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Questions tagged [credit-score]

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 credit-report.

62
votes
7answers
14k views

Is there a “catch” on my “increased credit limit”?

Today I received a letter from the bank that issued my credit card. Basically it says that, since I'm "one of their best customers" my credit (card) limit has been increased. This is the second time ...
62
votes
11answers
24k views

Should I open a credit card when I turn 18 just to start a credit score?

I spend about $20-30 a week on my debit card, with periodic $200-300 purchases every few months. I've thought about getting a credit card the moment I turn 18 and using it to buy everything, then ...
61
votes
6answers
11k views

Wife is cosigned on a credit card with her parents — real assets are also shared. How to protect my credit?

A few years ago I got a credit monitoring app and started watching my credit score (high 700's). It's been climbing slowly and sends me an alert when I apply for new credit - like when I bought a car ...
59
votes
10answers
27k 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 ...
47
votes
12answers
9k views

Is it ever a good idea to close credit cards?

I have a bunch of credit cards with no balance, while others have fairly high balances. I'd like to close the 0 balance cards, but I know that will reduce my overall balance and hurt my credit rating, ...
46
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 them ...
44
votes
5answers
13k views

Going house hunting next week and my credit score just dropped by 100+ points

My wife and I (usually) have excellent credit. TransUninion had me at 790 and other agencies well into the 800s. Our lenders have already prequalified us for our home, and sent the ratings they got ...
38
votes
8answers
4k 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 ...
31
votes
5answers
101k 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, ...
29
votes
7answers
18k views

Making a big purchase over $2500. I have the money to cover it. Should I get a loan or just place it on credit?

I am planning to make a big purchase. I have the money in savings to cover it, but I don't want to drop $2500 all at once if I can avoid it. I have a credit card with a $9000 limit, but I know that ...
27
votes
8answers
260k 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 ...
27
votes
4answers
6k views

How much does credit score matter?

The higher your credit score, the better. If you ever had the choice of two different credit scores, you are always better off preferring the higher one. However, while the utility of a higher score ...
26
votes
9answers
15k views

Is it legal to invent “artificial” bills to build credit?

EDIT: This question was based on a misunderstanding of how credit is built. However, the concept of moving money on a credit card without spending anything still has other potential benefits (such as ...
25
votes
8answers
18k 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 ...
24
votes
11answers
2k 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 ...
24
votes
5answers
6k views

Will a credit card company close my account if I stop using it?

I'm going to stop using my Visa and apply for an AMEX. I want the Visa account to remain open to keep my revolving credit usage % low. While I understand opening a new card will temporarily reduce ...
24
votes
4answers
9k 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 ...
23
votes
4answers
8k views

Can you explain why these items are considered negatives on my credit report?

I just used 'Clear Score' to find out my credit rating. My score is higher than both the national and local averages, but there are 2 'negative' results shown. Negative (2) Your oldest active ...
22
votes
7answers
5k views

Are credit cards not viewed as credit until you miss one payment?

I have recently been trying to improve my credit score in hopes of getting a good/better mortgage here in a few months when I become a first time home buyer. My father has been helping me by doing ...
22
votes
4answers
7k views

Car dealer saying that they cannot see any credit information for my co-applicant. Could this be a scam?

A couple of days ago, I went to a Chrysler dealer here in Florida to look for a new car. Being that my credit score is currently somewhat low (about 680), me and my wife thought that we could have ...
22
votes
3answers
646 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 ...
21
votes
9answers
7k views

Should I pay off my car loan within the year?

I saw another question like this, but I am in a bit of a different situation. I am 19 years old, in college, and have no credit history. I saved up enough money to buy a car, but decided to get a ...
21
votes
4answers
7k views

How to recover from credit score hit from paying off loan?

My credit score recently took a dip after I paid off my student loans recently. When I look at the credit report via mint it shows a "not bad" rating for number of accounts opened. ("not bad" is the ...
21
votes
5answers
5k views

Confused: Should I be opening more no annual fee credit cards to improve my score with the intention to not use them?

I was told that having more cards and more open accounts was more of a risk factor since you have more credit to abuse. However, this seems to say otherwise that credit trackers actually encourage you ...
21
votes
8answers
37k 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 ...
20
votes
4answers
6k 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 ...
20
votes
3answers
2k 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 ...
20
votes
2answers
12k 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 ...
20
votes
1answer
4k views

If you put a freeze on your credit, will your credit score stop changing?

I have placed credit freezes at all three agencies in the US. I have existing debt that I am paying on time, will the credit freeze stop that activity from being recorded and helping my credit score?
19
votes
10answers
5k views

How can I improve my credit score if I am not paying bills or rent?

I still live at home and thus I don't pay any rent or bills directly. I give a small chunk to my parents but this is somewhat irregular. I am employed, so a lot of my income goes straight into ...
19
votes
4answers
3k views

Do credit checks affect credit scores?

I've heard what I believe to be a myth surrounding credit scores being affected by companies (loan, mortgage etc.) checking your file. I used to have an experian account, and I noticed quite a few ...
18
votes
3answers
1k 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, ...
18
votes
6answers
2k 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 ...
17
votes
6answers
14k views

What does it take to get a 0 credit score

I'm not sure if a 0 credit score is the same thing as having 'no credit history'. I'm wondering how long it would take a credit score to drop to 0 (something Dave Ramsey says happens eventually after ...
17
votes
5answers
5k views

Will it hurt my credit to keep a bank account at a credit union, but not use it?

A previous job forced me to open a new account with their partner credit union. I was very uneasy about it at the time, but there wasn't room or time to really argue it. That was four years ago, and I ...
17
votes
2answers
2k views

Are multiple hard inquiries for a specific loan type okay?

I'm researching mortgage options for my first home purchase, and I recently had a long call with a loan officer where he encouraged me to get pre-qualified (requiring a hard credit inquiry) as soon as ...
16
votes
3answers
4k views

What's the best way to maintain your credit score after paying off all of your debt?

For several years we have had a mortgage, two car loans, and an active line of credit from our bank. We made payments on all of these religiously and our credit score is now in the high 700s. ...
16
votes
4answers
30k views

Are credit histories/scores international?

I'm starting work in the US, and I'm wondering if my credit history will transfer. If not, is there a way for me to gain an "international" credit history, or equivalent, in expectation of other ...
16
votes
3answers
416 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 ...
16
votes
3answers
906 views

How can I build up credit using a credit card?

I am a poor/broke 20-something, I make minimum wage (or a few dollars above it.) I've been trying to build up credit, in case I need it someday - the likely event my aging vehicle explodes, for ...
15
votes
8answers
6k views

5 credit accounts, from $1750 to $4000, all above 90% utilization. Better to pay $500 on all 5, or pay one off completely for credit score?

I have 5 cards acquired in a misbegotten, spendthrifty youth. Utilization: Account 1: $1600 of $1600 Account 2: $1500 of $1500 Account 3: $1200 of $1750 Account 4: $2900 of $3000 Account 5: $4000 ...
15
votes
3answers
589 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?
15
votes
8answers
1k 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 ...
15
votes
4answers
5k 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 ...
15
votes
2answers
688 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 ...
14
votes
2answers
4k views

What impact does a large purchase with an immediate payoff have on a cashback reward and credit score?

I want to purchase a laptop worth $1300. If I buy it using the credit card, I will get 5% cashback. I will pay immediately to the credit card company after the purchase (I do have that much money in ...
14
votes
6answers
7k 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 ...
14
votes
1answer
228 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?
13
votes
5answers
832 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 ...
13
votes
3answers
2k 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 ...