Better Credit Score

Better Credit Score questions and answers

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Q: Better credit score if payed off immediately or if payed on time within the 12 months?
I recently bought a ring. Would I get a better credit score if I payed it off immediately or if I payed it on time with the 12 months interest free that I have?

A: Since you have it interest free for 12-months make the payments, payment history makes up a full 35% of your score. Just be sure to pay it off a few days early because if you don't you can get hit with the full amount of what the finance charges would have been.

Q: is it better to raise your credit score by getting a secure credit card or loan or just applying?
i found out my credit score and it's not very good. someone said if you get a secure loan or credit card you can build better credit that way. i don't want to keep applying for credit cards when i'm just going to be denied, i know it takes points off your score everytime you do that. i don't have any credit cards now so i really have no way to make the score better.

A: It sounds like you just don't have credit which isn't necessarily a bad thing.Since you are in this situation credit card are going to have a majorly high interest if I were you then I would get a secure card from your bank.This is a credit card (not tyed to your checking account)how it works is say you have 500.00 limit them you must have 500 in the bank account say that you use 200.00 in that month you have to pay all 200.00 no interest but if you don't pay that 200.00 than you will pay interest and you will only have 300.00 worth of credit even after you pay that 200.00.You have in essence just borrowed 200.00 from the bank. You could also just get a300.00 loan from your local finance company.Most of those places do require certain job and residence time call them to check Happy credit

Q: Does having a good credit score in USA help in obtaining better credit terms in Canada?
I have a credit score greater than 760 in the US. We are planning to move to Canada. Do Canadian lenders have access to/consider US Credit Score when considering an application for credit?

A: No they dont. You will have to start fresh again. Best option is to get a visa when you get here so you can start building your credit history quickly. I know, it sucks, but unfortunattly, Canada has not become the 53rd state yet, so they dont have access to your credit in the states.

Q: Is it better (credit score wise) to pay a collection agency or the original creditor?
I owe $300 to a community college. It went to a collection agency and it's now on my credit report. Should I pay the collection agency listed on my credit report or the school? If I pay the school, will the collection agency be taken off the report? If I pay the collection agency, will it lower my score because it will show a late payment on my credit report?

A: If the debt has gone to a collection agency, that is who you have to deal with. You should try to negotiate a pay for delete (you pay and they remove the item from your credit). Get it in writing before you pay and don't give them direct access to your bank account. If you can't get a pay for delete agreement, paying the defaulted debt won't improve your score at all. The damage is done and will remain for the balance of the 7 year reporting period, whether paid, unpaid, or settled.

Q: We want to get an auto loan my husband and I but he has the income and I have the better credit score.?
How should we put ourselfs on the application to get a better car loan my husband first since he has the most income or myself that I have the better credit score? Which one counts the most when trying to get a car loan?

A: A joint application makes no difference who is first and who is second. The interest rate will be based on the lower credit score.

Q: Should a collection account be paid in full, or paid in payments, for a better credit score.?
I have a few new (within 1 year) collection accounts that need to be taken care of. I have heard that paying off old accounts in full will negatively affect rating, so I am assuming that paying off the newer ones first will have better short term results in my credit score. I know from dealing with up-to-date credit card accounts, that a payment history, making regular payments on time, is better for my rating. I have also heard that a payment history on accounts newer than 6 months will hurt my score, while payment history over 6 months will be good for my score. SO...how should I pay off collection accounts? Is it better to spread out the payments over 6 months or more, or better to pay in full? I am looking at being able to get a mortgage in the future. From what I have read, paying collection accounts just prior to applying for a loan is a bad thing. Although my report will show paid in full, it negatively affects the credit score. Trying to plan ahead, for better results.

A: For a better credit score, a "pay to delete", or "payment for deletion" is your only option. Whether you make payments or pay the whole thing off, unless it's removed from your report, that account will still reflect negatively. I posted links to a website that explains how to settle delinquencies to improve your credit score. Hope this helps

Q: What can I do to obtain a better credit score on my credit report?
I'm only working part-time and going to school full-time. It looks like its going to be like this for the next 3 years or so. I need any advice/suggestions on how I can clean up my credit report.

A: I always tell my clients to start small. If you try to attack cleaning up your report all at once, it can be very intimidating! Here are the steps I would take: 1. Pull a credit report from all three credit bureaus. You are entitled to one free credit report per year per bureau. 2. For your open accounts, make sure that you are current and not over your credit limit. Get current and stay current with those. 3. If you have judgments or liens, make those your first priority to settle/pay off. Those blemishes are huge. 4. When it comes to your collections accounts, start with the one that has the lowest balance first and work your way up. Keep in mind that once it's the "collection" or "charge-off" status, you can try to settle the account (or pay less than the amount owed). There is nothing wrong with negotiating! Make sure you request a receipt each time you pay something off. Send those to the credit bureaus each time in order to get your report updated. Good luck!

Q: If you have a good credit score, near 700 Is it better to have a higher credit limit?
I barely use it. does the higher credit line equal a higher future credit score?

A: not really it does not matter

Q: Has anyone ever used rapid rescoring to get a better credit score fast?
If so how many points does paying 2 credit cards down from maxed out to a 10 dollar and 31 dollar balance. We are trying tobuy a house and we need like 15 more points to increase the middle score. the rapid rescoring info said it could be raise 30 points if i paid these two credit cards all the way down? Is this possible?

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: Does meeting payments on a credit card give you a better credit score than if you?
never had the card in the first place? Or is it the same? Or does having a credit card lower your score no matter what? Thanks

A: No, having a credit card does not lower your credit score if you pay your bills in full, on time, every time. Many people, including myself, have credit cards just for the sole reason to build credit. I started out with no credit, and have successfully managed to build my credit score up. Good luck! Just make sure to pay your bills on time or else this will backfire on you.

Q: I have a secured credit card with $400 limit, for a better credit score, get another card or up my limit?
I only have one secured credit card that I've had for a year now. I only charge my gas on it and I pay it in full every month. I want to jump start my credit score somehow, would getting another secured credit card benefit me? The credit limit is only $400, should I raise the limit on it? Or should I just leave it alone and keep paying on time?

A: To establish a good credit rating you need a mixture of credit, revolving accounts like the credit card and installment loans. Leave the card balance as is. You can open a savings account with the bank or credit union you do business with, save until you have $1000, and take a personal loan against the account. Set the account up to be repaid with 12 months. Take the money that the bank gives you and put into your checking account to repay the loan. If you have had the secured card for a yer, you can also try to get a unsecured card, or call the issuer of the secured card and see if it can be converted to a unsecured card.

Q: Is it better to have a good credit score or lots of money in savings?
Why should I have either a $10,000 credit limit or $10,000 cash invested in mutual funds?

A: Good question. I think the wealthier you are, the better. If $10,000 were invested in a mutual fund that has an average return of 10% per year (many funds do even better), this is what your $10,000 investment will turn into: in 5 years=$16,105 in 10 years=$25,937 in 20 years=$67,275 Credit can't build wealth, it will only allow you to borrow money that you have to give right back. When you have money, there's no need to borrow in the first place!

Q: How can I get a better credit score?
My credit is outgoddamnrageously low! Anyone have some tricks to turn it around?

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 - buildcredit.ifastnet.com

Q: Best way to get a better credit score?
I am returning to college (with loans) and I have one credit card. Due to some shakey past, My credit is not so great. I want to buy a house when I get out of college (6 years from now). Should I just wait and make sure my one credit card remains in good standing? Will that be enough?

A: get a gas card, deparment store card and another visa and use them but pay them off. that way it shows you have the credit plus good payment history.

Q: Should i pay my credit cards in full or make payments to better my credit score?
I have 5 credit cards, and out of a big check that is coming my way im able to pay off all 5 of them. Should i pay them all off or make payments? Which is better to get my credit score back on track? I'm personally thinking bout paying all 5 in full, to get it over with...but is that the best approach credit wise?

A: Absolutely pay them in full! The cards will still be open with no balance. This looks good! Use them when needed but pay them off EVERY month in full.