Credit Score
Credit Score questions and answers
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Q: Credit score?
How much will my credit score increase if I were to pay off 50% of my credit cards within a 2 month time frame? My current credit score is 568 and Im hoping to increase it to 700 :) Im planning on getting a car by the summer and I want a great credit score...
A: To go from 558 to 700 will take several months of good hard credit management.
Pay your credit cards down to under 30% of your limit and keep them there.
Use them for every day things, never exceed 30% of your limit and always pay in full before the due date.
I did this with 2 credit cards and raised my score over 150-points in 12-months.
Q: What does your credit score start out as?
I just turned 18 in the end of October. What would my credit score be now? What does it start out as? What is the eastiest way to build your credit score? How long does it take to build your credit? Do you get points per month or what?
A: it starts off as nothing. If you get negative info it starts at 300 and up.
when you create credit for about 3 months you will get a score. After about 6 months it will create a history report of statistics, only for getting more credit(you will not see this).Credit depends on many things, 1 credit card on a blank credit can get you a 700 it doesnt mean banks will trust you. It takes time and accounts being paid back.
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Q: How high can my credit score climb if I have only credit cards in my credit history?
My current credit score is 745 and I've built it solely by using credit cards and paying on time (but never had any loans). Somebody told me that the abscence of installement-paid loan will prevent my score from climbing much higher. Is it true? Should I take some consumer loan to boost my credit score since I am planning to apply for a mortgage in the near future?
A: You don't need an installment loan. More often than not, they pull you DOWN. Who told you that?
Q: What types of credit is needed to get a high score?
My credit score is about 615. I am working on improving my score so that I can qualify for a mortgage loan with low financing in about a year or so. I currently have an auto loan, and 3 revolving credit accounts. (All bank credit cards) Two of the revolving accounts are new, and the other almost a year old. My auto loan will be a year old in July of this year. Should I apply for more credit to get my score higher? If so what type of credit? What is a good mixture of credit to have to get a person's score higher? Any advice is appreciated. Thanks!
A: Keep your payments up-to-date and you should be good. Don't get more credit. A score of 750+ is average for a good IR. Just keep showing the credit companies that you can be trusted to repay loans. Now is a good time to pull all three of your credit reports and analyze them. Correct any errors and make sure everything is correct.
Q: How can you raise you credit score even when you pay on time?
Ok, past credit messed me up. I have a judgement thats almost paid off. I am trying to raise my credit score.I have 3 new accounts that I've paid on time for over 1 year. I read that one way to raise your score is to " piggy back" on a relatives good credit ( have them add me to one of their good accounts and not use it) Is this safe, is it legal. I would love to hear constructive ways to increase my credit score. Please don't judge me. Almost all of my " bad" credit accounts have been paid off. I put my sons first when the divorce came. They lived in the house that I paid for while I lived in a basement.
A: Here are a couple of things you can do to raise your credit score quickly.
1) Have a relative with great credit add you to their credit card account. This can raise your score over 100 points instantly, and has not risk to them! Even though your relative can add your name to their credit card account, they don't have risk if they don't give you a credit card.
2) Use your credit cards for monthly purchase, then pay balance down to zero every month. If you have the cash, this is a very quick way to raise your credit score. Remember, creditors cannot "see" your income from the credit report, but they can tell you have financial strength when you pay down your card balances every month. This technique can raise your credit score up to 80 points.
3) Use time. Most people don't realize that a bad credit item has the most weight only in the first two months, then hurts your score even less after 6 months, and even less after 2 years. After 2 years, many bad credit items don't even hurt at all. I know a friend with 6 chargeoffs that are 4-6 years old and her credit score is 620, good enough to buy a house. Sometimes waiting even a month or two for a bad item to age is all you need for your credit score to bounce back.
It doesn't mean you are a bad person when you have a lower credit score. Bad things just happen. Good luck with your credit score!
Q: What's the importance of knowing your credit score when the creditors run your credit anyway?
When I apply for loans and tell the creditors what my credit score is they still run my credit. All the reports I read talk about the imporatnce of knowing your credit score and that's fine. But what's the importance of knowing my score when the creditors run it anyway? Also, how do we know that the rates that we qualify for are true based on ourcredit score? Is there a chart tat we can put our credit score up against and it tells us what rates we qualify for?
A: Creditors can not simply take your word as far as your credit score, besides a whole lot more then score goes into deciding weather someone gets approved for a loan or not.
I look at credit every day and see people every month with scores over 700 that can not buy a car because their score is made up of one credit card with a $500.00 limit paid 15-times and a couple of student loans.
While this generates a great score it doe's not show the ability or the willingness to actually pay anyone.
To have the best score and profile you will need 3 credit card accounts (revolving) with balances below 30% of your credit limiat and 2 cars, boats, homes, funriture or personal accounts (installment) all with good long pay history's.
Q: How much will my credit score go down by applying for a new card?
I would prefer answers from people who work in the credit industry and can tell me roughly the number of points, and how long it will take for my score to recover once the new higher available credit kicks in...
I know part of your credit score is determined by how much available credit you have. I closed several cards a few years back before I knew it would hurt my score, and now I have very little credit available. I have excellent credit otherwise, and pay off anything I charge the next month. However, I do have a balance I've been slowly paying down, and want to open a new card so that my balance takes up less of a proportion to my total credit debt.
How much will this ding my credit in the short term? And how long will the point drop last?
A: For starters, sometimes people who work in the credit industry may not know how credit works because there are too many factors out there.
Credit scores are a very funny thing, you make an inquiry and your score gets lowered, close a card too fast and score gets lowered, and if you don't spend your card for a while your score gets lowered, if you pay just the minimum for too long your score gets lowered, and finally if you pay off your card too fast and your score gets lowered
The best thing to do is get a reputable card such as a Master Card or a Discover Card, spend an amount that you can pay off in about 2 or 3 months and you should be fine....your score should continue to rise as long you make your payments on time and pay it off in a timely manner. Also it would help if you have no more than 2....1 credit card and 1 store card or just 2 credit cards.
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Q: What kind of credit score is required to get a phone with verizon wireless without a deposit?
What kind of credit score is required to be able to get a contract phone with verizon wireless and not having to put a huge down payment/deposit ?
A: they do not look at your score its what is reported on your credit ie: written off accts, unpaid collections ect.. that will come up with your deposit,the lowest is zero of course the highest it can be is 400. I would recommend going to one of your local direct retail verizon wireless locations to have them check your credit... that's not going hurt you may be surprised
Q: How my credit score will be affected if I do the followings?
1. If I apply for a new credit card (visa signature) but cancel my old visa card? If my current credit score is 750, what will be my score after doing so?
A: The following 5 critical factors affect your credit score in a major way. By knowing these you can keep a check on them and make your credit score a healthy one.
1. Re-payment history
This factor carries the highest weight in your credit report. How steadfast are you in repaying your loans, makes your credit report shine. Experts claim that this factor alone accounts for 35% of points in your credit score. So, if you falter on repayment front it is sure to be reflected poorly on your credit score.
2. Outstanding debt
The next comes your debt burden. How much you owe is a factor that according to experts carries about 30% weight in your credit score. This is
30% is based upon outstanding debt. To get a better score it is advised that you keep your outstanding debt to a minimum.
3. Length of your established credit history
The time for which you have a credit history also matters. The longer your established credit history the more credit reporting agencies believe in you. This could be simply because of the fact that they have more data to analyze your financial position. Experts give it a 15% weight in determining your credit score.
4. The state of your financial accounts
How much money do you have in your bank account, your income levels, your house, car, your assets etc. comes the next. A healthy bank account reflects a healthy credit score. Experts find that credit reporting agencies give this factor 10% weight while determining your credit score. Read more from: http://www.credit-card-gallery.com/article/204,5_critical_factors_affecting_your_credit_score
Q: What happens to your credit score when you cancel a credit card?
say you are in good staying, never was late. always payed the balance. but you have too many credit cards let's say. so when you cancel that credit card. what happens to your credit score? Does your credit limit you had for that card get erased from the records? after all those years of building the credit limit to help the credit score. what happens to it? and what happens to your score? i'm just curious.
A: There are a lot of factors affecting your credit score. Let me just break down what you mentioned and identify whether they would be good / bad for your credit score.
Never late / always paid the balance - Definitely good
Too many credit cards - This, more often than not, lowers your credit score... especially when the total card balances take up too much of the total credit line given to you.
Cancelling a card may or may not help improve your score. Say for example, you paid off that card. When you cancel the card, it will no longer be part of the cards being evaluated, so if you have a high credit limit on that card and high balance on the other cards - your ratio of revolving debt will be higher and that will surely hurt your score.
It may also affect your score when you've had that card for so long since length of credit is a credit score builder.
However, if that's a recent small-balance card with a small credit line anyway, you can just pay off the balance and cut that card in bits without a bit of a worry.
Q: What matters more your credit score or the contents of your credit report?
If I have a good credit score but still have unpaid collection accounts on my credit report will lenders expect me to pay those before they would give me a mortgage? Or if my credit score is high does that mean they won't really care about much else?
A: In the end it would be up to the lender as to if they would make you pay it. A lot would depend on the amount as well as the type of debt. If it was for something like a medical bill they may not, but if it is for a credit card debt they may require you to pay it off. Their biggest fear from them is if you get sued would you then have to default on the mortgage, basically making you a higher risk.
However, your credit score is based on your credit report. So if you have negative items on your report that will be reflected in your score. How much depends on several factors. But it would be out of the ordinary to have a high credit score(depending on what you consider high) if you have collection accounts.
Q: What kind of credit score do you need to get a charge card for a dept. store in the mall?
I've applied in the past like a few years back for various dept. stores and was denied. Ive since quit applying for them and my credit score has risen as well. My credit score is better now in the mid 6's. What are my chances of getting a credit card with anyone. Ive never had a credit card before can i get one now with my credit score?Who, why, what , when and where?
A: There are credit card companies out there that will send a card to you even if you have really sucky credit scores but have a steady income. You can probably "google" information about them.
Instead of getting a store credit card, ask your bank or credit union if they have a card (like Master card or Visa) that you may qualify for. After you get it, try NOT to use it!
When you do get a card try to pay off the WHOLE amount every month and not just the minimum amount due otherwise the debt keeps mounting and mounting and you'll be quickly overwhelmed. Been there, done that. NOT fun!
I once read about a woman who kept her credit card in a ziplock bag in a container of water in the freezer! By the time she thawed out her card, she would talk herself out of buying whatever it was she thought she wanted and saved a lot of money.
Hope this helps--good luck!