Credit Score
Credit Score questions and answers
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Q: How fast does credit score improve and by how much?
i currently have 499 credit score and that's because i stayed behind on some car and credit card payments. i currently owe 4k total in 2 credit cards and 2k on my car payment. if i was to pay it all off within a week (i have the money) how much will my credit score improve? and after how long can i buy something (either a house or car)? do i have to wait for years, months?
A: Сredit repair workеd fine to fix my credit. They disputed and removed lots of bad items from my credit report. I used this service - creditreport.undonet.com
Q: When can I start building my credit score?
I am 16 years old and would like to know when I can start building my credit score? What will be a starting credit score? How can I build my credit score to be as high as possible? Thanks. Serious answers only please.
A: Actually if your parent or guardian will add you as an authorized signer on one of their cards, you can start earned credit way before you turn 18. There are no age limits for authorized signers. My mom put me and on her Sears credit card when I was 9 and didn't tell me until I was 18 and wanted to get my own credit card. It was awesome because as young as 18 I had an awesome score and credit history.
Q: What impact does closing credit cards have on your credit score?
What impact does closing credit cards have on your credit score?
I have a number of credits that I am not using. What impact if any would closing some of these accounts have on my credit score?
A: Part of your credit score is based on your debt to available credit limit ratio. When you close accounts, you lower the available credit and could end up with a higher debt percentage. So yes closing credit card accounts will hurt your credit score; however, your score will rebound quickly.
Another factor is that closing your oldest accounts, closes your history. Keep the oldest accounts open as long as they don't charge an annual fee.
Personally, I think keeping credit cards you don't use open just for the sake of a couple points on your credit score silly. All those extra cards have too much potential for problems. You have to keep track of them and keep them secured.
I recommend not more than two major credit cards --which you pay in full every month. Only keep store or gas charge cards if you have some kind of special circumstance.
Q: Only 1 credit agency is reporting a score for me, how do I get the others to report a score for me?
I have an excellent credit score @ 774, but only Experian is reporting a score for me. How do I get Equifax and Trans Union to report also?
A: Call them and ask them to. Yes it is that easy.
Q: What goes into determining your credit score and what causes it to go up and down?
Being fairly new to credit I know most of the basics. When I comes to credit score though I keep hearing different stories. What really goes into finding your credit score and does it go down ask to know what it is?
A: Too many factors go into determining your credit score. There is no equation to determine it. Go to http://www.myfico.com/#aboutscores/ This illustrates the following:
Payment history - 35%
Amounts owed - 30%
Length of credit history - 15%
New credit - 10%
Types of credit used - 10%
Q: What are the cheapest reliable credit score companies where I Can get that efficient credit score that I need?
What are the cheapest reliable credit score companies where I Can get that efficient credit score that I need? I need to know what my credit score is so I can start looking for an apartment. And I know it must be bad, but I just want to make sure that it isn't tooooo horrible.
Thanks.
A: You don't need to pay a credit company to find your score. You can get your score for free by contacting the 3 major credit reporting agencies: Experian, Transunion, and Exifax online. I have an article that explains it in detail below.
Q: What does a person credit score have to do with rates on car insurance rates?
It should be against the law since everyone must carry car insurance. Also, what does my low credit score got to with my great driving record? Sounds like another reason to raise rates because most credit scores are low across the board. If someone pays their insurance company on time and has a good driving record should be their only concerns. Doesn't that make sense to raise car insurance rates to persons that had a hard time paying a bill, bit made all their car insurance payments on time.
A: It will take a few years but some states have passed laws that ban the companies from using credit in their equations. In a few years we will see if their new 'equations' work as well as the equations that have credit in them. If they do, then many states will be passing laws to ban credit use
Here is some more detailed info about it -
http://carquotes.fateback.com
Hope that helps.
Q: What is the lowest credit score do you have to have to lease a car?
I'm in the market to buy another car. Currently driving a 2001 Lexus RX300 and the new has worn off. Was wondering if it was possible to lease a car with a less than perfect FICO score of 652. The only reason why I was considering is because I want to buy at least a 2003-4 BMW X5 but I prefer a brand new one but I don't have the cash or dare need a car payment that high for a 45k vehicle! I've heard leases are generally only approved for people with great credit but I have heard of people with less than perfect credit leasing cars but I was wondering approx. with what score?
A: If you leased your RX through a leasing company then you might want to call and ask them if they have an X5 you could take over a lease on. If you leased through the Lexus dealer then locate a used X5 at a Lexus dealer and go from there. In either case, 652 is not so bad that you wouldn't be able to lease another vehicle, especially if you are currently in a lease. I would also recommend calling a leasing company (not a dealer) to ask more questions and to locate the X5 you want.
Q: How does the credit score point system actually work?
I want to know how do they determine the credit score point system. I know what is credit and how it works. But I want to know the numbers part like if someone runs your credit report it takes off 2points from your score, another is what if your late on your payment how much does it take off then and if I have a loan for a certain amount does that mean I get a big score or a low score? I have some old accounts (5yrs old) that need to be paid off but if I do pay them off will it really make a difference on my score? Next thing you know I pay them off and then my score only goes up by 4 or 5 points or will I even get a point. What would be the purpose then? At the same time if creditors do look at my report yes it would show paid off but the history would still show that I was delinquent for 5yrs. Whose gonna want to give me a loan any ways? Basically what is the point system and how is it calculated? Let me know so I can start to repair my credit. Much thanks and I appreciate it!!!
A: When you're trying to rebuild your credit score it's important to get a comprehensive view of what is actually effecting it...
Your Credit Score is calculated with the following breakdown:
35 - Payment History
30 - Credit to Debt Ratio
15 - Credit History
10 - New Credit
10 - Credit Types in Use
If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.
I've got a lot of information on my blog about credit scores, and I get a lot of questions so feel free to check out any of my posts on millionster.com; I believe my articles here address many of your concerns but if they don't and you still have any specific questions feel free to leave a comment and I'll reply.
How Can I Increase My Credit Score
http://millionster.com/articles/debt/ask-1mil-how-can-i-increase-my-credit-score/
and
10-Ways to Boost Your MyFico Score
http://millionster.com/articles/debt/increase-fico-credit-score/
Also be sure to check out the Credit Score services I've listed here; the only way to know how to raise your credit score so that you can get cheap rate and qualify for great loans is to know what your credit score is and to see what's in your credit history:
MyFico's Full Credit Report
http://millionster.com/go/myfico
Suze Orman's Credit Report Repair Kit
http://millionster.com/go/suzekit
30-day Trial of Credit Score Tracker with Free MyFico Score
http://millionster.com/go/fico30
Hope this helps!
Q: What credit score is needed to rent an apartment?
I need to get an apartment ASAP but last I checked my credit score was 615. I recently consolidated my student loans (I'm still in college) and was told that would help it. What does my credit score need to be in order for me to get an apartment?
A: It depends on the landlord. Some require a certain score (usually around 620) others just look at your report to make sure you dont have tons of PAST DUE accounts or prior evictions.
You should be OK.
Q: What credit score do you need to have to rent an apartment?
I want to move in with a friend of mine, who's apartment is run by a large company. I know they will do a credit check. My credit score is a 629... not the bottom, but not great. Do you think they'll be okay with that?
To complicate matters, this company already approved me for a lease several months ago, but that fell through... I believe my credit was higher then. I really just don't want to be stuck with nowhere to live. Please help, especially if you really know what you're talking about!
A: they might rent to you, but ask a bigger deposit from you
Q: What range of credit score is acceptable for renting an apartment?
My company is closing here in California next May and I will be relocating to Austin in either mid-Aprl or May 1st of next year. I have been with my company for 23 years and am looking for a 4-6 month rental until I purchase a home. My current credit score is fair-good due in part to a divorce a couple of years back. As I have never rented an apartment before, always a home, I am not familiar with the credit requirements, I have heard they are very stringent. If I would not qualify, any advice you might have to offer would be greatly appreciated.
A: When landlords run your credit they look at a number of things. For one they look at how much debt you are carrying to see if you can even afford the rent. They also look to see if you have a bunch of things in collections (especially recently) to see if you are the type of person that skips out on their creditors. They also look for judgments against you which is where past broken leases would show up. Each landlord /management company has their own equation of who qualifies and who does not. From what you have described I doubt you will have the slightest problem just as long as you aren't a sex offender.
Q: What does your credit score need to be in order to buy a new car?
My husband and I are buying a car jointly, but we don't have great credit because we recently purchased a house and various things that made our credit take some big hits. Is there a particular score that they look for when you buy a car?
A: As a former finance manager at a car dealership, I know a bit about this. Put in the most simple way, there are many many lenders out there who specialize in "sub-prime" auto lending. They usually require a score above 500, but there are other lenders that will lend money for a car no matter what your score, if you have enough cash down, and the LTV(loan to value) of the car is in line. But keep in mind that the lower your score, the higher the interest rate. A lot of states also have max interest rates for the different loan terms, i.e. 60 or 72 months. My suggestion is to check with the bank that you use first and see what they are willing to offer. Especially if you have a great banking relationship with them! Good luck
Q: What happens to credit score after On record til Date has passed?
If I look at my credit report and it says this is on record til 8/2009 and I don't pay it, what happens to it? Can the collection agency still hound me for the money or is it gone and my credit score go up?
A: It's deleted off your report. Creditors can not hound you down after that date. But they will still try to put that on your report after that date though, when that happens you disputed it with the credit bureau and they will deleted it. But your score do improve after that debt is deleted...
Q: How will an increase in salary affect my credit score?
I understand that credit score isn't necessarily based on income but here's my situation. I have about 16,000 in revolving debt with a 600 credit score. My yearly income has recently increased 10 fold which obviously improves my debt to income ratio. How long after this increase should I see improvements in my credit score and by how much. Also what triggers the credit bureaus that this increase in income has occurred?
A: Your income as nothing to do with your credit score and the credit bureaus do not keep track of your income. Your income should put you in yet a better position to make all your payments on time, which does affect your score. Paying off that revolving debt with all the money you are now making will also help.