Need Help With Credit Score

I won’t tell u what my score is, but its better than 50% of the US population and considered ‘good’. However, my quarterly credit summary said I was doing these things wrong and it was in turn hurting my score:


You opened 100% of your revolving accounts in the past 12 months.

This lowers your score. Having accounts listed in your credit reports is a positive factor because the payment history of these accounts shows lenders how well you pay your bills. Therefore, having too few accounts or too few open accounts may be considered negative. However, having too many accounts or adding new accounts too quickly may also be considered negative because lenders worry that you are spending (or preparing to spend) beyond your means, even if you have never been late with any payments. Note that closing accounts will not change this.

Also, if you do not currently have credit, getting your first few credit cards may be difficult and may involve high fees, high interest rates, and low credit limits. Note that accounts from personal finance companies (which specialize in lending to people with credit problems) may be considered negative.

You owe debt on 100% of your revolving accounts.

This lowers your score. High balances are a negative factor because lenders worry that you are living beyond your means and may not be able to repay them. This is particularly true for credit cards. For installment loans such as mortgages and auto loans, lenders often use the proportion of the loan that is still unpaid to judge your ability to take on new debt. If very little of your installment loan balances have been repaid, lenders may not give you more credit that could add to your debt. In general, lenders evaluate how much you owe (your debt) in relation to how much you earn (your income).

However, no matter how high your income, having a lot of debt may lower your credit scores because lenders know that adverse changes in your employment and life events such as divorce or illness may make it hard to pay your bills. Low balances, on the other hand, are a positive factor because lenders do not stand to lose as much if you become unable to repay them. However, not using your credit accounts may be considered a negative factor, because it does not provide lenders with information about how you typically use credit and repay your debts.

Can anyone explain these things to me in plain english? I don’t understand, it says I owe debt even though I have never been late with one payment. Also, what exactly should I do to resolve these problems? Thanks a ton

Why won’t you tell us what your score is?

You know your score is almost irrelevant right?

Was that report from Equifax, Transunion, or the other one?

Also, that is in plain English. I don’t know how any of us can dumb it down any further.

(Don’t spend more money than you make. This will save you a lot of heart ache.)

1: If you open too many accounts within a 6 month or 12 month period, it will negatively affect your score. Just make sure you pay them all on time, and after 12 months pass, things should even out. However, don’t run out and close one of the accounts, because that has an even worse affect (trust me…)

2: If you only pay a certain amount of each bill every month, it will make the system see this as you always have debt. The best thing to do in this case is to vary your payments. For example, one month you pay a large amount after three weeks, then pay off the minimum amount a week later. The following month, pay the minimum. The next month, do something different. This will actually improve your score. Not sure why, but it does.

By the way, most people don’t know this, but Capital One accounts, with the way they report your info, always show your card as being maxed out, even if its not. They actually have a very bad effect on credit. Just something to know, in case you have one, or consider it.

I actually have a very good link on this stuff, it explains it better than I can. I’ll see if I can find it for you.

My score is 724 (I somehow thought you shouldn’t tell people ur credit score much like you don’t tell them ur income).

Thx for the help squiggles but I have to admit that I do have a capital one card. So far I dont really like it and wish to get a much better credit card like American Express or pretty much anyone with no annual fee.

At 19 724 is just fine. Don’t over extend yourself and everything will be fine in the long run.

[quote]B.b. in stress! wrote:
My score is 724 (I somehow thought you shouldn’t tell people ur credit score much like you don’t tell them ur income).

Thx for the help squiggles but I have to admit that I do have a capital one card. So far I dont really like it and wish to get a much better credit card like American Express or pretty much anyone with no annual fee.[/quote]

do the smart thing and don’t get a CC. that is all.

im 20 nearing my last year of university and I don’t owe anyone money (I think i owe my bro like $75). Never had any type of credit, maybe its a bad thing. Anyone here think I might have trouble getting a mortgage without any previous credit?

[quote]TKL wrote:
im 20 nearing my last year of university and I don’t owe anyone money (I think i owe my bro like $75). Never had any type of credit, maybe its a bad thing. Anyone here think I might have trouble getting a mortgage without any previous credit?[/quote]

as long as you can show 2 yrs of on time or early rent payments, have a decent down payment, you can look at getting a manual underwriter for a mortgage