153

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 ...


141

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.


128

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 eligible for the best loan rates. The fact that you are continuing to use 5 credit cards and that you still have a mortgage tells me that this car loan will have a ...


100

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 money in a few ways. Whenever you buy something on the card they get a cut of the merchant fees, the more you buy on the card the more money they make. When ...


96

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


83

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 account. After that, you explain to your wife. This is madness. (I’d recommend the same to your wife if a member of your family was on that account). If your ...


81

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 unions have specific programs for people like her, to allow them to build credit with less risk (both for the bank and for her). Also, many financial ...


81

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 ...


76

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 publicly available. Every score is calculated with a different formula, and can vary from each other widely. Lenders almost exclusively only use FICO scores, so ...


75

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 you really need to make this $2500 purchase and you have the money in the bank to pay for it, I would not recommend borrowing this money. Only put it on the ...


67

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 idea. Why it can be a good idea to close unused accounts "I'd like to close the cards." That is reason enough. Simplifying your financial life is a good ...


66

"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 signer does not pay. Anything between the signer and the cosigner is a civil matter (i.e. the cosigner could ask for damages if the signer does not pay). But the ...


60

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 must account for these facts. Legally, you don't have to give her the car, and can report it stolen if she takes it. Socially, if your family is close enough ...


60

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" in my country limits the extra debt you can take if you are already in debt. In The U.S. though, it seems that the "credit score" allows you to get even more ...


59

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 income. As long as you keep your expenses under control and pay off your card each month, I see no problems with the idea. Try to find a card with no annual fees,...


50

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 ...


49

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 banker knows about credit and credit scores. My advice is first, never miss a payment. Ever. The advice your father passed on to you is nonsense, plain and ...


48

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, someone who has only just started applying for credit could be someone whose finances were previously stable but have now started to get into difficulty. ...


44

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, all we have to go on are broad generalities that FICO has given us. That having been said, the credit card debt utilization portion of your score generally has ...


44

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 provider, but these are generally the main ones: Payment history (i.e. not missing payments) Utilization (how much of your credit you're using) Length of credit ...


44

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. There is no such thing as a 0 credit score, only that you could have insufficient history to provide a score. People in certain disciplines see a big ...


44

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 legit. They ask you to pay $48 just to be a member on their site with nothing at all about how likely you are to actually find a cosigner through them, and not even ...


43

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 payments. That's all. Nothing more. If a creditor thinks you're a larger risk, they'll likely just demand a higher interest rate, or some form of collateral ...


42

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 slowly impoverishing yourself).


40

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'...


38

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 and lines of credit) the more this will lower your score. The good news is, within 30 days of paying that off your score will jump back up. Co-signing a $20K ...


38

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 the money for and whether the interest you're paying is worth the benefit to you. Does a high score give me any negotiating power with the lender to get a ...


37

Personally, I don't think that the interest from the car loan is worth the credit history you're building through it. There are other ways to build credit that don't require you to pay interest, like the credit card you mentioned (so long as you keep paying off the balance). So I'd go that route: ditch the auto loan and replace it with a line of consumer ...


36

All I can tell you is what I have experienced. Since paying off all of my debt, my credit score is the highest of my life, hovering just above 800. I have one open credit card. If I were in your shoes, I would keep one open credit card. I would use it for things where I don't really make a purchase decision, like paying for gasoline at the pump, or the ...


34

Ok So I worked some time in the insurance industry, in Germany, so here is what´s relevant for you: Car insurance is mainly priced by 4 factors: Your track-record "Schadenfreiheitsklasse" - you can take that with you whenever you change the insurance company. It will be lower the more years you drive and go up if you have an accident. The old company is ...


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