credit score help

[mamajumps 0]

Ok, so I pay for credit monitoring b/c Im trying to reestablish credit. My credit score just dropped nearly 70 points since the last time it was updated. I break my neck to pay everything on time and I always pay 2-3 times the amount due on my credit cards. I have never had good credit in the past and now Im very anal about it. I just dont understand, its almost like I am damned if I do, damned if I don't....

[aardvarkeater 0]

Not sure if this is the case but I recently read that the way FICO credit scores were calculated is going to change. The new method could have affected your score negatively.

http://www.bankrate.com/ is a good site for information on all things financial and has some good info on what affects credit scores.

Muff Brother #4026
Loco Zapatos Rodriguez
SCR #14793

[Thanatos340 1]

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I break my neck to pay everything on time and I always pay 2-3 times the amount due on my credit cards.

That is not always a good thing. Neither is paying off your cards every month completely in the eyes of the Issuers. They don’t make money if you do that. They would prefer you make minimum payments forever and maximize their revenue.

[kittikat 0]

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I break my neck to pay everything on time and I always pay 2-3 times the amount due on my credit cards.

That is not always a good thing. Neither is paying off your cards every month completely in the eyes of the Issuers. They don’t make money if you do that. They would prefer you make minimum payments forever and maximize their revenue.

A credit score has nothing to do with how happy you make the credit card companies or whether or not you pay off mastercard every month.

To build credit it will take quite a while, and you will probably need loans other than credit cards to really improve it. Talk to your bank, but a good idea would be to take out a thousand dollar loan or so, and pay it back every month - you will loose some money on interest, but that will go a long way and look much better than credit card payments.

Make sure it is a loan from a bank and not a money-mart kind of thing. Those can hurt your credit score because you look bad with your money if you are borrowing from a place like that any paying 30% interest!!

Credit scores are really finicky - you will loose some points if you are using too much of your credit (borrowing more than you should for your income) or if you under-utilize your credit!

Definitely try to pay off credit cards completely each month - you will save money if you aren't paying 18+% interest, and as long as you are making minimum payment (more doesn't matter - just make the payment!) every month it will improve your credit score slowly.


Good luck - it will take time.

[simplyputsi 0]

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Not sure if this is the case but I recently read that the way FICO credit scores were calculated is going to change. The new method could have affected your score negatively.

http://www.bankrate.com/ is a good site for information on all things financial and has some good info on what affects credit scores.

I heard they changed the scale or some crap. Like 800 something used to be perfect and now it's 900 something. WTF would you do that for anyway?

Skymama's #2 stalker -

[skymama 37]

How many credit cards do you have? Too many cards can lower your rating, even if they have a 0 balance because the companies look at what available credit you have. Do any of your cards have the option of transferring balances?

She is Da Man, and you better not mess with Da Man,
because she will lay some keepdown on you faster than, well, really fast. ~Billvon

[DougH 270]

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Credit scores are really finicky - you will loose some points if you are using too much of your credit (borrowing more than you should for your income) or if you under-utilize your credit!

Your FICO score has nothing to do with your income, it isn't even factored in to your credit score.

You are right though, it does look at your revolving credit (cc balances), compared to your credit line.

"The restraining order says you're only allowed to touch me in freefall"
=P

[skinnyshrek 0]

When i used to do mortgages.A good way to increase your score is try and get your debts on the cards below 50%. Also, when anyone looks into your credit, it usually deducts about 10 points. So lots of inquiries means less points.
If your looking to get a loan you can obtain a full detailed credit report which i believe uses all of the agencies. Keep it with you and don't let anyone look into your credit

http://www.skydivethefarm.com

do you realize that when you critisize people you dont know over the internet, you become part of a growing society of twats? ARE YOU ONE OF THEM?

[BETO74 0]

I could not find any description of a new way of calculating FICA credit scores,only the info about feds injecting money in the realstate market

http://web.mac.com/ac057a/iWeb/AC057A/H0M3.html

[mamajumps 0]

yeah thats all I can find too...

[monkycndo 0]

If you are going to cancel a card to reduce your credit to income ratio, don't cancel the card you have had the longest. That might hurt your credit score. Keep it even if you never use it. Ask that creditor to reduce your available credit limit to the lowest they will allow.

50 donations so far. Give it a try.

You know you want to spank it
Jump an Infinity

[aardvarkeater 0]

Here's a link to what I was thinking of.

http://www.credit.com/credit_information/credit_report/Consumer-Alert-FICO-Formula-Changes.jsp

Muff Brother #4026
Loco Zapatos Rodriguez
SCR #14793

[Jib 0]

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If you are going to cancel a card to reduce your credit to income ratio, don't cancel the card you have had the longest. That might hurt your credit score. Keep it even if you never use it. Ask that creditor to reduce your available credit limit to the lowest they will allow.

I have heard that canceling credit cards does not help your scores -- one of the things that's considered is the amount of credit you have available versus the amount that you are actually using.

I would try to consolidate your credit cards into a bank loan at a lower rate rather than pay the high interest rates.

--------------------------------------------------
the depth of his depravity sickens me.
-- Jerry Falwell, People v. Larry Flynt

[JohnMitchell 16]

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] Neither is paying off your cards every month completely in the eyes of the Issuers. They don’t make money if you do that. They would prefer you make minimum payments forever and maximize their revenue.

Who cares what the issuers like? I lke using their money for 45 days for free, then paying it off in full. I don't make the rules, I just use them.

[JohnMitchell 16]

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I have heard that canceling credit cards does not help your scores -- one of the things that's considered is the amount of credit you have available versus the amount that you are actually using.

I was once turned down for a credit increase on my favorite credit card because my available but unused credit on my many other cards was too high.

[monkycndo 0]

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I have heard that canceling credit cards does not help your scores -- one of the things that's considered is the amount of credit you have available versus the amount that you are actually using.

I was once turned down for a credit increase on my favorite credit card because my available but unused credit on my many other cards was too high.

Same here.

50 donations so far. Give it a try.

You know you want to spank it
Jump an Infinity

[Jib 0]

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I have heard that canceling credit cards does not help your scores -- one of the things that's considered is the amount of credit you have available versus the amount that you are actually using.

I was once turned down for a credit increase on my favorite credit card because my available but unused credit on my many other cards was too high.

The decision to extend credit is based on income too.

--------------------------------------------------
the depth of his depravity sickens me.
-- Jerry Falwell, People v. Larry Flynt

[PLFXpert 0]

Oy vey--this thread.

Just keep paying your credit card debt off, mama. When one card is paid off, close it. You'll be fine.
I'm anal, too. I have one card with an unlimited limit. I pay in full each month. I have a mortgage. I closed about 20 cards after college I inadvertently opened signing up for free T-shirts--all had zero balance. All three of my scores are in the 800s.

You're never "damned" for paying more than what's due. You're damned when you spend money before you have it--most of the time--with a few exceptions.

Paint me in a corner, but my color comes back.

[JohnMitchell 16]

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The decision to extend credit is based on income too.

Six figures, very low mortgage at the time, none now. Go figure.

Plus I'm a skydiving instructor. Why, that's the definition of financially solvent.