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155

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 about your credit score. He cares a lot about wasting as much of your time as possible, so that it becomes more difficult for you to walk away. The power to walk ...


142

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. Decreasing your APR however will result in them making less money from you. There is no equivalence.


84

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 responsibility, not wealth. Someone that religiously pays their bills on time is likely to be quick to address small maintenance issues rather than letting them ...


52

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 days for older models). But now that you know your scores and have a copy of your credit report (because the dealer should have given it to you, and if not you ...


41

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 retrieved your credit worthiness. He's just trying to scare into buying from that dealer. In my opinion that's a good enough to NOT buy from that dealer. If he'...


15

You are misunderstanding utilization. You do not need to carry a balance past the due date to create utilization, in general carrying a balance past the due date is not a good idea. The best practice is to always pay off each month's balance when you receive your statement. (I'm sure there's some tiny exception in there somewhere, but for normal people--just ...


14

This was discussed in an article in Consumer Reports in June 2017. The explanation given was that people with higher credit scores have the means and inclination to pay for issues out-of-pocket, rather than by making a claim. But Alldredge says insurance companies wouldn’t use the scores if they weren’t useful in assessing risk. “Maybe the person ...


12

I've written a number of answers to this effect but my philosophy is just call and ask. Always be nice, but just ask. The worst possible outcome is no change. You can rationalize your way to any outcome. No, they won't lower this because this stream of logic. Yes, you can do this because of this stream of logic. You never carry a balance so the ...


11

Is getting a credit card a wise financial decision? YES. I like my credit cards (plural!) because they offer much better fraud protection than does a debit card. For example, if someone gets my card number, CVV, etc and makes a large charge, I call the bank, have them send us new cards (with different numbers) and go about life while the bank decides if ...


8

The financial media, who are paid by car and credit companies, will tell you that building a credit score is of the utmost importance. Why would you believe otherwise? They will tell you to take out loans and pay interest with the sole purpose and intent of building credit. If your goals are to drive a fanciest possible car and live in the fanciest ...


7

In a comment, you clarified that the card you made the transfer to is maxed out. That's almost certainly the issue. When most consumers think about utilization, they immediately think in terms of averages - if I have 4 credit cards with $2,500 limits, I have a grand total of $10,000 in credit card limit - if the sum of my 4 balances is $2,500 then I have a ...


5

Hard to say with certainty, but I'd wager the card you transferred the balance to has a lower limit than the card you transferred from. Credit utilization is not just one measure, both the per card utilization and total utilization factor into your score. Here's an article on The Balance that supports this notion: The FICO scoring model looks at your ...


5

You asked a few questions in your last paragraph. Let's take a step back before answering them, to understand the context. Essentially, a credit score is an number that's used to predict a consumer's chance of default within the near future. As such, it's used by financial institutions (and sometimes other entities, i.e. employers, service providers, etc) ...


5

I have recently started seeing it in my accounts in Credit Karma. It shows all of the utilization under my name. I was expecting it to show under my wife's account. Is this correct or is this a quirk with Credit Karma? Many people add an authorized user to their account (for example a child or a parent) to improve the credit history of the new user. ...


4

You can't. The scores should be a bit closer, but I wouldn't expect hm to be identical. My bank's reported FICO score to me is 850, but my Transunion score generated through Credit Karma is 820 and varies 5-10 points from that. I'd look at the reporting dates for her accounts, and pay the amount in full before that date. My main credit card cuts the bill on ...


4

For full context here is a related question you posed - How can I understand historical changes in my credit score? One of the points I made there which, for the sake of posterity, I'll repeat here is that you can't reconcile the scores calculated using 2 different models. Because: Algorithm is different Service providers are different and operate at their ...


3

While the answer by Justin Cave sounds right, and shows the good side of the situation, there is another bad side which I would like to highlight. I have no way to know which side Gore Mutual is on, and I do not want to cast Doubt on them; I am merely listing some alternative Possibilities based on experiences in India. Now, Gore Mutual is going to get $X ...


3

An often-misunderstood aspect of credit score reporting is that the score can vary based on two dimensions: The bureau it's pulled from, and the scoring model used. In other words, not all Experian scores are the same. You've identified Experian in your question. They are one of several major credit bureaus used in the United States. Their job is to collect ...


3

Given your history is of all but 2 years, the likelihood of your credit score dipping (upon adding new cards) because the overall/avg length of credit history dipped is low. Or at least the effect of that can be nullified soon and fast because they all age together and in a few years you'll see a good increase in the age. The overall utilization may come ...


3

Banks compete on APR, less so on credit limits. That is, a bank might be willing to give you a lower APR to keep you from going to another bank, but it's less likely they'll give you a higher credit limit to do so. If they think you're a good credit risk, then they'll want to increase your limit so that you'll borrow more, regardless of whether you have ...


3

In addition to DJClayworth's answer there are very few (truly) 0% finance offers. Most have a fee of around 5%. In the case of a 12 month 0% finance offer that is paid off prior to the period expiring, the borrower ends up paying about 7.5% interest, not exactly cheap and certainly not free. You may be able to get another 0% interest rate period, but your ...


3

No problem. I've had situations where a card had a credit limit which wasn't high enough to let me use it as I wanted through the month, and, by making partial payments, was able to take better advantage of a rewards offer. The reason you suggest, solely for utilization purposes - keep in mind 2 things. First, the issuer only reports the balance once per ...


3

There will be several impacts. Most of the immediate impacts will likely be negative, but in the long term, if you behave well, the impacts will likely be positive. That said, none of us can tell you exactly how many points your score will change by, because we don't have access to your entire data set. In general, the immediate negative impacts will be: ...


2

I pay my CC in segments (on Sunday nights) but for a completely different reason: "mind control" as part of budget control. Mind control because I could see -- and remember, since it was only a few days ago -- what each charge was for and thus what category it belonged to. That helped train me into following the budget.


2

Sure, you can ASK. Frankly I doubt they'll say yes, but what does it cost you to ask? A little bit of your time, maybe a few cents on your phone bill if you have a pay-by-the-minute plan. :-)


2

A point that hasn't been made yet is that "0% on new purchases" offers are a customer acquisition strategy. In my experience (US), they're not used for customer retention. More common for retention are "0% balance transfers" offers, which as noted in Pete B's answer aren't truly free.


2

It is correct. That is something that people who are looking into giving loans would want to see. Think about it this way. If someone had paid off all their cards for the last 10 years but each month the payment was only $100 but secretly, they were spending $5000 a month of their spouses credit card, would you want to know that before you lend them money? ...


1

I had a similar situation with the remaining portion of a final cable bill, something like $3. It was so small, the collections agency didn't even bother reaching out (over multiple years). As you mentioned, extremely frustrating! Anyways, after I had paid the fee I was able to get 2 of the big 3 credit rating agencies (don't recall which 2) to remove the ...


1

Nobody can say except the collections agency. They buy these debts for a few percentage points of the total debt and most go unrecovered. They may be persuaded to to a "pay for delete" agreement with you. However, be aware that there is no requirement for them to do so. If you simply pay the debt in full, it will be marked as 'paid' on your credit report ...


1

You can always do a soft credit check. Credit Karma, for instance, will monitor 3 credit scores for you and you can check it daily. It is not a hard hit and does not affect your score. It also shows you events that impact the score, allowing you to monitor and possibly correct the score. This could save you a lot of money down the road. If there is a '...


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