(Closed) Credit Score Confusion

posted 12 years ago in Money
Post # 17
Member
541 posts
Busy bee
  • Wedding: October 2009

My credit score is 792. Yeah, I know I’m a bad ass. This is why:

-I’m 27 and have had some sort of credit card balance since I was 18. I currently have 2 credit cards

-Never had any late payments

-Financed a car in 2004

-I do not own a home

One note: I’ve heard that if you receive lots of ‘pre-approved’ credit deals in the mail that it’s bad for your credit score. It’s viewed as ‘potential debt’ even if you don’t sign up. You can opt out of this, but I’m not sure how.

Post # 18
Member
113 posts
Blushing bee

your score depends on many things. if your debt-credit ratio is high, that can hurt your score. paying it off monthly, whether in full or not, helps you because it shows a good track record. having a card active for a long time is good for the same reason. opening and closing lots of credit cards hurt your score. credit scores are strange and each of the 3 major credit bureaus calculates it differently.

Post # 19
Member
410 posts
Helper bee
  • Wedding: June 2010

I am with poli2b.  I am lucky and have a very high score.  I am only 22, but here is how I got it:

-Before I left for college I needed a new PC and wanted to pay for it myself, I got approved for a 500 best buy card and then paed some cash, maxed out the card and then paied it off in like 3 months.

-got a "personal loan" for 3000 to buy a car from my grandpa. no late payments

-pc broke and needed a new one.  I do a lot of photo editing and gaming so I needed something that could handel it.  I had good credit by this time, so I got approved for the best buy mastercard, used half the max for a pc and am paying it off slowly but surly.

What I find really funny is that becuase im a student and dont have too much of "provable income" because I work in tipped based jobs(bartending.  My debt to income ratio was too high for me to get a car loan, but my FH who has a crap credit score was able to be a co borrower with me bc he has a decent income…but he cant get a loan b himself for anything…

 

Also, with the preapproved credt card stuff… I just looked at my credit report and there are no inquries on there that we didnt make for the car loan, and I have been getting those offers since i was 17.  If you really are concerned about them hurting your score and you dont need a new line of credit in a hurry you can alwaays put a freeze on your credit.  That basically makes it impossible for anyone to hit it or open a new line of credit without you calling and unlocking.  It takes passwords and personal info to unlock it so not just anyone could do it.. I knwo people that have done that after having identity theft issues.

Post # 20
Member
3525 posts
Sugar bee
  • Wedding: August 2010

I don’t think that you have to have a "debt" perse to get higher credit rating. It’s the fact of establishing good credit. If you don’t have credit cards you can not establish credit. Good or bad. I’m not saying to run out and apply to 50 million cards. But if you’re fairly young, have not much in your name then it makes sense that your credit is about average.

You can go to http://www.annualcreditreport.com yearly and get a full detailed credit report from all 3 agencies. They are the ONLY FTC (Federal Trade Commision) authorized source to get your free credit report. I recommend doing this yearly and looking through EVERYTHING. If they have your name wrong, listed addresses wrong. Credit cards that they think you have. This does NOT affect your credit score.

If you’re truly worried about it I would look more into it -like you already are- from reliable sources. Don’t listen just to us, after all we’re just the average Jane as well. 🙂 Keeping a good credit rating is easy, getting rid of a bad one is MUCH harder. An average bad report on your credit report can stick around for 5-7 years.

Here are some more useful tips: http://www.ftc.gov/freereports

 

Post # 22
Member
156 posts
Blushing bee
  • Wedding: September 2009

Just curious, does anyone know what is considered to be a "good" credit score?

Post # 24
Member
536 posts
Busy bee
  • Wedding: September 2021 - The Desmond Hotel in Malvern, PA

Another question since now I’m thinking about this subject… how much do one or two late payments affect your credit score?  Do utility payments count towards your credit score?

In the month or two before our wedding I had so much going on (wedding stuff, my grandmother passed away, job stress) that I was a few days late paying one of my credit card bills — total accident, I thought I had set up my billpayer to do it but had never pressed "submit" because I was such a scatterbrain. I promptly paid and called my credit card company to see if they could waive any sort of late fee because it was the first time I had been late, but they wouldn’t budge.  How poorly does this reflect on my credit?

Post # 25
Member
416 posts
Helper bee
  • Wedding: June 2008 - Imperia Hotel (modern chic hotel)

Credit Score in Canada isnt the same…

so I cant really give my take on it.
But I have several credit cards, and even if I made a couple of late payment in my whole life, that hasnt affected my credit score.
If you have more than one credit card and you dont use it… call to cancel it. (That looks really good in your file – the fact that YOU requested to cancel the card)

Well, it makes a difference here in Canada

Post # 26
Member
96 posts
Worker bee

Cupcake, I think if it was only a few days it won’t affect it much, if at all.  If it was over 30 days late it will show up as so on the report.  There are so many other factors that go into computing the score though.  If paying a few days late once is your only offense and you’re clear in other areas, your score shouldn’t suffer.

Post # 27
Member
695 posts
Busy bee
  • Wedding: May 2010

I use Credit Karma to check my score each month, it’s a soft score, so it does not affect your credit report (but it does show up that you checked, just doesn’t lower it). Anyway, a couple months ago, I goofed and paid a store credit card 2 days late. My score went down 10 points! However, the next month it was back up, but unfortunately, it does affect it sometimes. 🙁

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