Notices

Good Credit Score info

Old 01-29-2016, 06:26 AM
  #1  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Nov 2012
Location: Palm Beach County
Posts: 9,142
Default Good Credit Score info

I am looking for some info/strageties on how to boost my credit score (I already know what mine is and I know pay my bills on time),and there is a lot of info online. Not sure whats valid and who just wants money.
WPBTH is online now  
Old 01-29-2016, 06:34 AM
  #2  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2008
Location: Somewhere in the middle of Michigan
Posts: 10,389
Default

I can tell you that having two credit cards and a variety of accounts (utility, TV cable, etc.) all with perfect payment records is not enough to get an 800+ credit rating. The reason given to me for the less-than-perfect credit rating is that I do not have any installment debt with a payment track record. To raise my score, I'd evidently need a mortgage or car payment, which I do not either have or want..
yarcraft91 is offline  
Old 01-29-2016, 06:40 AM
  #3  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Nov 2012
Location: Palm Beach County
Posts: 9,142
Default

Originally Posted by yarcraft91 View Post
I can tell you that having two credit cards and a variety of accounts (utility, TV cable, etc.) all with perfect payment records is not enough to get an 800+ credit rating. The reason given to me for the less-than-perfect credit rating is that I do not have any installment debt with a payment track record. To raise my score, I'd evidently need a mortgage or car payment, which I do not either have or want..
I have a mortgage and I just finished a car payment, but people have told me all kinds of way to raise my score, but Im just looking for more than word of mouth.
WPBTH is online now  
Old 01-29-2016, 06:42 AM
  #4  
Senior Member
 
Join Date: Jul 2015
Location: New Hampshire
Posts: 1,523
Default

Do you have a free account at www.Creditkarma.com yet? That is a great sight, It gives you scores and tells you how you are fairing on different categories. Id check it out if you have never been.
doobs41378 is offline  
Old 01-29-2016, 06:49 AM
  #5  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2008
Location: Somewhere in the middle of Michigan
Posts: 10,389
Default

Originally Posted by WPBTH View Post
I have a mortgage and I just finished a car payment, but people have told me all kinds of way to raise my score, but Im just looking for more than word of mouth.
Understood. The reason I stated was given to me by Discover Bank. If you have a Discover credit card, you have access to your credit score and Discover's advice on why it is not higher.

I expect you will find that the credit agencies will not tell you how to raise your credit score, as they guard details of their credit scoring algorithm closely.
yarcraft91 is offline  
Old 01-29-2016, 07:06 AM
  #6  
Senior Member
 
Join Date: Dec 2010
Location: Satellite Beach, FL
Posts: 10,582
Default

Have 10+ year old open trades, don't apply for credit very often.( less than 1 inquiry per year) Don't over utilize available credit. Maintain small balances and no lates.

That's it about all you can control.
Danny33486 is offline  
Old 01-29-2016, 07:50 AM
  #7  
Senior Member
 
Join Date: Jul 2007
Posts: 866
Default

I wish there was some dramatic way i could tell each and every rating agency that I COULDN'T CARE LESS WHAT MY RATING IS--MAKE IT ZERO!

I never saw my credit rating until i was 55--and only then because i bought a vehicle. (wrote a check)

I hold the industry in CONTEMPT for how they jack people around! Give me a big fat ZERO and see how much i care!

RUwimmi?
the good skiff is offline  
Old 01-29-2016, 07:58 AM
  #8  
Senior MemberCaptains Club Member
 
Join Date: Dec 2007
Posts: 15,654
Default

According to CreditKarma, I have three negative things that hold me down:
a. not enough credit transactions (as yarcraft has outlined)
b. average age of credit is less than 9 years (my mistake was cancelling credit cards that were 30+ years old due to non-use)
c. 5 hard credit inquiries in the past year (All by different companies, one was authorized)

If you want to build your score, don't open new accounts...cancel accounts that are the newest if you don't use them... and take care shopping for the best loan deals (because all of them will take a hard inquiry).

In two years, those hard inquiries will wipe off the books, and credit card age will be higher. Until then, it doesn't matter to me.
bamaboy473 is offline  
Old 01-29-2016, 07:58 AM
  #9  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Sep 2003
Location: Lancaster , RIC VA
Posts: 8,378
Default

Interesting story for me. I've had 800+ credit for a long time. Nothing fancy, just mortgage, installment and longe revolving history. No late payments ever, open card since 1986.

Sold my house in December and have no mortgage for first time in 20+ years. That combined with a credit card for a family member that has a low credit limit (by choice) but high utilization every month has lowered my score into the mid 700's.

My total credit utilization is like 6% of available, but my score reduction is "high credit use/to limit" because of the one card.

So guess to get back into the 800s I'll have ditch the card/raise its limit and buy a house.
GWcpa is offline  
Old 01-29-2016, 08:00 AM
  #10  
Senior Member
 
Join Date: May 2006
Location: Suffolk, Va.
Posts: 17,022
Default

Originally Posted by yarcraft91 View Post
I can tell you that having two credit cards and a variety of accounts (utility, TV cable, etc.) all with perfect payment records is not enough to get an 800+ credit rating. The reason given to me for the less-than-perfect credit rating is that I do not have any installment debt with a payment track record. To raise my score, I'd evidently need a mortgage or car payment, which I do not either have or want..

Utility bills are not a line of credit and your pay history on them will not help your credit only hurt your credit if they file something against you.
fishingfun is offline  
Old 01-29-2016, 08:02 AM
  #11  
Senior Member
 
Join Date: May 2006
Location: Suffolk, Va.
Posts: 17,022
Default

Originally Posted by bamaboy473 View Post
According to CreditKarma, I have three negative things that hold me down:
a. not enough credit transactions (as yarcraft has outlined)
b. average age of credit is less than 9 years (my mistake was cancelling credit cards that were 30+ years old due to non-use)
c. 5 hard credit inquiries in the past year (All by different companies, one was authorized)

If you want to build your score, don't open new accounts...cancel accounts that are the newest if you don't use them... and take care shopping for the best loan deals (because all of them will take a hard inquiry).

In two years, those hard inquiries will wipe off the books, and credit card age will be higher. Until then, it doesn't matter to me.
If people are making hard credit inquiries on you they have to have your prior OK. If its a company your currently doing business with they don't need you approval.
fishingfun is offline  
Old 01-29-2016, 08:03 AM
  #12  
Senior Member
 
Join Date: Jan 2015
Posts: 980
Default

I originate mortgages and nothing raises a score quicker than paying down revolving credit to 30% or less of the high-credit limit. Do not cancel the cards and try to use them often. Consumer Credit Information and Resources
anonymous_coward is offline  
Old 01-29-2016, 08:04 AM
  #13  
Senior Member
 
Join Date: Feb 2012
Location: SC
Posts: 2,243
Default

I'm a commercial loan officer and have seen thousands of credit reports....function of the job...

As a preface, a quick story on why no one can determine your score in advance....my first bank job put me through a 9 month training program. As part of it, when this subject came up, I asked the professional instructor to share the formula for the credit score. She couldn't do it...all she could tell us was there are dozens of factors put into an algorithym and out pops the score. I didn't like that answer then and still don't but here's what I've learned.

Very few things will positively impact your score overnight but negative info will:

1. Keep accounts open for a long time...all things equal, an older account is viewed more favorably than a newer one.
2. Don't borrow more than 50% of your available credit on any revoving account. If you owe more than $5,000 on a CC with a $10,000 availability, call the CC company to have your limit raised or pay it down to below $5,000-BUT DON'T BORROW MORE!!
3. Have some term loan accounts that were paid in full to maturity. Shows you did what you planned to do...
4. Have a mortgage and NEVER be late.
5. IF you have anything negative on the report- tax lien, late payments, chargeoffs, etc. GET IT RESOLVED. This will have the quickest benefit to your score. Even if you have a late payment from long ago, dispute it. You'd be surprised how quickly these can be fixed. All the laws favor the consumer. The burden of proof is on the creditor.
6. Don't take out a ton of CCs. If you have more than 3, close the newest ones out completely. Monitor this closely. Sometimes it can take several months of calling to get a CC company to actually close the account. Client service sucks at most bank CC departments.

Not all of these will make sense for everyone as everyone's situation is different. Over the years, my score has fluctuated anywhere from 750 to 820 for no particular reason. Given my job, I cannot have bad credit so I watch it from time to time. The formulas are crazy.
Welshtrustee is offline  
Old 01-29-2016, 08:06 AM
  #14  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Nov 2012
Location: Palm Beach County
Posts: 9,142
Default

Originally Posted by the good skiff View Post
I wish there was some dramatic way i could tell each and every rating agency that I COULDN'T CARE LESS WHAT MY RATING IS--MAKE IT ZERO!

I never saw my credit rating until i was 55--and only then because i bought a vehicle. (wrote a check)

I hold the industry in CONTEMPT for how they jack people around! Give me a big fat ZERO and see how much i care!

RUwimmi?
thanks for adding your insite
WPBTH is online now  
Old 01-29-2016, 08:33 AM
  #15  
Admirals Club Admiral's Club Member
 
Dulcecita Lures's Avatar
 
Join Date: Nov 2009
Location: Tempe, AZ
Posts: 16,760
Default

Originally Posted by anonymous_coward View Post
I originate mortgages and nothing raises a score quicker than paying down revolving credit to 30% or less of the high-credit limit. Do not cancel the cards and try to use them often. Consumer Credit Information and Resources
Mortgage business here, too.

If your credit is already decent, credit card balances are usually the single biggest hit. As said, no more than 30% of your credit limit in use is the general rule.

Length of credit history and mix of types of credit are important, too - car loans, mortgage, credit cards, active or recently paid off accounts count for a lot. Strong indications of a responsible borrower.

Late payments will hurt your credit score the most, especially anything going 60, 90, 120 days past due. Makes you look like an irresponsible borrower. An isolated 30 day past due is not that big a deal; we're all human and we all forget sometimes. But, who wants to loan money to someone they are constantly going to have to send to collections in order to get paid? Same is true for unpaid medical bills, utilities or others that post late payments to your report.

Disputes. In the mortgage world, if you have unresolved disputes on your credit report, you won't qualify for certain programs. If you have disputes showing on your report, ALWAYS get them resolved or request them to be removed BEFORE you apply for a mortgage. It's a slow process because it MUST be done in writing; you cannot call a credit reporting agency and ask them to remove a dispute.

Hard inquiries. While they have some impact, it's generally small. It's not uncommon to have hard inquiries if you've been shopping for a new car, mortgage, or other big ticket items that require financing. They can generally be easily explained away if within the same general time period.

Also as said, scores do fluctuate from month-to month even though nothing in your credit history has really changed. I've seen mine go up one month and down the next several points then back up for no apparent reason whatsoever -- all the same bills, all paid on time, balances going down, not up. This is one of the reasons most companies will use a tri-merge type of report when determining your actual credit score. It averages the FICO score of all three major reporting agencies, rather than relying on any single agency and for whatever reason, your score IS different from agency to agency, even though it's all based on the same credit you already have in play. Go figure.
Dulcecita Lures is offline  
Old 01-29-2016, 08:45 AM
  #16  
Admirals Club Admiral's Club Member
 
Dulcecita Lures's Avatar
 
Join Date: Nov 2009
Location: Tempe, AZ
Posts: 16,760
Default

Originally Posted by the good skiff View Post
I wish there was some dramatic way i could tell each and every rating agency that I COULDN'T CARE LESS WHAT MY RATING IS--MAKE IT ZERO!

I never saw my credit rating until i was 55--and only then because i bought a vehicle. (wrote a check)

I hold the industry in CONTEMPT for how they jack people around! Give me a big fat ZERO and see how much i care!

RUwimmi?
I'd call you an idiot, but that would make idiots look bad.

We now live in a society where your credit score is used to determine WAY MORE about you than whether or not to give you a loan. It determines the insurance rates you'll pay, what you'll pay for rent/mortgage interest, what interest rate you'll get on a car loan, and in many cases, whether or not you'll get a job that you applied for. Hell, I recently switched from Direct TV to Cox Cable and one of the 1st things they wanted to know was my SSN to run my credit. Same is true if you want a cell phone. Or want public utilities at your home. They ALL do it. Your credit score is a general measure of your responsibility in life.

Argue that it's wrong all you want; I don't make the rules. However, that TRULY IS the way it works today, like it or not. Pretty hard to live completely off the grid on a cash basis these days for the majority of Americans.
Dulcecita Lures is offline  
Old 01-29-2016, 08:45 AM
  #17  
Admirals Club Admiral's Club Member
 
Join Date: Sep 2012
Location: Palm Beach Gardens, FL
Posts: 1,210
Default

Originally Posted by Dulcecita Lures View Post
Mortgage business here, too.

If your credit is already decent, credit card balances are usually the single biggest hit. As said, no more than 30% of your credit limit in use is the general rule.

Length of credit history and mix of types of credit are important, too - car loans, mortgage, credit cards, active or recently paid off accounts count for a lot. Strong indications of a responsible borrower.

Late payments will hurt your credit score the most, especially anything going 60, 90, 120 days past due. Makes you look like an irresponsible borrower. An isolated 30 day past due is not that big a deal; we're all human and we all forget sometimes. But, who wants to loan money to someone they are constantly going to have to send to collections in order to get paid? Same is true for unpaid medical bills, utilities or others that post late payments to your report.

Disputes. In the mortgage world, if you have unresolved disputes on your credit report, you won't qualify for certain programs. If you have disputes showing on your report, ALWAYS get them resolved or request them to be removed BEFORE you apply for a mortgage. It's a slow process because it MUST be done in writing; you cannot call a credit reporting agency and ask them to remove a dispute.

Hard inquiries. While they have some impact, it's generally small. It's not uncommon to have hard inquiries if you've been shopping for a new car, mortgage, or other big ticket items that require financing. They can generally be easily explained away if within the same general time period.

Also as said, scores do fluctuate from month-to month even though nothing in your credit history has really changed. I've seen mine go up one month and down the next several points then back up for no apparent reason whatsoever -- all the same bills, all paid on time, balances going down, not up. This is one of the reasons most companies will use a tri-merge type of report when determining your actual credit score. It averages the FICO score of all three major reporting agencies, rather than relying on any single agency and for whatever reason, your score IS different from agency to agency, even though it's all based on the same credit you already have in play. Go figure.
How long do late payments normally stay on your report? I had some issues with my mortgage about 3 years back and it showed up last month when I bought a car. Was surprised it was still on there and it made my rate a little higher.
Jason5543 is offline  
Old 01-29-2016, 08:49 AM
  #18  
Admirals Club Admiral's Club Member
 
Dulcecita Lures's Avatar
 
Join Date: Nov 2009
Location: Tempe, AZ
Posts: 16,760
Default

Originally Posted by Jason5543 View Post
How long do late payments normally stay on your report? I had some issues with my mortgage about 3 years back and it showed up last month when I bought a car. Was surprised it was still on there and it made my rate a little higher.
7 years and 180 days (in general) from the time first reported as late. That's a long time and one of the reasons I said they have more impact than virtually anything else on your report.
Dulcecita Lures is offline  
Old 01-29-2016, 08:51 AM
  #19  
Senior Member
 
Join Date: Dec 2010
Location: Satellite Beach, FL
Posts: 10,582
Default

Originally Posted by Dulcecita Lures View Post

7 years and 180 days (in general) from the time first reported as late. That's a long time and one of the reasons I said they have more impact than virtually anything else on your report.
Yep FCRA date. Great advice in all your posts!
Danny33486 is offline  
Old 01-29-2016, 08:57 AM
  #20  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Nov 2012
Location: Palm Beach County
Posts: 9,142
Default

Originally Posted by Dulcecita Lures View Post
7 years and 180 days (in general) from the time first reported as late. That's a long time and one of the reasons I said they have more impact than virtually anything else on your report.
I have a 2 late payments on mine, I can just ask them to remove them? They are about 2 years old and I pay off the balance on that card each month.
WPBTH is online now  

Thread Tools
Search this Thread