't ask) from 5+ years ago (that were paid off) that JUST went to a collection agency a couple months ago and now show up as defaulted debt - i'm not planning on paying them (again) nor flying across the country to fight them in court and will just ignore them until they stop sending notices - why does this show up on my credit history when it wasn't a loan that i'm failing to pay back but contested civil penalties?

[/ QUOTE ]

Judgements are reported on your credit report...otherwise, lots of people would simply never pay. If you go to buy a house and get a loan, now you will be forced to pay this (or show that it has already been paid)

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
If my credit is busto... How do I fix is ASAP?

[/ QUOTE ]

you don't.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
I heard checking your credit score online can affect your score, depending on the site, is this true?

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It can count as an inquiry. You are entitled to one free report per year per bureau.

www.annualcreditreport.com

You can also use this site to challenge items in your report. The creditor has 30 days to respond.
In a nutshell, this is what credit repair companies will do for you and charge you $2500 or so. They will challenge anything bad on your report, though, in hopes that the company will fail to respond to the inquiry. These tactics are illegal and are being combated by many CC companies.

If consumers didn't have their heads up their asses, they would be trying to fight this practice, too, since all it does is make borrowing more expensive.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
[ QUOTE ]
what did I do to make mine so good? Or am I just a lucky SOB?

[/ QUOTE ]

You live in Indiana. I mean, how much debt could you possibly rack up. I've heard that you can get hookers and blow out there for the price of a 6 pack of Coors Original out here.

[/ QUOTE ]

I don't know about any blow, but I can attest to the hooker thingy:)

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
what did I do to make mine so good? Or am I just a lucky SOB?

[/ QUOTE ]

You live in Indiana. I mean, how much debt could you possibly rack up. I've heard that you can get hookers and blow out there for the price of a 6 pack of Coors Original out here.

[/ QUOTE ]

I don't know about any blow, but I can attest to the hooker thingy:)

[/ QUOTE ]

did she pull your credit report?

Re: Ask me anything about your Credit Score
 

[ QUOTE ]


There are other things in life that require a credit score other than going into debt. Lots of employers pull your credit before offering you a job, for instance.


[/ QUOTE ]

I can attest to this also. Every employer I've had has checked. There are, however, people that work at my former company with 550 credit scores.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
[ QUOTE ]


There are other things in life that require a credit score other than going into debt. Lots of employers pull your credit before offering you a job, for instance.


[/ QUOTE ]

I can attest to this also. Every employer I've had has checked. There are, however, people that work at my former company with 550 credit scores.

[/ QUOTE ]


LOL, come to think of it, I know of tons of companies that check, but I can't remember anyone ever being turned down for the position because of their credit score.

Re: Ask me anything about your Credit Score
 

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Is it true that to get a great credit score u have to take out actual loans and not just use and pay your credit cards?

[/ QUOTE ]

Somewhat. They are looking for good credit mix. Having an auto loan, two credit cards, a mortgage, and a student loan all paid on time and not just recently opened is close to ideal. Every situation is different, though. In general, it will help if you get a good mix of obligations without overdoing it (after the initial dip for having a new account).

[/ QUOTE ]
I never ever had a real loan until I got a mortgage two years ago. Paid for the cars with cash. Never had checked my credit score. All I had was >20 years of credit card debt that I always paid off monthly and essentially never carried a balance on ('cept for like the 0% APR for 9mo offer). My credit score ranged from 790 to 820 from the three agencies.

So no, you don't have to have real loans to have a good credit score. But I'd wager a mix of credit that you've handled responsibly will get you there faster.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
I don't understand this post. You are wondering why you are considered a credit risk? You regularly pay late, you had a car repossessed, and you have 17 traffic tickets.

[/ QUOTE ]

I didn't say I don't understand it - I simply said that I don't think late payment persay correlates as strongly with risk of default as the FICO score makes it and that given the easy computations involved separating out someone that has had credit for 10+ years and never defaulted but has a history of late payments vs someone that has late payments and is at a higher risk of default would be possible if they wanted them too.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
They aren't just going to stop sending notices they will eventually issue a warrant for your arrest if you don't get those tickets resolved.

[/ QUOTE ]

nah doubtful, first off the state that they are in, i'm almost positive, doesn't issue arrests for unpaid parking fines (other sorts of fines would be different) and secondly they were paid off the year i got them. (and thirdly they have already been referred to a collection agency - collection agencies can't arrest you to get debt from you) the fact that they just now popped into someone's computer 5+ years later and they are demanding that I show them my copy of any checks that i wrote to pay them off is rather ludicrous. it is clearly some computer error somewhere where these just popped back up and I prefer to think that if I wait long enough the computer error will fix itself. ostrich. head in sand. my approach to dealing with beaureaucratic messes

if i still lived in that state they could probably seize my state tax return or deny me car registration. as i don't, i'm not concerned. [censored] em.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Is it true that to get a great credit score u have to take out actual loans and not just use and pay your credit cards?

[/ QUOTE ]

Somewhat. They are looking for good credit mix. Having an auto loan, two credit cards, a mortgage, and a student loan all paid on time and not just recently opened is close to ideal. Every situation is different, though. In general, it will help if you get a good mix of obligations without overdoing it (after the initial dip for having a new account).

[/ QUOTE ]
I never ever had a real loan until I got a mortgage two years ago. Paid for the cars with cash. Never had checked my credit score. All I had was >20 years of credit card debt that I always paid off monthly and essentially never carried a balance on ('cept for like the 0% APR for 9mo offer). My credit score ranged from 790 to 820 from the three agencies.

So no, you don't have to have real loans to have a good credit score. But I'd wager a mix of credit that you've handled responsibly will get you there faster.

[/ QUOTE ]

That's correct.

Re: Ask me anything about your Credit Score
 

In August 06 i got a phone with veriozen. I canceled it withen 14 days becuase of poor service where I live. If i canceld withen those 14 days I was not supposed to have to pay anything. They keep sending me a bill for $15. Is this eventually going to end up on my credit report? If i dont pay this?

Re: Ask me anything about your Credit Score
 

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If my credit is busto... How do I fix is ASAP?

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you don't.

[/ QUOTE ]

Ok, so for those of us who were stupid in our 20's; what is the best way to restore one's credit? For instance, let's look at a hypothetical person named Ronny the Chief. Ronny applies for and uses a few credit cards in college (like many other students do.) Since Ronny is a student and doesn't have any income coming in, he uses credit cards for the majority of his purchases. Lets say that he maxes out all of said credit cards, and then makes a few minimum payments on several of them. After a few months, Ronny stops making payments on a few of them, and before you know it, Ronny stops paying credit card bills all together. Ronny's parents come to the rescue and pay off a few (maybe all) of these cards which have been defaulted on. Ronny thinks that he learns his lesson, but 3-4 years later, Ronny opens up a few more cards and maxes them out. Ronny makes a few payments here and there, and then starts to default on them once again. Ronny has a few student loans (which are in good standing) and all of his credit cards have now gone to collections. Ronny talks to collection agency employees about settling the debt, and has the intent of paying off his debt, he just wants to get it paid off for a reasonable price. Now that Ronny is almost 27 and wants to get his finances in the right direction, how long will Ronny have to wait before his credit gets to average? What steps besides paying off the collections should Ronny take to get his score from the high 400s to the 700 and above range? How long will this process take, and if Ronny has ~20k in debt on his credit report, would bankruptcy be something worth considering?

Re: Ask me anything about your Credit Score
 

Ok, so you say credit cards, auto loans, mortgages, and student loans (paid on time) are good for the credit score. Is there anything else that would help? I have a couple CCs, which I pay the full balance every month. I'm a bit too young to be buying a house or a car, and I don't receive financial aid. Are there other things I could do to make sure I have an awesome credit score (or at least increase the chances of it) when I finally decide to buy a house/car? I think my score is somewhere around low-mid 700s last I checked.

Oh, and thanks a ton for doing this thread. I'm sure many of us really appreciate it.

Re: Ask me anything about your Credit Score
 

What is my credit score

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
In August 06 i got a phone with veriozen. I canceled it withen 14 days becuase of poor service where I live. If i canceld withen those 14 days I was not supposed to have to pay anything. They keep sending me a bill for $15. Is this eventually going to end up on my credit report? If i dont pay this?

[/ QUOTE ]

Only if it goes to collection. I would try to get it cleared up with them since collection agencies are notoriously bad at letting go. Do you have the evidence that you cancelled?
I have had good luck w/ Verizon customer service on issues with my bill in the past, so it probably won't be the typical customer service center ratrace.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
[ QUOTE ]
In August 06 i got a phone with veriozen. I canceled it withen 14 days becuase of poor service where I live. If i canceld withen those 14 days I was not supposed to have to pay anything. They keep sending me a bill for $15. Is this eventually going to end up on my credit report? If i dont pay this?

[/ QUOTE ]

Their is no doubt on either of our sides that I canceled.

Only if it goes to collection. I would try to get it cleared up with them since collection agencies are notoriously bad at letting go. Do you have the evidence that you cancelled?
I have had good luck w/ Verizon customer service on issues with my bill in the past, so it probably won't be the typical customer service center ratrace.

[/ QUOTE ]

They are charging me $14 for data useage during that period. I was under the impression (as the guy told me at the store) if i canceld withen 14 days I would not have to pay anything.

What is the likelyhood a $14 bill would go to collections?

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
[ QUOTE ]
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If my credit is busto... How do I fix is ASAP?

[/ QUOTE ]

you don't.

[/ QUOTE ]

Ok, so for those of us who were stupid in our 20's; what is the best way to restore one's credit? For instance, let's look at a hypothetical person named Ronny the Chief. Ronny applies for and uses a few credit cards in college (like many other students do.) Since Ronny is a student and doesn't have any income coming in, he uses credit cards for the majority of his purchases. Lets say that he maxes out all of said credit cards, and then makes a few minimum payments on several of them. After a few months, Ronny stops making payments on a few of them, and before you know it, Ronny stops paying credit card bills all together. Ronny's parents come to the rescue and pay off a few (maybe all) of these cards which have been defaulted on. Ronny thinks that he learns his lesson, but 3-4 years later, Ronny opens up a few more cards and maxes them out. Ronny makes a few payments here and there, and then starts to default on them once again. Ronny has a few student loans (which are in good standing) and all of his credit cards have now gone to collections. Ronny talks to collection agency employees about settling the debt, and has the intent of paying off his debt, he just wants to get it paid off for a reasonable price. Now that Ronny is almost 27 and wants to get his finances in the right direction, how long will Ronny have to wait before his credit gets to average? What steps besides paying off the collections should Ronny take to get his score from the high 400s to the 700 and above range? How long will this process take, and if Ronny has ~20k in debt on his credit report, would bankruptcy be something worth considering?

[/ QUOTE ]

Well Ronny...err...Johnny,

Paying off in full is always better from a credit standpoint than settling for less than the amount due. When you settle, there is a note on the report that shows this and it will stay with you for 7 years. If you pay off in full, the defaulted lates will still hurt you from the original creditor, but the collection agencies will stop reporting. They will still be on your report, but they will cease to be active accounts. What this means is that in a year or two after you pay off the collection agency in full, you can file a dispute and they will likely not respond within the 30 days since they have nothing more to gain from you and it can come off (again, this is borderline illegal, definitely unethical). This is precicely what a credit clean up company would do for you, but again, you can do it yourself at www.annualcreditreport.com

Bankruptcy might actually be a good option for you, but I'm not versed enough in the laws to recommend one way or another. Talk to a BK attorney.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
Ok, so you say credit cards, auto loans, mortgages, and student loans (paid on time) are good for the credit score. Is there anything else that would help? I have a couple CCs, which I pay the full balance every month. I'm a bit too young to be buying a house or a car, and I don't receive financial aid. Are there other things I could do to make sure I have an awesome credit score (or at least increase the chances of it) when I finally decide to buy a house/car? I think my score is somewhere around low-mid 700s last I checked.

Oh, and thanks a ton for doing this thread. I'm sure many of us really appreciate it.

[/ QUOTE ]

Sounds like you are doing all you can. It's pretty rare for someone in their early 20s to have 780-800 scores simply because of time. My business partner had an 800 when he was 21 because his parents were smart and put him on their CCs when he was 16 without his knowledge (a great tip for parents with responsible kids).

Other than that, if you have a 700 score in your early 20s with no derogs and low balance to high limit ratios on your cards, the only thing that will help is time. Don't close your old CC accounts.

Sounds like you are on the right track.

Re: Ask me anything about your Credit Score
 

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What is my credit score

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686

You should pay down your CC's to under 30% and you will be up to a 707.

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
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In August 06 i got a phone with veriozen. I canceled it withen 14 days becuase of poor service where I live. If i canceld withen those 14 days I was not supposed to have to pay anything. They keep sending me a bill for $15. Is this eventually going to end up on my credit report? If i dont pay this?

[/ QUOTE ]

Their is no doubt on either of our sides that I canceled.

Only if it goes to collection. I would try to get it cleared up with them since collection agencies are notoriously bad at letting go. Do you have the evidence that you cancelled?
I have had good luck w/ Verizon customer service on issues with my bill in the past, so it probably won't be the typical customer service center ratrace.

[/ QUOTE ]

They are charging me $14 for data useage during that period. I was under the impression (as the guy told me at the store) if i canceld withen 14 days I would not have to pay anything.

What is the likelyhood a $14 bill would go to collections?

[/ QUOTE ]

kinda unlikely, but not worth it. Just pay it.

Re: Ask me anything about your Credit Score
 

On Credit Cards is it better to leave an unpaid balance on them or just pay the full balance every month?

Re: Ask me anything about your Credit Score
 

[ QUOTE ]
On Credit Cards is it better to leave an unpaid balance on them or just pay the full balance every month?

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??? Why would you ever leave a balance on a card? Pay in full, every month if you are able.

Also, Soss, you mentioned earlier that if you pull your credit report it will count as an inquiry. It's a SOFT inquiry, and does not hurt your credit score at all. Soft inquiries are the kind for job applications and personal credit pulls you do as a consumer.

Hard inquiries are for credit card apps, mortgages, loans. These will hurt your score if you have too many.

However, you can pull your own credit report as many times as you want and it will NOT show up on your report. Soft inquiries do not show.

Re: Ask me anything about your Credit Score
 

What kind of score do you need to get the best rate on a mortgage loan?
Assuming that you just have a credit card, which you pay in full every month, charging 10-25% of your limit each month, what will your credit score be in 1, 3, and 5 years ?

Ponks

Re: Ask me anything about your Credit Score
 

Soss, a couple more questions:
1) What qualifies you to make this thread? Did you work in the industry?
2) Do you think it would be worth it to get a small student loan and pay it off over a period of time to increase one's credit score? Effectively, I'd be paying money now to hopefully save on interest rates later when I buy a house.

Re: Ask me anything about your Credit Score
 

SossMan,

Not sure if you've already mentioned it, but can you talk about strategy regarding closing credit cards accounts?

Say I opened first account 2 yrs. ago as an add-on to a primary acct. holder with 800's credit. Then 8 more up until now, without any cosigners and all on my own credit. Credit lines range from 20k for the 1st (as add-on when I had zero credit) to $5kish avg. for the others which are my own.

Can I close the 1st and oldest credit card (where I'm not even primary), so I don't have to worry about some error messing up my cosigner's credit? I regularly open new credit cards because of good offers / high credit lines for perhaps if I ever need it, but now its just getting to be too many cards that I have to keep track of every month. I keep hearing that closing them reduces overall unused credit, and thus lowers the score. But by how much? And what if I keep opening new ones and don't use the credit? Can I just close and replace old ones that are no longer attractive?

Thanks in advance.

Re: Ask me anything about your Credit Score
 

From 18-22 I managed my credit horribly. I have around $3k owed which I can probably bargain down to $1500 or so. This is two defaulted credit cards and a bunch of stuff like a cell phone bill and other utilites that weren't paid. My student loans went into collection but are now in good standing.

For the last several years I have been fine. I got a car loan in my name and that has helped my score some. I have no credit card and nothing on my report which is good besides the two student loans and the car.

My score is some horrendous number like a 505.

wtf? How much will that go up if I pay off the 4 year old $3k?

What else can I do and how high could that score reasonably go within 6 months, a year?

Re: Ask me anything about your Credit Score
 

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On Credit Cards is it better to leave an unpaid balance on them or just pay the full balance every month?

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The problem with paying them off every month is that, depending on the date that you pay them and the date that the CC company reports to the bureaus, you might not be getting any positive activity from them.
for example, let's say you run up $1k on your card from the 1st-15th and pay it off on the 15th. If the CC company reports to the CB's on the 16th, it will show no activity for the month, thus not giving you positive trade history.

If you are using it daily and just paying it off once a month, you are probably fine, so long as they don't report to the CBs the exact day after you pay if off. However, if you put one thing on it a month, and pay if off right away, it's possible that you are getting no benefit from it.

Leaving a small balance every month is fine.