7 steps to a 720 credit score

[imported_Tomato]

Saw this on an online journal:

"7 steps to a 720 credit score:

1. Carry 3 to 5 credit cards
2. Carry <30% balance on them
3. Always apply under the same name (ie if you put a middle initial on one, do it on the others too)
4. DO NOT pay collections over 24 month... otherwise they'll go from past to current, and will take longer to dissappear from your credit profile
5. Reactivate your oldest cc account, carry a balance on it.
6. Delete duplications on credit report (sometimes, debt collection gets passed around and they'll appear multiple times on your report due to change of hands). This is done either by writing to the collection agencies or the credit bureaus
7. Helps to be in school or attending classes.

Looking at my personal financial situation, that means:

1. Control my balance on AmEx to MUCH less, and request for a credit increase asap (after 6 months of having the card).
2. Start using my Discover to alleviate the pressure on my AmEx... and since my Discover has much higher limit, I can carry more balance on it... (not that I plan to be in debt two months from now)
3. Carry small balance on my credit card from month to month. Give the banks some money to keep them happy
4. Get a copy of my credit report and find out if there's anything else/silly I might've missed. (Each time there's a inquiry of your credit, your score lowers a little... and those stay on your credit report for 2 years)
5. Get my name on my parent's saving's account... doesn't directly affect my credit score, but will make it MUCH easier to get loans of ANY sort (ie car specifically for now)"


Interesting info, has anyone found the above to be true? If so, I should start carrying balances on my credit cards (I usually pay off bills right away) and ask for some credit increases.

 

[Yossarian]

Originally posted by: Tomato
3. Carry small balance on my credit card from month to month. Give the banks some money to keep them happy

doesn't help your credit, and costs you money.

 

[Maximus96]

i got a score of 789 last time i checked which was about 1/2 a year ago. i only have amex and the AAA gas card.

 

[RaDragon]

Also, keep track of your credit cards' "Special Transfer APRs" -- and transfer one of your higher-balanced CC's to that. You're shifting the "weight" of one credit card's high APR to another. It'll be better for you in the long run, because you won't be paying as much finance charges. Again, this doesn't work for everyone.

 

[LOLyourFace]

I did Nothing but just paying CC bills on time for 2 years since I turned 18 and I got a 780 score (40 pts from perfect)

landed me a highest APR possible when I bought my 2003 mazda 6.

 

[Maximus96]

Originally posted by: LOLyourFace
I did Nothing but just paying CC bills on time for 2 years since I turned 18 and I got a 780 score (40 pts from perfect)

landed me a highest APR possible when I bought my 2003 mazda 6.

highest APR, is that good? i thought lower would be better

 

[ATLien247]

Originally posted by: LOLyourFace
I did Nothing but just paying CC bills on time for 2 years since I turned 18 and I got a 780 score (40 pts from perfect)

landed me a highest APR possible when I bought my 2003 mazda 6.

You mean lowest APR, right?

 

[FrustratedUser]

Originally posted by: LOLyourFace
I did Nothing but just paying CC bills on time for 2 years since I turned 18 and I got a 780 score (40 pts from perfect)

landed me a highest APR possible when I bought my 2003 mazda 6.

Highest?

 

[Viper GTS]

The reality is that 720 isn't all that good.

I'm sitting a little over 700 right now (707), &amp; according to Yahoo credit manager 707 puts me higher than 43% of the US.

That's not even the upper half.

15% of the US population is below 600

35% of the US population is below 670

50% of the US population is below 710

70% of the US population is below 755

90% of the US population is below 790

From here.

My credit has some major room for improvement (namely reduce my debt), but I'm still over 700.

Viper GTS

 

[acemcmac]

when you guys say you pay them on time, do you mean just "on time," or "on time in full?"

I have a pair of CC's and a pair of credit cards. Never ever ever ever ever ever not paid a card on time or in full and I've probably gone through at least 50k so far that way

wonder what my score is lol. the cc companies have yet to make a penny off of me (excluding merchant fees of course). In fact, I've got the citibank platinum dividend... so lol.... it pays me! imagine that? :laugh:

 

[acemcmac]

Originally posted by: Viper GTS
according to Yahoo credit manager 707 puts me higher than 43% of the US.

that service any good? easy to cancel?

 

[Viper GTS]

Originally posted by: acemcmac

Originally posted by: Viper GTS
according to Yahoo credit manager 707 puts me higher than 43% of the US.

that service any good? easy to cancel?

Haven't had any need to cancel it.

I like it, only problem is I kinda abused the refresh button for a while so now I only have one refresh left until February. Their system seemed to be screwed up for a while, every time I refreshed my number of available refreshes left went UP. I guess they fixed the problem &amp; caught up with my usage.



Viper GTS

 

[iamme]

Originally posted by: Tomato
4. DO NOT pay collections over 24 month... otherwise they'll go from past to current, and will take longer to dissappear from your credit profile

what does this mean? just don't pay off bills that are in collection?

 

[Mill]

Originally posted by: Tomato
Saw this on an online journal:

"7 steps to a 720 credit score:

1. Carry 3 to 5 credit cards
2. Carry <30% balance on them
3. Always apply under the same name (ie if you put a middle initial on one, do it on the others too)
4. DO NOT pay collections over 24 month... otherwise they'll go from past to current, and will take longer to dissappear from your credit profile
5. Reactivate your oldest cc account, carry a balance on it.
6. Delete duplications on credit report (sometimes, debt collection gets passed around and they'll appear multiple times on your report due to change of hands). This is done either by writing to the collection agencies or the credit bureaus
7. Helps to be in school or attending classes.

Looking at my personal financial situation, that means:

1. Control my balance on AmEx to MUCH less, and request for a credit increase asap (after 6 months of having the card).
2. Start using my Discover to alleviate the pressure on my AmEx... and since my Discover has much higher limit, I can carry more balance on it... (not that I plan to be in debt two months from now)
3. Carry small balance on my credit card from month to month. Give the banks some money to keep them happy
4. Get a copy of my credit report and find out if there's anything else/silly I might've missed. (Each time there's a inquiry of your credit, your score lowers a little... and those stay on your credit report for 2 years)
5. Get my name on my parent's saving's account... doesn't directly affect my credit score, but will make it MUCH easier to get loans of ANY sort (ie car specifically for now)"


Interesting info, has anyone found the above to be true? If so, I should start carrying balances on my credit cards (I usually pay off bills right away) and ask for some credit increases.

1. I agree with that.
2. Less than 10% would be much better.4. Right -- don't pay collections that they won't delete after 24 months. Depends on your morals, but if it is past a certain time... many advise to ONLY pay if they will delete when you pay. Have to get that in
3. Well this is a given, but is really to protect against a split file.
writing as well.
5. Yes, you want it open, but no reason to carry a balance. Carrying a balance isn't beneficial to your FICO.
6. Depends. Duplicate Charge-Offs or Collections, but not Duplicates that are helping you.
7. Doesn't affect your credit in any way or fashion.

Having your name on your Parent's saving account won't do anything for your credit. Being an AU on one of their cards that reports AUs would -- but depends on the history of that account.

I would not rob Peter to pay Paul(i.e. charge on your Discover when the Amex is near the limit). Use the one with the lowest interest rate, because FICO looks at your percentage of available credit, and not necessarily one card.

Yes, sign up for a service like Privacyguard to where you can pull your report from all three Bureaus everyday. Consumer pulls don't not harm your score.

Dezign, I highly suggest you head over to Credit Boards, because their advice will be 10x better than the advice you got in those 7 tips.

 

[Demon-Xanth]

Heh, I just turned 23 when I got my Dakota, 0% intrest. I keep my nose clean, and have some well placed and well covered debt. Can't beat 0% loans. If you do, let me know how.

 

[Digobick]

Originally posted by: acemcmac
when you guys say you pay them on time, do you mean just "on time," or "on time in full?"

On time only. Paying in full doesn't help you or hurt you...as long as you pay at least the minimum balance on time they don't care.

 

[acemcmac]

split file? I thought it would be done by CC number... sh!t. one my cards has the initial and the other doesent.... worth getting changed?

 

[acemcmac]

Originally posted by: Digobick

Originally posted by: acemcmac
when you guys say you pay them on time, do you mean just "on time," or "on time in full?"

On time only. Paying in full doesn't help you or hurt you...as long as you pay at least the minimum balance on time they don't care.

yeah, I just don't see the need to spend money I don't have wth would I want to pay interest when I don't have to?

 

[Mill]

Originally posted by: Digobick

Originally posted by: acemcmac
when you guys say you pay them on time, do you mean just "on time," or "on time in full?"

On time only. Paying in full doesn't help you or hurt you...as long as you pay at least the minimum balance on time they don't care.

Utilization.

 

[Mill]

Originally posted by: acemcmac
split file? I thought it would be done by CC number... sh!t. one my cards has the initial and the other doesent.... worth getting changed?

It actually goes by Address, SSN, name, etc. Split files are very rare. I wouldn't bother changing anything.

 

[cchen]

it doesn't matter how many credit cards you have - what matters is your total credit utilization and your current total credit line. having too much credit, however, may hurt in mortage and loan applications

 

[Smolek]

Originally posted by: Viper GTS
The reality is that 720 isn't all that good.

That's wrong, with a score over 720 and little to no debt, you WILL qualify for anything and everything out there. That's the "magic" number for credit review and will get your foot in the door.

 

[dirtboy]

Too bad the carrying a balance bit is the biggest lie regarding credit ratings. I had a average score of 780 one year after a divorce. I only ever carried a balance, which was my ex-wife's, during the 2 years we were married. I don't carry a balance now and my scores are quite high. In fact, the lower the balance you carry the higher your score will be.

 

[Smolek]

Originally posted by: Tomato
Saw this on an online journal:

"7 steps to a 720 credit score:

1. Carry 3 to 5 credit cards

At least 3 to 5 is needed, the more the better, assuming you can handle them.

2. Carry <30% balance on them

Correct, higher balance = high risk, for best reporting, keep until 10% especially if your going to seek big financing.

3. Always apply under the same name (ie if you put a middle initial on one, do it on the others too)

Not really as important anymore as they can locate you by social or address

4. DO NOT pay collections over 24 month... otherwise they'll go from past to current, and will take longer to dissappear from your credit profile

Correct, also, DONT EVEN THINK ABOUT CALLING THEM, let the sleeping dragon stay asleep[/b]

5. Reactivate your oldest cc account, carry a balance on it.

Yes/No. The older the account is the better it looks, but a balance is not important.

6. Delete duplications on credit report (sometimes, debt collection gets passed around and they'll appear multiple times on your report due to change of hands). This is done either by writing to the collection agencies or the credit bureaus

Easier said then done, it is legal to "transfer" or "sell" your account to multiple agencies which could result in multiple listings

7. Helps to be in school or attending classes.

Complete bs, this has no effect. Same goes for the work history, whether your a lawyer or a janitor, your credit is calculated the same way

====================================
Looking at my personal financial situation, that means:

1. Control my balance on AmEx to MUCH less, and request for a credit increase asap (after 6 months of having the card).

Right, and take everything you can get. Always ask for the maximum

2. Start using my Discover to alleviate the pressure on my AmEx... and since my Discover has much higher limit, I can carry more balance on it... (not that I plan to be in debt two months from now)

It doesnt matter what your card limit is, as they combine them all and figure your debt:credit limit to figure your credit usuage

3. Carry small balance on my credit card from month to month. Give the banks some money to keep them happy

Better yet, find out when you credit card company reports to the bureaus and plan it that way. For example, mine does not report until the 7th or so of the month, yet my bill is not due until 14/16th so I can carry a small balance up to the reporting date and the pay off my bill on the 7th, resulting in a small balance reported and no interest fee's

4. Get a copy of my credit report and find out if there's anything else/silly I might've missed. (Each time there's a inquiry of your credit, your score lowers a little... and those stay on your credit report for 2 years)

Myfico.com is the best, use privacyguard for credit monitoring

5. Get my name on my parent's saving's account... doesn't directly affect my credit score, but will make it MUCH easier to get loans of ANY sort (ie car specifically for now)"

Interesting info, has anyone found the above to be true? If so, I should start carrying balances on my credit cards (I usually pay off bills right away) and ask for some credit increases.

 

[Smolek]

Originally posted by: dirtboy
Too bad the carrying a balance bit is the biggest lie regarding credit ratings. I had a average score of 780 one year after a divorce. I only ever carried a balance, which was my ex-wife's, during the 2 years we were married. I don't carry a balance now and my scores are quite high. In fact, the lower the balance you carry the higher your score will be.

This is true. One of the biggest misconceptions are that a balance is required to keep a good score.