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

First, you need to be aware that the credit score reported by Mint is Equifax Credit Score. Equifax Credit Score, like FICO, Vantagescore, and others, is based on a proprietary formula that is not ...
Ben Miller's user avatar
  • 116k
68 votes
Accepted

Is it ever a good idea to close credit cards?

Yes, it can be a good idea to close unused credit cards. I am going to give some reasons why it can be a good idea to close unused accounts, and then I will talk about why it is NOT necessarily a bad ...
Ben Miller's user avatar
  • 116k
45 votes

$7300 medical billing error reported to credit agencies

My question is what more can I do to ensure this doesn't happen again. Credit monitoring services can be helpful at detecting things like this early, but they can't actually prevent them, clerical ...
Hart CO's user avatar
  • 70.6k
42 votes

Credit score and financing new car

CC debt is My Hair Is On Fire!! debt, because the interest rate is so high. So... yes, you should pay that off first (unless you like subsidizing my 1.5% Cash Back Rewards and "Fat Cat Bankers" while ...
RonJohn's user avatar
  • 50.7k
39 votes

Open many credit cards while I am young?

I just turned 19 years old and want to start planning for a future of good credit. A laudable goal. Should I open many credit cards now so that in 10 years I will have a good history with many ...
RonJohn's user avatar
  • 50.7k
38 votes

Purpose of having good credit when you are well-off?

Your dad may have paid an "opportunity cost" for that outright purchase. If the money he saved had been invested elsewhere, he may have made more money. If he was that well off, then his interest ...
user1547672's user avatar
30 votes
Accepted

Is it common practice for credit card company to demand to see your income tax forms?

A number of lenders - American Express and Discover are most notable for this in recent years - may ask or require you to verify your income via an IRS 4506-T form. Typically, they'll do this if they'...
ceejayoz's user avatar
  • 2,564
29 votes
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Should I, as a young person, get a credit card with "bad" conditions?

There are several things that go into your credit history. I believe this applies to most credit systems, but I should warn you that most of my information is US-centric. There may be variations in ...
Freiheit's user avatar
  • 8,772
28 votes

Purpose of having good credit when you are well-off?

Credit scores, or at least components of them, can sometimes factor into how much you pay for car insurance. Source: Consumer Reports: How a Credit Score Increases your Premium
JohnFx's user avatar
  • 53.1k
26 votes

Purpose of having good credit when you are well-off?

Because even if you won the lottery, without at least some credit history you will have trouble renting cars and hotel rooms. I learned about the importance, and limitations of credit history when, ...
doug's user avatar
  • 875
24 votes
Accepted

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

In the long run, yes. In the short term, no. Having more accounts and higher total credit limit is a good thing. From the potential lender's perspective, someone else has apparently reviewed your ...
xiaomy's user avatar
  • 1,838
24 votes

Is it better to have/use more credit cards to build credit history/score?

Increasing the number of cards is a double-edged sword credit-wise. There's a trade-off between the amount of credit used (utilization), number of inquiries and open accounts (fewer is generally ...
D Stanley's user avatar
  • 138k
24 votes
Accepted

How do I raise my credit score from 720 to 800?

To earn a good credit score, you have to borrow a higher-than-average amount of money and make your monthly payments consistently. That usually means that you have to pay a lot in interest, unless you ...
D Stanley's user avatar
  • 138k
23 votes
Accepted

0 APR Promotional Offer For Credit Cards

Would you be able to get the same promotional offer again? You can't get the promotional offers on the same card immediately, and some are once in a lifetime. You might be able to string together ...
Hart CO's user avatar
  • 70.6k
21 votes

Purpose of having good credit when you are well-off?

A $250K earner might have $4M in retirement savings and $500K in available funds, but doesn't wish to spend all his liquidity on the house. In general, a house might cost 2-3 times one's annual income....
JTP - Apologise to Monica's user avatar
20 votes

Credit score and financing new car

You're asking several related questions - about credit scores, how to use cash, and how to buy a vehicle. If we break them all down and start with what to do with your $5k in cash - it makes sense to ...
dwizum's user avatar
  • 17k
20 votes

Will closing a checking/saving account have a bad effect on my credit report?

I want to know will this has a bad effect on my credit, etc? Closing a checking and/or savings account should have zero impact on your credit score. There is a risk if you close the account, and you ...
mhoran_psprep's user avatar
19 votes

Should I, as a young person, get a credit card with "bad" conditions?

Would it be a good decision for someone ... to build up his credit history to apply for credit cards with "worse" terms than average, such as larger interest, shorter or no grace period, etc.? It ...
TTT's user avatar
  • 47.2k
17 votes

Open many credit cards while I am young?

Your credit score is devised by 5 components. Age of account Credit utilization Payment history New Credit Credit mix https://www.myfico.com/credit-education/whats-in-your-credit-score If you get a ...
Dean MacGregor's user avatar
17 votes
Accepted

What happens to your credit score on prolonged absences from the US?

Neither paycheck deposits or rent are factored into your credit score. Only lines of credit. If you don't close the credit cards and you use them at least once in a while, then pay off the bill on ...
JohnFx's user avatar
  • 53.1k
15 votes

Can credit cards look at your credit report without your authorization (and reduce existing credit limits)

Yes. Check your credit-card agreement that you signed. You will have given them authorization to periodically perform "soft" pulls of your credit report to recompute your credit score and adjust ...
Dai's user avatar
  • 1,837
14 votes
Accepted

How to build up credit fast?

Credit is like dignity - it takes a long time to build but a short time to lose. Your credit history is mostly made up of your prior activity for several years. There's no "quick fix" to raise your ...
D Stanley's user avatar
  • 138k
13 votes
Accepted

Should I max out my first credit card in order to build credit if I can pay the balance immediately?

If it were me, I would max out the card with the purchase, then pay it off in full shortly after so you can continue using the card for more purchases. The only reason I suggest doing this is because ...
TTT's user avatar
  • 47.2k
13 votes

Can you build credit history without getting a credit cards or taking on debt?

Get a credit card. I know you said you don't want one, but they build credit and don't have to cost you money. They also offer more protection than a debit card. If you pay it off by the due date ...
mhoran_psprep's user avatar
13 votes

How can a senior finance building a home with no current credit score but good equity in current home?

Talk to a local bank or credit union about getting a Home Equity Line of Credit (HELOC). With a paid-off home it should be no trouble to get a loan even with an unusual credit history. The loan will ...
D Stanley's user avatar
  • 138k
11 votes

Is it ever a good idea to close credit cards?

It is an issue of both utilization and average age of accounts. If your cards with $0 balances on them are: A) newer cards than the ones you are carrying balances on and you don't want them B) much ...
CQM's user avatar
  • 20.2k
11 votes

$7300 medical billing error reported to credit agencies

The hospital has done what they can do in terms of repairing the damage; 30 days is reasonable given reporting frequency. No permanent harm has been done in terms of your credit. Further, since this ...
Joe's user avatar
  • 35.8k
11 votes
Accepted

Should I open a second credit card just to improve my credit score?

Your credit score is already excellent, and increasing it from here will not help you in any meaningful way. In my opinion, you should not do anything you don’t really want to do in an attempt to ...
Ben Miller's user avatar
  • 116k
10 votes

Should I, as a young person, get a credit card with "bad" conditions?

I'm the contrarian on the site. I believe that credit cards are the spawn of the devil and should be avoided at all costs. I have lived with and without them, and can confidently say life is much ...
pojo-guy's user avatar
  • 872
10 votes

Credit score and financing new car

Do not buy a car on credit. Ever. The fact that you have credit card debt makes it an even worse idea, but there are just so many reasons you should never buy a car on credit. For $5000 you can get a ...
R.. GitHub STOP HELPING ICE's user avatar

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