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Advice on Understanding Credit Score

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Q: I need some help understanding my credit score?
when you pay things off your credit I know that they stay up there for 7 years, but by paying it off does it really help you?, cause everyone can still see that it’s up there? and does it help my credit score out any when i pay these things off? HOW DO YOU GET POINTS ON YOUR CREDIT SCORE? THANKS

A: Satisfying payment on any credit account will have a positive effect on your credit score. Of course, it won’t erase the negative effect of a delinquent account. Pay down your debt as aggressively as you can and you’ll see your credit score improve dramatically over time.

Q: i need help understanding my credit score?
i have a paid, was a charge off
and current accounts that have a $0 balance but are still revolving and open, do i close those? what does revolving mean? and how do i remove a charge off?
they are jewelery store credit cards but i do have a car loan that im paying on regularly

A: A charge off is basically when someone doesn’t pay their bill, and the bill is then sent to collections. The original lender charged it off as a bad debt, and a collections agency bought the debt for pennies on the dollar thinking they may be able to get the money out of you.

Revolving is like any credit card…means you can carry a balance you pay on every month.

You cannot remove a charge off if it is there because you neglected to pay a bill.

If you have revolving cards that you do not use or have paid off do NOT close those accounts. Whether you intend to use them again or not, part of your credit score is driven by how long you have had credit and how much credit is available to you. By closing those accounts, you may very well drive your score down! LOL Just leave them alone and find out what card or debt the charge off is for, so you can either see if it is nearing the statute of limitations ( most bad debt falls off by 7 to 10 years ) or if you should try to come to a settlement with the collection agency that owns this debt now. I would imagine it is the charge off that is driving your score down.

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.

Q: How long after you pay down your credit cards before your credit score increases?
As I understand, your credit score is partly calculated by how much you owe and your available credit. If an individual had no late payments on any cards, total available credit of 20K and 6K in debt, if that 6k is paid off right away, how long would it take for the score to go up?

A: Immediately upon the revised balance being reported to the credit bureau.

Debt balances influence your credit scores predominantly through a factor call “utilization” — how much of each credit line is in use, and how much of your revolving lines across the board are in use.

Strong utilization ratios are below 30% on each individual card and below 10% on all revolving accounts. Lower ratios are better.

Q: What is the minimum credit score to get an AT&T Wireless cell phone?
I understand how credit scores work and how to create good credit I was just wondering if anyone knew the actual lowest score you or a friend may have had to get an AT&T cell phone, specifically like 550, 600, 650? Also when you answer could you explain how you got your information?
Doesn’t look like Nobody knows this answer lol

A: http://forums.wireless.att.com/cng/board/message?board.id=apple&thread.id=4475

http://www.att.net/credit

Q: can you help me understand credit score?
what do they mean when they say your credit score. I mean why not one of your credit scores. I know you have 3 credit score. How do they calculate your scores into one score.
for ex: experian 575 exquifax 575 trans 611. what’s my credit score

A: Those are your scores.

All three credit bureaus have their own ways of calculating your scores and consider that all lenders do not report to all bureaus and some don’t report at all so it’s not uncommon to have as much as a 100-point difference between bureaus.

Q: Do I have to check my credit score at all 3 credit bureaus?
I just checked my credit score with Equifax. From my understanding is every credit bureaus look at credit a little differently. Should I check my credit score from all three or is just one ok?
Also, I just payed off one credit account. It wasn’t a credit card, but a loan. I just payed the rest of the amount off so now that account will be gone. Will doing so hurt my score or raise it?

A: credit-report-free.totalh.com – try this site. I use it to monitor my credit and also cleaned off some bad items from my credit report. You can apply for free initial plan and get your scores and reports for free.

Q: Does getting a new credit card negatively impact your credit score?
I already have two which I’ve always been told is pretty ideal. I’m just about to make the jump into “Good” credit territory, though, and am wondering whether it’d be better to simply renegotiate better terms for my current cards or apply for a new one.

As I understand credit, getting a new card would not affect my score, since my current debt is usually 1% or less. Is this right?

A: You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – credit-report-score.10001mb.com

Q: How can I rebuild my credit if I’m in bankruptcy and my credit score is 0?
I’m in my 5th year of Bankruptcy (ch.7), I’ve paid my mortgage on time, I have only applied for credit once during that time. I have no other credit cards or loans, I don’t understand how my credit score is 0.
So, when we filed bankruptcy the credit score sort of resets to 0? Well, I thought that paying my mortgage on time would count for something to build on after 5 years. The mortgage is the only debt we have. 2 years ago we were turned down for a store credit card. I DON’T want to get into debt again, we learned that lesson very well. All we want is one major credit card with a low limit that we can have just for emergencies. I can’t find any banks that have secured cards either! I might try Orchard bank. And we don’t really need any store credit cards…now that would lead us to back into debt…I’ve no intention on doing that.

A: You have score zero when you claim bankrupt. Try orchard bank (on the net), first premier (on the net) they have good starter credit cards for people in difficult situations.

Q: WHICH BUREAU SHOWS THE HIGHEST CREDIT SCORE?
i understand that credit scores vary between the 3 bureaus. but which one shows the highest of the 3? i’m just curious because i can monitor my credit but i only get my trans union score.

A: There is no tried and true answer to this question since not all creditors report to all credit bureaus and all credit bureaus have their own way of calculating scores.

If all of the information is reported to all credit bureaus in my experience the highest score would come from Transunion.

Q: What impact do public records have on your credit score? Do I have a credit score without any credit?
I am trying to understand my credit situation better so I can fix it. I get a lot of conflicting responses and am not sure what to do.
I have a huge child support debt from about 9 years ago (I am 30) when I was in a situation in which I was unable to work. It is about $16,000. I have been paying on it for years and finally got the interest dropped last month so that my payments actually affect the balance.

I have a judgement to my apartment complex for about $3,000 (which was paid in full.) This was from last year.

I have never had a credit card and have no loans or anything. My credit report lists my 3 child support cases as my 3 accounts.

When I paid for my score it said I was unable to be scored, though in an answer to another question I asked someone said I do have a credit score but its probably low.

Will the public records affect my score and how so. Since I paid the judgement to my apartment complex in full, should that be refected somewhere on my report?

A: Where did you get the credit reports? Judgments are usually listed on your credit reports but not always.

If all you have are negatives your score is probably so low it is below the lowest score of 350 ( I believe ).

Q: Will your credit score be affected if you miss a couple of payments to your charity?
Currently, I’m donating (via automatic withdrawal from my credit card) to a few charities. I was away for a couple of months and didn’t update my credit card info. As a result, I missed a few payments. Will this affect my credit in any way?

*From my understanding, the only way your credit/FICO score will be affected is only if you borrow money from a creditor. But, since charity organizations aren’t creditors, I’m presuming that it will not affect my credit in any way. Am I correct?

A: Of course not. You can stop giving to your charity whenever you want.

And charities do not report to creditors.

Q: What is the difference between your Fico(plus) score and your credit score?
Im totally lost. If I check my credit scores. I am in the 700 hundreds. But my bank checked equifax, and I had a score of 0. I have only had one loan, but it was cosigned.

So, is it true than lenders (bank & mortgage) only look at your Fico score?

I dont understand. Then who checks your “credit score” that the 3 credit copmpanies give you? I mean, whats the use of them?

A: This is strange. The credit score that you’re seeing and the FICO score should be the same. 700s is about average. I think I read that the median score is 726. When you take out a loan, some creditors do not report to all 3 credit bureaus. Did you check all 3 scores? It is possible to have a high score with one credit bureau but no score with another.

It could be possible that the banker at your bank is incompetant. That would not surprise me at all.

Hope that helps

http://www.moneymentoronline.com

Q: What is your begining Credit Score?
I’m 20 years old and I’ve just gotten started understanding credit. My boyfriend added me to one of his cards that he’s had since he was 18 (8 years ago) and then I started getting all kinds of credit card offers because that spiked whatever score I had at that point. What I want to know is, what is your credit score when you first start out in life? What determines what score you have if you’ve never had any kind of credit cards or loans before in your life?

Also, what is the best way to jump start your credit? I want to buy myself a new car when I turn 21, but I want to be prepared. I have another year before that happens :)

A: With no credit activity, your score would be zero. But since you were added as an authorized user, and your boyfriend obviously has great credit, your score is probably in the 600s now.

The best way to jump start your credit would be to apply for a new credit card… probably one of those preapproved offers that offer a low fixed rate APR and 0% interest for a year… pick one of them and fill it out… or do like the other poster said and get a store or gas credit card, but just pay those off every month. Continuous on time payments is the best way to get your credit up… now is the time to accept one of those credit card offers and build your credit history. Just don’t go overboard and make sure to always make your payments on time…. that’s the most important thing you can do in regards to credit.

Q: i don’t understand credit score -_-.?
okay. so i don’t have a credit card yet, and i am trying to apply for college scholarships but i need to know my credit score for some of them? so is it just zero until i get a credit card?
it was the FAFSA grant application and one other one…i really don’t remember exactly which one though because i’ve been doing so many, haha.

A: Basically, yes, if you don’t have any credit or haven’t borrowed anything in your name.

Which lender is asking you for your credit score? I’ve never heard of one requesting it.

Weird. I myself have filled out a FAFSA and I don’t remember providing my credit score.

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