77
votes
Accepted
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 ...
- 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 ...
- 71.2k
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 ...
- 50.8k
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 ...
- 50.8k
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 ...
- 489
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'...
- 2,564
29
votes
Accepted
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 ...
- 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
- 53.5k
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, ...
- 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 ...
- 2,197
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 ...
- 142k
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 ...
- 142k
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 ...
- 71.2k
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....
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 ...
- 17.1k
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 ...
- 145k
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 ...
- 47.3k
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 ...
- 1,260
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 ...
- 53.5k
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 ...
- 1,857
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 ...
- 142k
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 ...
- 47.3k
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 ...
- 145k
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 ...
- 142k
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 ...
- 35.9k
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 ...
- 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 ...
- 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 ...
10
votes
0 APR Promotional Offer For Credit Cards
There is already a great answer here, but I'd like to add something that is slightly more than a comment. You wrote:
what happens if you cancel the card later (with no remaining balance)
and
would ...
- 201
9
votes
Accepted
A bank application mentioned I opened a home loan recently. I never did. Should I be worried?
If this was part of a verification of identity I wouldn't worry about it. They often include some fake data, recognizing that data as yours fails the verification.
- 5,068
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