But they do. Any time you apply for some kind of credit, it impacts your score.
Anybody know their credit score?
- Thread starter propita
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But they do. Any time you apply for some kind of credit, it impacts your score.
His student loans were paid off a year ago or so. Mine were down to < $2K when this was done (they're paid now).
It doesn't really matter. We qualify for the best rate with plenty of room to spare.
It's just unclear exactly what goes into determining the score.
It doesn't really matter. We qualify for the best rate with plenty of room to spare.
It's just unclear exactly what goes into determining the score.
Well, your score is determined by (I think) your last 7 years of credit history. There could be stuff from a long time ago that is still impacting your score. There are a lot of random things that can hurt you.
Do you have a credit card? Did you ever charge more than half of its limit? Let's say you have a credit card with a $1000 limit on it. If you ever charged more than $500 on it, your score may have been hurt. There are lot of little ridiculous things like that that can hurt you.
Do you have a credit card? Did you ever charge more than half of its limit? Let's say you have a credit card with a $1000 limit on it. If you ever charged more than $500 on it, your score may have been hurt. There are lot of little ridiculous things like that that can hurt you.
Well, the only reason I finally applied for a credit card after years of doing without one is so that rental car companies would stop refusing to give me a car.
It's also a sign of the times. One of the main reasons the economy is in such crappy shape is because people were taking out more credit than they could handle because credit companies weren't really looking into people's backgrounds as much. They didn't care that much about your credit history, and that's what got everybody into trouble.
Now, you really need to establish a credit history before you can qualify for anything.
Now, you really need to establish a credit history before you can qualify for anything.
Honestly, the first card I ever got was a Best Buy card when I bought a lap top. It's an awesome card to have because they give you anywhere between 18-36 months of no interest. I bought a $700 TV with my Best Buy card a few months ago, and I got 36 months no interest. I guarantee I can pay off $700 in 3 years!
Good, sounds like everything is going fine. You had mentioned some sort of unexplained problem with a credit ratio, so was just trying to provide some alternate ideas. But, it sounds like there actually wasn't a problem.
Mr Awe
There are a few things I'd like to clarify here:
1. If you have a line of credit that you aren't using, don't close it unless it's relatively new. When you apply for new credit, it looks good to have some lines of credit that are several years old--even if they aren't being used much. This indicates you have a substantial credit history.
2. There are two kinds of credit inquiries. "Soft" inquiries are done when you are, for instance, checking your own credit report. Those are not counted against you. Whenever you apply for credit, though, that's a "hard" inquiry and those stay on your report for a year. Having more than 2 or 3 hard inquiries on your report drags down your score.
3. Mr Awe is correct that your credit would not go down for paying cash for a car. It does look good to have multiple kinds of credit on your report, though: it gives creditors a better idea of how responsible you are, whether you can juggle credit cards, a mortgage, and a car loan all at once, etc. Having too little credit history without much variety can look worse than having bad credit because you are an unknown quantity!
1. If you have a line of credit that you aren't using, don't close it unless it's relatively new. When you apply for new credit, it looks good to have some lines of credit that are several years old--even if they aren't being used much. This indicates you have a substantial credit history.
2. There are two kinds of credit inquiries. "Soft" inquiries are done when you are, for instance, checking your own credit report. Those are not counted against you. Whenever you apply for credit, though, that's a "hard" inquiry and those stay on your report for a year. Having more than 2 or 3 hard inquiries on your report drags down your score.
3. Mr Awe is correct that your credit would not go down for paying cash for a car. It does look good to have multiple kinds of credit on your report, though: it gives creditors a better idea of how responsible you are, whether you can juggle credit cards, a mortgage, and a car loan all at once, etc. Having too little credit history without much variety can look worse than having bad credit because you are an unknown quantity!
Indeed, I just got a letter from Chase bank denying me the Amazon credit card because I have "Not enough revolving accounts open long enough to establish a credit history."
In other words, they won't give me a credit card because I don't have a credit card.
Perhaps Citizens, my primary bank, will be more reasonable. Or I suppose I could always default back to Capital One....I started out with them 15 years ago.
In other words, they won't give me a credit card because I don't have a credit card.
Perhaps Citizens, my primary bank, will be more reasonable. Or I suppose I could always default back to Capital One....I started out with them 15 years ago.
Capital One will give a credit card to anyone. ANYONE. In fact, they'll give you 3. It's how they built themselves into a national bank, give low-limit cards to anyone, reward those that pay on time with higher limits, those that don't with another low-limit card to double the late and overcharge fees.
With some self-control, that sounds like an excellent way for someone to build their credit.
As I posted, mine is ok (ok ... it's just over 800). I didn't see a problem with the ratio, but the agencies cited 4% as a "high ratio." It's just amazing what does seem to affect it and unclear sometimes what does not, evidenced by many posts in this thread.
Someone posted about the UK's credit system. Are they very different?
If anyone is having trouble getting a card, you could always get a secured card to establish a credit history. You can then start applying for other cards after six months.
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Amaris
Guest
I just hate the idea of having to go into debt to build up credit. Why am I paying a company to charge me fees and interest to use my own money so that I can prove to them I'm responsible with money?
Well, if you want people to lend you money, you first have to prove you are safe to lend money to.
I don't pay fees or interest on a single one of my credit cards. You just have to get the right ones.
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Amaris
Guest
Well, if you want people to lend you money, you first have to prove you are safe to lend money to.
True enough, I didn't really consider that point. I just don't like our system of credit.
As far as I know, bank cards don't build credit. Other than that, my credit is so poor (through measures beyond my control in most cases), getting such a card is beyond probable.
If you don't have great credit, some places will still give you a card. They just won't give you a very high credit limit. You could try a clothing store or something. My Kohls card only has a $300 limit on it, and the cool thing about it is that you can pay it off right away in the store. It builds your credit, and it keeps you from accruing any interest.
Plus, they have awesome sales for people who use their Kohls card. You can get 30% off sometimes if you use it.
Plus, they have awesome sales for people who use their Kohls card. You can get 30% off sometimes if you use it.
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Amaris
Guest
From personal experience, I don't qualify for just about any store card. I worked at Sears years ago and couldn't qualify for a Sears card. I've been rejected for a Kmart card, Walmart card, Target card, Sunoco card, BP card, Kohl's card, Lowe's card, and a whole host of others. I'd love to have a Kohl's card. We have a distribution center and a retail store near here, and because of that, prices are lower than average, and when they have sales, they really have sales. Sometimes I can buy shirts there cheaper than the thrift store.
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