Credit report question
Posted 13 March 2008 - 03:25 PM
I wish someone would teach a class on this to young kids in highschool or college. Really the best thing to do is to open a few respected credit cards (like 3 or 4) and not more than that. And you should open them as early as possible so that you can have long standing credit. Even if you don't use them every month, you should put at least one bill on it (like say a phone bill) so that the credit is being used. This is the best way to have excellent credit.
The problem is that people like you and I opened up too many zero balance accounts and even if we pay them on time it does affect our credit b/c we have too much open credit, in the sense that we can get ourselves in trouble.
I would keep them open if I were you. I would not close them b/c your credit is going to drop a little.
Posted 13 March 2008 - 03:26 PM
Posted 13 March 2008 - 03:36 PM
Posted 13 March 2008 - 03:46 PM
| Originally Posted by Janet |
I'm not an expert, but I think that paying ALL of your bills on time, every months, for years on end, will have more of an effect on your credit score than if you have 40K available credit versus $50K. Why not pare down to about half as many cards, and you'll still have plenty of long-standing relationship ones for your credit score. I know I might be going against the grain, but I just don't think it will make or break your credit worthiness in the future.
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Posted 13 March 2008 - 04:23 PM
Also, I had a Target card years ago and again, didn't use it often. Then, I went to Target one day, decided to use the card but didn't have it on me. So the service desk "looked up" the card for me to use. What I found out later, was that they couldn't find my original card number and they just opened a new (second) account.
Granted, my original Target card was opened prior to Clinton's administration pushing the availability of the internet, so a lot of business'es were really just getting their accounting systems computerized. Hopefully that kind of stuff doesn't happen much anymore. But at the time, it dinged me and to this day, my credit report shows 2 Target accounts but Target has never been able to locate my original account number in their computer systems.
Posted 13 March 2008 - 04:26 PM
| Originally Posted by TammyB |
Thanks Jess.. :-)
I think most if not all my cards have been open for awhile now. So when does too much credit effect your score? So say I have 50k in open credit but I make say 60k a year, wouldn't that be bad for your credit report?
Posted 13 March 2008 - 08:11 PM
Posted 14 March 2008 - 03:24 PM
Also, along the lines of what Maria said, do make sure you use your credit (not necessarily every card...I only use one credit card and have really great FICOs)...I had a guy who applied for a loan and he had 2 credit cards and an old car loan...he hadn't used either of the credit cards in over 6 months, so the bureaus couldn't generate a credit score for him because they didn't have enough recent payment history.....he showed me an old credit report with his score (ran a few months prior) and he had FICOs over 700.
Posted 14 March 2008 - 04:05 PM
Posted 14 March 2008 - 04:11 PM
| Originally Posted by chprfan |
I don't mean to hijack this thread...but what is a "good" credit score to have when you going looking at getting approved for a mortgage these days?
To get the best rates out there 700 or above
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