Credit Card Question

[imported_nerve]

Does charging and paying off your credit cards in full increase your FICO?
Or does it just stabilize it until the CC co will increase your limit?

Im trying to determine the best way to up the scores.
I want to buy a house in 2 years, credit is horrible right now.

 

[dionx]

paying in full or carrying a balance does not make a difference IF

1) you pay at least the minimum on time
2) you do not have a high % credit used

for example, $1000 charged on a $1500 line of credit is worse than $1000 charged on a $10,000 line of credit

 

[Squisher]

I would think so. I pay off my cc every month and my scores are right around 800 (some above, some below) even though they said my balances were too high and I had too many accounts.

 

[TTM77]

I pay more then once a month sometime. Like when I pay my school tuiton then that month I would spend more then my balance, so just log online and pay it. So my balance go back down before the end of the month.

 

[imported_nerve]

What is a good amount of credit cards? And since I have more than i think I should .. If i closed them, they would stick around for 7 years anyway?

 

[austin316]

The rule of thumb is 4 or less.

And yes, JCPenney, Best Buy, Express cards all count as a credit card.

 

[duragezic]

Do debit cards improve your credit score? Not that I need to worry about my credit score a whole lot at this point since I'll be in school for the next few years before ever considering any car or house purchase. But I just got a checking account with this debit card this year, and that's about all there is to speak of regarding credit for me, so I would think my score would be low or nonexistent.

 

[Rhin0]

Originally posted by: duragezic
Do debit cards improve your credit score? Not that I need to worry about my credit score a whole lot at this point since I'll be in school for the next few years before ever considering any car or house purchase. But I just got a checking account with this debit card this year, and that's about all there is to speak of regarding credit for me, so I would think my score would be low or nonexistent.

no

 

[Rhin0]

With my college loan (don't pay on it yet) and my Shell Gas card for 3 years my score was in the 740's which is plenty good; that was with Equifax. Also I had a Jetski loan I paid off which helped and I went ahead and got another loan for a computer which i'm paying off. Now I have another credit card through Citibank. That is how I am building my credit. You need to learn about credit to debt rations and how they affect credit scores. The big thing for most people is length of time accounts have been open seems like.

Don't forget, there are 3 main bureas. Equi, Tranunions, and Experian. Transunion is rough, my score was 100 points lower with them.

 

[StageLeft]

Have a couple of cards, never be late, and keep them paid off (but continue to use each month, as many places don't report unless there is at least a small balance). If your credit isn't screwed from previous mistakes you can EASILY hit 700+ score in a couple of years. I did it from scratch in six months, with only one card, as did mrsskoorb.

 

[imported_nerve]

Well, when I turned 18 I screwed myself and was immature about things. I didnt know anything about creditcard and credit in general. Im 22 now and I am now paying for my mistakes from before. I just got a credit report and signed up for score watch on Equifax.com. My score is a horrible 480- I have every negative factor you can think of besides bankruptcy. Huge mistake. If I had the opportunity to change one thing it would definatly be paying the credit cards.

I am currently in a credit counsiling program through American Consumer Credit Counciling. consumercredit.com.
One of the benefits of going with them is that they will have my accounts re-aged.. What is this?

Thx

 

[Yossarian]

Originally posted by: duragezic
Do debit cards improve your credit score? Not that I need to worry about my credit score a whole lot at this point since I'll be in school for the next few years before ever considering any car or house purchase. But I just got a checking account with this debit card this year, and that's about all there is to speak of regarding credit for me, so I would think my score would be low or nonexistent.

you should get a credit card now so that by the time you need a car or home loan you will have some credit history. debit cards and checking accounts don't count.

 

[imported_nerve]

Anyone have some good educational links about credit?

 

[KMurphy]

Originally posted by: nerve
Well, when I turned 18 I screwed myself and was immature about things. I didnt know anything about creditcard and credit in general. Im 22 now and I am now paying for my mistakes from before. I just got a credit report and signed up for score watch on Equifax.com. My score is a horrible 480- I have every negative factor you can think of besides bankruptcy. Huge mistake. If I had the opportunity to change one thing it would definatly be paying the credit cards.

I am currently in a credit counsiling program through American Consumer Credit Counciling. consumercredit.com.
One of the benefits of going with them is that they will have my accounts re-aged.. What is this?

Thx

Before you do anything else regarding your credit; go to this site and spend a few days reading:
http://www.creditboards.com/forums/

Start in the newbies section and then the main credit forum.

 

[eLiTeGoodGuy]

Originally posted by: nerve
Well, when I turned 18 I screwed myself and was immature about things. I didnt know anything about creditcard and credit in general. Im 22 now and I am now paying for my mistakes from before. I just got a credit report and signed up for score watch on Equifax.com. My score is a horrible 480- I have every negative factor you can think of besides bankruptcy. Huge mistake. If I had the opportunity to change one thing it would definatly be paying the credit cards.

I am currently in a credit counsiling program through American Consumer Credit Counciling. consumercredit.com.
One of the benefits of going with them is that they will have my accounts re-aged.. What is this?

Thx

I am in the same situation as you. I also would like to know what it means to have your accounts re-aged?

 

[Yossarian]

Originally posted by: eLiTeGoodGuy

Originally posted by: nerve
Well, when I turned 18 I screwed myself and was immature about things. I didnt know anything about creditcard and credit in general. Im 22 now and I am now paying for my mistakes from before. I just got a credit report and signed up for score watch on Equifax.com. My score is a horrible 480- I have every negative factor you can think of besides bankruptcy. Huge mistake. If I had the opportunity to change one thing it would definatly be paying the credit cards.

I am currently in a credit counsiling program through American Consumer Credit Counciling. consumercredit.com.
One of the benefits of going with them is that they will have my accounts re-aged.. What is this?

Thx

I am in the same situation as you. I also would like to know what it means to have your accounts re-aged?

a link for you

 

[dionx]

Originally posted by: nerve
Anyone have some good educational links about credit?

- pay at least the minimum on time
- don't carry a balance
- don't use more than 50% of your credit limit

follow those 3 rules and you'll be fine

 

[CTrain]

Originally posted by: nerve
Well, when I turned 18 I screwed myself and was immature about things. I didnt know anything about creditcard and credit in general. Im 22 now and I am now paying for my mistakes from before. I just got a credit report and signed up for score watch on Equifax.com. My score is a horrible 480- I have every negative factor you can think of besides bankruptcy. Huge mistake. If I had the opportunity to change one thing it would definatly be paying the credit cards.

I am currently in a credit counsiling program through American Consumer Credit Counciling. consumercredit.com.
One of the benefits of going with them is that they will have my accounts re-aged.. What is this?

Thx

Damm, I haven't seen one that low in a while.

 

[RossMAN]

Good luck your credit score isn't going to go from 480 to 700 in this short amount of time.

 

[helo7050]

You guys that have bad credit might want to think of using http://www.lexingtonlaw.com/ I used them and they got rid of about 2-3 lates on my credit and a judgement ...my score was in the 500s and jumped to a 707 but now some freeken Collections agency i never heard of is putting a collection on my credit which dropped to 590 :disgust: . So i have to freken do the disputes. .

I use www.creditexpert.com for reveiwing my reports about once a month to keep things clean as i'm going to be obtaining a car loan within the year.

edit: they charge like $35/month which is WELL worth it if you plan on buying a home becuase if you can save on rate it will outpay itself. Also it takes about 3-6months to see items removed from credit . Also that collection was for $37. . GRRRR

 

[imported_nerve]

Originally posted by: KMurphy

Originally posted by: nerve
Well, when I turned 18 I screwed myself and was immature about things. I didnt know anything about creditcard and credit in general. Im 22 now and I am now paying for my mistakes from before. I just got a credit report and signed up for score watch on Equifax.com. My score is a horrible 480- I have every negative factor you can think of besides bankruptcy. Huge mistake. If I had the opportunity to change one thing it would definatly be paying the credit cards.

I am currently in a credit counsiling program through American Consumer Credit Counciling. consumercredit.com.
One of the benefits of going with them is that they will have my accounts re-aged.. What is this?

Thx

Before you do anything else regarding your credit; go to this site and spend a few days reading:
http://www.creditboards.com/forums/

Start in the newbies section and then the main credit forum.

Awesome site, best info!!! I spent 3 hrs lurking greaT!!!

 

[StageLeft]

That score is ass. It's worse than the score I had with a new social security number and no marks in my account at all (positive or negative). It will take a long time to work yourself up from that chasm.

they charge like $35/month

That's exhorbitant, to be kind. There are plenty of places you can get your credit with on a frequent basis for much less than that. I think transunion, for maybe $10-15/quarter, gives you a new report every three months, and an email if there is a new account. If you're compulsive and need it checked every day you can still do much better than $35/month.

 

[Ryan]

Hell yeah it helps I did it for a year, and my credit score jumped to 697 on that alone when I was 18

 

[gscone]

Originally posted by: rbloedow
Hell yeah it helps I did it for a year, and my credit score jumped to 697 on that alone when I was 18

What was yoru score, before and after?

 

[Ryan]

Originally posted by: gscone

Originally posted by: rbloedow
Hell yeah it helps I did it for a year, and my credit score jumped to 697 on that alone when I was 18

What was yoru score, before and after?

Prior to that, I had NO CREDIT whatsoever, so I don't know my score.