Credit score

[william_wallace 8]

Since I arrived in the states(Dec 2008) I decided to see how my credit score was since I last did it in August 2010.

I got my credit report yesterday from the big 3 and it's the bloody same since last August. My score is 693 which say's it's fair. I thought #######.

I checked everything on the report I got, my bills are spot on, everything has been paid on time eg- credit card, cell phone, directv, every bill I have on my name has not had 1 late payment.

Does anyone else felt they thought their credit score should have gone up? I really thought my score would have been at the very least in the 750 mark.

[payxibka 10,045]

Since I arrived in the states(Dec 2008) I decided to see how my credit score was since I last did it in August 2010.

I got my credit report yesterday from the big 3 and it's the bloody same since last August. My score is 693 which say's it's fair. I thought #######.

I checked everything on the report I got, my bills are spot on, everything has been paid on time eg- credit card, cell phone, directv, every bill I have on my name has not had 1 late payment.

Does anyone else felt they thought their credit score should have gone up? I really thought my score would have been at the very least in the 750 mark.

what is the credit limit on your credit cards?

[jkminney 30]

what is the credit limit on your credit cards?

The other thing to keep in mind is most utilities, ie cell phone, cable bill, water or electric bills don't have any effect on your credit as far as the score is concerned. They would only become an issue if they are reported to the agencies as non payments. So yes the credit card would be reported or any loans that you may have with your name on it but the other things probably don't make a difference.

[ryna 132]

what is the credit limit on your credit cards?

This is important.

For example, if your limit in $500 and you use $450 of it every month (but pay it off in full each month), to the credit bureaus, you still have a 90% credit utilization (10% is optimal, 30% is still good, >30% starts to lower score). The key is to use a lower percentage each month OR pay the balance down before the statement closing date so a lower balance it reported to the Big 3.

My wife has a $300 limit card to start off and build credit. I've told her it's best to purchase no more than $30 each month or, if she does, to go ahead and pay it that very same day to bring the balance back to $0 before they can report an outstanding balance to the bureaus. (With a $300 limit, it's way too easy to go over 30% utilization!)

[Bsze 50]

Keep in mind that the length of your history factors into the score too. So it does take a while for it to go up.

Also, jkminney is right. The vast majority of utility or cell phone companies do not report positively (i.e. on time payments) to the Big 3. Most make only negative reports such as late payments and if it goes to a collection agency, that will affect your score.

Additionally, it helps to have a variety of credit. Having a mix of auto loans, credit cards, mortgages or student loans will boost your score too.

Here are the factors that influence your credit score.

[william_wallace 8]

Keep in mind that the length of your history factors into the score too. So it does take a while for it to go up.

Also, jkminney is right. The vast majority of utility or cell phone companies do not report positively (i.e. on time payments) to the Big 3. Most make only negative reports such as late payments and if it goes to a collection agency, that will affect your score.

Additionally, it helps to have a variety of credit. Having a mix of auto loans, credit cards, mortgages or student loans will boost your score too.

Here are the factors that influence your credit score.

I can understand the length of history factors, what I can't understand is the score is the exact same as it was last August. All my bills are well up-to date. I even had car finance in which I paid off 3 months early(that was finished in Jan this year)

As for my credit card. I have a limit off $300, on which I hardly touch and If I do, I pay it within 1-3 days later, not when the payment is due, nor have I paid just the minimum.

I think I was just expecting the score to hit the 700+ mark by now.

[Bsze 50]

Do you have just one credit card then? This might sound ridiculous and counter-intuitive but financial experts usually recommend having 4 to 5 credit cards (as well as other open accounts) to demonstrate one's creditworthiness and ability to pay off debt. That's also why using your card rarely might not help to improve your credit score because if you don't have any debt, how can you show that you can pay for it? Y'know?

However, it is strange that after a year and one paid off account, that your score didn't go up at least a few points. Any odd items on your credit report?

Edited July 22, 2011 by Bsze

[Wishin-n-hopin 15]

Quite honestly the credit scoring system baffles me. I have a very low debt to available credit ratio....meaning that my available credit greatly exceeds the amount of debt I have. I have a lengthy credit history (over 20 years)....still paying on student loans from college. Recently, I paid one of them off in a lump sum and believe it or not, when I got my credit report the following month (I pay a monthly fee for this service), my credit rating had DROPPED 3 points. It may not seem significant....but I couldn't understand why it would drop. Who can figure these things???

[payxibka 10,045]

I can understand the length of history factors, what I can't understand is the score is the exact same as it was last August. All my bills are well up-to date. I even had car finance in which I paid off 3 months early(that was finished in Jan this year)

As for my credit card. I have a limit off $300, on which I hardly touch and If I do, I pay it within 1-3 days later, not when the payment is due, nor have I paid just the minimum.

I think I was just expecting the score to hit the 700+ mark by now.

You have to show credit usage.... if the credit card company reports balances to the credit agencies on a certain day a month and your balance is zero, then that does not help you. Also you need more than one card with a $300 credit limit. Get a couple more cards or get you current company to give you more credit. go to creditkarma.com, that website will give you ideas on how to enhance your credit score

[웃 910]

I can understand the length of history factors, what I can't understand is the score is the exact same as it was last August. All my bills are well up-to date. I even had car finance in which I paid off 3 months early(that was finished in Jan this year)

As for my credit card. I have a limit off $300, on which I hardly touch and If I do, I pay it within 1-3 days later, not when the payment is due, nor have I paid just the minimum.

I think I was just expecting the score to hit the 700+ mark by now.

I'd do a couple things. First I would look for another credit card...Have you gotten any offers in the mail? If you have that means you are coming up on the companies radar as credit worthy and are most likely pre-approved...But a lot of the offers are junky cards with high aprs, low credit limits, and annual fees.

My #1 recommendation would be through Chase (either the Chase Sapphire or the Chase Freedom). But I believe you will be denied. Sounds crazy and must have been a glitch in the system but my wife got an invitation for the Sapphire and was approved for $5,000 and she was only an authorized user on one of my cards with a low limit and had her own secured card with a $400 limit (which we later canceled).

So after you get approved of a new credit card (hopefully with at least a $1000 limit) the next thing I would do is get a store card somewhere.

I'd recommend Best Buy because they have some nice financing offers (18 months interest free on most purchases).

The store cards are also more flexible on credit limits...My guess is Best Buy would start you at $1500 to $2000...

And down the road you should cancel that $300 credit card. None of your cards 1 year from now should be less than a $1500 limit...

Edited July 23, 2011 by Lord Infamous