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What Is a Good Credit Score?

What Is a Good Credit Score?

Advertiser Disclosure August 06, 2018 by Gerri Detweiler

Most credit scores – including the FICO score and VantageScore 3.0 – operate within the range of 300 to 850, and a good credit score is typically one that is 700 or above. Within that range, there are different categories, from bad to excellent.

Excellent Credit: 750+
Good Credit: 700-749
Fair Credit: 650-699
Poor Credit: 600-649
Bad Credit: below 600

But even these numbers and ranges aren’t set in stone. Again, that’s because lenders all have their own definition of what is considered a good credit score. One lender that is looking to approve more borrowers might approve applicants with credit scores of 680 or higher.

Another might be more selective and only approve those with scores of 750 or higher. Or both lenders might offer credit to anyone with a score of at least 650, but charge consumers with scores below 700 a higher interest rate!

How Do I Rate?

A good credit score is what each of us aspires to. After all, a credit score is one of the most important determining factors when it comes to borrowing money – and getting a low rate when you do.

But trying to pin down a specific number that means your credit score is “good” can be tricky. After all, there are lots of different credit scores that lenders use when trying to decide whether to grant you a loan.

What one lender may view as a “good” score may fall into another lender’s “fair” credit category. (Not to mention, you may score differently from model to model.)

Luckily, there are broad rules of thumb that can help someone figure out whether their credit scores are good or not. Let’s break it down.

What do Credit Card Companies Look for?

Your credit scores are definitely one of the main things that credit companies look for before extending credit because they are good risk indicators. However, credit card companies will also take a close look at how many reported delinquencies you have, how many hard inquiries were added to your credit file, your overall credit card utilization rate, your annual income, and the health of your credit history.

While several things factor into their decision, if you have an excellent credit score than your chances of being approved are much higher than someone with a much lower credit score. If you have never had a credit card before but want to get one to begin to build and establish credit, then you should check out some of the best credit cards for beginners.

What is a FICO Score?

You have a FICO Credit Score from each of the three major credit bureaus: Equifax, Experian, and Transunion. Each of these credit scores is based on different information that each of the credit bureaus has for you. And as mentioned above, this available information may very well differ from bureau to bureau.

The Fair Isaac Corporation is who has come up with FICO credit scores and subsequently, these scores are used by over 90% of lenders when it comes to providing you with a loan. They are also used when they grant the interest rates, monthly payments, and terms of each loan, and whether you are approved or not.

All the information contained in consumer credit reports is then compared to find patterns, and the resulting FICO credit score is solely determined by what is found on a person’s individual credit file. This information is what will then help estimate the level of future risk there may be if a lender extends to you the offer of a loan or any other type of credit.

Because the FICO credit score can only be determined by information found in the individual’s credit file, it is essential to look over your credit reports each year to find any inaccuracies or discrepancies to ensure that everything is accurate and up to date.

Click here to learn more about how you can obtain your free annual credit reports. As a consumer, you are entitled to one free credit file disclosure from the three major credit bureaus every twelve months.

What is a VantageScore?

A VantageScore is a credit scoring model that emerged over a decade ago and was a joint venture between Experian, Transunion, and Equifax. The VantageScore model is used in comparison and competes with the Fair Isaac Corporations (FICO) scoring model.

When determining if you are a good candidate for a loan or line of credit, a lender will look at your credit scores. Most lenders use FICO scores, but some lenders are starting to look at VantageScores as well to further determine your future financial risk if they were to extend an offer of credit to you.

Both of these scoring models, however, use much of the same information such as the consumer’s payment history, the length and type of credit they have, the amount of their credit usage, and how many recent hard inquiries they have on their credit file.

However, if the extent of your credit history is not lengthy, then you may want to begin closely monitoring your VantageScore because a FICO Score will require a minimum of six months of credit history as well as a minimum of one reported account within the last six months.

The Credit Score Range Scale

There are many different credit scores available to lenders, and they each develop their own credit score range. Why is that important? Because if you get your credit score, you need to know the credit score range you are looking at so you understand where your number fits in. Here are the credit score ranges used by major credit scoring models:

FICO Score range: 300-850
VantageScore 3.0 range: 300–850
VantageScore scale (versions 1.0 and 2.0): 501–990
Experian’s PLUS Score: 330-830
TransUnion New Account Score 2.0: 300-850
Equifax Credit Score: 280–850

With all of the scores listed above, the higher the number, then the lower the risk. With that being said, consumers with higher scores are more likely to get approved for credit than those with lower scores. Additionally, they also tend to get the best interest rates when they do. And they are more likely to get discounts on insurance. What is considered a “high” score depends on what type of score is being used.

If your FICO score is 840, for example, you’re just 10 points shy of the highest score possible, and your credit is “super-prime.” But if you have an 840 VantageScore 2.0, it’s not as spectacular because you’re 150 points away from the highest possible score.

What’s Your Score?

Don’t assume your credit score is good (or isn’t) just because you have always paid your bills on time (or haven’t.) The only way to know whether you have a good credit score is to check.

You can get your credit score free at Credit.com. This is a truly free credit score – no payment information is requested which means no credit card is required. In addition to the number, you’ll also see a breakdown of the factors that affect your score, and you will then get recommendations for making your credit as strong as possible.

What Can I Get With A Good Credit Score?

Some of the best credit cards — from rewards cards to 0% balance transfer offers —go to consumers with strong credit scores. You’ll find great credit cards for good credit here.

A good credit score can also get you a lower interest rate when you borrow. That means you will pay less over time. For example, if you’re buying a $300,000 house with a 30-year fixed mortgage, and you have good credit, then you could end up paying more than $90,000 less for that house over the life of the loan than if you had bad credit.

So, in the end, it really pays to understand your credit scores and find what is impacting your credit score and find ways to make them as strong as possible.

How Do I Get a Good Credit Score?

To ensure your credit stays “good” in the long-term, it can help to pick one credit score and monitor your progress over-time. It also helps to pay attention to whatever is being cited as a “risk factor” — for instance, say, the amount of debt you’re carrying is too high — instead of a particular three-digit number.

Addressing whatever is weighing down a single score will likely bolster your standing across scores. That’s because, while the exact credit score ranges may vary, most models are based on the same five categories:

Payment History (accounts for 35% of most scores)
Credit Utilization (accounts for 30% of most scores)
Length of Credit History (accounts for 15% of most scores)
Mix of Accounts (accounts for 10% of most scores)
New Credit Inquiries (accounts for 10% of most scores)

So, to build a good credit score or even rebuild credit, you’ll need to make all of your loan payments on time, keep the amount of debt you owe below at least 30% and ideally 10% of your total credit limit(s). You should also maintain credit accounts for the long haul, add a mix of accounts (installment loans versus revolving loans, for instance) over time and manage how often you apply for new credit in a short timeframe.

Components of a Credit Score and the Weight They Carry

Many factors are involved when it comes to determining what a good credit score is or not. Late payments, hard inquiries, and low balance and collections can all be detrimental to the overall health of your credit score. Therefore, it is important to understand the significant weight these components carry.

The Significance of Late Payments

If you find that you have a pretty lengthy history of late and missed payments, then your scores on each scoring model will be negatively impacted by your inability to make payments on time. When determining your score, each scoring model will take a closer look at how recently you have missed a payment or were late, how many accounts were late, and how many total payments on each account were missing or late.

The FICO scoring model will treat each late payment the same and will carry the same weight. However, the VantageScore model will look at each late payment differently which means they may have an even more significant impact on your credit.

Too Many Credit Inquiries

Not many people are aware of the weight that hard inquiries carry on a credit score. Having too many hard inquiries in a relatively short span of time can hinder your credit score, and you will be penalized for multiple hard inquiries on your credit file.

When shopping for an auto loan or mortgage, it’s normal for consumers to shop around to find the best rates. Depending on the scoring model being used, there is a 14-45-day span for these types of inquiries that groups them into only one inquiry. The idea behind this is to give consumers time to shop around, without taking a drastic hit to their scores.

FICO score models allow 30 days, while others allow 45 days. On the other hand, the VantageScore model uses only a fourteen-day span. You can always ask a lender which credit scoring model they’re using when applying for a loan.

Debt-to-Income Ratio

The Debt-to-Income Ratio is yet another element that lenders will look at when determining if you are a suitable candidate for a credit account or not. An individual’s debt-to-income ratio is calculated by dividing the total recurring monthly debt they have by their gross monthly income, and in doing so, they will reach a percentage.

You want the percentage of your debt-to-income ratio to be lower. Otherwise, a lender may look at a high number and immediately think you will be unable to successfully make any more monthly payments. You can then be considered a higher credit risk for them.

You will also want to continue to pay close attention to your credit utilization as well. Like the debt-to-income ratio percentage, you do not want your credit utilization number to be above 30%.

Our free debt-to-income calculator can help you find out where you currently stand.

What If I Find a Discrepancy on My Credit Report?

Finally, to ensure that you have the best credit scores possible, you should thoroughly check over the details of your individual credit history to determine if there are any inaccuracies. If you see anything that is not correct, then you should dispute the error.

The credit bureaus Experian, Equifax, and Transunion are required to investigate any disputes that are submitted due to the Fair Credit Reporting Act. However, if the reporting agencies are too quick with the investigation, then the errors may still be on the credit report, and the negative information may still read as accurate.

When disputing any errors on your credit report, always remember to give specific details regarding why you feel the negative information on your credit report is incorrect and include any evidence you may have that helps to prove the mistake.

Always make copies of all the information you send it with your dispute as well, so you have it for your own records.

You can send a letter by certified mail with a return receipt request, so you can document when the dispute was sent and when it was received. Send all your information to the reporting agency that you are asking to investigate the item on the credit report. Making copies of what you send is also a good defense for if they say you never submitted enough evidence to support your claim.

If you follow all the advice and information as outlined in this article, you will have a solid foundation of knowledge to build from when it comes to obtaining and maintaining a good credit score and securing a healthy financial future.

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

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http://www.Credit.com/ Gerri Detweiler

I know some of these score factors can seem very frustrating. First of all, it sounds like you are on the right track in terms of getting your credit together after your divorce. So congratulations for that.

What are your grades for the other factors that make up your score such as mix of credit and inquiries? (You can find out here: get your free credit score). Debt ratio sounds pretty good but if it’s your utilization ratio then bringing it down a bit further might help, depending on the scoring model being used.

As far as the “age of credit” factor goes, the only thing you could possibly do there is to piggyback on someone else’s card with a long credit history, but even then it’s not certain that you’d see an increase (especially if that person wasn’t a relative at your same address). And that strategy has risks – if they pay late your credit can suffer.

I am not sure which scoring model you are looking at, but it certainly sounds as if you continue on the track you are on you should definitely see improvement over time.
- FLBiker77
  
  Sounds like a good idea but doesn’t work so well. My score is 742 because of lack of credit! I had the income, etc. but thought paying for everything was the smartest thing I could do. Boy was I wrong. I had amex and a couple of cap one cards. Amex is 36 yrs old. Well, I seen how all of the big credit companies wanted people with many credit cards, diverse credit, and high CL’s. So I went out and got a several good cc’s with high limits. Charged them carefully for Christmas and will pay them off in January. The 36 yr history combined with the new cc’s brought my overall cc history down to just under 4 yrs! But I now have a great mix of credit (all but a student loan), many cc’s with high limits (using responsibly), and feel like all I need to to is rotate my cards and pay in full and hope to see a score as close to 850 as I can get. I will try try to always keep a mtg payment, car payment, etc. It seems they want to see us in debt & managing it well. And yes, it appears income does play a role in this as well. But I have seen some students with 18K incomes and very high CL’s & ficos.
  - dontgiveitmoreimportthanuneed2
    
    -“It seems they want to see us in debt & managing it well”
    
    And therein lies the reason people should not be slaves to their credit scores.
    
    If you’re constantly supplying banks with steady (albeit low) interest, then of course you are sought after by lenders who want you paying them, instead of another bank.
    
    If, on the other hand, you have a truly healthy spending habit where you pay for most things without going into debt, then what do you need the highest credit score for?
    
    Personally, I think having a great credit score is important in early mid-life, before the first mortgage, but if you’re older, say, and you’re able to buy cars, or even property, outright, from savings, then you’ve won the game!
    - Magik
      
      I agree , but …. There is always a ” but ” . I paid cash for my car and come time to borrow some money I got socked on the rate BECAUSE I hadn’t had a car loan in 12 years .
- Christy
  
  Hi, I am enjoying reading this, and am so frustrated at my credit scores. Trying to get my cc paid off and get my score back up high, but will be a while before I can accomplish that. My husband recently filed for bankruptcy, what is the best way to rebuild your credit after that?
  - http://www.Credit.com/ Gerri Detweiler
    
    We have several articles that address that topic: How to Rebuild Your Credit After Bankruptcy and 5 Things to Do After Bankruptcy. I hope you and your husband will find them helpful.
- Stephanie
  
  I dont have any good credit at all i have 7 bad things on my credit im at likw 530 what can i do to get it up
  - http://www.Credit.com/ Gerri Detweiler
    
    Stephanie – It depends on what’s bringing down your credit scores. If you get your free credit score from Credit.com you will also get an action plan for your credit. It will suggest next steps. (It’s truly free – no credit card required.) Does that sound like a reasonable next step to you?
CR

Actually you’re just off the mark in some areas. I have a 8 year history with no loans just 3 credit cards the newest of which is about 4 years old and 1 credit unquiry for a utility recently. My score is is between 780 and 810 (depending upon the credit agency). I would suggest a few things, first get your debt ratio down to about 15% (under 20%) that makes a big difference. Second try not to use all your credit cards, limit the use to one credit card or maybe 2. (this also helps your auto insurance score). Third never let your debit limit per month cross 20% to get top notch scores. I pay off my card mid month if I’ve made some large purchases. With this you should see a good increase in your score in a few months.
- jdredhawk001
  
  I’ve read that keeping various cc’s in use (pay off every month it is used, and use quarterly) then this helps boost scores. When taking out new cc, know that it will lower your score for a month or two after. I’ve learned a lot from Suze Orman about this aspect of building credit. Today my score is 796.
  - Nicola ward
    
    Is the more ccs u take out the lower ur credit score will be ??
    - http://www.Credit.com/ Gerri Detweiler
      
      I assume your asking if getting more credit cards lower your scores–is that correct? The answer is “it depends,” A new account will affect your scores but usually it levels out after a few months. But that doesn’t mean you want to load up on a wallet full of cards in a short period of time.
- RetardNatzi Shitbag
  
  Pay off mid- month. Good advise and easy to do with the internet. I am going to do that, thank you.
- Lea
  
  Thanks, I used this advice and in few months I had a noticeable increase in my score….
  - http://www.Credit.com/ Gerri Detweiler
    
    Lea – that’s great! Let us know if you’d like to share your success story on the Credit.com blog.
http://www.credit.com/ Credit.com Credit Experts

A debit card can be convenient for ordering online and so forth, but it won’t help you build credit. If your parents have good credit, you could ask to become an authorized user on one of their cards. You could also consider using your savings to get a secured credit card. In that case, the amount you put on deposit (minus any fees) becomes your credit limit. If you can keep your balance at less than 30% of that amount, you’ll help yourself establish a good score. You’ll find more information here:

How to Build Credit the Smart Way

Everything You Need to Know About Authorized Users
- Engineered Reality
  
  That’s pretty solid advice. Also, taking out a secured loan from a bank or credit union is a great way to build credit and to maintain a positive credit history. I don’t just give credit advice, I also have an 820 credit score.
  - Jules
    
    You keep bragging about your 820 credit score. Geesh!
  - Dan
    
    Putting money in a savings account and then borrowing against it (“secured loan”) in order to build or maintain credit is one of the dumbest ideas I’ve ever heard. If you’re not a banker or a financier of some sort, you ought to be. What you are saying, in effect, is that you’re willing to give the banks your money (via interest) in order to maintain what is ultimately a completely arbitrary credit score.
    
    There is absolutely no need to do this and, again, it’s hard to imagine this coming from anyone but a financier who stands to benefit from it.
    
    Rather than putting money into an account and then borrowing against it (which will entail interest payments), a person should apply for a secured credit card and pay off the balance in full each month. This will help build credit. Once a credit history is established, then decide if you want to apply for a few other credit cards in order to build a more substantial credit history.
    
    Always pay credit card balances off in full each month. There is absolutely no reason, ever, to pay interest to the banks (neither credit card interest nor “secured loan” interest) in order to build or maintain credit.
    
    The only time to ever consider carrying a balance month-to-month on a credit card is if you have a card that has an introductory offfer of zero percent APR for a given amount of time (usually 6-18 months). In this case, you can use it as an interest-free loan. For example, you could get a card that has zero APR for 12 months and put $1200 on it, knowing that you can easily afford to pay $100 per month. You diligently pay the $100 each month and, at the end of the year, it’s completely paid off and you’ve paid absolutely no interest on it. This only works if you don’t charge anything else to the card or, if you do, if you pay off whatever you charge in full each month, in addition to paying the $100. This isn’t a good habit to get into, and it certainly isn’t recommended for frivolous purchases, but it is a nice way to beat the banks at their own game.
    - JJ
      
      A “Secured CC” is almost exactly the same as a “Secured Loan”! Only difference is that you can use the card repeatedly until you withdraw the deposit. With the SCC you always have you $$$ tied up. With the loan, once you’ve paid it off you have all of your $$$ back and the score is recorded (which is actually a better scenario).
      - http://www.credit.com/ Credit.com Credit Experts
        
        One difference would be is that they give you different types of credit — revolving and installment credit. Once the loan is paid off, you also no longer have an active credit account. Assuming the secured card is paid responsibly and the balance is kept low (relative to limit), you should be able to qualify for an unsecured card reasonably soon.
      - Dan
        
        It is not the same. The point is that you are paying interest on the secured loan, whereas with the secured credit card you are not, provided of course that you pay off the balance in full each month. Once you build some credit by making payments on time each month (and in full, to avoid interest charges), you can then apply for an unsecured credit card and, once approved, you can cancel the secured card and get your money back, just as you would have with the loan – with the advantage being that you won’t have paid any interest at all to the bankers. Again, the point is to avoid paying interest.
http://www.Credit.com/ Gerri Detweiler

I don’t think it’s unreasonable for the landlord to request this. He or she doesn’t know there is nothing to report. You can ask the landlord if he will accept your son’t report from AnnualCreditReport.com (and if there is no report he should get a notice to that effect which you could potentially share with him.) But the reports landlords order sometimes include criminal background checks as well, and that wouldn’t show up there.

Depending on how tight the rental market is where you live trying to challenge this requirement may just make the landlord move on to someone else.
Engineered Reality

I’d have to know more about your situation to give advice, but Social Security payments and retirement annuity payments both count as income.
jac

When I was 16 I had a credit card in my name that was connected to my parents account. Because of this I had enough credit when I was on my own. Then when I shared apartments I made sure to have a utility in my name. You can get a credit card with maybe $1000 limit but do not charge more than 10% off that limit a month! That’s how I started out my credit and my first score was 750! Years later after building I’m at 812. You can’t get much higher than that.
- Bluffguy
  
  Actually, yes you can, but that does not mean it is not a very good score !
kenny

Engineered Reality, what do mean “by taking out a secured loan against himself.” I am out of bankruptcy for over a year now and tryin to rebuilt my credit. these past few monthsn I have seen my credit score jump from 649 to 682 now.
- Mike
  
  You can take out a secured loan. That means you secure the loan with a savings account in the same amount. So, you put $1,000 in a savings and borrow a $1,000. The savings account pays for the loan and if you set it up on auto draft then you will never be late. Just make sure you include the interest.
- Cindy A.
  
  An easier quicker way to raise your score after bankruptcy is to make WEEKLY payoffs on your credit card. I raised my score 30+ points within 3 months by doing that after my bankruptcy. I don’t personally like to pay someone interest…and rarely have in my life….just on cars and homes. I too took out a loan but only paid minimum payments for 3 months…then paid the whole thing off with savings. I didn’t want to pay them tons of months of interest. Only wanted to pay 3 months to raise my score. If you want to get a secured loan, I wouldn’t go as high as $1000. Just do $200 or $250…that way you can raise your score with payments, but not lose much in interest money.
  - Kristen Bellatti
    
    I’ve been doing this for 3 months. This past month, I was able to boost my credit score almost 100 points.
    - http://www.credit.com/ Credit.com Credit Experts
      
      Kristen —
      Sending you an email.
      - Chris
        
        I’m trying to raise my score up at least 50-100 points. I’m currently at 700. What tips do you know of that are successful?
      - http://www.credit.com/ Credit.com Credit Experts
        
        Chris —
        It’s an individual thing, really. If you know what factors are the weakest in your credit score, you would focus on addressing those. The two biggest factors in your credit score are on-time payments and amount of debt (this would be the balance relative to credit limit). You can take a look at your free credit report card
        and see a “grade” for each of the factors that determine your score. It’s also smart to check your free annual credit reports for accuracy and dispute any inaccuracies that could be holding your score down. Because there can be many different factors that make a score what it is, there is no one-size-fits-all solution to raising a score.
- Carlaob
  
  Secured Loan -You borrow from your own savings. I agree, after a bankruptcy that couldn’t be avoided, by working hard at paying debts on time- my credit score has spiked near 800 in just 3 yrs. Use them and pay them off.
  Also, my new car loan also helped.
  
  Deligency pays off.
  - Benita
    
    I am trying to build up my FICO score. I was told to get a $500 secured credit card. Would this be just as getting a $1000 secured loan. Which would be better to raise my poor score?
    - http://www.Credit.com/ Gerri Detweiler
      
      Credit cards and loans can affect your credit differently. Credit cards are revolving accounts whereas most loans are installment accounts. A mix of different types of accounts can be useful. Do you have any credit cards or loans now?
      - b-natalie
        
        My daughter has been paying ccs on time for the past 16 months, after a period of being irresponsible. Only 1 company reduced her exorbitant interest rate though ALL stated they’d do that if she paid on time for 6 months. She’s been at her job for 6 years & just got a new car (she traded in her older car to the same company, so they ‘ignored’ her ‘average’ FICO). [Also, it’s a smaller car, so smaller monthly payment.] I’d love her to get a
        0% or 2.99%-for-12-months cc to pay off the other cards, but ALL say she’s got too much cc debt. I don’t get it! I tell her to explain the new balance transfer cc will eliminate other debt, but no company will listen. WHAT am I missing?
      - http://www.Credit.com/ Gerri Detweiler
        
        Has she talked with her counselor to find out why the other issuers haven’t reduced her interest while she is in the program? That’s unusual for only one to do so.
http://www.Credit.com/ Gerri Detweiler

It can be done. There are attorneys who specialize in credit damage lawsuits.
thegr8_1

My credit was destroyed early on during my time in the Marine Corps (hello predatory lending) somehow, My score is in the “good” range, yet I’m still turned down by Ebert credit card I apply for. And I don’t apply for many because of that reason. Pretty soon I’ll be down in the depths because of student loans. Hopefully I can get a job out of college (I chose a skill that is actually in demand -computer science) instead of a liberal arts degree that is not usable in the real world.
- http://www.Credit.com/ Gerri Detweiler
  
  Very sorry to hear what you been through, especially as a result of predatory lenders while you were serving our country. Have you thought about trying to rebuild your credit using a secured credit card? If you have your free credit score, which areas of your credit are strong, and which are getting low grades?
Bluffguy

Suggest that you avoid debit card. Get a secured credit card ( you pay a certain amount up front ) and pay it down 100% every month. You will start to establish a credit history. Most young people do not have bad credit, they just have no credit history. You can’t start off with a car loan, start off small with credit card and build it from there. Banks and credit rating agencies want to see a history of paying back loans, and income to support continued repayment of loans.
Karinnkade

I have credit cards that have been compromised. The bank issued me new ones. My credit report has two cards, the two different numbers. The problem is they are the same account. My credit report lists them as two separate accounts. So it looks like I am in higher debt than I am. Does anyone know how to get the duplicate accounts removed? Thanks
- http://www.credit.com/ Credit.com Credit Experts
  
  Yes, you’ll need to dispute it with the credit-reporting agencies (Equifax, Experian and TransUnion). Here’s how to do it: A Step-By-Step Guide to Disputing Credit Report Mistakes.
  
  If you follow the steps, you should be able to get it resolved relatively quickly. And good for you for checking. It’s a good habit to get in to protect your credit.
- Barb
  
  This is the quickest way to deal with this problem. Contact the Consumer Financial Protection Bureau (CFPB) online or by phone. File a complaint by following the directions (doesn’t take very long at all…). The CFPB will contact the company for you and they have to respond to the CFPB within 2 weeks and take action. If the company/credit bureau’s have violated your rights, the CFPB will forward your complaint to the proper authorities and they may be in violation of the Fair Credit Reporting Act (FCRA).
  Basically, if the credit card is from the same company, with a duplicate card with another cc number, you would file your complaint against the credit card company and ask them to remove the ‘duplicate’ account # from your credit reports. The cc company should be able to do this very quickly and easily for you.
  Don’t worry about getting your credit card company in trouble. It’s not a big deal… They will just fix the problem quickly through the CFPB, that’s all…
worried mom

My 21 year old son wants to get a credit card, he’s been turned down because he doesn’t have a credit history. I’ve been thinking about making him a co-signer on one of my credit cards, however I have very bad credit (a bankruptcy & a foreclosure) will my bad credit follow him afterwards?
- http://www.credit.com/ Credit.com Credit Experts
  
  Do you mean an authorized user? (A co-signer generally uses his or own good credit to help someone with little or no credit history get a card, while an authorized user is allowed to use an account but has no responsibility for paying it off.) And yes, your poor credit could hurt him. Another way to help him get a credit history would be to get a secured card. Here are a couple of Credit.com resources that may be useful to you:
  How Secured Cards Help Build Credit
  How to Give Your Kid a Good Credit Score
- Barb
  
  I don’t think that I would add your son as an authorized user. That means that your bankruptcy and foreclosure will become his. He will inherit your negative credit. He can just get a $300 secured credit card and start from there…
http://www.Credit.com/ Gerri Detweiler

Yes I noted that it’s a risky strategy and I wasn’t necessarily recommending it. I was simply pointing out that it’s about the only way to affect the age of credit factor other than waiting for current accounts to age.
John

Good article. I guess the metrics can vary between different scoring models… The metric’s on FICO’s website is little bit different then what you’ve posted. They have poor credit listed between 350 – 599, fair credit as 600 – 659, good credit at 660 – 719, and excellent credit at 720 – 850.
- http://www.credit.com/ Credit.com Credit Experts
  
  Right. That’s why if you are checking your own credit, it’s a good idea to use the same model consistently.
- SandiBeach22
  
  That’s what they use for most everything except mortgages. If your score is 780 or higher, you can get the lowest possible rate.
eddie

Amen
Brnet

Consider your credit score a “Debt Score”. Your score really reflects your ability to STAY IN DEBT, and of course, pay bills on time. When the data breach at Target happened, I checked my balances often and was actually downgraded 20 to 30 points on my fico score for accessing my bank balance too many times. How silly is that. Credit scores are a joke. Work hard, save hard and pay with cash. Over a lifetime, the average joe would save $1000’s if not $10’s of thousands in interest charges.
- Susan
  
  I have never ever heard of a credit score dropping for accessing a bank balance. Reporting agencies wouldn’t even know about that; are you certain that is the reason? The data breach affected me as well, and I have always been one to check my balance every day, just to keep an eye out for fraud.
  - http://www.credit.com/ Credit.com Credit Experts
    
    Susan —
    Checking your balance will not hurt your credit score, and we recommend doing it. It helps with catching fraud or identity theft early.
Riceburner1

Actually you have no clue why you are down ! I am retired have my house paid for 12 years now. Buy new cars every 10-12 years weather I need one or not. I have 4 credit cards all for different purpose that I pay off every month fully.. My score is 817 and my better half is 827. Hers is higher because she is a female! BTW I have not had any credit in 12 years other then my credit cards !!!
- mjf
  
  Yeah, keeping credit cards even if your home and cars paid off and no loans.the cards can keep your credit active and maintain it..really no need to punish people by dropping their score for paying off all their depts..even if no credit cards..thats not right morally
http://www.credit.com/ Credit.com Credit Experts

We can’t tell you that with any certainty. Credit scores fluctuate (so even if you get it there, it won’t stay). Things like what your balance is on a credit card on the day it is checked can affect your score. And there are so many variables in play that credit is generally classified within ranges — it’s best not to obsess over a few points up or down. For more, see:
Why a Perfect Credit Score Doesn’t Matter
papasan173

After reading this blog I can see that the average American has no clue as to how credit and credit scores work. If you don’t know how something works it is very hard to fix, or improve, it. No wonder the country is in such a poor financial shape.
http://www.credit.com/ Credit.com Credit Experts

You may have put your finger on the problem. Co-signing puts you on the hook for the full amount of your niece’s loans, and those will be considered debt obligations that you owe. However, it is possible to appeal a credit card rejection. Here’s information that may be useful to you:

How Co-Signing Can Affect More Than Just Your Credit Score

The Art of Overturning a Credit Card Rejection
http://www.Credit.com/ Gerri Detweiler

It can be tricky with low limit cards like that but you are on the right track. Do you know what the closing date is for your statement? If you can pay that balance before the statement closing date your credit report should show a zero balance and then it definitely won’t be a factor!
Dave

Ron, I’m thinking the drop in score is because of the addition of the inquiry necessary to get any credit card, not because of the balance. If you pay the balance before the statement it will show $0 on your statement and they will not report the payment made on time because I did that the first month with my secured card and found that out. Your score will improve, just remember to keep your inquiries in check just like your debt percentage and payment history.
- http://www.Credit.com/ Gerri Detweiler
  
  That’s a good point – the inquiry could cause a temporary drop. Not sure what you mean about not reporting the payment on time when you made the payment early. Did they report you late?
  - Dave
    
    Gerri, since the statement had a $0 balance, there was nothing reported for the payment. It wasn’t reported late, they simply reported nothing since there was no balance on the statement to be paid. I thought it odd, then just waited until the statement came out and paid it, sure enough they reported on time payment. I am using several different sites to follow my score, each showing different variations, but all have been rising in the 10 months since I started tracking them, I started below around and below 650 on all, and have seen changes to 677 here and a transunion score that isn’t showing my older late stuff that will be removed in 2017 is currently showing a 751 score. That shows just how varied scores can be from one reporting agency to the next.
  - La Fawn
    
    Do inquires fall off??? After a certain amount of time? Or no
    - http://www.Credit.com/ Gerri Detweiler
      
      Inquiries are only reported for two years.
    - http://www.credit.com/ Credit.com Credit Experts
      
      Soft inquiries (when you check your own score) are never reported. Hard inquiries (when you apply for credit) stay on for two years, but in most scoring models, they have no impact on your score after 6 months.
rkmtt

credit scores are manufactured by those that have no clue….

if one never uses credit but has 2 million in liquid assets he /she probably would rate a poor rating
- http://www.credit.com/ Credit.com Credit Experts
  
  Exactly. Because the amount of assets doesn’t accurately predict the likelihood that a lender will be repaid. Habits over time are much more predictive (though income is certainly a consideration in credit decisions).
Rose

My credit was excellent and then I decided to get a new car, motorcycle & some of those cc’s with good points, rewards. That dropped my score down to bac down fair at the moment! I have quite a few cc’s and all are paid in full each month. So I know my score will go back up. Actually, I”m trying to raise it as high to 850 as I can. It seems after following these forums, you can see what you need to do to have an excellent score. I had a mortgage a couple cc’s. Not enough to get that “excellent” score. I’m starting to see they want you to be able to “handle” your credit very wisely. A higher cl but a very low utilization seems to do the trick with a various mix of loans. Thanks everyone for your input. I would be stuck in the 600’s forever if I didn’t start reading this forum!
- http://www.credit.com/ Credit.com Credit Experts
  
  Glad it’s helping Rose.
http://www.Credit.com/ Gerri Detweiler

Ronald – Paying off an installment loan shouldn’t typically cause your credit score to drop significantly. Paid installment loans don’t get removed from your credit reports, so the payment history and age of the account still help. What service are you using to monitor your credit scores? Do you have other open credit accounts?
Greg

It seems that one of the measures of success in life, is how good we are at owing other people money. Is it just me, or is that a little warped?
- SandiBeach22
  
  It sure seems that way! Looks like the new way of doing business. As long as we don’t owe anyone any money on those cc’s, we’re okay. And if you get any of the new ones out there, you can get some great rewards.
ned

I went through quicken loans for a refinance and my credit score got slammed and I got turned down double slam cause I don’t owe over a $100,000.,can’t win either way you go. From 725 down to 620,i’ll pay off what I have and the hell with this credit score crap and disappear and don’t give a dam what it ever becomes.
Suzy Realist

We just bought a car yesterday, and were delighted to have the finance woman tell us she’d never seen such a high credit score before (850)!
Woo Hoo!
Mills

I’d love the credit card companies to update twice a month!
http://www.Credit.com/ Gerri Detweiler

Paying your bills in full is a smart move and definitely doesn’t hurt your credit score. And the scores you cite sound like excellent scores. Do the scores that you received show you where you fall in comparison to other consumers (fair vs. good vs. excellent for example)?
http://www.Credit.com/ Gerri Detweiler

A secured card can be a good way to rebuild credit, and there is no need to carry a balance and pay interest. In fact, I’d recommend you make sure that a balance of no more than 10% of your available credit be reported on your credit reports. You can fill up your tank once a month and pay it off in full and that will help as far as that card is concerned. It might not be a bad idea for you to get a second card now to establish a payment history. Perhaps you can get a retail card or another secured card. Do the same thing with that card.

Have you obtained your free credit score from Credit.com? If so what are each of the five grades? Also if you haven’t reviewed your credit reports yet, you may want to do that and dispute anything that is inaccurate or incomplete. Any accounts that aren’t confirmed by the source must be deleted.

This article may also be helpful:
How to Rebuild Credit
SandiBeach22

Never reported? That’s just not right!!! I’m going to try and keep a car payment for a while longer. It’s sure not like your cc’s where you can pay them in full. But will give them what they want to see. 30 years old and still on your credit! Sounds like you need to dispute it. I would keep disputing with the credit agency over and over again. This is FLBiker’s wife. I found a $67.00 collection that we didn’t owe & had a time trying to remove it. I just kept on disputing it until they finally realized I wasn’t going away & I wanted it removed! Never give up! You will get out of debt.
SandiBeach22

Debit is good & it gives you a good standing with the banks. Cap One has been my 2nd card & 3rd cards. They should start you off with a small limit but will raise it if you pay on time. Make sure you never, ever go over the 30% ratio as this will give you a higher score down the road & shows them your responsible.
- http://www.Credit.com/ Gerri Detweiler
  
  SandiBeach – just to clarify debit cards aren’t reported to the credit reporting agencies. Secured cards are considered credit cards though and they do help.
  
  Thanks for sharing your experiences!
  - susanunion
    
    I think they meant ‘Debt’. 😉
  - Sandibeach22
    
    Yes, I know. I started with them but now have prime cards with good rewards. I did want to say that my score has never gone over 750 with just the mtg, car payment & cap one card. I have good cash in the bank. But only use my cards for what I would normally pay for with my debit cards. Now I get rewards with these cards. I did do well for Xmas. Still collecting rewards!!! I hope the new cards & car payment will get my score over 800 & as close to 850 as possible. Thank you for all of your help.
SandiBeach22

You know why auto payments will make your score go down? It’s the minimum payment. They want to see you pay in full or make large payments. They have everything covered I’ve been trying to figure this whole thing out & they want a mix of credit, cc’s, & some other type of loan. Not to mention, you really shouldn’t move too much. Even if you own your home. Anything over 5 years will get you a higher score. My hubby (FLBiker) & I built our last home 3 yrs ago & wanted to do a little more to it. Wanted to charge about 10k and not touch our savings. So I actually had to get some new cc’s so our utilization was over 20%! But I knew that our score would plummet if it went past 20%. Now he rotates the cards to buy lunch so they all get used a bit. Seems like we’re jumping through hoops?lol
SandiBeach

I will let you know if my score goes up after I pay down my 10K furniture loan. I have various other cards but try and pay all in full every month for the same reasons. Not giving anyone interest! This furniture loan is 12 months same as cash. I do agree. I think they’re wanting people to fail.
Barb

If you have something on your credit bureau that is 30 years old, it has to come off. It is quite easy to do these days. Just contact the Consumer Financial Protection Bureau (CFPB) and file a report against the company holding your credit hostage (if the credit bureaus are the one’s refusing to remove it, then file the complaint against them. If the debtor company is refusing to remove it, then file the complaint against them…or both).
….You select ‘credit’ (if that is what it is?), then select the radio dial button that says *been over 7 years and follow the rest of the instructions. It doesn’t take long at all. The CFPB will contact this company personally and they will have to respond within 2 weeks and adhere to the laws of removing after 7 years. They will also be reported to the proper authorities for failing to follow the Fair Credit Reporting Act (FCRA). If you’re not sure how to do it, just Google Credit Financial Protection Bureau and give them a call.
Evilhemp

I didn’t have a job or credit when I graduated from high school. So I applied for a capital one credit card and listed “poet” as my occupation. They approved me for a credit card with a $500 limit.
Brent

Um, not exactly true. I am over 50, have not had a car loan in a decade and all of my homes have been paid in full for almost 10 years. I literally have zero debt except for using credit cards. I use credit cards, paid off each month, instead of carrying much cash and my FICO score, as of today, is 840.
Ballistic

Im a junior in college with loans and 2 credit cards, currently my credit score is 759. I am planning on working over the summer and I intend on buying a car, do you think I should wait for a bit longer and try to increase my score, or do you think I will be able to get decent rates with what I currently have?
- http://www.credit.com/ Credit.com Credit Experts
  
  Certainly working on your credit won’t hurt. (A bigger down payment can also mean you will pay less in interest.) Consider talking with a bank or credit union beforehand to get approved for a loan. (Any time you apply, your credit can take a small, temporary hit. So rather than have every dealership run your credit, it can be smart to walk in with a loan already approved.) And well before you plan to buy, check your free annual credit reports to be sure they are error-free. If you see something that needs to be corrected, you’ll have time to dispute it before your lending application is evaluated. Here’s how: A Step-By-Step Guide to Disputing Credit Report Mistakes. Good luck to you — and you’re smart to be considering these questions well ahead of time.
cyndi

can you buy a house after bankruptcy if your credit score is 700
- http://www.Credit.com/ Gerri Detweiler
  
  If you otherwise qualify, it’s entirely possible. We wrote about that here:How Soon Can I Buy a House After Bankruptcy or Foreclosure?
aldi

i just got a sapphire chase credit card a month ago at $95 annual fee. But i already have 2 free chase cards . Can i cancel my sapphire card without damaging my credit score ( wich is excelent )
- http://www.Credit.com/ Gerri Detweiler
  
  If your score is excellent closing one account you don’t want should not significantly hurt your credit scores in the long run.
guest

Excellent advice, and should be the most obvious too many, but often is not! There are some moronic credit forums out there with participants that have delusional state of supremacy about having as many trade lines with the highest possible limits. Morons with a capital “MO”. The FICO forums are on top of the list with “credit gardening fairies”. They are surreal entertainment, but boring after a while. Establish no more trade lines than you truly need, and don’t carry balances. Banks/credit card companies are to make money, there is nothing friendly about them. Never charge a debt you can not satisfactorily service EVER. Keep your friends close, and your enemies closer. Keep the upper hand and do not give it. Debt is indeed a slave. Stay out of debt, and truly live free!
Rrg

Until Credit Bureaus are truly regulated and focus on cleaning up their error riddled database consisting of anyone using unverified methods of submitting often false or mis-represented credit information to all three credit bureaus. These bureaus have a financial incentive to focus on selling those, who simply want their credit corrected, overpriced worthless monitoring products while making the effort of correcting false reported info difficult and based solely upon “their members” verification. The FCRA needs amended to overhaul the entire credit reporting system and place oversight under ONE entity with power to significantly fine up to $5 mil in egregious errors that are robbing consumers of billions of dollars and lining the pockets of both the creditors and the bureaus. Republicans are blind to the real underlying issues and the current regulations simply need to be enforced.
wakeup

I paid off and canceled all of my credit cards. I just made a $15,000 payment towards $55,000 of debt. My debt will be paid off within the next 7 months and my credit score will skyrocket during the process. When my debt is gone, my score will disappear and it will be one of the most joyous experiences of my life, aside from the birth of my son. I will be on the path for true financial excellence. You should all try it.
Ron

It is exactly catch 22 !! I have every type of loan and 1 late payment my score dropped 100 points.They want to keep you in debt.You have to read between their lines.
ken

Divorce, bankruptcy two years ago. Car loan four months after at 5.2 percent and paying cash for everything. Double to triple payments on the car. Will never own a house again and proud of it. Have more money in my pocket then ever before. You really don’t need the bank’s so if you can just stay away from the headaches. Life is a lot easier. Just believe in your self.
ken

You go girl, the truth is cash is king and till more people realize this they will not be a slave to the bank’s
mike

My problem too! You can’t win with credit system we have. It is a wonder why people give up trying. The current credit industry should be outlawed…really.
- Ronald Tucker
  
  mike, When signed into law by President Obama in 2009, the Credit Card Act – sometimes called the “Credit Card Holder Bill of Rights” – was the most significant federal consumer financial reform in decades. The goal of this legislature was to ensure fairness and transparency for consumers with cards. For full details( use keyword(s) “credit card act” in your preferred search engine.
John Scior

I’d say get a car loan for a/2 the value of your car and put the money in the credit union savings acct and have auto payments deducted from that acount to establish a loan payment other than credit cards. or you could take the car loan amount and pay off the credit card so your unsecured credit cards are not as maxed out and you have now a fixed rate loan on your credit report.
Lily

My credit score 625 has been for the past year I hsbe car note about 5 cards I psy on time I’m trying to start the process for a house loan but would like to to something to get my credit score higher do you have any suggestions ?
- http://www.credit.com/ Credit.com Credit Experts
  
  Lily —
  Paying on time is the No. 1 thing you can do to help your credit score. The second is keeping debt levels low. Ideally, that means keeping the balances on your credit cards at less than 10% of your credit limit. (Thirty percent should be as high as they EVER get.) If yours are higher, you could lower them one of two ways. You could ask the creditor for a higher limit (no guarantees this will work, but it sometimes does) or you could pay the cards down until you are paying off the balance each month. You can read more here:
  How to Fix Your Credit Score When Buying a Home
Matthew

First credit scores and the bureau’s are the biggest jokes out there. How come they only look at loans and credit cards. Why not look at everyone’s normal bills like rent or mortgage, gas bills, electric bills and you get the drift. It’s a scam out there. Then if you have bad credit you can find someone with good credit and have them put you on there credit cards without even using it. The credit world is bad and that’s why the big banks are hurting.
- Andrew Goetsch
  
  They do look at most of those things. Utilities are listed on reports, since they’re not paid in advance and are a form of credit. Rent is also considered in credit. FICO isn’t the only factor.
  - Rich
    
    This is not true. I have 5 utilities I pay each month and only People’s gas reports may payments. Also I’ve never had a landlord report that I’ve made all my payments monthly. It’s a valid concern because they will report missed payments, evictions, or collections but not positive payment history.
swisschamp

Credit Score System sucks. If you’re not from U.S. even when you bring 1 Mio to U.S. you don’t get a simple credit card from most of the banks.
Deb

How long does it take for your credit score to go up after you have opened up new accounts made payment and pd it off.
- http://www.Credit.com/ Gerri Detweiler
  
  As with all things credit score-related, it depends! It depends on whether and how much this factor (lack of revolving accounts, or mix of credit, for example) is affecting your credit scores.
Linda McDonald Birdsall

I had a car dealer apply for a loan thru 2 different banks. I got approved with both but went with the lower interest one. after about 3 months with my new car, I started receiving letters from the bank I didn’t have a loan with telling me I was late on my payments. I called them and told them I didn’t have a loan with them which they said yes you do. I ended up having to get a lawyer and I still could not get it removed from my Credit report. I disputed it and everything. Unreal. Come to find out the lawyer I hired played golf with the car dealer.. They were both worthless..
- http://www.Credit.com/ Gerri Detweiler
  
  Wow! Have you tried filing a complaint with the Consumer Financial Protection Bureau? (And perhaps with the local bar association!)
Chris

I have a collection account on my credit reports for a Best Buy credit card through HSBC Bank that I never applied for, therefor never used. I have formally disputed this account numerous times with the CRA’s asking for some sort of proof that I was the one using the account. All times I have successfully won the dispute and am informed that the account will be removed from my report….which does happen. HOWEVER, within a couple of months of the removal the account shows back up on my credit reports under a different collection agency. Not to mention, the original account is over 11 years old and should have been removed due to statute of limitations here in California. What can I do to keep this ugly, incorrect monster from reappearing? Thank you.
- http://www.Credit.com/ Gerri Detweiler
  
  Talk with a consumer law attorney. You may have a case for credit damage and their actions may violate debt collection laws too. California in particular has a strong state law – the Rosenthal Act – in addition to the federal Fair Credit Reporting Act.
Go Tama

I have a score of 812
Brian Bear

Can getting married effect your credit score . If so how ?
- http://www.credit.com/ Credit.com Credit Experts
  
  Your credit scores don’t include information on your marital status. (See What Happens to Your Credit When You Get Married?) However, if you choose joint accounts or adding a spouse as an authorized user, it might. You can find more information in this post: 3 Ways Love Can Affect Your Credit Scores
DocBP

How in (or why in) God’s name would you want to be retired at 56 with only 22k in annual income. Unless you’ve got some other stash of cash you’re drawing from you’re going to be clipping coupons and eating mac and cheese for dinner every day.
- Roy Biggins
  
  who doesn’t like mac and cheese…..especially from a can
- Tharpl
  
  I will be able to retire at 53… With 30 years teaching but won’t be able to draw unemployment until I turn 60… I will have out my 30 yrs in but can’t get my money until I hit my prime!!!
- Magik
  
  Why you ask ? Why not ? Who wants to work till the day they die ? House paid , bills paid , kids raised and doing fine . Just hit the savings for the retirement Corvette and relax …
Lucky

That makes no sense. I have a 755 score. I haven’t been employed in almost two years. My student loans are in forbearance. I have a couple of debt collectors hounding me weekly.
- Teddy
  
  This is ludacrious! My score is 602. I paid off my vehicle 1 year ago. I have no student loan. I have no debt but all has been paid off over a year now. My score continues to come down. The credit systems or maybe operator head space? Know what I mean? People enter information into computer. Junk in junk out (JIJO).
  - James Westly
    
    Teddy you should make sure no one is using your SS#. I knew a woman that had similar issues like you and one day she ran her reports and found there was a 2012 Camaro on her report. Whomever purchased this car used her name and address and SS#. Strangely they were making payment for the past 5 months then stopped. Now she is fighting to get it off her name.
Cannibal Jones

This is an evil system that must be destroyed. We should go back to non-monetary bartering systems.
Joe in Seattle

Who cares if your score is 725 or 825. Don’t use debt and you will never have to worry. Cash is King! Save up and pay cash!
- Teddy
  
  I agree!!!!!
- Not Joe in Seattle
  
  You won’t be getting anywhere in life if you aren’t investing and letting your money make money for you. At the very least put your extra money into a 401k and IRA.
- James Westly
  
  You have cash to buy a $400,000 house? Good for you. Most people have to get robbed by a bank. You need to have a good score to play the games.
True to the corps

We just love to be judged. Who decided the rules? The banks? The credit card companies? Screw all of them and pay with cash. Get in line sheep and baaah for your “credit scores”. After all, we are all just a number.
- R Sunday
  
  “Get in line sheep and baaah for your “credit scores”.
  
  Too funny. Well living it isn’t but you know what I mean reading it put like that sure was.
wakeup

Gerri Detweiler – high credit scores are so highly sought after that the alternate route of building wealth is nearly inconceivable. I am curious to see if there is an answer to my question…if i maintain payments on my credit card at 10% utilization, how long will it take me to acquire a million dollar net worth??
- http://www.Credit.com/ Gerri Detweiler
  
  I imagine that depends on you accumulate your wealth – through savings? A business?
paco

How did you retire so young?
- excity
  
  I’m not DocBP but I retired at 47 from a city position. Worked for them 27 years and “bought” 3 years so have a full 30 year retirement.
llkenney

Credit scoring is a way to keep people in debt, in my opinion. To me the entire scoring system is a bunch of malarkey. I pay all my bills on time but can’t get my score above 620, even though I’ve paid off one car and am paying on another. The same explanation keeps occuring, that my ratio to balances are too high even though I’ve paid off one credit card and paid the other two down to less than $100. The entire system is rigged against most low to middle income people. Just my opinion.
Not retired

Yeah glad somebody can pay for your insurance for you
- Darin Boyd
  
  Very rude, Not Retired.
http://tipsgliderrockingchairs.com sudarto

I enjoyed reading your article. I can understand how to calculate credit scores well. It is very important to design how can I improve my credit score. Thank you.
yolanda

I’m not sure what you are doing that results in your score. Perhaps it’s because you haven’t had credit with the same companies for long enough? My score is 819. I don’t have a car loan or a mortgage either, and have never paid late. I also don’t have a student loan. Perhaps it was credit related to your divorce? By the way, my credit score was 794 for a long time because I got a new credit card. Now that all my credit cards are at least 6 years old, and one is over 20 years old, they raised my score.
FreddyT

Can you have too many credit cards? What’s the rule if any?
- http://www.credit.com/ Credit.com Credit Experts
  
  There is not a rule. We wrote about it here: How Many Credit Cards Is Too Many?
Michael Sholtis

Carrying debt is a new(ish) idea and the first credit card came out in 1950. Before that began to take hold having debt was a bad thing. Now being irresponsible holding debt and never clearing up seems to get you the best shot at for being qualified for big purchases.

I dated a girl many years ago that had 3 maxed out cards and over 12k in debt and every month she would get a new card in the mail. At the time I owned a business that had two 50k lines of credit, owned 2 cars, and received a small inheritance. I personally avoided the use of debt and credit. When I went to get a credit card (after years of personally avoiding them) I was completely denied because I didn’t have enough history. That is when I realized the game is about taking more then you are giving and promoting irresponsibility. Bad credit is better then no credit…
ProudVeteran

Why are credit scores so different between each credit reporting agency? Mine are about 70 points different. I have a year of on time payments, but score is still in the 600 area, no credit previously.
- http://www.credit.com/ Credit.com Credit Experts
  
  Wow. That is a huge difference. Are the scores you are looking at all calculated on the same scale? Credit scores are calculated from information in your credit reports. You might try checking your free annual credit reports to see if the information is accurate, and whether your payments are being reported to all three credit reporting agencies. Here’s how to get your free annual credit reports.
very upset

The deficit is probably over 18 trillion dollars. People have to buy health insurance whether you have a job or not.. Some states have not seen minimum wage go up over 4 or more years ago. But we need more than minimum wage, we need living wage. Economy is moving up slowly. But getting job is stilll hard. Credit companies want to charge out fee. Having a credit card is a curse.
marlon

Experian sent me a email and it says… TARGET SCORE ACHIEVE, You’ve have achieve FICO’ Score …can someone tell me what it means pls. I haven’t been able to login :/
- http://www.Credit.com/ Gerri Detweiler
  
  Do you have some kind of credit monitoring service with Experian? If you don’t then I would be concerned that this is some kind of phishing attempt to get your personal information. If you do have their service, then it sounds like you have reached a credit score goal…
cheryl

i don’t understand how i have a 671 score on experian, a 745 on transunion, and a 756 on equifax. experian says i have 12 late payments, that i don’t see on my other credit reports. i am not understanding this at all. if i buy something for 5.00, my score goes down, debt ratio goes up? what is going on? i have 100% payment with transunion and equifax, which is excellent with them, but experian gives me a f, for payment history! really? you cannot win. you will only win when you die! terrible!
- http://www.Credit.com/ Gerri Detweiler
  
  Cheryl – It’s possible there is a mistake on the one report. Have you tried disputing it?
  - cheryl
    
    i will do that. i have been so upset, that i didn’t think about that. thank you. i will get right on it!
Teddy

That is so true. I am proved to the Credit bureau that a billed is not mind. They still did not changed it. I did what Juanita suggested. I paid off everything then my score came down. Now I save up money and buy the items or use layaway. As I said before Operator head space. (JIJO). Creditors want your credit to be bad so that they can charge you higher interest rates.
http://www.Credit.com/ Gerri Detweiler

If accounts are illegally reaged or if you have disputed them and they don’t get removed you may want to consult a consumer law attorney. You may have a case for credit damage, and in the case of a collection agency it may be a FDCPA violation as well.

Or you can try filing a complaint with the CFPB which has been looking into both the credit reporting and debt collection industries.
Daniel Alvarez

I have score of 700 and one collection for the past 7 years. If i pay it off, does my score go up?
- http://www.Credit.com/ Gerri Detweiler
  
  Paying a collection account doesn’t typically raise your credit score. We wrote about that here:
  The 7 Biggest Questions About Debt Collections & Your Credit
Kurious_in_Keller

My credit score is 782. My wife’s score is very close to that if not higher. We are about to purchase a new home. At the same time, I need to take out a $20,000 personal loan to make a large purchase for the new home. We anticipate no issues with securing the mortgage or the personal loan, but I’d hate for my credit rating to go down if I just acquired the personal loan beforehand. How much of a hit should my credit rating take and would it cause problems securing the mortgage even if we would be well-qualified otherwise?
- http://www.Credit.com/ Gerri Detweiler
  
  Can you absolutely not wait until the mortgage closes to get the personal loan? If you can wait, do!
  - Kurious_in_Keller
    
    That’s what I needed to know. Thanks. I can wait.
    - http://www.Credit.com/ Gerri Detweiler
      
      Whew. Good luck on the loan!
      - Kurious_in_Keller
        
        Oh, one more question… When I do get to that point, I should note that I filed for bankruptcy back in 2004 but it is no longer on my credit report. When I get asked that question, what is the appropriate response? Again, my credit is stellar now.
      - http://www.Credit.com/ Gerri Detweiler
        
        You should always answer truthfully. If you don’t, and there are problems later, it could come back to haunt you.
Ruby Quintana

they said my credit score is 548 ive never used my credit since im only what can i do to get a good credit ? im trying get leave home and be independant…..a couple days ago i wnet to sprint to actuvate an account they said i could because i have poor credit score
- http://www.credit.com/ Credit.com Credit Experts
  
  Ruby —
  It takes awhile to establish a good score, and the best ways are to pay debts on time and keep your balances low relative to your credit limits (if you use credit cards). You can also check your credit regularly to check your progress. Here’s how to monitor your credit score for free.
  
  And here are some tips for building credit: How to Build Credit the Smart Way
hank

i had a FICO credit score of well over 700 in Nov 2014. I received an offer from Chase bank for 0% for 16 months. So i decided to consolidate all my c/cards to this one card. A total of about $7k. When I consolidated everything to one account my credit score dropped 150 points! REALLY? So instead of $7k spread out over 6 cards and moved to one my credit score dropped. That’s BS! Then in Dec 2014 I made a $4k payment. And my score jumped a whopping 25 pts. So bogus!
CATHY_WIT

It doesn’t matter what your credit score is these day . Mine is 715. I think it’s all biased ! I’ve been struggling for 14 years since my husband passed away & on a decent fixed income. I’ve never been late paying any of my utility, rent. or loan obligations needed to survive. I’ve purchased 2 cars, both were payed off a year in advance. I had to recently purchase a used car that turned out to be a lemon because I could not be approved for a new car because of my credit score. What ! They should change the point system. Not everyone wants to get in debt to get out of debt. I surely don’t. So much for freedom of speech & the home of the free. We are living under American communism ruled by capitalist. So how free are we? So much for what the American Flag stands for & what our forefathers came to America for to have a better life !
erin

AMEN!!!!!!
Satisfied

I have a 731 credit score and I just turned 21, never got any loans besides a student loan which I started paying automatically in November of last year, my credit history is just over a year old, had several late payments and maxed out one of my 2 credit cards yet my score had went up from 674 in January to 731 in April…and my credit lines doubled…all I did was make most of my purchases with my credit cards and pay the entire thing every couple weeks.
maxnord

Companies like Bear Sterns, Lehman brothers, Bradford & Bingley, Loyds all received AAA credit ratings two months before they all went bankrupt – which then led to the global meltdown. The “Credit Score” system is a scam, it was created by the banking industry aka wealthy elite, to exploit the people who actually DO work; which allows the wealthy to actually do nothing and play their unscrupulous games with all of our hard earned money. I worked in the banking industry for years, these are NOT nice people. The best advice is: Avoid using the banking system as much as you can. Pay with cash or debit if it’s necessary. In other words… don’t let the “credit rating system” control you – it is the way the banks get the upper hand, and steal more of you hard earned money. They steal enough already, don’t let them take more.
Kallie

I had a score of 800, paid off a loan early and the next month it was 780. I too have no missed payments and a credit card that I carry a low balance on because I was told a factor was showing you can make regular payments. A note: if you go to a car dealer and let them run your credit it actually will show multiple requests because they send them to a number of companies to try and get you the best rate. Instead I took s copy of my credit report and had them give me an estimate based on my score.
- http://www.credit.com/ Credit.com Credit Experts
  
  That’s a smart strategy. Thanks for sharing.
Carlaob

Lot’s of young people start off first with a store card, like Sears or JCPenney. That will help if you pay off or make timely payments. Good luck.
If you ever plan to get a house, you just cant use cash… you need a history of excellent credit.
TR

Frustrated too
I have a fico credit score of 662, one negative, that should have been cleared, I have no collections, liens, nor bankruptcies, how can I get approved for an unsecured personal loan
- http://www.Credit.com/ Gerri Detweiler
  
  Do you have steady and sufficient income? Have you tried applying?
Natalie

NOOOOOO! Do not close them. That will also kill your credit score. As long as you aren’t being charged a hefty annual fee, there’s no reason to close your cards. The longer the life of the credit line, the better for your credit. And certainly do not close any cards while you have a balance on it.
Ryan Intellekt Reed

I have a question, which option would impact our credit score in a more positive way: paying off a item that is in collections or disputing item in collections and allowing it to be removed?
- http://www.Credit.com/ Gerri Detweiler
  
  Paying an item in collection doesn’t typically change your credit scores. Learn more here:
  The 7 Biggest Questions About Debt Collections & Your Credit
Gezim

Have more than just a credit card. Have specific credit cards. Like lowes. Home depot. Firestone. Best buy. Use them as needed. Dont pay cash or debit. But also control your expenses. I, personally, may have more than 10 different credit cards. If you use the specific credit card from a store, like lowes. You get 5% off, also no interest if paid full in 6 or whatever months. How great is that. You save 5% and also you have no interest on the amount. Meanwhile your regular credit card has interest. Probably over 14% since your credit is not exellent. Apply for loans. But dont use it. Let it expire. Like car loans. Switch cards. From different banks. By that i mean dont alwas use 1 card. If you have 3 CC and u use all 3 of them, you will get 3 reports a month. Do not ever pay of your main credit card. You pay it of, you cc company will stop the reports. A report is the amount you owe and the amount you paid. If You dont owe in your credit, you dont get reported.
Nicole

I am just as frustrated and angry as most of you. My score is 676 and my hubby is 664. We have paid every bill every month for the last 5 years with no delinquency (in the last 5 years and NEVER a mortgage delinquency) and just got a new car loan after our cars (paid off for more than 8 years) finally died. I have seen my score go up slightly with the new loan and payments. Our utilization is below 15%. We are trying to get above 720 to get a good home loan but I feel like we are in a Catch 22 and we cannot figure out how to get our scores any higher. If they go up it is by only a pont or two a month. What can we do to increase faster?!
- http://www.credit.com/ Credit.com Credit Experts
  
  Nicole —
  Where are you getting the scores? If it is a free credit score from Credit.com, it should have letter grades that show you which factors are helping your scores and which may be holding it down. That would tell you where to focus your efforts. It’s also a good idea to check your free annual credit reports
  to be sure the information is accurate. An error there could result in a score that is lower than it should be.
- Andrew Goetsch
  
  The credit.com poster is right. There has to be some major reasons your score is so low and you need to find out what they are. There are correctable mistakes in credit records all the time.
Nervous!

I have a 709 credit score and am thinking of using national debt relief to consolidate and pay off my debt, does anyone know how bad this will hurt my credit score?
- http://www.credit.com/ Credit.com Credit Experts
  
  It’s impossible to tell you that, because it can vary. But here’s a post that may give you more information useful in making a decision: Is a Debt Management Plan Right for You?
Sabz

I made the mistake of cancelling all of my credit cards after I got work abroad straight out of college. Four years later, I am now trying to apply for credit cards but keep getting rejected. I used to have a credit score in the mid-700’s but not it has been reduced to 665… I didn’t know much about credit scores except that I needed to pay off my credit cards before they were due to maintain a good score (which I did). My salary is so much higher now and I get direct deposits from a US institution to a US bank… the 665 is still a decent score. I’m frustrated with constantly being rejected for credit cards. Any advise?
- http://www.Credit.com/ Gerri Detweiler
  
  How about starting again with a secured credit card? It doesn’t sound like you should have trouble getting one. Read: How Secured Cards Help Build Credit.
Itsme

I have a Transunion credit score of 611 which they labeled as “fair”. But on other sites a 611 score is called “bad”. My report also said that I’m using 25% of my credit when I know for a fact that all my credit cards are basically 90% maxed. I also had a bankruptcy like 5 years ago. I’m having trouble refinancing my car so I can start paying down my credit cards. Everytime I try I get offered a lower payment but they tack on years and increase my rate. Not worth it. What can I do? Am I basically stuck?
- http://www.Credit.com/ Gerri Detweiler
  
  Different credit score models have different score ranges. Some go as high as 850 and some go higher, A different range will mean the same number means something different.
  
  As far as your credit situation goes, if your credit cards are maxed and you’re having trouble making all of your payments, I would recommend you at least talk with a nonprofit credit counseling agency to see whether they can help you get those credit card payments down see you can make progress and start seeing progress on your credit scores as well. This article discusses that option: Does Credit Counseling Work?
new

i am new in this country and want to build my credit in order to buy a house. please suggest ways as how can i get a good credit score?
- http://www.credit.com/ Credit.com Credit Experts
  
  Welcome. Here are some suggestions on building credit.
  How to Build Credit the Smart Way
  
  How Secured Cards Help Build Credit
L.H. McDaniel

I have a 669 credit score from Equifax, never can get thru to them & has been going down & was sent to me by my insurance co. USAA in Feb. but will not show up very well even though I make all payments. They do show some mistakes, bad ones that I never had anything to do with but is next to impossible to get thru to. Been going down for about 6 yrs. In the Natural gas industry & spot price of gas is at about a 20 yr. low plus had to sell some expensive , paid for luxury property because housing bust hit at the same time along with expenses going up & doubling of property taxes.. Grew up with excellent credit but sinking. Plus drilled 2 dry holes, just trying to keep my income at a good healthy level. At the same time of everything else.Not much hope. I’m 68 now & the ups * downs have been going on for many years.
FO

An engineer and a mathematician came up with this system of credit score. The only thing I see it doing is charging folks higher rates for those who can least afford it. I could care less what those two think of most anything.
egads

Credit is evil. Credit bureaus are evil. I am proud my score is in the 500’s. The lower the better.

Though i make over $100,000 a year, I make absolutely no effort to maintain a credit score because it is impossible to do it legally. Instead, I pay corrupt credit repair companies if I have to make a big purchase to illegally raise my score and do as much in cash as possible.
http://www.credit.com/ Credit.com Credit Experts

Thanks for sharing. And congratulations
Estelle Crayton

I agree youcan live off if 22k and live good if you always kept your expenses in check and didn’t live above your means. If you don’t have a mortgage payment that’s a big chunk right that you’re not having to spend each month.
Jim O’Flein

My parents never borrowed money from anyone. If they didn’t have the cash they didn’t buy. Couldn’t find a credit rating on them.
Christine Svitak Stipek

Pay cash, or you don’t need it! Live below your means. Give to others, and always give more than they ask for!
Kyra

I have recently paid off my credit card debt so i could apply for a new mortgage out of state with paying off my cards how long should it take for me to apply for a new loan?
- http://www.Credit.com/ Gerri Detweiler
  
  As soon as the credit reporting agencies have the updated balances any credit score that is calculated will reflect that new information. It usually happens within 30 days or less, but depends on the reporting cycle. (Most lenders report monthly.)
Phabo Anttwon Palmer

Im just now starting to build my credit ive just checked it and it says 667.ive heard it was ok score but i would like to gear from a sure source.Also is it true some debt is wiped off your credit in 7yrs? Please help me understand.
- http://www.Credit.com/ Gerri Detweiler
  
  It depends on what credit scoring model is being used to calculate your credit score. Can you tell from the source which model is used and what the score range is? (See the list above as examples.)
  
  Yes, most types of negative credit information such as late payments cannot be reported more after seven years, though there are some exceptions.
crzyvet

I took out an equity loan, (no mortgage), and asked the the equity limit be limited to the actual the loan amount, so I could not draw any more out. My credit score was dropped 40 points by Experian. I called to ask why, and they explained that the loan I took out was at the credit limit, so my score was dropped. I explained, (and followed up with a letter to no avail), that the limit was one that I chose not the bank. I explained that the bank would have loaned me, or raised the limit to 3 times what I borrowed
- http://www.Credit.com/ Gerri Detweiler
  
  We have an article that discusses that topic: How HELOCs Impact Your Credit Score
  - crzyvet
    
    Thanks for the link! that explains that. I should of just went for the full HELOC that I qualified for, and only borrowed what I needed. BTW The loan went into a garage and new roofing which gave me additional equity as well!
    - http://www.Credit.com/ Gerri Detweiler
      
      How frustrating for you though!
      - b-natalie
        
        Why aren’t lenders allowed (or mandated) to explain to borrowers how taking a larger HELOC (if one qualifies) may be beneficial to their credit scores. Lenders could give ‘disclaimers’ & explain that they’re not trying to up-sell (though they ALWAYS ARE, of course), but that the 3 main credit bureaus score ‘down’ on HELOCS that are maxed out as opposed to HELOCS where the borrower takes less than their highest limit. (There’ll always be the nay-sayer complaining that the lender is being self-serving or deceptive…but that’s where the disclaimer & explanation from the 3 Bureaus would help.) NO one HAS to take a higher HELOC, but knowing how it could affect one’s credit scores would be very helpful info. If ‘qualifying’ for more than you need doesn’t cost anything, I think knowing a larger HELOC could actually HELP the borrower, is valuable info. [Re: another comment on this page: Asking to ‘quality’ for a lesser amount because one doesn’t trust themselves with an available pot of money at the bank, suggests a bigger personal issue.] Then again, the novice (myself included) might not try to qualify for more than they actually need simply because they don’t trust the ‘salesperson’ at the bank. Bottom line, I believe an informed decision is always best.
Jon Diesel

I am frustrated with my vantage score 3.0. It dropped over 50 points in a week after I used a credit card to make a deposit. I only had the deposit held on there for three days, and it was only 2800 on a card with a 10000 limit. I have no mortgage and no car payment since I own everything. Why the drastic jump off one purchase?
- http://www.Credit.com/ Gerri Detweiler
  
  Hmmm that is kind of a large jump. What’s your score before and after? And has it bounced back now that the deposit it repaid?
  - Jon Diesel
    
    687/635. It hasn’t bounced back yet, hopefully it will when it updates. My fico score never moved and remained at 720.
    - http://www.Credit.com/ Gerri Detweiler
      
      That is enough of a swing to cause problems getting credit. Let us know what happens after the update.
  - Jon Diesel
    
    Now that a month has gone by and the credit card balance is showing zero, My score has rebounded, and actually improved to about 720 on vantagescore 3.0
    - http://www.Credit.com/ Gerri Detweiler
      
      Great news!
Fale

want to know how to bring up a credit score from 686 to top number
- http://www.credit.com/ Credit.com Credit Experts
  
  Getting the top number is probably unrealistic (and also needless). What you want is an excellent credit score, and you can find some tips for getting one here: How to Improve Your Credit Score Without Debt
Jan Kowski

I currently have 4 major cards I use and have been for over 7 to 10 years, They include 2 Amex Gold and Blue,Discover and Capitsl1, in addition I had a 48 month car loan paid off in 17 months and pat the balance on all credit cards in full each month. Before zi bought my car I had a FICO score of 795 from a major bank and 802 from another. During the time I had my car loan my monthly score varied from 776 to 801 this month. While having the loan I never missed any payments or was late on any payments, yet it seemed the monthly scores I received was more subjective rather then objective based on my status over the last 7/10 years. My payment history and credit score should have no impact on my care insurance or my ability to get a new loan.
Christy

My credit score was in the 700’s, bought a house in March 2014 and with my good fair credit it’s now ranges in the 600’s, how do I get it up to the 800’s?
- http://www.Credit.com/ Gerri Detweiler
  
  A mortgage shouldn’t drop your credit scores. What else has been going on?
  - Christy
    
    High use of credit which I am working on paying it off.
    - http://www.Credit.com/ Gerri Detweiler
      
      That’s good. If you can pay down your credit cards with high debt usage then you could see improvements quite quickly (as opposed to negative information which can just be a matter of waiting).
      - Christy
        
        Can you tell me if the credit information via the Credit Karma app is accurate or is the information here at credit.com is more accurate?
      - http://www.Credit.com/ Gerri Detweiler
        
        The differences in the scores you are seeing are due to the fact that these scores are based on information from different credit reporting agencies, In addition, different scoring models are being used. It’s not a matter of one being more accurate than the other, though if any of your credit reports contain mistakes you will want to dispute them.
        
        We explain more about this topic in this article: 3 Reasons Why Your Free Credit Score Looks Wrong
      - Christy
        
        No, no mistakes, just curious why my credit.com score looks better than my Credit Karma scores.
      - http://www.Credit.com/ Gerri Detweiler
        
        Hope the article I suggested helped! And make sure you look at the expanded view on Credit.com where you’ll see two scores.
  - Christy
    
    Applying for credit to try helping myself consolidate therefore having too many inquiries too. How long before it comes off? I am trying to better my credit score soon so I can get a new mobile home. House be sold in a few weeks, what is your advice as the first thing to do? Such as taking one credit card and paying it off and working up this ladder?
    - http://www.Credit.com/ Gerri Detweiler
      
      Inquiries remain on credit reports for two years but generally only count for one. This article may help.
      
      It’s hard for me to say what the first thing you should do is since I don’t know what your challenges are. Have you obtained your free credit report card from Credit.com? It will give you an action plan for your credit. That may be a good place to start…Should You Be Worried About Credit Report Inquiries?
http://www.Credit.com/ Gerri Detweiler

You can never ensure that but if they have the ability to check credit then they have been screened and informed of their duties under federal law. You can also monitor your credit scores each month for unusual activity. Here is how to get your free credit scores.
doc

you got that so right. the left hand knoweth not what the right hand doeth.

doc
facq2

If a good credit score starts from 661-780, How come you always say that a good credit score is at least 720, any take on this?
- http://www.Credit.com/ Gerri Detweiler
  
  It certainly can vary by scoring model, score range and lender.
yvonne

what to do about fraud and identity theft of my premarital asset. ex husband used my credit score for purchases in the millions and 20+ credit cards. attorney no help even with my extensive documentation. What now? he’s not on my deed and used as his 2nd home for financing, what can I do?
- http://www.Credit.com/ Gerri Detweiler
  
  Will email you.
CJinPA

Here is my situation:

I had credit of 704+. About 5 months ago, (after struggling financially but paying the minimum due every month), I came into a small bit of money. Thinking of the interest that would be saved, I paid off two loans equaling about $7,000 – the balance of my only car, and the remainder of a personal loan I had taken out about 5 years ago. Now, the only thing left on my credit are 4 credit cards which, at the time, were nearly at their limits. Instead of paying them off, I decided to pay much more on them every month to bring them way down in balance. I have been paying about 3 times the minimum on the cards each month without using them.

I looked at my credit score this week and saw that it is at 681; which is up from the 674 it was at last month. I’m assuming it went up because the credit cards are going down. However, I don’t have any installment loans and I’m nowhere near needing to buy a new car. Any advice on how to bring it back up over 700 again? Thanks!
- http://www.Credit.com/ Gerri Detweiler
  
  Continue paying down the cards. You don’t have to have an open installment loan to have good credit. Yes it helps, but credit mix is only 10% of the score while debt usage (utilization) is a much bigger factor.
  
  You could also consider a personal loan to consolidate some credit card debt–if it will save you money in the long run. Please read: Will Debt Consolidation Help or Hurt Your Credit?
  - CJinPA
    
    Thank you for the information, Gerri. I very much appreciate it.
- Rhonda Williams
  
  Revolving credit such as credit cards have a higher impact on your credit score, 30%, than non-revolving accounts such as loans. It’s better to pay off credit card than loans. I got a personal loans to consolidate all of my credit cards and my scores went up between 61 and 75 points. It was the best thing I could have done for my credit. Get a loan for consolidation, not a credit card,
k. russ

Who Cares? Pay Cash Always!
reese

i have a CS 612-629, jus got approved for 2 CC frm CapOne w/ $500 CL each. I have nothing on my credit report but a student loan paid off. i plan on charging 30% or $150 each card and pay bal full ea month. Is this fine to build my CS quickly n efficiently? i can only pay monthly but read some of u pay weekly, is weekly a quicker way to CS or bout same as monthly. I don’t like credit prefer save n buy cash but i want a car (new) in a year and house in two. lol please help, advise lol
- http://www.credit.com/ Credit.com Credit Experts
  
  Reese —
  Are you checking your credit scores regularly? Here’s how to monitor your credit score for free. Thirty percent is the maximum you should put on the cards, but you can get around that by paying early, so that the balance will be low relative to the limit whenever it is reported. Your paid-off student loan should help your credit if the payments were made on time. You could also consider a small “credit builder” loan from a credit union. But checking your free annual credit reports (go to AnnualCreditReport.com) for errors and disputing them, and keeping tabs on your scores, plus making sure you are using credit lightly and paying on time are the very best things you can do.
Tom

OMG. I just read some of these comments. Tell me I’m not the only person who thinks the entire system sucks! I am flabbergasted by the manipulation. It seems like our whole credit system has little connection to reality. I always thought it was unfair and discriminatory – the rich pay less, and the the poor pay more. Now, I’m sure of it. If you don’t know how to play the game, you lose without even knowing it. George Bailey is turning over in his grave!
Chris G.

You guys are truly all helpful. Would just like to say, thank you. Its too bad that there are so many complicated credit scoring models and too bad that this affects everyone in this country. I used to be one of those people that were afraid to check their credit , but have improved it over the past year. I will recommend applying for a Discover card to get a Free FICO score included in your monthly statement. I would also recommend using credit.com and CK.com to help track your progress , NOT just to simply check your scores. The scores they give you are “guesstimates” but can be close to accurate. I also applied for a secured card and within 6 months, the card became unsecured and credit limit went up from $600 to $1500. I’m assuming it could go up another $1500 if I keep making payments on time, but I would recommend this to anyone with bad credit. My FICO score went from 545 to 684 from 8/2014 to 8/2015. Feels amazing and I know at this point , that you MUST start somewhere! I even paid $80 a month for CreditSaint and/or LexingtonLaw to remove the bigger issues on my credit report. They are both great. If you can afford another $80 a month, help them, help you and cancel when you have a better idea on what to do. You must be responsible and straight forward if you want to move along in life with improving your credit. Use all the free tools to learn and take it from there! Good luck to all and thank you again to all on credit.com and all other blogs contributing to this credit world!
What’s the point?

I have a score between 690 and 720 depending on the reporting agency. Seems to be no problem getting a CC but was turned down by 5 out of 6 banks for a car loan. Their reason was a prior bankruptcy and not enough credit. Seems that the credit score ultimately has little importance. I am retired with pretty good income and paid for home and cash in the bank. What’s the point of a good credit score if I get turned down anyway?
- http://www.Credit.com/ Gerri Detweiler
  
  What was the score the auto lenders pulled? Theirs are usually customized for the auto lending industry and weight factors differently (especially previous car payments).
super dave

I was wondering Ive been working on credit repair and have had some things removed from my credit to only show back up a month or two later on credit report and how does medical debt collection affect my score I am 100% service connected disabled had to go to er a while back and the va has yet to pay the medical have requested statments from the collection agencys but say they dont have ist that a verifcation of debt not a letter from them saying I owe them
- http://www.Credit.com/ Gerri Detweiler
  
  With regard to the first part of your question, this story may help: Credit Deja Vu: When Negative Information Keeps Showing Up on Your Credit Report and with the second one this may help: Four Medical Bill Myths That Can Cost You Dearly
  
  As for your billing problem, you can send the collection agency a letter stating that you don’t believe you owe the debt and why. Have you talked with the Patient Advocate at your VA Medical Center?
Jbjsks

Here is a thought, aim for no credit score. Your FICO score is no indication of how successful you are financially. It is purely based on your use of debt. In other words, it’s really a score of how much you like to play kissy face with debtors. Instead, get and stay debt free and save up to buy something. And yes, people take cash when you are looking to buy a home. Keep this in mind, most wealthy people do not have any debt. Thanks Dave Ramsey for helping us have financial peace.
rinky

my house, paid for. car paid for, work truck paid for, I keep credit cards in the single digits utilization, currently less than 2%. My score is 753. whatever, I don’t need to buy a car or house or take out a loan to raise my score! geez, I still use 0% cards, usually with $100 or so bonus then more rewards. I only established any kind of score a couple years ago, reports said I had no history…takes time & for sure never miss a payment, maybe couple more years I might get up to 780?
- http://www.credit.com/ Credit.com Credit Experts
  
  Maybe. The only additional thing we would recommend to boost your score is a small installment loan (which would help on the “loan diversity” part of your credit score. But on-time payments and low debt are your biggest allies, and you are already maximizing those. As time goes by, you’ll improve on “credit age” as well. You can see the factors that affect your score if you check your free credit score on Credit.com.
mdwebneck

I still don’t understand why the pukes in charge have to use different scales for their scores. Why not make it a top score of 1,000 across the board?
I doubt my score has ever dropped below 750, even when my debt ratio was ugly, because I had still never missed a payment.
My score hasn’t been below 800 for the last ~5 years, but it would be so much more meaningful if that score actually meant the same to every banker.
Magik

The three ” high impact ” categories are 1. Credit card utilization , 2. Payment history , and 3. Derogatory remarks .

” Medium impact ” is length of credit history . I also noticed the number of accounts is a small factor . More accounts is actually better .

Keep the older cards .
Magik

Good for you Retired . I made it to 55 1/2 …. They needed me on the project I was on . Who the heck wants too work till they die . If you know any ” tax loopholes ” for the average guy let me know Can’t afford a lobbyist …
Work union , live better ….
jabney8

Whole thing seems to be a scam to me. I have credit cards, two mortgage payments, car payments – never missed – never late and my credit score drops because I shop for better rates. My thought … someone does not want to do business with me – fine by me but so far when the question comes up – I demand the interest rate of the day and somehow they always come through when I threaten to walk. Home loan #1 3.2, Home loan #2 4.2 – will redo it when the value of the property increases, car loan #1 1.9, car loan #2 1.9. Yes I have a card that is loaded to capacity because I transferred others to it because it’s 0% interest. So my thought is – let the reporting agencies play their games – I’ll keep playing mine
Greg Hollibaugh

While it is great to get a ‘free’ score from credit.com, they miss the mark compared to the actuals due to estimation of a credit score. Credit.com has me in the mid to high 700’s while my actual (on the 850 scale) is over 800. Caveat emptor!!!
- http://www.Credit.com/ Gerri Detweiler
  
  Greg – We explain in this article that there are many different scoring models. The two we show are scores used by lenders, not estimations. Also, are both pulling from the same bureau? (Ours is Experian.) 3 Reasons Why Your Free Credit Score Looks Wrong
Degenerate

Actually, we did this for our daughters and son and it has raised their credit scores by 143 points! We also co-signed for a used car for our son, who in a year, traded it in and bought a new one on his own!
Degenerate

Here is my problem. Our credit history only dates back 1 year 10 months…We got 2 bad credit, credit cards when we started out. They have low lines of credit at $600 and $700. They charge us $75 a year for them. We now have good credit and way better cards and would like to drop the first two. They are only about 3 months older than our better cards. They hold us hostage with those fees because we are afraid to close them and drop our credit. We had a Kohls card for 3 months and decided to close it because we just didn’t use it and it dropped our credit by 15 points! How much will it drop if we close these 2 cards then?
- http://www.Credit.com/ Gerri Detweiler
  
  It’s very hard to say. It will depend on a number of factors, including how much other credit you have available. But if you have good credit and don’t want to pay the fees, you may want to at least close out one of them, monitor your credit and then in the future close out the other.
Rafael M Garcia Perez

Took an unsecured 7K loan credit score drop 36 points. Is that fair?
sheldon ivey

My credit score is 548. I have some late charges on my credit and would like to have them removed. First, what do you recommend how to remove charges and second, how to get my credit score back on track.
- http://www.Credit.com/ Gerri Detweiler
  
  It is hard to get accurate late payments removed. Sometimes consumers will dispute them, and if they aren’t confirmed they will be removed. But even if they remain, over time they carry less weight. Please read: How Long Does It Really Take to Improve Your Credit?
  
  If you haven’t done so already, you may want to get your free credit score from Credit.com. It will also give you an action plan for your credit.
Catherine

My credit score with Equifax is 463, which Equifax stated (and I believed) to be good! Obviously not! I don’t own my own home, I have one store card that appears as a credit card on my credit file, and two store cards. I am not in debt, have no judgements against me and always pay double the due amounts before the due dates. So basically unless I am knee high in credit I cant get any credit! Can anyone tell me how I can up my score without compromising myself.
Thanks.
- http://www.Credit.com/ Gerri Detweiler
  
  What are the primary reasons they list for your score being what it is? What credit scoring model are they using? (You may have to dig a little to figure that out.) If you get your free credit score from Credit.com, you’ll also get the reasons your scores are what they are, and an action plan for your credit.
Bill

I have been working on repairing my credit for years. Finally I get a good score working on excellent. Then, I get a letter from an old credit card debit that I started 14 years and thought that I had satisfied the debit until I get a letter claiming I still owe $2,000 offering a selllement of $1,000. I asked who the were and to prove that I still owe them. Nobody has contacted me in 7 years about this debit. They gave me 30 days to resolve it. What can they really do with an 7 years of old debit that nobody has contacted me for so long?
- http://www.Credit.com/ Gerri Detweiler
  
  It is very likely a debt buyer that bought this debt and hopes you’ll pay. But if the statute of limitations has expired you can tell them to stop contacting you and by law they must. In addition, a debt that old likely should not be on your credit reports. Please read: a href=”http://blog.credit.com/2012/12/does-your-old-debt-have-an-expiration-date/”>Does Your Old Debt Have an Expiration Date?
Kristen

I’ve had a lot of credit issues I filed for bankruptcy at the age of 21 in 2007 I was irresponsible. I’m back to work and I went and bought a car this year my credit score was over 600 after buying the car my credit went down to 443 and my inquiries are up to 13. I really need some help I’ve paid my bills on time nothing is working it just stays the same. I haven’t applied for anything after my car but I only had 3 inquiries when I bought my car. In my credit report there are things that were paid off still showing negative, from 2005 10 years ago.
- http://www.Credit.com/ Gerri Detweiler
  
  Negative accounts over ten years old generally should not be on your reports. If you’re having trouble navigating the dispute process, this might be a situation where working with a credit repair firm makes sense. Another option would be to see if a local credit counseling agency offers a credit review services: 6 Places to Get Free Help With Your Credit Problem
lindsay riggs

I have always……………had good credit. When you read the report is is in,very good. HOWEVER, 9 years ago, a greedy Atty, who sent a bill 5x higher than he said the cost would be, (and by the way never did the work!), waited 3 years until after he knew I moved out of state TO FILE A SUIT IN SMALL CLAIMS COURT.
Although explanations and agreements were sent to the court, along with the fact that the Atty who was to do the work WALKED OUT OF THE FIRM WHEN HE SAW THEIR TREATMENT OF ME, a PARTNER, decided to send a bill 5x higher than was ever quoted (and again, NONE of the work was done.) Although there were documented phone messages left to return the calls, THEY NEVER DID. When a phone message was left for the CEO of the Law firm to return the call, HE NEVER DID. When faxes were sent to their Accounting Division asking for a breakdown on what and where this number came from, they only sent THE AMOUNT DUE WITH NO BREAKDOWN OR EXPLANATION.

Although each item was adddressed, documented, and confirmed because I was not able to travel TO THE COURT TO SHOW UP ( I worked in South America for 6 years) the Judge awarded the local Atty. ( More importantly their was “no proof of service” ( meaning nothing received that required a signature to prove it was received) that was able to be shown that was ever sent to me! Yet again, the local Judge awarded the local Atty money ( including more interest) against a filling that was entered into with the court 3 years after I moved out of the State, and then an additional 5.5 years that they tried to collect the ine highly inflated, bogus (no work done) billing. THIS HAS BEEN ON MY CREDIT BUREAU FOR 7 YEARS, and instead of allowing it to drop off, the Atty has refiled his claim again that will keep it on my bureau for another 7 years!

Thus, my perfect credit score that was 830+ moved to 783 and is now down to 729.

I too have no mortgage on my home (PIF), have no loan on my automobile ( cash), have purposely taken out offerings of 0% loans offered to me with payback in 18 months, and have never missed one single payjment. In fact, invested the money and made profits. So unjust. When my husband passed away 3.5 years ago, because his credit cards were cancelled, it also lowered my score instead of raising it, since there was less credit “available” to me. The number is deceiving at best, everyone see’s I pay my credit cards in full each month, purposely borrow money to pay it back timely ( so as to increase my credit score), etc.

Due to one “greedy lying Attorney” my score has been affected negatively.
I know that I still fall into good credit, but more than deserve, with my history background and current history to be excellent. It;s all a sham.

Do i need the credit, not really, I have worked hard my entire life, but the credit score does NOT represent who I am and how meticulous I am with my credit.

Nonsense!
lk

I am 67 years old.Three months ago I tried to lease a car. I knew I had no crefit. Crefit Mgr told me I was virtually a ghost. Told me I needed to get a secured credit card from my bank, which I did. Each month I have paid my utility bills from the card and then paid the credit card charge from my checking account. In 2 months my credit score went from 0 to 670. How long will it take to get a good credit score so I can buy a car?
- http://www.credit.com/ Credit.com Credit Experts
  
  You might be able to get one now. You can find some tips here:
  Can I Buy a Car if I Have No Credit?
ANTHONY STANLEY

Would it hurt my credit score applying for a personal loan at this moment just starting to rebuild my credit, I have a low score because never had credit in my years of life. I am opening a savings account with $1000.00 and use it as collateral to borrow $500.00 and make some credit with a bank. Would this help my credit to boost it up more faster?
- http://www.credit.com/ Credit.com Credit Experts
  
  A secured loan (which is what you are referring to), paid on time, should help. You might also consider getting a secured credit card, using it lightly (keeping the balance under 30% of the credit limit) and paying it on time. Here’s more about secured cards: How Secured Cards Help Build Credit
  
  And here are some tips on building credit in general:
  The Credit Catch-22: How to Build Credit If You Can’t Get Approved
zaza

I don’t have a credit card because i’m scared to be in debt. I pay my bills using cash and my bank card. Am i doing the right thing?
- http://www.credit.com/ Credit.com Credit Experts
  
  Zaza —
  It’s simpler to build credit if you use credit cards, but it’s not impossible. These posts have some suggestions:
  How to Improve Your Credit Score Without Debt
  7 Ways to Build Credit Without a Credit Card
  
  Even if you have no plans to borrow right now, good credit can come in handy in case of a medical emergency or in the event you want to buy a house or car and need to finance it. But if credit cards make you uncomfortable, you don’t need them for good credit. Good luck to you.
Dean Black

What do you need credit for? You have a car and a house. Pay for everything with cash, start saving for the new car you know you will need in the future, and when it comes time for you to get a new car, pay for it in full. Besides the ease and safety of paying for things with a credit card, you have no need for credit anymore so you have no need for any kind of credit score… Am I right?
- http://www.credit.com/ Credit.com Credit Experts
  
  You might be — or there could be a big car repair, a medical emergency and a roof leak at pretty much the same time. Good credit does not have to be used, but it can be handy in an emergency. And there is, as you point out, a factor of ease and safety. Travel reservations and easier and more secure, and credit cards have chargeback rights that cash and debit cards do not. But it is absolutely not necessary to be in debt to maintain good credit.
mjf

How do you do that? If i borrow say $5,000.00 how much will you have to pay back on loan like this? I dont wanna even spend the money, just put it into an account and pay it back to build credit up even more..
mjf

Its possible, but its tight budget
- Jeremy Mardis
  
  Are you joking , 22k is pretty okay if you do not have to pay rent . That is roughly 1800 a month , why would you spend more than that if you do not pay rent .

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