Thread: Credit for Good Credit

In order to report to the bureaus you must be a subscriber which is not exactly cheap. Unless your landlord a business of lending than it's not likley he will want to fork out the money to be a subscriber. However Dorian is right 790 is a great score. Do not reley on your vantage score as they are rarely used by financial institutions, and the scoring model used by the other three bureaus only range upto 850.

I read somewhere (and can't find it right now) that the maximum points for "length of credit" is reached at 10+ years. I'm also told that so long as the account is in good standing, it doesn't matter that it hasn't actually been used (through a charge or payment) in years.

repair credit

Originally Posted by hagriderth

I read somewhere (and can't find it right now) that the maximum points for "length of credit" is reached at 10+ years. I'm also told that so long as the account is in good standing, it doesn't matter that it hasn't actually been used (through a charge or payment) in years.

repair credit

I would have to say that your information is incorrect. Generally, an account in 'good standing' is one which is being used and you zero out each month. Here is one of many links to articles about this same issue: To preserve credit score, don't leave credit cards unused

hagirderth-
unfortunately you are incorrect. You can not leave an account inactive for years. Most accounts close themselves after not being used for 2 years. You also lose points on accounts after they have not been used for a couple months. You are not given many points on an account that you aren't using. rmcarner, you are also incorrect to a degree, if you use your card monthly and pay it down to a zero, it may not get a chance to report a balancew which can become a problem if the reporting cycle skips your account too many times. I've seen client's reports who do this and no new activity is reported for months on end. Some creditors do not report monthly, also they often do not update the tradeline if the account still reflects the same information. You do want to make sure you do allow the cards to report a balancenow and then, maybe pay down the entire balance except $25 and keep a small balance. Just make sure to keep your balance under 30% at all times.

Originally Posted by CreditRepGal

hagirderth-
unfortunately you are incorrect. You can not leave an account inactive for years. Most accounts close themselves after not being used for 2 years.

Where did I write that you can leave an account inactive for years?

You also lose points on accounts after they have not been used for a couple months. You are not given many points on an account that you aren't using.

A couple of months? Doubtful.

rmcarner, you are also incorrect to a degree, if you use your card monthly and pay it down to a zero, it may not get a chance to report a balancew which can become a problem if the reporting cycle skips your account too many times. I've seen client's reports who do this and no new activity is reported for months on end. Some creditors do not report monthly, also they often do not update the tradeline if the account still reflects the same information. You do want to make sure you do allow the cards to report a balancenow and then, maybe pay down the entire balance except $25 and keep a small balance. Just make sure to keep your balance under 30% at all times.

I have to disagree with your conclusions. Did you bother to read the link that I posted with my previous submission?
The salient points were:
1. Leave extra cards open and use them
2. Zero balances don't effect the FICO score
3. Closing accounts effects the bottom line on what is called the balance-to-limit ratio, which may cause FICO scores to drop.
4. Pay bills on time and the balance in full not only maintains good credit scores but elevates them.

I have about 5 or 6 credit cards and dibble around with each one. I zero them out every month. I must be doing something right if my FICO score is sitting at 808.

you didn't read what i wrote carefully. SOME not all creditors do not report monthly. OFTEN they do not update tradelines if the accounts are paid off too quickly. Paying the balanc ein full helps but not if it hasn't had time to report activity.
I'm a board certified credit expert by the National Board of Credit Education. I've been doing this for 13 years and I stare at credit reports every day. Trust me when I say that sommetimes paying off your balances too quickly can bite you in the butt. Pay them off but make sure to give them a chance to report at least once in a while.

Originally Posted by CreditRepGal

you didn't read what i wrote carefully. SOME not all creditors do not report monthly. OFTEN they do not update tradelines if the accounts are paid off too quickly. Paying the balanc ein full helps but not if it hasn't had time to report activity.
I'm a board certified credit expert by the National Board of Credit Education. I've been doing this for 13 years and I stare at credit reports every day. Trust me when I say that sommetimes paying off your balances too quickly can bite you in the butt. Pay them off but make sure to give them a chance to report at least once in a while.

I read what you wrote with due diligence. You are continuing to insist that being a prompt payer can 'sometimes' be detrimental to your credit score health. This is the first time I have ever heard about this and really don't know what to make of it. It seems on the face of it to be a contradiction in terms. But then, I think you are leaving out a critical part of the equation. First: I understand how the overall credit score would be adversely effected by being delinquent with a payment; additionally amount and length of time become algorithmic factors. I also grasp the essentials associated with keeping the credit card balance below the maximum credit card limit - but paying 'too quickly'?

Here are the principals hat I have wrapped my behavior around: The FICO score model looks at your credit utilization in two parts. First, it scores the credit utilization for each of your credit cards separately. Then, it calculates your overall credit utilization, that is, the total of all your credit card balances compared to your total credit limits. It is true that a high credit utilization in either category will lower your credit score. It is also true that this is not the end of the world. A high credit utilization won't hurt your credit score forever. As soon as you reduce your credit card balances (or increase your credit limits), your credit utilization will decrease and your credit score will go up.

You are correct that the 'true balance' of a particular credit card may not be reported in a timely fashion and the FICO score might be effected as a result. So, this is the second thing I pay attention to: I attempt to create the appearance of low credit utilization through low credit card balances.

To be blunt, I haven't come across a variety of articles that warn credit card users about the vagaries of credit card companies when it comes to updating tradelines. Are credit card companies deliberately keeping this information out of the hands of the public?

In any event, to be more specific about my own payment behavior: I schedule my payments on-line for the actual day that the payment is due. I'm not trying to toot my own horn: it just seems strange that either despite what I have done or because of what I have done - I have a pretty decent FICO score.

Originally Posted by CreditRepGal

hagirderth-
You also lose points on accounts after they have not been used for a couple months.

Wrong!

I'm sorry but you have incorrect information in most of your posts. Like the one I just quoted. Also, leaving balances now and then is another credit score myth. While "leaving 25.00 now and then" may not hurt you, you'll be just as good (if not better) by paying them off.

Might want to get a refund from this National Board of Credit Education who prays on people like you. Just checked them out and there's a million of those places that you pay a fee to so you can say you're "certified". Its like those old web design awards. You pay a fee so you can say you won a "best of the web" award".

Originally Posted by Marc Chase

Wrong!

I'm sorry but you have incorrect information in most of your posts. Like the one I just quoted. Also, leaving balances now and then is another credit score myth. While "leaving 25.00 now and then" may not hurt you, you'll be just as good (if not better) by paying them off.

Might want to get a refund from this National Board of Credit Education who prays on people like you. Just checked them out and there's a million of those places that you pay a fee to so you can say you're "certified". Its like those old web design awards. You pay a fee so you can say you won a "best of the web" award".

LOL. I used to get irritated now just amused when someone on the list pimps his/her information with some sort of title - like 'Board Certified'.

I closed on my first Buy/Fix/Flip last Oct. 28. Work began that same day both on the exterior & interior - stripping the horrible vinyl siding and basically gutting the interior.
Work on the exterior abruptly ceased around Dec 1st due to cold weather. It has been a long haul but I can see light at the end of the tunnel. Except for the fact that I grossly underestimated what I would need for a bridge loan to fix the place up.

Had a meeting with the lender a couple of weeks ago. It went well. I'm seeking another 20K. She is probably going to be able to get me 15K, which is fine.

One of the things I learned about this process re: the lender is to be completely up front and honest. I flat out told her that I screwed up when I submitted my first cost projections. I did not get defensive. I used what humor I have and pointed it toward myself. This 'relationship building' was not a new thing. It had been going on for several months. Of course you can't get money just based on trust. But in a way she and I are partners because she is the one who presented a loan package to her Board. Obviously she wants to see me succeed so we are sort of 'in it' together.

One thing I learned is to stay in touch. Here is one way I did/do it: I invested in a 10mm - 24mm wide angle lens for my Canon. I started documenting work on the building. I Photoshop the best images and add captions. Then, I send these to her. Maybe once a month.

The other thing I learned is not to give money upfront to contractors. Early in the game (November) I wrote a check for $2,800 to a Sub in order to purchase the windows. This is a guy I've known for a couple of years and worked with on other projects. He ran with the money. There is no chance of getting it back. Ya live and learn.

Sorry. Most of this is off-topic.

Dick

I reakon the best way to get the answers you really want is to speak to loan advisors online, speak to professionals and get your loans in order, there are many that offer great advice.