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How fast can a credit score increase?

How do I increase my credit score?

  • I've been poking around my financial state the last couple months- I think my current finances are good, but I should do more to save more money. But one thing that's been stumping me is how to increase my credit score, so when I buy a house or car I'd get the best interest rates. currently Experian, Equalfax & Transunion all give me a score of at least 743, with a high (by Experian) or 781. I established credit around 2005... when I was 17 (with aid of my parents). That's now 7 years of credit history. I started with a $250 card (that I never used) and now have four accounts totaling approx $12k of credit- 2 that I will be closing soon since they will no longer be used. I always paid on time, and there's been entire quarters that I did not charge anything to my credit cards. However due to an extended period of unemployment, (approx 14 months) I was unable to pay in full, but still paid greater than the minimum on time. I think credit might has something to with income/job history? I've been employed part time making about $2500 a year since 2004 until spring 2010 when I had to quit work for school. After I finished school I was unable to find a job until summer 2011. I now hold steady, full time employment making approx $32k a year... I have very little debt, and rarely have a credit card balance exceeding $800 a month (that is all paid off on time). I'm wondering what can I do to better my rating?

  • Answer:

    That's actually a pretty good score. And as long as you pay over the minimum it doesn't matter that you did not pay in full. I am 21 an my credit score is currently in the low 700 range. I have 3 credit cards just keep doing what you are doing and it should keep raising :) Yes getting credit applications from different companies is perfectly normal I average one a week. Some companies will do anything I get new bushness

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You're getting not the range where almost nothing except time will increase your score. I'm stuck around 800 with inquiries pulling me down into the 700s. The best way to figure out if you can do anything is to check your credit reports for any negative factors. Then check out www.creditkarma.com This will show you all of your credit information and grade each section of the 6 major factors that impact credit. Income does actually have an impact on your credit score but it's very tough to actually find out how it's calculated and typically doesnt hurt you much one way or the other. Your debt to income sounds decent though so I wouldn't put much emphasis on this. Your average age of accounts is probably lower than 7 years. This is probably one of the larger factors effecting your credit since your utilization and payment history sound perfect. The lower age of accounts would lower you about 40-60 points until they reach 8 years. Also, you may not have multiple types of accounts which could also lower your score. Check out www.creditkarma.com, best site I've seen to help credit.

Alexander

get rid of the big 250 limit card it is pointless and just being your "oldest" does not matter as much as the limits. Your score is excellent the only thing that will improve it is an installment loan at this point because you need variety in your credit. Right now you are obsessing about your score needlessly. The score you get has nothing to do with reality as lenders choose their formula and scores vary a lot. With your score and low debt you do not have to take the interest rate offered unless you feel it is fair. My first car loan the dealer offered me 12% and I refused I got 9% my first mortgage was offered at 7% I refused and got 5.5%. When you have low debt decent income lenders now you can walk and shop, do it smart of course all car loan applications within 3 days of each other and mortgages within 5 days count as one pull of your credit report. Be reasonable but never give in. If everything you say is correct you should get a car loan at no more then 3% currently no money down and a home loan with 20% up to 100K at no more then 4.5%. It is nice for a change to see someone here asking a question who is not an idiot but just needs a little encouragement and advice

Calvin C

Scores above 740 to 760 will get you the best interest rates out there. Any higher than this is really not necessary. Do NOT close your oldest credit card. "Length of Credit History" is 10% of your fico score. Only close it if it carries an annual fee. Never carry balances on credit cards. This can seriously cause damage to your credit scores. Pay your credit cards in full each month. This way, you never pay interest and develop even better credit. It is a myth that you need to carry balances to get good credit. Simply a lie. Enjoy life. Credit is one thing you definitively don't need to worry about.

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