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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28
votes
6answers
753 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 ...
19
votes
8answers
1k 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 ...
16
votes
11answers
755 views

When should I walk away from my mortgage?

I bought my home in California in 2006, at the height of the boom. Now I owe $100K more than the home is worth. California is a "no recourse" state; if I stop payments, the bank can take the house ...
16
votes
3answers
646 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 ...
15
votes
5answers
2k 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 ...
15
votes
4answers
2k 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 ...
15
votes
3answers
275 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 ...
14
votes
4answers
3k 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 ...
14
votes
2answers
2k 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 ...
14
votes
3answers
6k 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, ...
14
votes
3answers
206 views

Aside from having to re-establish credit & credit history, what are downsides to declaring personal bankruptcy?

If someone were to file for (personal) bankruptcy protection from their creditors, is their entire debt wiped clean? And then they have seven years to wait before their credit history no longer ...
13
votes
3answers
389 views

When applying for some jobs, why do they check your credit?

Why is it that some jobs check your credit score? Is this normal? Is it even legal?
13
votes
3answers
501 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, ...
13
votes
5answers
4k views

Can it really hurt your credit to pay off things in collections?

I have 4 items in collections according to my credit reports - 2 medical bills totaling $1700, and unpaid traffic ticket for $200, and an old utility bill for $185. I have one credit card that I've ...
13
votes
8answers
4k 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
8answers
479 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 ...
12
votes
3answers
800 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 ...
11
votes
3answers
2k 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 ...
11
votes
3answers
1k 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 ...
11
votes
2answers
262 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 ...
11
votes
1answer
174 views

What is the best way to go about cleaning up a poor credit rating?

Is it true that poor decisions you make now can affect you for up to seven years? Can they negatively-affect one beyond then? What are some steps one could take to repair the damage?
10
votes
4answers
234 views

Is there value in using a credit card for the sake of using it?

We've recently (last 6 months or so) paid off several of our cards completely, and are working to pay down our last, highest utilized card. We don't generally need to charge much and can pay in ...
10
votes
3answers
320 views

How closely tied is my credit score to my spouse?

If you and your spouse/life-partner have a joint checking/savings account, and bought a house/car with a joint loan, how closely tied are your credit scores? For example, if one person suddenly took ...
10
votes
4answers
224 views

Should I pay an erroneous bill in collections if it is a tiny amount?

I have a very small bill amounting to $43. I was billed this amount when a medical services company sent me a product that I did not order. (It was probably ordered on my behalf by a doctor I ...
9
votes
4answers
541 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
3answers
191 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 ...
9
votes
4answers
326 views

I am co-renting with others who do not pay rent reliably. Is there a way I can stay without harming my credit rating?

I rent with other adults in a rental property and my name is on the rental agreement with them. I would like to know if I have to move out, or is there a way I can remain and still pay just my fair ...
9
votes
2answers
405 views

No Late Fee Credit Cards - What is the gotcha?

For weeks now I've been seeing ads for the Citi Simplicity card and Discover IT Card all over (be it on the NYC subways, TV, magazines, etc.) which boast a couple of features but I'm very curious ...
9
votes
1answer
237 views

What can I plan for to save money on my mortgage?

I am a first time home buyer and any advice is greatly appreciated. I am going to start shopping soon for getting a mortgage and I need to know what strategies I can use to avoid paying more than is ...
9
votes
2answers
99 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 ...
9
votes
2answers
193 views

Does losing your credit card damage your credit rating?

Obviously, losing your credit card is bad for plenty of reasons. But say you lose it, report the loss, and get a new card without anyone else having used it in the meantime - no charges need to be ...
9
votes
2answers
254 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 ...
9
votes
2answers
228 views

How to pay off a loan to maximize credit score?

Which is better for your credit score, in terms of paying off a loan? Paying the minimum every month, on time, through the entire period of the loan Paying a certain amount above the minimum every ...
9
votes
1answer
210 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 ...
9
votes
3answers
3k views

Will Cancelling Department Store Credit Cards Improve My Credit Score?

I have about 5 department store credit cards that I never use. If I cancel those accounts, will my score improve? Even a little? Again, these aren't credit cards. They're store cards (like Home Depot, ...
9
votes
3answers
222 views

Does getting more credit or credit cards improve your credit score?

I'm reading Ramit Sethi's I Will Teach You To Be Rich, and one of the tips from the first chapter is to apply for more credit card debt. He warns it's only for people like me who carry no credit card ...
8
votes
5answers
365 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 ...
8
votes
4answers
173 views

Will replacing a credit card with a better one hurt my FICO score?

I have a credit card from 1st Financial Bank. I got it when I was 18 years old, and have kept up with it 100%. After the recent US legislation on credit cards, they have started hiking various fees. ...
8
votes
3answers
1k views

I am closing one credit card and getting a new one. What order should I do this in?

I currently have a MasterCard from a bank that I am unhappy with. I want to get another MasterCard from a different issuer. Should I close my current account then open the new account? The other way ...
8
votes
1answer
152 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 ...
8
votes
3answers
206 views

Does a balance transfer from a credit card affect our credit score?

If we do balance transfers from our credit card, pay more than the minimum payment within the due date and payoff the entire amount slowly within the specified time-frame, does it improve our credit ...
8
votes
2answers
238 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 ...
8
votes
2answers
262 views

How does Paying credit card in full VS paying with interest will affect your credit score?

What is the effect of paying credit card in full or with interest on your credit score?
8
votes
3answers
237 views

Why Am I Having Such A Hard Time Getting a Credit Report?

I have always heard about evil credit card companies preying on vunerable college students. I find that quite interesting, considering I've found it impossible to get a credit card! Even more ...
8
votes
2answers
5k views

Will upgrading my credit card affect my credit history length?

Background: I recently graduated from college. I have had a student credit card (Visa) with Wells Fargo since 2008 and it is my only credit card. Obviously, I do not want the history of this card to ...
8
votes
4answers
202 views

What effect will credit card churning for frequent flyer miles have on my credit score?

We've all heard about the people who have tons of credit cards - getting new ones for the sign-up bonus (25 to 50 thousand miles, typically), either never using them or charging minimal amounts and ...
8
votes
1answer
381 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 ...
8
votes
2answers
655 views

Do margins on a brokerage account affect your credit score?

If you have the ability to trade on margin, will this improve your credit history/score? If you refuse to pay the margin and lack the funds to pay for the money borrowed, I understand that it can ...
8
votes
4answers
161 views

I just applied for a credit card. Will I be able to see my credit score number with a decision?

Will I be able to see the actual credit score number the credit card company uses? Or will it just be an accept/reject letter?
8
votes
4answers
220 views

I want to buy a house in a few years, what should I do now to improve my bad credit?

I have bad credit, score is in the mid 500s, and I have been paying off old debt accounts. There are still a few left to pay, but what I want to know is what will raise my credit score, how much can ...