154 votes

Should I worry about having my credit pulled multiple times while car shopping?

The salesman is lying to you. His goal is to prevent you from walking away. No lie and trick are too grave if they help him achieve that, as far as he is concerned. He does not care the least bit ...
user avatar
  • 3,074
141 votes

Asking bank to reduce APR instead of increasing credit limit

The offer of an increased credit limit may be a sign of increased confidence. However from a bank's point of view it is an attempt to get you to spend more and thus make more money from you. ...
user avatar
  • 30.8k
131 votes
Accepted

Pay off car loan entirely or leave $1 until the end of the loan period?

If I were you, I would pay off the car loan today. You already have an excellent credit score. Practically speaking, there is no difference between a 750 score and an 850 score; you are already ...
user avatar
102 votes
Accepted

Is there a "catch" on my "increased credit limit"?

After this happened the second time, I wonder if there could be a "catch" on this. No I mean, what is my bank's real motivation for allowing me to spend more money. Credit card companies make ...
user avatar
  • 2,797
97 votes

My mother co-signed for my car. Can she take it away from me if I am the one making car payments?

The registration (title too, right?) is in your name, the car is yours. You need to decide how to politely tell her this.
user avatar
84 votes

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

Is your name on your account at all? If yes, you go to the bank tomorrow morning, open an account in your name, and move all the money over. Then tell your company to change their payments to the new ...
user avatar
  • 21.2k
81 votes
Accepted

How can sister protect herself from impulse purchases with a credit card?

Have her talk to her bank and ask if they have programs designed for people like her. If they aren't any help, consider switching to a bank with more of a customer-health focus. Many banks and credit ...
user avatar
  • 16.8k
81 votes

Why would a home insurer offer a discount based on credit score?

The simple answer is that their underwriting models show that customers with higher credit scores are less expensive to insure. The general argument is that credit score is a reasonable proxy for ...
user avatar
  • 20.4k
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 ...
user avatar
75 votes
Accepted

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 would not be concerned about the impact to your credit rating. You already have an excellent credit score, and the temporary change to your utilization will have minimal impact to your score. If ...
user avatar
67 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 ...
user avatar
67 votes

My mother co-signed for my car. Can she take it away from me if I am the one making car payments?

"Her solution to the problem is to take my car" - i.e. THEFT. If you are on the title, it is your car. A cosigner has no right to the item purchased - all he did was guarantee the loan in case the ...
user avatar
  • 11.4k
63 votes

My mother co-signed for my car. Can she take it away from me if I am the one making car payments?

The car is yours, your name is on the title, and you are insuring it based on you being the driver (not her). You are responsible for parking tickets and toll evasion. Any arrangement you might do ...
user avatar
61 votes
Accepted

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

Yes, it is a very good idea to start your credit history early. It sounds like you have a good understanding of the appropriate use of credit, as a substitute for cash rather than a supplement to ...
user avatar
60 votes
Accepted

Shouldn't the "credit score" prevent Americans from going deeper and deeper into personal debt?

I think the heart of the matter is that you're misinterpreting both what comprises a credit score in the US, and how they are used. This is evident in your second to last paragraph: A "credit score"...
user avatar
  • 16.8k
55 votes
Accepted

Why do credit scores have a maximum value?

A person's credit score is related to their risk of defaulting on a loan. When evaluating if your scoring model is any good, though, you can't evaluate the likelihood of default from one person, since ...
user avatar
51 votes

Should I worry about having my credit pulled multiple times while car shopping?

If you are in the US, you're correct that most FICO scoring models will collapse multiple car loan inquiries into a single one (and I believe it's within 45 days for newer models and between 14-30 ...
user avatar
  • 45.7k
49 votes
Accepted

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

K, welcome to Money.SE. You knew enough to add good tags to the question. Now, you should search on the dozens of questions with those tags to understand (in less than an hour) far more than that ...
user avatar
48 votes

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

Creditworthiness is proven over time. The longer your track record of making payments on time, the more probable you will stick to credit agreements in future (or so the reasoning goes). Conversely, ...
user avatar
  • 3,665
45 votes
Accepted

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?

First, before we talk about anything having to do with the credit score, we need the disclaimer that the exact credit score formulas are proprietary secrets that have not been revealed. Therefore, ...
user avatar
44 votes

Is it legal to invent "artificial" bills to build credit?

Based on my knowledge, consistently charging (and paying off) high balances will in fact have a negative effect on your credit score. The factors that go into credit score may vary based on the ...
user avatar
  • 606
44 votes
Accepted

What does it take to get a 0 credit score

The thing about credit scores that many people do not understand is that the standards change. What was true a few years ago, certainly is not true today and could be vastly different in a few weeks. ...
user avatar
  • 75k
44 votes
Accepted

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

I've never heard of those services before, but from looking at one of the websites they don't have ANY kind of Ts and Cs, legal disclaimers, etc. which I feel certain they would need if they were ...
user avatar
  • 21.8k
43 votes

Shouldn't the "credit score" prevent Americans from going deeper and deeper into personal debt?

Can somehow add a layman explanation on how Americans can be so much in debt but have good "credit score" that allows them to borrow even more? A credit score measures the risk of not making monthly ...
user avatar
  • 49k
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 ...
user avatar
  • 49k
41 votes

Should I worry about having my credit pulled multiple times while car shopping?

He's trying to scare you into thinking doing another search will negatively impact your loan rates / credit score. If you believe that then you are more likely to buy from the place that has already ...
user avatar
  • 481
38 votes
Accepted

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

Each of the recent changes you listed has the following effect on your credit score: $4K on credit line: increases your debt utilization. The smaller the denominator (sum of all credit limits of CC's ...
user avatar
  • 45.7k
38 votes
Accepted

What can I actually do with a high credit score?

What can I actually do to leverage this high credit score to my advantage? Borrow money. Although I'd question whether that's actually to you advantage or not - it depends on what you're borrowing ...
user avatar
  • 116k
38 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 ...
user avatar
  • 49k
38 votes

When should I pay off charges on credit card if my main concerns are reward points and credit score?

Option D: Pay bills using credit card. Wait for billing period to close and monthly statement to be generated. Pay the statement balance in full, and pay it on or before the due date. For credit card ...
user avatar
  • 8,652

Only top scored, non community-wiki answers of a minimum length are eligible