Credit question

[riverxbear]

I have had a credit for over 2 years but this last year i have had some ruff times and have been over the credit limit but making my minimum
payments. So im about to pay it off in full and keep it and start over with it.

is my credit jacked up or is it allright ?


any input

 

[riverxbear]

????????

 

[cangn]

your credit is very bad right now

 

[manock]

I mean it depends on your situation. If you had late payments, delinquent status, or collection agencies contacting, it depends. It stays on your credit reportfor seven years. As of right now, best thing to do is pay it all off immediately and use your cards sparingly and pay off the full balance immediately everymonth. And rebuild your credit slowly by consistently.

 

[riverxbear]

I have only had 1 late payment.

 

[stork]

it's fine, carrying a balance isn't bad if you pay the minimum $20 a month. but it's better to pay it off every month, or you're just diggingyourself a deeper hole. don't ever spend money you don't already have.

 

[nationaltruckerdave]

Pay more than the minimum every month if you can.

 

[antbanks81]

When you make your monthly payments,does it take your balance under the limit? It's a lot of factors involved with your score. You're only talkingabout one account, so your credit score might not have been affected too heavy. Also, you need to keep some balance on the card. The amount can be argued. Mostsites I have read say to keep your balance to 10-15% of the limit. It has to be shown that the account is used.

check out credit.com and bankrate.com for more information about the composition of your score. Also, check it. You get one free copy each year and pulling ityourself doesn't cost much.

 

[mr cool grey]

Your credit score is probably very low right now. Unless your buying a house, car or investing in a business, its not going to harm you (for now). But makesure you always pay more than your minimum balance, never be late. And whenever you use more than 50% of what your credit limit is, CC companys will usuallylook at that and say this guy is never going to pay us back. SO make sure you cut your balance asap, and when your done paying your card off, put it away for awhile...

 

[crcballer55]

Originally Posted by AntBanks81

When you make your monthly payments,does it take your balance under the limit? It's a lot of factors involved with your score. You're only talking about one account, so your credit score might not have been affected too heavy. Also, you need to keep some balance on the card. The amount can be argued. Most sites I have read say to keep your balance to 10-15% of the limit. It has to be shown that the account is used.

check out credit.com and bankrate.com for more information about the composition of your score. Also, check it. You get one free copy each year and pulling it yourself doesn't cost much.

Not to be rude, but this entire statement is incorrect. You do not need to keep a balance to have a high credit score. I've never kept abalance and my credit is in the mid 700's. If you're delinquent, it will affect your other accounts too due to an industry practice called"universal credit default". You're better off paying off your cards, cutting them up and using your debit card for a while. Keep the accountsopen so you have a longer history, but make sure you won't be using them any time soon.

 

[boilermaker x]

^^^ Co-sign. Never carry a month-to-month balance. Pay your bills on time and in full.

 

[riverxbear]

i havent used it in a year or so.

if the lowest amount is 20 i have to pay i pay 40.

im just over my limit for some reason and i never got around to paying it off all the way.

but im never late , and im not going to be trying to buy a new car untill im done with school.

 

[antbanks81]

Originally Posted by crcballer55

Originally Posted by AntBanks81

When you make your monthly payments,does it take your balance under the limit? It's a lot of factors involved with your score. You're only talking about one account, so your credit score might not have been affected too heavy. Also, you need to keep some balance on the card. The amount can be argued. Most sites I have read say to keep your balance to 10-15% of the limit. It has to be shown that the account is used.

check out credit.com and bankrate.com for more information about the composition of your score. Also, check it. You get one free copy each year and pulling it yourself doesn't cost much.

Not to be rude, but this entire statement is incorrect. You do not need to keep a balance to have a high credit score. I've never kept a balance and my credit is in the mid 700's. If you're delinquent, it will affect your other accounts too due to an industry practice called "universal credit default". You're better off paying off your cards, cutting them up and using your debit card for a while. Keep the accounts open so you have a longer history, but make sure you won't be using them any time soon.

No rudeness taken sir, but we are talking about one account. OP didn't say how many installment and revolving trade lines they have, so it is difficult toevaluate entire situation. $0 balances are looked at as idle accounts. Those were the first being cut off by many credit companies during the recession. Theaccounts do have to show use. Because the cycles are different and reporting dates are as well, your account might be reported prior to you paying them off infull. I agree with the bolded statements. Check the section below about balances (30% of your score)


Top 5 Factors Affecting Your Credit Score
There are five primary factors that account for the magical credit score which determines you acceptance or rejection for most loans or credit cards, and strongly influences the interest rates or total cost for you to borrow the funds.

The following is a very basic overview of the five most important factors in determining your credit or loan score (aka FICO score). It is worth noting that the three major credit bureau all calculate their scoring models slightly differently, so what I have presented is a slightly blended overview, but it will give you the most important factors and an a rough relative weight in the credit scoring process.
[h3]How Payment History Affects Your Credit Score - 35%[/h3]
Payment history accounts for about 35 percent of your credit score (this will vary depending on the scoring agency). It makes sense that this would be a top factor, since someone with a long history is of never missing a payment is likely to continue to be a safe person to lend money to.

If you do have negative marks on your credit score, three factors will determine the size of the deduction to your credit score:

1. Time Since The Event - how long ago did you miss a payment? If it was a long time ago, and you have a good payment history since that time, it will not affect your score very much. Whereas a recent missed payment will cost more against your credit scoring.
2. Number of Missed Payments - obviously matters. One missed payment in ten years of good history won't matter very much, but the more missed payments in your history, the more risky you are seen to be and this will be reflected in a lower debt score.
3. How Bad Was The Blunder? - being late or missing one credit card payment is a small deduction. All the way up to having a bill go to a collection agency to the biggest black mark of all: bankruptcy.

[h3]How Much You Currently Owe - 30%[/h3]
If you think of your credit score as a kind of "worry index" for lenders, you'll understand why how much of your possible credit you are using would be a concern for lenders.

Think of this aspect of credit score as a percentage. The amount you owe on all possible credit sources (credit cards, auto loans, home loans, your current mortgage and so on) divided by the total of all credit available to you.

To put it into perspective, statistically most Americans use less than 30% of their available credit and only about 12% use more than 80%.

How much you currently owe compared to your total available credit accounts for about 30% of your loan score. Knowing this straightforward measurement, to improve your score, simply pay down any loans and avoid the temptation to get cute and improve your ratio by getting a larger amount of "available credit". As we'll see in the next sections, this can actually hurt your credit score more than improve it.

In general people who have a debt scenario near to or at the limit of their credit are much more likely to default and therefore are given a lower credit score. If you are in this situation credit counseling, to develop a debt management plan, may be something worth considering to reverse the trend and lower your debt ratio.
[h3]How Long You Have Had Credit - 15%[/h3]
This metric accounts for about 15% of your credit score, with favorable weight going to those who have had credit for the longest time. The reasoning behind using time as a credit score factor is because in time it is easier to establish patterns of behavior.

Even if someone has never had a credit incident (a late payment for example) but they have only had a credit card or loan for a short period of time, they may not have encountered any of the critical life events that can cause major stress.

Credit statistics show that people with the highest ratings for example, have not missed a payment even when they have lost their job or been ill for extended periods.
[h3]Your Last Application for Credit - 10%[/h3]
The typical American consumer last applied for some sort of new credit 20 months ago. Recent credit applications can indicate a "need" for money and needing money is a negative factor on your credit score.

Your last credit application date accounts for about 10% of your total score. In fact, even having many lenders check your credit score can have a negative impact on your credit score, so make sure you don't authorize lenders or banks to "pull" your credit score unless you are in fact, seriously shopping for a loan or other credit instrument.

Ordering your own credit score report from one of three bureaus should not count as a negative on your actual credit score.
[h3]The Types of Credit You Are Using - 10%[/h3]
In short there are two major types of credit: revolving and installment.

Installment loans are items like car loans and mortgages. Revolving are credit cards and the like where even if you pay them in full, you still retain the credit to use it again. Generally credit cards are seen as higher quality revolving credit, than department store cards. And mortgages are seen has higher quality than revolving credit, simply because they are more difficult to obtain ( the recent sub-prime loans excluded

" src="http://www.smartmoneydaily.com/personal-credit/wp-includes/images/smilies/icon_smile.gif"> ).

The type of credit you are using represents about 10% of your score, and a higher score is give to people with a blend of credit from various sources. This is seen as a reflection of trust, due to each credit card or loan being seen as an endorsement from a different company.
[h3]Credit Score Conclusions[/h3]
It is clear when you read through the 5 credit score factors that they are derived from a statistical analysis of many years of loans versus default rate data. This is both good and bad. For the lenders it can be a fairly accurate predictor of the "typical" borrower's behavior and for the consumer it does provide a clear roadmap for improving their credit score.

The downside to this statistical analysis is, of course, that it doesn't account for the human factor or treat people as individuals. In the old days, before FICO Scores, the bank manager or loan officer knew their clients and included the client's "character" as a major factor in making a decision whether to lend or not. Now that the decision is largely automated, it is possible to be unfairly represented, and be forced to pay higher lender fees, by a credit scoring models based on other people's behaviors.

 

[boilermaker x]

So, Ant, are we to understand that you believe carrying a balance from month to month - that is, not paying your bill in full - conveys to lenders that you area wise and responsible user of credit? If so, I respectfully disagree and would offer that my own experience has certainly born this out.

 

[crcballer55]

Ant, I must also disagree slightly with your post. The whole point of a good credit score is to get lower rates when you do get credit. If you'recarrying a balance, you're automatically paying a percentage more than your original balance.

To OP- Pay anything over and above $40 that you can. Even paying twice the minimum will take you over 15 years to pay off just what you have right now(assuming you don't put anything further on your card).

 

[jdb1523]

My post from another thread:

Anybody know any cards they give to almost anybody?

My credit score is 'Fair,' due to never establishing credit during my undergrad and also paying a few bills late during undergrad also. Now I'mlooking for a card and most places are being super strict (understandable).

I read on a site that the Discover Platinum Plus card is given out to those with Good-Fair credit scores...I'd apply but I already got denied oncerecently.

Any recommendations? Thanks guys.

 

[crcballer55]

Originally Posted by JDB1523

My post from another thread:

Anybody know any cards they give to almost anybody?

My credit score is 'Fair,' due to never establishing credit during my undergrad and also paying a few bills late during undergrad also. Now I'm looking for a card and most places are being super strict (understandable).

I read on a site that the Discover Platinum Plus card is given out to those with Good-Fair credit scores...I'd apply but I already got denied once recently.

Any recommendations? Thanks guys.

If you want something "safe" go with a secured credit card. You'll have to front the money for whatever you want your credit lineto be, but it's a good way to establish a credit history without getting yourself into trouble. If you do "max out" you've already paidthat much to the bank and it won't have as big of a negative effect on your credit history.

 

[jdb1523]

^Ya I heard that today as well...do most major banks offer those? I'm with KeyBank in Ohio...guess I'll check tomorrow morning. Thank you.

 

[thewealth]

^Bank of America has one of the best.
If you qualify, they offer one called the 99/500. You deposit $99, but they give you $500 available credit.
If you don't they'll offer you a regular one.
They usually become unsecured after 6 months too and give you your deposit back.

 

[rockenjayz247]

Originally Posted by TheWealth

^Bank of America has one of the best.
If you qualify, they offer one called the 99/500. You deposit $99, but they give you $500 available credit.
If you don't they'll offer you a regular one.
They usually become unsecured after 6 months too and give you your deposit back.

can u explain a little more?? sound interesting just have 1 credit card, trying to establish better credit and never heard of this...