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So... I want to increase my credit rating but how?

M

Mallow

Diamond Member
I have bank accounts with monies I have earned. I also have a MBNA Mastercard.

So... I think I should be gaining credit by using my credit card right? Wrong... my Mom tells me that you only gain credit by carrying a balance. If you pay the card off each month, as I do, your credit rating does not increase. What gives? I would think someone who has the money to pay their credit card each month would be very creditable? Just my opinion. Should I carry a $5 balance to get credit?

What are some good ways to increase credit?
 
Why would paying of your balance not create a credit rating? I believe they look at everything including if you pay it off.
 
Some believe that credit cards reward those that reward them. By this, I mean carrying a balance, but not necessarily a "bad" balance. Pay 10 times the minimum amount due for a couple months and see what happens. Doing that shows you are reponsible, and the credit card company makes a few bucks. In return, they bump your credit a bit.

This is just an example that I've heard several people suggest. I take no responsibility in the actual outcome or results 🙂
 
My credit rating has increased from 712 to 760 in the past 2 months... just because im paying off a 2k balance... 😀 i'm down to $200 by the end of the month...🙂
 
Originally posted by: boyRacer
My credit rating has increased from 712 to 760 in the past 2 months... just because im paying off a 2k balance... 😀 i'm down to $200 by the end of the month...🙂
Click to expand...

wait, how do u chk that?
 
Originally posted by: DanTMWTMP
Originally posted by: boyRacer
My credit rating has increased from 712 to 760 in the past 2 months... just because im paying off a 2k balance... 😀 i'm down to $200 by the end of the month...🙂
Click to expand...

wait, how do u chk that?
Click to expand...

chase gave me this trial offer to have my credit monitored for 3 months and $8/month after that... that score is only from Equifax so i don't know how my score is from the other companies... i'm gonna cancel it at the end of this month... right when i pay off my remaining debt. 🙂
 
Originally posted by: boyRacer
My credit rating has increased from 712 to 760 in the past 2 months... just because im paying off a 2k balance... 😀 i'm down to $200 by the end of the month...🙂
Click to expand...

hrm... so yours is increasing from paying off credit card debt? How about paying bills does that count toward credit history?
 
Originally posted by: Mallow
Originally posted by: boyRacer
My credit rating has increased from 712 to 760 in the past 2 months... just because im paying off a 2k balance... 😀 i'm down to $200 by the end of the month...🙂
Click to expand...

hrm... so yours is increasing from paying off credit card debt? How about paying bills does that count toward credit history?
Click to expand...

yes
 
Does anyone know of a good site and how much it costs to get one credit report with all the companies on it?
 
Your mom is wrong.
Even if you pay a card off in full each month, your bureau will still reflect an active account, the high balance for that month, and the minimum payment for that month, and your credit rating will increase accordingly.
 
Go to equifax.com and you can pick from their products on how to check your credit. They have various different offers there. I believe that one is to check with all 3 credit companies. All 3 are supposed to have the same information. They normally do. Not always, so if you suspect a problem check with all three but checking equifax (or either of the other two) alone is probably fine for you.

Your mother is wrong about credit only raising from having a balance. Here is what a general credit report will show related to your MBNA card (BTW a checking account won't help your credit because it's inconsequential in most/all cases).

Card date issued: If November 2001 it will show that you've had the card for 16 months.
Credit Limit: If your limit is $2000...you get the picture
Maximum balance reported: If the most you ever had at the end of a cycle with MBNA was $400 it will show this. If, on the other hand you go up to $1500 each month but you pay it off before MBNA issues your next statement the credit report should show that the maximum balance ever was $0. Now I can't say whether you'll get a higher score if the max ever was above $0 or if it shows that you're good, but I doubt it matters much. I would think that if your maximum balance ever is above your limit that's bad.

But basically as long as you're paying off on time and there are no delinquencies or any missed/late payments associated with your credit card it's best to owe nothing on a credit card to maximize score. But even though you pay it off each month (as is a good idea) it definitely will improve your credit.

For all you know you have a good credit rating now. Go get it checked!

edit: OH yeah
and the minimum payment for that month
Click to expand...
It does show that too 🙂 And of course the current balance on the card.
 
i just got a 3 credit report + 3 credit scores from the main bureaus thru at experian.com. it's actually thru consumerinfo.com. $39.95 . not a bad price considering it has all 3 credit scores from transunion, experian, and equifax.
 
Originally posted by: dakata24
i just got a 3 credit report + 3 credit scores from the main bureaus thru at experian.com. it's actually thru consumerinfo.com. $39.95 . not a bad price considering it has all 3 credit scores from transunion, experian, and equifax.
Click to expand...
How close were the numbers on all of those...? Also can you tell me (because I really need to know this) when your credit company/lender/whoever reports each month how much you owe and what not are you able to tell if they reported that information to all three bureaus on the _same_ date? Do your reports say that?

 
Anyone else read the title really quickly and think it said " So... I want to increase my member rating but how?"

I was expecting a thread of people posting "I'll help by giving you a 1".

😱
 
Originally posted by: Skoorb
Originally posted by: dakata24
i just got a 3 credit report + 3 credit scores from the main bureaus thru at experian.com. it's actually thru consumerinfo.com. $39.95 . not a bad price considering it has all 3 credit scores from transunion, experian, and equifax.
Click to expand...
How close were the numbers on all of those...? Also can you tell me (because I really need to know this) when your credit company/lender/whoever reports each month how much you owe and what not are you able to tell if they reported that information to all three bureaus on the _same_ date? Do your reports say that?
Click to expand...

i'll let you know when i get it in the mail. 🙂 last time i did the online version from equifax and experian. it was a PITA to print out. and since im not in a huge rush to find out (just my annual credit check), decided to get it sent snail mail.

though $10 cheaper, the equifax 3-in-1 credit report with score power, from what i understand on their website only includes the equifax score power fico score, and not the other 2 from experian and transunion. at least that's what i think it says.
 
Your mom is wrong. Paying your credit card bill does increase your credit. Buy everything with your credit card, and then pay it back at the end of each month or after each purchase.
 
Originally posted by: Skoorb
Go to equifax.com and you can pick from their products on how to check your credit. They have various different offers there. I believe that one is to check with all 3 credit companies. All 3 are supposed to have the same information. They normally do. Not always, so if you suspect a problem check with all three but checking equifax (or either of the other two) alone is probably fine for you.

Your mother is wrong about credit only raising from having a balance. Here is what a general credit report will show related to your MBNA card (BTW a checking account won't help your credit because it's inconsequential in most/all cases).

Card date issued: If November 2001 it will show that you've had the card for 16 months.
Credit Limit: If your limit is $2000...you get the picture
Maximum balance reported: If the most you ever had at the end of a cycle with MBNA was $400 it will show this. If, on the other hand you go up to $1500 each month but you pay it off before MBNA issues your next statement the credit report should show that the maximum balance ever was $0. Now I can't say whether you'll get a higher score if the max ever was above $0 or if it shows that you're good, but I doubt it matters much. I would think that if your maximum balance ever is above your limit that's bad.

But basically as long as you're paying off on time and there are no delinquencies or any missed/late payments associated with your credit card it's best to owe nothing on a credit card to maximize score. But even though you pay it off each month (as is a good idea) it definitely will improve your credit.

For all you know you have a good credit rating now. Go get it checked!

edit: OH yeah
and the minimum payment for that month
Click to expand...
It does show that too 🙂 And of course the current balance on the card.
Click to expand...

Thanks to Skoorb and every one else for the information. So just a single company check (equifax) will cost around $30?
 
Originally posted by: Mallow
Originally posted by: Skoorb
Go to equifax.com and you can pick from their products on how to check your credit. They have various different offers there. I believe that one is to check with all 3 credit companies. All 3 are supposed to have the same information. They normally do. Not always, so if you suspect a problem check with all three but checking equifax (or either of the other two) alone is probably fine for you.

Your mother is wrong about credit only raising from having a balance. Here is what a general credit report will show related to your MBNA card (BTW a checking account won't help your credit because it's inconsequential in most/all cases).

Card date issued: If November 2001 it will show that you've had the card for 16 months.
Credit Limit: If your limit is $2000...you get the picture
Maximum balance reported: If the most you ever had at the end of a cycle with MBNA was $400 it will show this. If, on the other hand you go up to $1500 each month but you pay it off before MBNA issues your next statement the credit report should show that the maximum balance ever was $0. Now I can't say whether you'll get a higher score if the max ever was above $0 or if it shows that you're good, but I doubt it matters much. I would think that if your maximum balance ever is above your limit that's bad.

But basically as long as you're paying off on time and there are no delinquencies or any missed/late payments associated with your credit card it's best to owe nothing on a credit card to maximize score. But even though you pay it off each month (as is a good idea) it definitely will improve your credit.

For all you know you have a good credit rating now. Go get it checked!

edit: OH yeah
and the minimum payment for that month
Click to expand...
It does show that too 🙂 And of course the current balance on the card.
Click to expand...

Thanks to Skoorb and every one else for the information. So just a single company check (equifax) will cost around $30?
Click to expand...

no, a single credit report + credit score at equifax is $12.95 ($14.95 for experian and $14.90 for transunion). the $39.95 is for all 3 credit reports + 3 credit scores. no discount/advantage for getting all 3, just more convienent since i can get it all in 1 package.
 
Do you even know for a fact if you have excellent, good, fair or bad credit? Probably not.

I would follow vi_edit's advice and order a copy of your credit bureau with credit score from EquiFax.com they have score power for $12.95 which:

1) Shows you your credit score indepth.
2) Shows your current credit score.
3) Has a nice "what if" scenario, what if you paid down your balances by 20% how much would your credit score increase? A very nice handy tool.

You get access to their website to view your credit report and credit score for 30 days.

So before assuming you have crappy credit, first know the facts THEN we can all put on our "credit expert" hats and give you concrete advice.
 
Originally posted by: RossMAN
Do you even know for a fact if you have excellent, good, fair or bad credit? Probably not.

I would follow vi_edit's advice and order a copy of your credit bureau with credit score from EquiFax.com they have score power for $12.95 which:

1) Shows you your credit score indepth.
2) Shows your current credit score.
3) Has a nice "what if" scenario, what if you paid down your balances by 20% how much would your credit score increase? A very nice handy tool.

You get access to their website to view your credit report and credit score for 30 days.

So before assuming you have crappy credit, first know the facts THEN we can all put on our "credit expert" hats and give you concrete advice.
Click to expand...

RossMAN - If you will refer to the original post I made this thread has nothing to do with me thinking I have "bad" credit but only curious if paying off credit cards each month adds to my good credit.
 
Originally posted by: Mallow
Originally posted by: RossMAN
Do you even know for a fact if you have excellent, good, fair or bad credit? Probably not.

I would follow vi_edit's advice and order a copy of your credit bureau with credit score from EquiFax.com they have score power for $12.95 which:

1) Shows you your credit score indepth.
2) Shows your current credit score.
3) Has a nice "what if" scenario, what if you paid down your balances by 20% how much would your credit score increase? A very nice handy tool.

You get access to their website to view your credit report and credit score for 30 days.

So before assuming you have crappy credit, first know the facts THEN we can all put on our "credit expert" hats and give you concrete advice.
Click to expand...

RossMAN - If you will refer to the original post I made this thread has nothing to do with me thinking I have "bad" credit but only curious if paying off credit cards each month adds to my good credit.
Click to expand...

It's still a good idea to see where your credit is. Maybe it doesn't really need improvement?

Just use your credit, pay it off every month in full, DO NOT apply for new credit cards or increases for at least 12 months, that's just about the best you can do.
 
Originally posted by: RossMAN
Just use your credit, pay it off every month in full, DO NOT apply for new credit cards or increases for at least 12 months, that's just about the best you can do.
Click to expand...

I have heard not to have any more credit cards than you use. What is the exact logic behind that. It's not that I don't get why it would be bad to have too many credit cards, but why does your credit take a hit? As long as you pay it off every month if you have 10 credit cards shouldn't you have good credit? Also, why would credit card increases affect it? thx 🙂
 
Make sure to have less than 5 credit/bank cards open at any given time, and pay them off in full every month. After a few years of this, you should have a solid (750+) FICO score.
 
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