A credit score is a weighted number computed to determine your credit worthiness, and is relevant when arranging for credit or a loan. This tag is to be used for questions related to understanding how things would impact your credit score. Related tags are credit-history, credit-rating and ...

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15
votes
2answers
4k views

How will going from 75% Credit Utilization to 0% Credit Utilization affect my credit score?

I currently have a 75% credit utilization, which I know is not favorable on about 35,000 revolving credit. I am getting my year end bonus and plan on using that to completely pay off all of my credit ...
10
votes
2answers
430 views

What is the optimal ratio of used credit to credit limit for your credit score?

I have been told to never go over 50% of my credit limit on any credit card even if I pay always off in full for each statement, in order not to hurt my credit score. Is this true? What is the ratio ...
18
votes
3answers
1k views

Should I really pay off my entire credit card balance each month or should I maintain some balance?

I've heard two conflicting things: One is that you should pay your entire credit every month, and the other that you should maintain roughly %30, %50 (it varies by who you ask) of your available ...
39
votes
7answers
2k views

How can one get their FICO/credit scores for free? (really free)

TV and the web are filled with ads promising to give you a free copy of your credit report. Unfortunately, instead of being wholly free, they are actually free trials, which means: You only get ...
8
votes
2answers
957 views

How is your credit score related to credit utilization?

A few questions: Is it better to use your card and pay off the bill completely every month? [I prefer building the credit score over paying interest] How is credit utiltization calculated? Is it ...
6
votes
2answers
26k views

Multiple mortgage pre-approvals and effects on credit score

Background Info: My wife and I are looking to purchase our first home/condo. Given our combined gross annual income of ~$100k and lack of any actual debt, we're looking at properties in the $200-250k ...
6
votes
1answer
179 views

Will “rate shopping” affect my credit score?

I'm thinking of buying a car but I have a low credit score (649). I have a bank account that I've been using for the past five years so I thought I would apply at that bank first, get a quote and then ...
4
votes
1answer
449 views

Keeping your statement balance below ~30% of your credit limit

I read Little Advisor's article How does that thing with the credit cards work, again? According to the article, you should always keep your balance below 30% of your credit limit. However, I just ...
4
votes
4answers
3k views

Ways to improve my stagnant credit score

My credit score has been stuck at 695 for about four months. That's a vast improvement from the 500 or so it was four years ago, so I've come a long way. I have two credit cards with balances on ...
0
votes
3answers
638 views

Equifax credit score discrepancy in 1 month, why?

I just went to Citi Bank's website (which gives free FICO scores from Equifax for users of some credit cards) and I realized that the score I saw there was a whopping ~50 points higher than the number ...
28
votes
8answers
2k views

Optimal way to use a credit card to build better credit?

I have a credit card with a $700 limit and I am curious how to optimize credit gain with it. Right now, I use it once a month (usually on something small like a drink from a convenience store or ...
18
votes
4answers
40k views

What happens to my credit history if I pay before my credit card bill is generated?

I've read that keeping one's credit card utilization below 20% improves your credit score. If for some reason I have an expense that is greater than 50% of the credit limit and I pay by credit card, ...
13
votes
3answers
827 views

Should I keep a credit card open to maintain my credit score?

I have a credit card that was opened when I first got ot of college, and was my first credit card. Since then, I have switched to cards with rewards, figuring that since I pay it in full each month, ...
17
votes
3answers
426 views

Global credit record: Would my good credit history apply internationally?

Does my credit record apply internationally? For example, if I have a good credit record in Australia, with a car / house loan and a credit card or two, can my good credit rating be seen by banks and ...
12
votes
5answers
603 views

How many credit cards do I need? Should I open another just for the cash back feature?

I just got a mailer from Discover offering a new card, with 5% back on some items and 1% back on everything else. However, I already have a Visa which I have had for a few years. Does it make any ...
12
votes
3answers
1k views

I just moved to the United States. What should I do to develop a good credit rating, fast?

I just moved to the US for working purposes, and found out that for a lot of stuff you buy, you need to have a good credit rating (or pay more, or make a security deposit, etc). I found out also that ...
13
votes
2answers
504 views

Should I keep recently opened Credit Cards that I don't use?

After investigating these questions (1 and 2) I am still in doubt in what to do with my current situation. I have many credit cards because over the years I have been given better deals on them. So I ...
9
votes
4answers
997 views

Figuring out an ideal balance to carry on credit cards [duplicate]

Until recently, I was under the impression that it's bad for your credit history to not pay all bills on time and in full. However, a banker recently told me that it's a good idea to carry a small ...
9
votes
1answer
256 views

How does applying for credit affect your credit score?

How does applying for credit affect your credit score? I was answering a question about getting a loan and realized I don't have detailed information on how applying for credit (even if you do not ...
8
votes
3answers
2k views

What does high credit utilization really mean?

I've heard and read that high utilization of credit hurts, but what does that mean exactly? Does that mean high utilization month-to-month, or simply high utilization at all, even when paid off in ...
7
votes
1answer
2k views

How quickly does decreasing credit utilization affect your credit score?

There is a lot of advice out there about keeping your credit card utilization above 0% but less than 20%. I'm currently carrying about 85% utilization on my card and have plans to lower it. How long ...
7
votes
2answers
468 views

My credit score took a massive dip. Why?

I checked my credit score today and it took a massive dip compared to one month ago: Ignore the gray line - it's immaterial. Transunion - Green Experian - Blue Equifax - Red I downloaded the ...
7
votes
5answers
314 views

How can I check my credit score?

I've seen the commercials for freecreditreport.com, but commercials with singing pirates make me uneasy; maybe they'll steal all my booty (personal information). What are the different ways to check ...
3
votes
4answers
185 views

How does a non-uniform utilization across your credit cards affect you?

I have three secured cards with me, one of which gives me rewards for gas and another for online purchases. The third one is a Mastercard - I use that only where my VISA cards do not get accepted. ...
8
votes
3answers
22k views

Should I close my BestBuy Credit Card? Will it affect my credit score and history?

I was young and stupid and opened up a Best Buy credit card 5 years ago. I bought a new laptop and also a lot more stuff during these 5 years. I have bought over 10,000 dollars worth of stuff and paid ...
6
votes
1answer
472 views

Shopping around for loans without detrimentally effecting credit rating/chance of getting said loan?

I've found myself stuck in a quandary. I put a deposit down on a car and I'm trying to obtain a personal loan based on this. The problem is that I'm finding that despite passing all initial checks ...
4
votes
4answers
617 views

Achieving ideal credit card utilization above 0%

So everyone is aware of the general rule that you should keep credit card utilization below 30% of your credit limit. It's also a good idea to keep this utilization above 0%. It's very easy to stay ...
3
votes
2answers
263 views

What kind of an impact does moving have on your credit (score)?

Being an international student, the room I rent near campus has been my domestic home address since I came here to study. Now that I am working at a place quite far from campus, I would like to ...
2
votes
2answers
212 views

Does length of credit history or percent of credit used count for more?

When I was back in college my mom added me as an authorized user to her credit cards. I have now graduated and been paying my own student loans (on time) for the past year. In checking my credit ...
21
votes
6answers
6k views

Is 0% credit card utilization worse than 1-20% credit card utilization for any reason other than pure statistics?

Much of the information I stumbled accross (including a short article written by an esteemed member of this site) around the internet indicates that having a credit card utilization of 0% is a ...
13
votes
8answers
793 views

Relocated to USA. How to get credit card without existing credit history / score?

I recently relocated to USA and have no Credit Score. Is Secure Credit Card is the only option for me to start building my credit score? Also please recommend which other credit cards are available ...
22
votes
4answers
5k views

Is a high credit limit on a credit card bad?

I've had a credit card for a long time, and every so often they've sent letters telling me they're increasing my available credit. Does it negatively affect my credit score to have a high limit, one ...
12
votes
2answers
848 views

Using a secured credit card to build a credit score for a new permanent resident

I am a new permanent resident in the US (originally from the Netherlands) and married to an American citizen. I am not used to the credit score system as they use it in the US, so this is all new to ...
11
votes
5answers
633 views

Why is a US credit score based on credit utilization?

As a European citizen I am somewhat puzzled by how American credit scores work. The US is one of the few, possibly the only country where such a strong focus is put on the utilization history of ...
10
votes
8answers
116k views

Should I pay off my credit card online immediately or wait for the bill?

I'm a college student and I just got my first credit card (through Chase). The only reason I got the card is to try and build my credit score. I also have a checking account with Chase, and they let ...
16
votes
8answers
18k views

What's the average credit limit?

For a number of reasons, I recently asked my credit card company for a credit limit increase. I was hoping they'd propose a new limit to me, but they instead the reverse happened: they asked how much ...
12
votes
1answer
327 views

Myth, or not: If using a secured card to build credit, paying off in part each month has more benefit than paying in full?

Does paying off a secured credit card in full each month not allow me to build a credit history? I'm asking because reading about regular credit cards indicates that paying in full helps build a good ...
9
votes
2answers
345 views

Can you calculate the ROI on your credit score?

I've heard it said from people who work in the industry that your credit rating isn't a measure of your ability to pay, but rather a measure of how profitable a customer you are. I've also heard ...
1
vote
1answer
692 views

Credit score getting lower - but I'm doing everything right?

My credit score has dropped considerably in the past year from ~700 - ~600. This is my first credit card so far, and have only used mainly debit in the past. Thing is, I'm not sure why it's ...
42
votes
7answers
10k views

Pay off car loan entirely or leave $1 until the end of the loan period?

Background information: I have a car loan that doesn't require payments if I'm ahead on the loan (but accrues the interest, of course, on the balance remaining). I still have a year and a half on my ...
18
votes
4answers
5k views

What can I realistically do to raise my credit score?

I have a crappy credit score. My situation in a nutshell: In the divorce, the ex got the home, which was then foreclosed on. My name was still on the mortgage. That was in 2009 or so. I attempted ...
12
votes
4answers
3k views

What's the fastest way I can raise my credit score from nothing?

I'm very fortunate to have had no need for a credit card and I don't own one (debit card only), I have no debt and an excellent job. I attempted to open an account with a respected online-only bank ...
12
votes
3answers
3k views

How often should I check my own credit score? If I do so, will my own inquiry reflect poorly on my score?

I've read that it's important to check your credit score in order to keep a handle on your credit health, as well as to protect yourself from identity theft or fraud (for instance, in this Lending ...
10
votes
3answers
207 views

Are credit monitoring services worth the monthly fee?

Several services offer to monitor your credit - supplying you with an updated credit report every month and your credit score, too. Are they worth the monthly cost ($10-20 is the range I've most ...
10
votes
2answers
127 views

How to approach eliminating a record in my credit history that is hurting my score

I have a record in my credit history that shows a delinquency from 4/2005 that was paid off but was also marked as a "charge off." As of January 2011, this record no longer shows up in my file for ...
8
votes
1answer
619 views

Effect of going over the credit limit on a credit card to your credit score?

If I have a credit card balance that is over the credit limit, and I don't go under within 30-days, the provider will report the overage to the reporting agencies. If you have generally good credit ...
7
votes
1answer
86 views

For the purposes of building credit, does dividing up a loan help?

I want to enhance my credit with share secured loans (I'm a member of a credit union). All else being equal, will paying off 5 $200 loans give my credit score more of a boost than one $1000 loan?
7
votes
2answers
7k views

I am under 18 years old, in the US, my parents have terrible credit, how can I take out a loan?

I am under 18, currently shopping for a car. Like many people, I don't have enough money sitting in my bank account to purchase a good car, around $6,000 to $10,000. However, credit checks have ...
7
votes
3answers
3k views

Why do lenders do a hard pull when they can do a soft pull instead or are these different reports?

After I was done with my month long credit card applications to establish a credit history, I read and discussed more on how to build a good credit history. During my conversations, I spoke with a ...
6
votes
2answers
359 views

Is it a good idea to get a mortgage when buying a house, for credit reasons?

I'm thinking about buying my first house, and I'm wondering whether I should get a mortgage from a bank or not. This is mostly because I've heard that getting a mortgage is critical part of building ...