Home › Forums › Closed Forums › Buying and Selling RE › Credit card planning before getting a loan
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HLS.
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April 14, 2008 at 7:35 AM #12422April 14, 2008 at 8:16 AM #186639
zzz
ParticipantThere are some changes that are being made to the model for how the scores get calculated: http://finance.yahoo.com/banking-budgeting/article/104062/Default-Lines-The-New-Math-of-Credit-Scores
Im not a FICO score expert, but you should have your credit score run, as well as your credit report, and take a look at what shows up. I do know that anything you put on a revolving card shows up – and the % of credit you have used, against all your available credit impacts your score. Why? Because lets say you have 20K credit available, and you have 18K charged…if you were to say have problems paying your home, most people start charging everything on their credit cards before they give up and default. If you only have 2K available, you don’t have much of a cushion. In a recent credit report I ran in January, it showed only my balances as of November. There is typically a lag in reporting.
Since your card is presumably revolving, you could technically not pay off your card every month. However since the credit cards report your balance every month, I’m not sure if the “new” recipe calculates the delta from month to month to see if you are a charge and pay off person or one who’s accumulating more debt each month.
April 14, 2008 at 8:16 AM #186662zzz
ParticipantThere are some changes that are being made to the model for how the scores get calculated: http://finance.yahoo.com/banking-budgeting/article/104062/Default-Lines-The-New-Math-of-Credit-Scores
Im not a FICO score expert, but you should have your credit score run, as well as your credit report, and take a look at what shows up. I do know that anything you put on a revolving card shows up – and the % of credit you have used, against all your available credit impacts your score. Why? Because lets say you have 20K credit available, and you have 18K charged…if you were to say have problems paying your home, most people start charging everything on their credit cards before they give up and default. If you only have 2K available, you don’t have much of a cushion. In a recent credit report I ran in January, it showed only my balances as of November. There is typically a lag in reporting.
Since your card is presumably revolving, you could technically not pay off your card every month. However since the credit cards report your balance every month, I’m not sure if the “new” recipe calculates the delta from month to month to see if you are a charge and pay off person or one who’s accumulating more debt each month.
April 14, 2008 at 8:16 AM #186693zzz
ParticipantThere are some changes that are being made to the model for how the scores get calculated: http://finance.yahoo.com/banking-budgeting/article/104062/Default-Lines-The-New-Math-of-Credit-Scores
Im not a FICO score expert, but you should have your credit score run, as well as your credit report, and take a look at what shows up. I do know that anything you put on a revolving card shows up – and the % of credit you have used, against all your available credit impacts your score. Why? Because lets say you have 20K credit available, and you have 18K charged…if you were to say have problems paying your home, most people start charging everything on their credit cards before they give up and default. If you only have 2K available, you don’t have much of a cushion. In a recent credit report I ran in January, it showed only my balances as of November. There is typically a lag in reporting.
Since your card is presumably revolving, you could technically not pay off your card every month. However since the credit cards report your balance every month, I’m not sure if the “new” recipe calculates the delta from month to month to see if you are a charge and pay off person or one who’s accumulating more debt each month.
April 14, 2008 at 8:16 AM #186697zzz
ParticipantThere are some changes that are being made to the model for how the scores get calculated: http://finance.yahoo.com/banking-budgeting/article/104062/Default-Lines-The-New-Math-of-Credit-Scores
Im not a FICO score expert, but you should have your credit score run, as well as your credit report, and take a look at what shows up. I do know that anything you put on a revolving card shows up – and the % of credit you have used, against all your available credit impacts your score. Why? Because lets say you have 20K credit available, and you have 18K charged…if you were to say have problems paying your home, most people start charging everything on their credit cards before they give up and default. If you only have 2K available, you don’t have much of a cushion. In a recent credit report I ran in January, it showed only my balances as of November. There is typically a lag in reporting.
Since your card is presumably revolving, you could technically not pay off your card every month. However since the credit cards report your balance every month, I’m not sure if the “new” recipe calculates the delta from month to month to see if you are a charge and pay off person or one who’s accumulating more debt each month.
April 14, 2008 at 8:16 AM #186702zzz
ParticipantThere are some changes that are being made to the model for how the scores get calculated: http://finance.yahoo.com/banking-budgeting/article/104062/Default-Lines-The-New-Math-of-Credit-Scores
Im not a FICO score expert, but you should have your credit score run, as well as your credit report, and take a look at what shows up. I do know that anything you put on a revolving card shows up – and the % of credit you have used, against all your available credit impacts your score. Why? Because lets say you have 20K credit available, and you have 18K charged…if you were to say have problems paying your home, most people start charging everything on their credit cards before they give up and default. If you only have 2K available, you don’t have much of a cushion. In a recent credit report I ran in January, it showed only my balances as of November. There is typically a lag in reporting.
Since your card is presumably revolving, you could technically not pay off your card every month. However since the credit cards report your balance every month, I’m not sure if the “new” recipe calculates the delta from month to month to see if you are a charge and pay off person or one who’s accumulating more debt each month.
April 14, 2008 at 10:45 AM #186836sdduuuude
ParticipantI have heard that an important ratio is credit available vs. credit taken (this is from Suze Orman).
Many people make the mistake of closing credit cards when they are no longer used. This can actually hurt their credit score because the above ratio goes down.
You may consider getting a credit limit increase. If you do this, but continue to use the cards in a limited fashion, your score may improve.
April 14, 2008 at 10:45 AM #186829sdduuuude
ParticipantI have heard that an important ratio is credit available vs. credit taken (this is from Suze Orman).
Many people make the mistake of closing credit cards when they are no longer used. This can actually hurt their credit score because the above ratio goes down.
You may consider getting a credit limit increase. If you do this, but continue to use the cards in a limited fashion, your score may improve.
April 14, 2008 at 10:45 AM #186827sdduuuude
ParticipantI have heard that an important ratio is credit available vs. credit taken (this is from Suze Orman).
Many people make the mistake of closing credit cards when they are no longer used. This can actually hurt their credit score because the above ratio goes down.
You may consider getting a credit limit increase. If you do this, but continue to use the cards in a limited fashion, your score may improve.
April 14, 2008 at 10:45 AM #186796sdduuuude
ParticipantI have heard that an important ratio is credit available vs. credit taken (this is from Suze Orman).
Many people make the mistake of closing credit cards when they are no longer used. This can actually hurt their credit score because the above ratio goes down.
You may consider getting a credit limit increase. If you do this, but continue to use the cards in a limited fashion, your score may improve.
April 14, 2008 at 10:45 AM #186774sdduuuude
ParticipantI have heard that an important ratio is credit available vs. credit taken (this is from Suze Orman).
Many people make the mistake of closing credit cards when they are no longer used. This can actually hurt their credit score because the above ratio goes down.
You may consider getting a credit limit increase. If you do this, but continue to use the cards in a limited fashion, your score may improve.
April 14, 2008 at 11:36 AM #186625Aecetia
ParticipantThis will give you an idea where you stand and you could answer the questions different ways to see what the effect is on your overall score by adding credit cards and increasing debt parameters.
April 14, 2008 at 11:36 AM #186688Aecetia
ParticipantThis will give you an idea where you stand and you could answer the questions different ways to see what the effect is on your overall score by adding credit cards and increasing debt parameters.
April 14, 2008 at 11:36 AM #186683Aecetia
ParticipantThis will give you an idea where you stand and you could answer the questions different ways to see what the effect is on your overall score by adding credit cards and increasing debt parameters.
April 14, 2008 at 11:36 AM #186677Aecetia
ParticipantThis will give you an idea where you stand and you could answer the questions different ways to see what the effect is on your overall score by adding credit cards and increasing debt parameters.
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