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Fair/Good Credit, but want Great credit - how to improve?Fair/Good Credit, but want Great credit - how to improve?
newbie~wan said: "I understand that this is a credit REPAIR forum, but I thought there might be more than a few out there with a similar situation who could benefit from discussion about making fair credit good/great.
MY BIO:
-25yrs old.
-Credit scores: experian 698, TU 728, equifax 751.
-only one OPEN revolving account (balance usually paid off monthly)
-one INSTALLMENT acccount (small $6k student loan)
My credit is classified as "fair" but I want "good". Would opening additional credit card accounts help prove my capacity to pay on time? Which would be better: paying off my student loan in full or continuing to pay on time every time?
There seems to be a lot of conflicting info out there regarding paying debts off ASAP vs. paying them off steadily to prove ability to remain on top of things."
David said: "DUDE.. MOST PEOPLE WOULD KILL FOR SCORES LIKE THOES..
If you have no real established credit.. then make your normal payments.. but if you are established.. pay off what you can ..
The less overhead you have on open accounts with a balance.. the higher your score should.. and i stress should be."
newbie~wan said: "Thanks for the compliment. I guess I was just wondering if its possible for someone my age to have higher credit scores. My car is in bad shape and could take a sh*t at any moment. If that happens I'll have to buy a car on credit since I have very little cash. I understand that really good credit scores will get you lower interest rates (hence my interest in raising it further)."
Omega blood said: "I don't think more CC will help. A new CC will actualy lower your score initaly. It will go back up after a month or 2.You aready have realy good scores. The best way to improve your score is to have a long history of on time payments with a low balance on a high limmit. But you also CAN'T have too much "potential debt". That is 5 or 6 CC with a $1500 limit that have a $0 balance this will also bring down your score. What I would do is print out a recent credit report, take it with you and shop around for the best deal. Don't let them pull your report unless you are sure you want to buy. When they pull your score goes down."
newbie~wan said: "[QUOTE=Omega blood]But you also CAN'T have too much "potential debt". That is 5 or 6 CC with a $1500 limit that have a $0 balance this will also bring down your score.[/QUOTE]
I'm not sure I understand you. Did you mean to say that you CAN have too much "potential debt"? I've heard that it is bad to have access to a large line of credit, even if you have no history of using it, simply because you might. They really seem to have our b@lls in a vice here: Having a low line of credit and being close to the max is bad, but if you dare increase your line or take on new accounts, thats bad too..... :rolleyes:"
Omega blood said: "[QUOTE=newbie~wan]I'm not sure I understand you. Did you mean to say that you CAN have too much "potential debt"? I've heard that it is bad to have access to a large line of credit, even if you have no history of using it, simply because you might. ..... :rolleyes:[/QUOTE]
You got it! That's why they say you should onyl have 2-3 Credit cards with high limits with history of use carring a low balance. Carrying a low to no balance often shows that you know how to use your credit prudently and don't over extend your self."
newbie~wan said: "Rather than talk in generalities, let me get specific about my case:
1.) I don't NEED a second credit card (to buy stuff, make ends meet, etc).
2.) The only reason I'm thinking about getting a second one is in order to build my credit history more quickly. From what I UNDERSTAND (which doesn't mean its accurate, please correct me if you know otherwise), theres two ways to build "credit history":
a.) time
b.) more lines of credit
Since I obviously have no control over time, maybe I can build credit history more quickly by actually having more credit lines? (As long as I keep the balance low on them, of course).
Here's the breakdown as I see it:
CON: Increased # accounts and/or credit lines equals more risk for indebtedness in the eye of the creditor.
PRO: Increased # accounts with low balances and history of timely payment equals credit worthiness.
Now the only question is do the pros outweigh the cons?"
A+ Credit Solutions said: "You have perfect credit. Anything above a 700 is a lenders dream. So don't worry about it. Take that from someone who approved loans for 20 years of his career.
Dennis"
Omega blood said: "You said you would need a new car soon, right? Why not just buy a new or used car (no more that 2 years old). Get loan a build credit that way. Credit cards arn't the only way. The only reason to build credit is to get that 700 score you already have. If you have had your student loan for more than 2 years pay it off if you can. The total amount of debt you have will also lower your score. If you pay it off I'm sure your score will go up. I would pay off the student loan before geting the car loan, that's if you need a car."
JoshJohnson said: "Once my score got above 700 it never moved much at all in the last 2 years. I make all the payments on time but the score doesn't go up."
A+ Credit Solutions said: "Josh,
Be happy you have a 700 score. As to why you don't move up depends on what kind of open accounts you have and how long you have been on the credit bureau reports and so on. This is a major factor on your credit score. You just don't want to go below 700. 700 is the magical number. But if you are that concerned about it, go to annualcreditreport.com and get your reports for free and let us know what is on it and we might be able to assist you in getting it higher.
Dennis"
newbie~wan said: "Okay, thanks for all the comments everyone. Dennis, I've already pulled my reports and scores so I know there's nothing bad on them that I can take off (except one 60-day late payment back in '99 which will be dropping off in a couple months due to the "7 yr rule"). I guess I was just wondering if it was possible for someone my age to have a high 700/low 800 score. It doesn't appear so. I don't really care much, I was just curious (the perfectionist in me, I guess :rolleyes: )"
anchorbob said: "One of the biggest parts of credit is the accounts aging. The longer you have accounts in good standing, the more likely your score will increase."