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Old 08-01-2014, 01:34 PM   #21
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Just heard on the radio 2 ways to improve credit scores:

Ask for an INCREASE in your credit line since the ratio of debt to allowed credit is a large component. Lower the ratio the better but zero is not good (see below).

Use your credit occasionally. You can go "stale" and thus a lower limit.
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Old 08-01-2014, 01:41 PM   #22
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Or as Credit Tracker puts it:

Quote:
Credit Utilization

Lenders usually look at how much credit is available as well as the amount that's been used. An individual who has "maxed out" his or her credit cards and/or other lines of credit may not be able to obtain additional credit or competitive rates. Tip: To help your score, pay down your balances and keep your average account balance at or under 30-35% of your card’s total available credit line.

Credit Score Impact High

Grade Scale

Grade Scale % of population
A <10% 45.16%
B 10%-30% 19.57%
C 31%-61% 15.32%
D >61% 19.95%
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Old 08-01-2014, 01:46 PM   #23
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Credit karma is nice ... and you only need the last 4 of your ssn. Mine was :

TransUnion: 782 out of 850 - Rating: Excellent
VantageScore: 896 out of 990 - Rating: A
Auto Insurance Score: 899 out of 950 - Rating: Very Good
Home Insurance Score: 931 out of 950 - Rating: Very Good

Now if I could only refi out of a HELOC ... geez.
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Old 08-01-2014, 01:48 PM   #24
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Originally Posted by braumeister View Post

With no mortgage, low insurance rates, and no plans to borrow anything in the foreseeable future, is there any reason why I should care what my credit score is?
Not really.....mine is 780 last time I checked. Two years ago we walked into a Hyundai dealer to look at a car for DW. They check your credit and do that quickly. They never once asked about whether or not I had income, or anything else about finances. No problem buying a car.

I just signed up for a Marriott (Chase) CC to grab 70,000 points for my account (use for room nights). I was approved in a minute. I did not claim job income.
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Old 08-01-2014, 01:50 PM   #25
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Quote:
Originally Posted by tryan View Post
Just heard on the radio 2 ways to improve credit scores:

Ask for an INCREASE in your credit line since the ratio of debt to allowed credit is a large component. Lower the ratio the better but zero is not good (see below).

Use your credit occasionally. You can go "stale" and thus a lower limit.
One simple way if it can be done to get usage of a card, is if the utility lets you charge your utility bills to a card. That gets a once a month charge. Put each utility on a different card and you can keep several active at one time.
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Old 08-01-2014, 01:54 PM   #26
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Our Bank offered a MasterCard that promised a $200 bonus if we purchased $1,500 worth through it within 3 months. (No fee, BTW). We handled it over the telephone. I had the card within a week. We qualified within 4 weeks. A month letter I had a check for $200. (Now, I need to figure out what to do with this card. <chuckle>)
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Old 08-01-2014, 02:02 PM   #27
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I put everything I can on a Credit Card -- in addition to the security issue it gives us a little "float." (You know the key to success: Buy Low, Sell High, Collect Early, Pay Late.) In the last twelve months we have written less than ten checks and I still have a Twenty Dollar bill in my pocket that I put there five years ago. That means $50-70,000 goes through a Credit Card every year.

(Off topic would be a conversation about that complete fraud -- the Debit Card.)
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Old 08-01-2014, 02:42 PM   #28
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Quote:
Originally Posted by tryan View Post
Ask for an INCREASE in your credit line since the ratio of debt to allowed credit is a large component. Lower the ratio the better but zero is not good.
I deal with credit scores all the time, and have done quite a bit of research on it. 731 is good, but not an A grade. 740+ is an A grade. I have 800+. A zero balance will not hurt. Just use some sort of credit periodically to keep creditors reporting, something.

Here are the three big ones...
Pay your bills, on time, all the time.

Never close out a card. Older credit is better than younger credit.

Keep your credit utilization to less than 15%. Acquire more cards if you can, and don't use them. Increase your credit lines. Pay off any balances, which you should anyway.

Acquiring more cards will hit your score just a bit in the short run. Use the opportunity to get some miles to travel with.
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Old 08-01-2014, 02:45 PM   #29
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I don't know how this credit score thing works either. My FICO on creditkarma.com shows 785 (Excellent) but my Auto Insurance Score always is only 852(Fair) - Why is this? Does this mean I pay more to get auto insurance? (I haven't had any accidents or tickets in years.)
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Old 08-11-2014, 04:36 PM   #30
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So I thought I'd post an update.

Remember this all came about when Sears cancelled my cc after 2 years of inactivity causing my credit score to drop from 741 to 731 and that really upset me as I wanted it higher.

So I happened to see an ad on TV as I FF through the ads on the DVR. Much to my surprise BOA is offering a cash back credit card with 3% on gas, 2% on groceries and 1% on everything else. My sister has this but I was unable to find it maybe a year ago. So I went to the site and applied.

At the same time I asked for my 1.5% cash back cc to increase my limit from $10k to $15k and they refused me! I was shocked as I have an excellent history but ...

So I found out today that I got the VISA signature cc with the 3/2/1% cash back. I'll use this one for groceries and gas, the other card with 1.5% back for other stuff.

I started to get emails from Credit Karma and my original cc bank about a change in my credit score. Ut oh! Much to my surprise my Trans Union score just went up from 731 to 750 and the Experian went to 785!

So this was a failure initially when I was refused the credit limit increase but now has worked out very well. Not only did my credit score increase but I have a better cash back card for gas and groceries. This card has some limitations like the 3/2/1 applied to the 1st $1500 per quarter but I'm never going to buy that much gas and groceries in 6 months much less 3.
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Old 08-11-2014, 05:46 PM   #31
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Originally Posted by veremchuka View Post
So I thought I'd post an update.

Remember this all came about when Sears cancelled my cc after 2 years of inactivity causing my credit score to drop from 741 to 731 and that really upset me as I wanted it higher.

So I happened to see an ad on TV as I FF through the ads on the DVR. Much to my surprise BOA is offering a cash back credit card with 3% on gas, 2% on groceries and 1% on everything else. My sister has this but I was unable to find it maybe a year ago. So I went to the site and applied.

At the same time I asked for my 1.5% cash back cc to increase my limit from $10k to $15k and they refused me! I was shocked as I have an excellent history but ...

So I found out today that I got the VISA signature cc with the 3/2/1% cash back. I'll use this one for groceries and gas, the other card with 1.5% back for other stuff.

I started to get emails from Credit Karma and my original cc bank about a change in my credit score. Ut oh! Much to my surprise my Trans Union score just went up from 731 to 750 and the Experian went to 785!

So this was a failure initially when I was refused the credit limit increase but now has worked out very well. Not only did my credit score increase but I have a better cash back card for gas and groceries. This card has some limitations like the 3/2/1 applied to the 1st $1500 per quarter but I'm never going to buy that much gas and groceries in 6 months much less 3.
Great story and thanks for following up! Glad to hear your credit score is on the rise.
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Old 08-11-2014, 05:52 PM   #32
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Verumchuka, that sounds like a great credit card and congratulations on your rising credit score!
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Old 08-11-2014, 09:26 PM   #33
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I have never understood the scoring system either. I have not lived in the states for over 10 years, have not had a bank account,CC,mortgage,or any US financial transaction in that time and still my credit score is in the 780's and fluctuates up and down by about 10 points each year?
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Old 08-12-2014, 05:33 AM   #34
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With no mortgage....
That lowers your credit score, they like to see recent installment type loans...so no loans, lower credit rating....stupid eh?
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Old 08-13-2014, 04:47 PM   #35
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That lowers your credit score, they like to see recent installment type loans...so no loans, lower credit rating....stupid eh?
Well... the purpose of a Credit Score is to show reliability (think about if you were asked to loan to a stranger).

A simple statement of promise like "If I had a loan, I would certainly pay it on time and in agreed upon terms" or I'm one of the good guys" would not carry much with you either, I suspect. I would, personally, like to see some evidence of behavior under similar circumstances to the asked for agreement.
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