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How To Improve Your Credit Score

Discussion in 'Stocks & Investments' started by Eric NJ, Mar 5, 2018.

  1. Mar 5, 2018 at 12:07 PM
    #1
    Eric NJ

    Eric NJ [OP] Well-Known Member

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    I have seen quite a few threads that mentioned the topic of credit scores and how they impact your mortgage rates, your auto insurance and even your rate on your auto loan. There is a lot of mis-information out there as to what you should do. The most important thing to know is that you can do it yourself and you do not need to hire anyone. It is really all about YOU and your desire to take it seriously and make a few changes in your life.

    Rather than re-type the entire process, you can read what I put together here -> How to improve your credit score

    Will answer your questions below if you have any.
     
    Last edited: Aug 6, 2018
  2. Apr 13, 2018 at 3:42 PM
    #2
    NudeLobster

    NudeLobster Well-Known Member

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    Link is dead! Would be interested to read though. My credit is great but my gf.... well, I'd like to read your article :)
     
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  3. Apr 13, 2018 at 3:46 PM
    #3
    kbUSMC2012

    kbUSMC2012 Well-Known Member

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    It's pretty straightforward. Look at the key factors for whatever score you want to improve (they're all the same, but different credit reporting agencies weigh criteria differently).

    For example, "how many inquiries have you had". Well if you want to improve that, have less. Stop applying for credit.

    "Revolving utilization". The percentage you use out of your overall available credit. Want it to get better? Have less debt.

    I don't get why some people think this is rocket science.
     
    Last edited: Apr 13, 2018
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  4. Apr 13, 2018 at 3:58 PM
    #4
    Dalandser

    Dalandser ¡Me Gustan Las Tacos-mas!

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    I'm in for more info too - I purchased a lot of music equipment while I was a student and working for a city funded music program; except they funded the program by paying me a small hourly rate and I dumped my financial aide into the actual materials for the low income kids that attended it. I'm trying to pay off the credit cards I opened up while in that 5 year phase (I seldom use one for anything anymore). I know a better credit score will help me get lower or no interest credit cards to transfer balances into.
     
  5. Apr 13, 2018 at 3:59 PM
    #5
    Dalandser

    Dalandser ¡Me Gustan Las Tacos-mas!

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    Knowledge is power - not everyone has it so it's nice to get it from informed people.
     
  6. Apr 14, 2018 at 3:55 PM
    #6
    kbUSMC2012

    kbUSMC2012 Well-Known Member

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    Do you use a site like credit karma? Or does your credit card give you a FICO score or something?
     
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  7. Apr 14, 2018 at 4:43 PM
    #7
    Dalandser

    Dalandser ¡Me Gustan Las Tacos-mas!

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    I get a credit score from a credit card. Sadly the answer for me I'm quite sure is to spend more on reducing my balances and less on my truck, but I figured if there's any stuff I didn't know about, it would be good to learn.

    :anonymous:
     
  8. Apr 14, 2018 at 5:37 PM
    #8
    tomwil

    tomwil Well-Known Member

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  9. Apr 14, 2018 at 6:16 PM
    #9
    Dalandser

    Dalandser ¡Me Gustan Las Tacos-mas!

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    Good info. Pretty much what I was expecting to read, but didn't think to ask for higher credit limits on my cc's that are almost or completely paid off to improve the revolving credit component.

    I liked this part - it seemed like they know our habits for some reason.

    "Stop buying things for your truck that you really do not need. This right here is the hardest thing for tw members to do. It is even hard for tw members to admit to themselves that they cannot afford their truck mods. Just because your credit card approves a purchase, it does NOT mean you can afford the light bar or locker you've got a 10% discount coupon for. As you are trying to get your arms around your debt, you should not be adding to it at the same time. Here are some ideas as to other expenses that can be cut back to help get debt and your credit under control.

    • Stop going out to dinner
    • Cut back on your cell phone plan
    • Remove vable TV premium channels and services
    • Re-negotiate or shop around for all of your insurance carriers
    • Do not even think about buying anything truck related.
    • No expensive vacations.
    • No... you DON'T need that new skid set for your bi-annual trips on fireroads to your usual campsite.
    Most tw members do not like to make changes like these and often get offended by suggesting it. I hope these tips help you to improve your credit score (so you can get back to spending money on your truck)!"
     
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  10. Apr 21, 2018 at 10:55 AM
    #10
    Eric NJ

    Eric NJ [OP] Well-Known Member

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    Last edited: Aug 6, 2018
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  11. Apr 21, 2018 at 11:14 AM
    #11
    Jamart5

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    I only have 3 CC and one charges me like 24.9% intrest but rarely use it. I pay an annual fee on it and I’ve had it for like 7 years should I dump it or just keep it? I’ve heard it hurts your credit if I dump it and get a new one with lower interest and no annual fee.
     
  12. Apr 21, 2018 at 11:39 AM
    #12
    Eric NJ

    Eric NJ [OP] Well-Known Member

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    How much is the annual fee? Don't keep it if it is costing you money. It wont hurt your scores that much. You could always get a new card that has no fee. Maybe the credit card company can converted to a different card for you that has no fee. Ask them about that.
     
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  13. Apr 21, 2018 at 1:07 PM
    #13
    Jamart5

    Jamart5 HoeRunner

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    $99
     
  14. Apr 21, 2018 at 1:13 PM
    #14
    Dalandser

    Dalandser ¡Me Gustan Las Tacos-mas!

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  15. Apr 24, 2018 at 8:07 AM
    #15
    ThunderOne

    ThunderOne Well-Known Member

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    Improve credit score - a catch 22 of debt.

    First, you need to "establish credit"... this means you need to be able to handle lent money properly. That means keeping your credit utilization ratio below 30%, ideally below 10%. For instance, do not run more than $300 worth of purchases on a $1000 limit card. Maxing out cards is very bad.

    Length of credit history - You need to establish credit and apply for as few lines of credit as possible. If you can get away with getting 1 or 2 cards at the very beginning, do that and never get another card again. I started out with a small "secure" credit card, then when my credit was sufficient, applied for a cash back card with a substantially higher limit after just 6 months -- enough to get me in trouble if I maxed out. This will be my last credit card in my life, if I can get away with it. I closed my first card, though that may not have been a good idea. I was dinged for closing my first card. The age of all your credit cards is averaged out and is used to calc your length of credit history. So if you have a 10 year old card and then you get a new card, you now have 5 years of credit history. Not good. That's why I got the card I "needed" as quickly as possible. Avoid the scams saying "apply for this card and you'll get X perks." It's not worth it to have so many different credit cards... it will only hurt you. Just stick with a cash back card. It's personal preference, but I don't do points. Points are worthless currency IMO.

    Pay off your card IN FULL each month. If you do this, lenders will know you are good at managing your money.
    Ideally you should never "need" to use a credit card. You should play it like a game. A very annoying game, in which you must play in order to win. If you don't use it in over 3 months, you will also get dinged. Again, annoying game.

    Another thing is to have other types of credit other than just cards. This one is difficult if you have no need for another car, a need for an installment loan, or have yet to buy a home. I am in this boat now, so I only have the credit card. Ideally, they want to see a "mix" of "different" types of credit.

    -TL;DR keep your credit utilization below 30% (10% or less is best) and pay off your card in full each month. Other types of credit (auto/home/installment) also help. DO NOT apply for a bunch of credit cards. Stick with what you have, get a card with cash back EARLY, never get another card after. Just ask to raise the limit if it's not enough or you're going over 30% utilization.
     
    Last edited: Apr 24, 2018
  16. Apr 24, 2018 at 8:13 AM
    #16
    ZekeR7

    ZekeR7 Well-Known Member

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    I am only 23 and my credit score is excellent. Most people think to completely stop using credit cards and it’s not true. I only use my credit card and pay off what I used every 2 weeks. This way the credit score company sees I use them but pay it off. I don’t get Charged interest on it since i don’t carry the balance forward to another statement. There are a lot of ways, but too much to add on here.

    My credit card limit is $40,000 with only 4% APR and all my auto loans are 3%. Like the other guy said, it’s not rocket science and the information is available online.
     
  17. Jul 20, 2018 at 8:08 PM
    #17
    81shark

    81shark Well-Known Member

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    Create a score card and update it at least once a week.

    Cash
    Retirement
    Vehichles
    House
    Misc other

    Debt

    Subtract debt from assets... And get your net worth.

    If you then focus on driving your net worth higher, you cc score will likely follow.

    Debt is bad. Pay it off.
    Cc's are good if you don't carry a balance. I never carry a balance even with everything going on it. Because... . cash back. I like the citi 2% card. It adds up pretty fast.

    Buy a tacoma and drive it a while.
     
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  18. Sep 13, 2018 at 12:09 PM
    #18
    PackCon

    PackCon Well-Known Member

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    Great words.

    Avoid debt at all costs.
    Credit card debt is never acceptable.
    If you can’t trust yourself with a credit card cut it up.
    You don’t need a credit score to get a mortgage, its called underwriting.
    Always aim to pay mortgages and student loans off early.

    The focus needs to be on maintaining a debt free lifestyle and building wealth.

    If the focus of building a credit score is to get more debt... you’ll always be broke and get no where.

    Spend below your means not over it.
    You want bumpers, lifts, tires, and vinyl wraps go get a 2nd job and pay cash. Shit you want the Tacoma go get jobs until you pay cash.

    I use credit cards for convenience and rewards points but I never carry a balace. Credit card is paid to zero every month. I would probably have a stroke if I carried a balance.
     

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