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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.

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30 votes
4 answers
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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 ...
Superbest's user avatar
  • 2,688
50 votes
12 answers
11k 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, ...
Eliyahu's user avatar
  • 635
19 votes
2 answers
3k 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 ...
WannabeCoder's user avatar
  • 2,065
20 votes
2 answers
15k 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 ...
Jeremy's user avatar
  • 201
8 votes
4 answers
4k 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 ...
wired_in's user avatar
  • 228
25 votes
6 answers
4k 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 ...
Lilienthal's user avatar
10 votes
3 answers
1k 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 ...
txwikinger's user avatar
8 votes
3 answers
4k views

How bad would maxing out my credit card once a year affect my score

I just got approved for a $1500 cash secured credit card from Wells Fargo. This means I have no credit history whatsoever, and am going to use this card to establish one. With fall semester at ...
f1StudentInUS's user avatar
20 votes
3 answers
3k 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 ...
M. Duff's user avatar
  • 411
13 votes
2 answers
3k views

Does the history of credit utilization affect FICO score?

Most people are aware that the debt to credit limit ratio is a vital part of the FICO score. The FICO score is updated every time new information is received by the credit bureaus. However, is it ...
Brian's user avatar
  • 173
10 votes
2 answers
32k 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 ...
johnny's user avatar
  • 1,265
8 votes
2 answers
2k 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 ...
monksy's user avatar
  • 425
38 votes
8 answers
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 ...
MyNameIsKhan's user avatar
32 votes
5 answers
113k 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, ...
Vaishak Suresh's user avatar
31 votes
5 answers
8k views

What can I actually do with a high credit score?

I recently checked my credit score via two of my credit card providers. It seems to be hovering between 790 and 815. One service brands the score it provides as a FICO score and the other specifically ...
Freiheit's user avatar
  • 8,752
28 votes
8 answers
307k 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 ...
Ryan's user avatar
  • 1,048
10 votes
3 answers
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 ...
Miles's user avatar
  • 241
67 votes
11 answers
32k 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 ...
Jon's user avatar
  • 835
66 votes
7 answers
15k 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 ...
Diego's user avatar
  • 827
45 votes
7 answers
3k 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 ...
DrFredEdison's user avatar
  • 2,209
21 votes
4 answers
8k 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 ...
James Wierzba's user avatar
17 votes
5 answers
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 ...
jvriesem's user avatar
  • 374
10 votes
1 answer
2k views

What tools are there to investigate why my FICO score would have dropped significantly?

Please assume the basics have been considered, such as: Credit utilization could have went up Hard inquiries Closed an account Opened a new credit card Paying off a loan None of the above occurred ...
8protons's user avatar
  • 847
10 votes
2 answers
802 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?
WowBow's user avatar
  • 361
8 votes
1 answer
414 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 ...
Craig's user avatar
  • 499
6 votes
4 answers
13k 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 them, ...
Jack's user avatar
  • 1,456
5 votes
3 answers
1k views

Does being added as an authorized user help credit score?

My wife and I both filed bankruptcy 15 months ago, and are slowly getting our credit back. We both got a credit card from Capital One. Does adding each other to the other's card as an authorized ...
d0g's user avatar
  • 191
5 votes
1 answer
860 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 ...
Soviero's user avatar
  • 1,362
5 votes
2 answers
853 views

In the US, will closing a bank account negatively affect your credit score?

In the US, will closing a bank account negatively affect your credit score? I've had it with my bank and I'm thinking of moving my money to a smaller Credit Union. Would this affect my credit score? ...
Matt's user avatar
  • 1,027
4 votes
2 answers
3k views

If I pay my credit card balance immediately, will my credit score still go up fast?

I heard that it's good to have a balance because then the bureaus report that balance -- if you pay it off before they report it, they report zero. Since you want the bureaus to know that you use ...
Seed Hape's user avatar
4 votes
1 answer
2k views

Credit score just tanked ~50 points and I'm not sure why

I check my credit score monthly using a credit tracking app provided by my credit card company. I use a reminder to check on the same day each month, and have been tracking my credit score for almost ...
zzzzBov's user avatar
  • 203
2 votes
3 answers
1k 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 ...
user541686's user avatar
  • 3,369
63 votes
10 answers
38k 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 ...
user0721090601's user avatar
23 votes
3 answers
729 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 ...
a_m0d's user avatar
  • 353
20 votes
3 answers
2k 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 out 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, ...
Swoop's user avatar
  • 616
19 votes
3 answers
12k views

Are cosigner finder websites like hireacosigner.com, cosignerfinder.com etc. legit?

I am a foreigner to USA and would like to pursue masters in CS in USA. But based on the current state of USD, I won't be able to pay the costs of tuition on my own. So, I will be taking a loan from ...
QnARails's user avatar
  • 293
15 votes
2 answers
773 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 ...
Geo's user avatar
  • 5,825
13 votes
5 answers
1k 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 ...
samoz's user avatar
  • 1,114
13 votes
3 answers
2k 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 ...
Ruben's user avatar
  • 233
13 votes
3 answers
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 ...
Samuel Carrijo's user avatar
11 votes
1 answer
478 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 ...
Alex B's user avatar
  • 17.4k
10 votes
3 answers
45k 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 ...
Gabbar's user avatar
  • 523
8 votes
2 answers
8k views

Get car loan w/ part time job as student with no credit, no-cosigner but no expenses

This is the only place where I knew to turn for a question like this. I am a student (if that will make me look better to the loan officers), but I'm fairly certain I have no credit. I took out a ...
revofire's user avatar
8 votes
3 answers
3k views

How to build a U.S. credit history as a worker on a visa?

I am 30 and looking serious at moving to the United States to take a lucrative (career wise) job. Assuming I get the job offer and accept it, how can I go about getting credit in the US? I am from ...
Mark Henderson's user avatar
8 votes
2 answers
2k views

Will paying off an old $8 collection hurt my credit?

Let me explain a little more. I was the victim of a car accident and medical bills went through the roof. I had about $16k racked up, then my settlement finally kicked in 3 years later and paid it all ...
Justin C.'s user avatar
8 votes
2 answers
1k 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 credit ...
NeedAdvice's user avatar
  • 3,817
7 votes
7 answers
4k views

Closing unused credit cards: how much will it really hurt?

I have three credit cards, but I only use the newest. I pay it off in full every month, and the two older credit cards haven't seen a single transaction in over a year. None have an annual payment, so ...
Adam Jaskiewicz's user avatar
7 votes
2 answers
9k views

Credit rating in Germany

A multitude of questions address the issue of credit ratings and FICO scores in the US and other countries. I am however specifically asking how credit scores (SCHUFA) work in Germany. From various ...
Ghanima's user avatar
  • 365
6 votes
1 answer
4k views

My credit score has been erased. What happened?

In 2006, I bought my first car with a loan. In 2008, facing a number of emergencies, I took out a credit card and maxed it out. I worked hard not to miss a single payment on either and to pay off the ...
geelhatter's user avatar
6 votes
1 answer
2k views

Closing a credit card with an annual fee without hurting credit score?

I took a hit on my student loans when I graduated into an economy without work, so my credit score went into the tanker a bit. Since then I've been making all my payments, everywhere, on time. Now my ...
IAmBatman's user avatar
  • 365