Surprisingly low credit score?

For just about anything you want to get off your chest about credit cards.
6 posts
ebs1988
 
Posts: 1
Joined: Thu Apr 17, 2014 4:25 pm
Location: California

Surprisingly low credit score?

Postby ebs1988 » Thu Apr 17, 2014 4:38 pm

Hello,

I'm 25 years old, I make about 50K/year.

I never had a problem getting loans for cars with decent apr, so I never really checked my credit score until recently.

TU:731
EQ:723
EX:711

Now, I know those scores aren't too shabby, but I thought my scores would be higher. I have never in my life been late on a bill, and have always been employed. I have 1 car note that I recently refinanced, and 1 credit card, that I rarely use because I'm very frugal, and have no need to ($17,000 spending limit, visa)

I always thought it was a good idea to spend about 1000 with your credit card and just pay more then the minimum every month; but after a short time of lurking on this forum, I'm thinking its a better idea to use your card and pay off the entire balance every month?

Also, would it be a good idea to maybe snag another cc or 2 to have more revolving debt?

Thanks in advance, I know I'm a total noob at this stuff :cool:


MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Thu Apr 17, 2014 5:55 pm

What do you consider a high score, 800 and above?


Carrying a balance on your cards and paying the minimum will do NOTHING for your score. You should leave a small balance on your card then pay it in full for the highest score and to avoid paying interest, unless you just love wasting money but you said you are frugal so I doubt that.


Having more revolving DEBT isn't a good idea. For best scoring purposes having 2 to 3 cards is ideal.


So you can get a couple more cards but DON'T carry balances and pay interest unless you just feel like generously throwing money at the lenders - paying interest to them does NOTHING and I mean NOTHING for your score, only to your bank account (and not in a positive way).


What I'm getting at is - use those cards, but let ONE report say 1-4% so you pay it BEFORE the closing date down to this amount. Let this report, THEN once it closes immediately pay it to 0 so you don't pay interest. THAT is how you game the system for your best score and don't pay them a bunch of money for nothing.


Hope this helps.

User avatar
Dr.Mark
Centurion Member
Centurion Member
 
Posts: 154
Joined: Tue Mar 18, 2014 4:01 pm
Location: London - UK

Postby Dr.Mark » Thu Apr 17, 2014 5:56 pm

Your scores, which are everything but low, are probably due to a couple of facts" AAoA and Credit Agreements.
So, what you can do is what you have already thought you should do: get another couple of cards. Even 3 or 4 more. There are such amazing cards out there. And then...be patient. Keep pay your bills on time, pay off your balances in full every month and believe me...the more credit cards you have the more you will want. ;)
[font=Times New Roman]American Express PRG[/font] [color=green][NPSL][/color]
[font=Times New Roman]British Airways American Express[/font] [color=green][9000£][/color]
[font=Times New Roman]American Express Platinum Cashback Everyday[/font] [color=green][6000£][/color]
[font=Times New Roman]Barclaycard Platinum[/font] [color=green][16600£][/color]
[font=Times New Roman]Virgin Balance Transfer[/font] [color=green][9600£][/color]

TCL - [color=red]41200£[/color]

jlam572
Centurion Member
Centurion Member
 
Posts: 494
Joined: Wed Aug 01, 2012 12:04 am
Location: Hawaii

Postby jlam572 » Thu Apr 17, 2014 5:59 pm

Your scores are fine. Just keep the payments on time and utilization low for a few years and watch that score spike. Youre too young to have a real long AAOA. Im in the same boat. My AAOA is only like 7 years.
American Express Platinum
Chase Sapphire Preferred
Hawaiian Airlines BOH MC
USAA Amex
Capital One Visa Platinum
Citi Diamond Preferred MC

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Mon Apr 21, 2014 8:40 am

ebs1988 wrote:I always thought it was a good idea to spend about 1000 with your credit card and just pay more then the minimum every month; but after a short time of lurking on this forum, I'm thinking its a better idea to use your card and pay off the entire balance every month?

You might want to consider what makes up your score:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

TerribleTom
 
Posts: 2
Joined: Mon Apr 21, 2014 11:16 am
Location: Maine

Postby TerribleTom » Mon Apr 21, 2014 12:33 pm

ebs1988 wrote:Now, I know those scores aren't too shabby, but I thought my scores would be higher. I have never in my life been late on a bill, and have always been employed. I have 1 car note that I recently refinanced, and 1 credit card, that I rarely use because I'm very frugal, and have no need to ($17,000 spending limit, visa)

Congratulations! You're off to a terrific start. Just keep doing what you're doing (i.e., always paying on time and avoiding interest on revolving credit balances) and your score will creep up as your credit history expands. And keep in mind that a FICO score is a weird artifact that is far from a perfect measure of a person's credit worthiness.

Just today I performed my annual ritual of reviewing my credit records and, according to Equifax, I'm an 820. That's one of the few advantages of being an old fart. (My AMEX green card account was opened in 1970 when I was about your age and has never been late in 44 years.)

But here's the kicker: My score today is lower than it was three years ago. Why? I paid off the last of my mortgages. I also own all of my vehicles outright and so I don't have any current installment loans.

I'm debt free with a lower credit rating. Go figure!

(It's not something I'm going to worry about. Trust me.)



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests