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A question on credit rating


Fatman
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How does the number of cards you've had affect your credit score? My assumption is that the more you have/ have had, the lower your credit score - can anyone confirm?

 

 

I think you are right. It shows borrowing potential vs income, I believe.

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It really depends more on how recently the cards were opened, credit limits on the cards, proportion of balances to limits, number of cards currently open, and of course, payment history...

 

 

The reason that I ask - I have two cards an AMEX and a VISA. The AMEX is my primary card which I pay the balance off every month. The VISA I signed up for last fall when I bought my TV and was interest free for the first 14 months. Say at the end of the 14 months I have the balance on the VISA at 0 and I cancel. Then I sign up for another card that is interest free for another 14 months. How would that affect my score?

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The reason that I ask - I have two cards an AMEX and a VISA. The AMEX is my primary card which I pay the balance off every month. The VISA I signed up for last fall when I bought my TV and was interest free for the first 14 months. Say at the end of the 14 months I have the balance on the VISA at 0 and I cancel. Then I sign up for another card that is interest free for another 14 months. How would that affect my score?

 

Signing up for a new card would negatively affect the credit in the short term...Time since account open is too recent and recent account inquiry would be the reasons

 

But we are talking maybe 40 points max...every month the account was established it would come back up a few points...

Edited by alexgaddis
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Signing up for a new card would negatively affect the credit in the short term...Time since account open is too recent and recent account inquiry would be the reasons

 

But we are talking maybe 40 points max...every month the account was established it would come back up a few points...

 

 

Good to know, thanks Alex.

 

And, for the last time, GET RID OF THAT AVY!!!!!!!!!!!!!! :D

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the more lines of credit that you have the more potential for debt therefore your credit rating does down. In fact everytime you apply for credit you lose between 10 and 50 points on your credit rating. Everytime some company runs a check on your credit the same thing happens.

 

The best thing to have (IMHO) would be:

 

1. Mortgage and never be late on it

2. 2 credit cards at most, never carry over 50% of your credit limit on one card in debt because that effects your credit rating and would also increase your interest on the card (sometimes, depending on your terms.)

3. A nice 401k. the more liquid assets you have the better your credit rating or the better chances you have of getting a load with lower interest.

4. Never be late on a credit card payment, mortgage payment or any payment.

5. Have a savings account with at least $5k in it.

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the more lines of credit that you have the more potential for debt therefore your credit rating does down. In fact everytime you apply for credit you lose between 10 and 50 points on your credit rating. Everytime some company runs a check on your credit the same thing happens.

 

The best thing to have (IMHO) would be:

 

1. Mortgage and never be late on it

2. 2 credit cards at most, never carry over 50% of your credit limit on one card in debt because that effects your credit rating and would also increase your interest on the card (sometimes, depending on your terms.)

3. A nice 401k. the more liquid assets you have the better your credit rating or the better chances you have of getting a load with lower interest.

4. Never be late on a credit card payment, mortgage payment or any payment.

5. Have a savings account with at least $5k in it.

 

 

Thanks for the info Cliaz.

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the more lines of credit that you have the more potential for debt therefore your credit rating does down. In fact everytime you apply for credit you lose between 10 and 50 points on your credit rating. Everytime some company runs a check on your credit the same thing happens.

 

The best thing to have (IMHO) would be:

 

1. Mortgage and never be late on it

2. 2 credit cards at most, never carry over 50% of your credit limit on one card in debt because that effects your credit rating and would also increase your interest on the card (sometimes, depending on your terms.)

3. A nice 401k. the more liquid assets you have the better your credit rating or the better chances you have of getting a load with lower interest.

4. Never be late on a credit card payment, mortgage payment or any payment.

5. Have a savings account with at least $5k in it.

 

Couple of things wrong here...

 

You can have any industry check your credit four times in one month before it negatively affects the score...simply applying for credit does not hurt your rating..

 

Liquid assets have NOTHING, I repeat, NOTHING to do with your credit rating...

 

There are many misconceptions out there regarding credit...

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Couple of things wrong here...

 

You can have any industry check your credit four times in one month before it negatively affects the score...simply applying for credit does not hurt your rating..

 

Liquid assets have NOTHING, I repeat, NOTHING to do with your credit rating...

 

There are many misconceptions out there regarding credit...

 

 

Interesting...

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Here ya go Fatman:

 

This is the company that I use to pull credit on my clients... here is thier frequently asked questiosn page:

 

Credit questions

 

 

There are basic steps to take to improve your credit.

 

* Make your monthly payments on time.

* Keep balances on revolving accounts low.

* Don’t apply for new credit unless it’s absolutely necessary.

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