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| *Loan,banking and credit>>>credit report |
Credit report information? |
Okay, I checked my credit report today after about 6 months of hearing the same deal before - I only have a couple of open accounts but I've never been late or gone over my limits on any. My credit score is close to 700 which from what I read is good, but my credit grade is bad, and they always tell me its because none of my accounts have enough history. I only moved away from home a couple years ago - I can't magically age myself!! I was going to apply for a couple nonsense cards just to create more history but then they tell me its bad to have inquiries so I'm just lost. How do I improve this? Sorry but credit is about a whole lot more then score. Lets start at the beginning. Your score is made up of the following; 1. Payment history 35% 2. Time in bureau 15% 3. Types of credit 10% 4. New credit 10% 5. Debt to credit ratio 30% As you can see 1,2&5 are the most important as far as score goes. At your age you can not have much history or have been in the bureau very long so the only one you can do anything about is debt to credit ratio. So keep your credit card balances belwo 30% of your limit every month and pay before the due date. For the best score and profile you will need 3 credit card accounts (revolving) and 2 cars, boats, homes, furniture or personal accounts (installment) all with good long payment history's. This type of profile will get you just about any loan you may need in the future at the best rates. I look at credit every day and see people every month who can not buy a car because their credit score is based on 1 credit card with a $500.00 limit paid 15-times and a couple of student loans. While this profile produces a great score it does not show the ability or the willingness to actually pay anybody. You are doing very good, great credit takes years to establsih and only a couple of months to trash. Be patient and keep doing things right and soon you will have the great credit you deserve. Source(s): Finance Manager for over 7-years. Don't open any more accounts this could lower you credit score. I hate to tell you this but "close to 700" is not that high a score. The best thing to do is make sure the accounts you have are up to date, paid on time and don't go over your credit limit. Raising your credit score just takes time. It's not really good to have multiple cards open. Just have one credit card and pay it off monthly. Outstanding balances that are being paid off on credit cards reflect the score poorly. Also when you have a mortgage payment you are making on time this can help. Especially if you have some equity in the house. Other than that it always just seems to be some random fluctuating number so I understand the confusion. By the way, hope you had fun here in L.A. when you visited or when you visit. (Saw you L.A. hotel question from before.) Continue doing what your doing paying on time and eventually the credit score will go up. If you don't need to purchase anything on credit don't. What they mean when they say your accounts do not have enough history, is that they just have not been open long enough. Opening and closing lots of accounts does not look good on a credit report. I think what you need to do is keep using what you have. Charge stuff and pay it off. Each month you do that is another month on your credit report. It just takes time to build that history. It might also help to have a loan to pay back, like a car loan or a student loan. As long as you make each monthly payment that will help your score and history as well. The easiest way to improve with what you have is to have a family member add you to accounts they have as an authorized card holder. For many creditors, this will create an entry on your report and you will get the entire history (make sure it's clean) they have on your credit report. They don't even need to physically give you a card. Another way to improve credit is to have installment accounts in addition to revolving. these are usually loans like a car loan or a mortgage which you make payments against on a monthly basis. If none of these are options, you can take out an installment loan from a bank or if the credit isn't good enough, you can even do a secured loan. Inquiries aren't as horrible as people will make you believe. Once you hit about 10 of them, creditors start holding off simply because it looks like you're grasping for credit out of desperation and there is a trick to having inquiries removed from Equifax and Transunion (don't ever request inquiries be removed though). Try crownjewlers.com, you'll have to buy something for around $20, but they'll give you an automatic $1500 credit line with no inquiries and will report favorably on all 3 credit reports. Check out the forums at creditboards.com to help you develop your credit. |
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