The Government of Canada offers a free publication called Understanding Your Credit Report and Credit Score. This publication provides sample credit report and credit score documents, with explanations of the notations and codes that are used. It also contains general information on how to build or improve credit history, and how to check for signs that identity theft has occurred. The publication is available online at the Financial Consumer Agency of Canada. Paper copies can also be ordered at no charge for residents of Canada.
It doesn’t matter what your credit score is these day . Mine is 715. I think it’s all biased ! I’ve been struggling for 14 years since my husband passed away & on a decent fixed income. I’ve never been late paying any of my utility, rent. or loan obligations needed to survive. I’ve purchased 2 cars, both were payed off a year in advance. I had to recently purchase a used car that turned out to be a lemon because I could not be approved for a new car because of my credit score. What ! They should change the point system. Not everyone wants to get in debt to get out of debt. I surely don’t. So much for freedom of speech & the home of the free. We are living under American communism ruled by capitalist. So how free are we? So much for what the American Flag stands for & what our forefathers came to America for to have a better life !
Ray, Fist let me say I agree with everything you’ve said so far on this blog… hard for many people to hear and maybe even harder for them to even comprehend, but very true, most people live far beyond their means. That being said please look at the process of the securitization of loans which offloaded this risk of loans from banks to an intermediary which are then grouped and sold to investors as MBS (mortgage backed securities) often backed by further layers of securitization. The boom in this practice of offloading risk from banks is the primary cause of the sub-prime mortgage crises.
630 to 640 is fair and not that bad. But it is the banks and lenders who are pushing what THEY consider good and bad credit. So even if it appears that someone has pretty fair or decent credit scoring, the banks control how the scores are determined and whether or not they want to lend based on those scores. It is often arbitrarily changed from bank to bank, lender to lender. In my opinion we shouldn’t allow banks to control the credit scoring and terms of what is good and bad. Because as it stands now they are the ones in control of the scoring and the system. The middle class and poor do get slammed and the whole thing is rigged plain and simple. There is nothing fair about what big banks do in this regard.
Credit cards and loans can affect your credit differently. Credit cards are revolving accounts whereas most loans are installment accounts. A mix of different types of accounts can be useful. Do you have any credit cards or loans now?
My 21 year old son wants to get a credit card, he’s been turned down because he doesn’t have a credit history. I’ve been thinking about making him a co-signer on one of my credit cards, however I have very bad credit (a bankruptcy & a foreclosure) will my bad credit follow him afterwards?
The highest credit score you can have is 850. That’s the maximum credit score used by all of the most popular credit-scoring models today. While less than 1% of people have that highest possible credit score, according to score providers, far more of us can claim to have perfect credit.
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But things could also be a lot better. Scores lower than 630 are considered poor, so you might be denied for credit cards and loans or pay high interest rates for the ones you do receive. A low credit score signals to lenders that you’re more likely to default on your debts.
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You can probably get a personal loan, but the interest rate might be 20% or higher, says NerdWallet personal loans writer Amrita Jayakumar. Some lenders — including Avant, OneMain Financial and Ascend — will consider applications from borrowers with 600 scores. Then there’s Peerform, a marketplace lender that matches poor-credit borrowers with investors who fund their loans, and Backed, which gives those with poor credit better terms if they have a co-signer, she says. “Lenders like Upstart consider college grads whose score may be low because of a thin credit file,” she adds.
This is not true. I have 5 utilities I pay each month and only People’s gas reports may payments. Also I’ve never had a landlord report that I’ve made all my payments monthly. It’s a valid concern because they will report missed payments, evictions, or collections but not positive payment history.
All these factors also play a role in the average credit of those between the ages of eighteen and twenty-one who are just beginning to build their credit. This age group is finding it harder and harder to gain any kind of credit initially at all.
According to the Austrian Data Protection Act, consumers must opt-in for the use of their private data for any purpose. Consumers can also withhold permission to use the data later, making illegal any further distribution or use of the collected data. Consumers also have the right to receive a free copy of all data held by credit bureaus once a year. Wrong or unlawfully collected data must be deleted or corrected.
i have a CS 612-629, jus got approved for 2 CC frm CapOne w/ $500 CL each. I have nothing on my credit report but a student loan paid off. i plan on charging 30% or $150 each card and pay bal full ea month. Is this fine to build my CS quickly n efficiently? i can only pay monthly but read some of u pay weekly, is weekly a quicker way to CS or bout same as monthly. I don’t like credit prefer save n buy cash but i want a car (new) in a year and house in two. lol please help, advise lol
Considering that if you took all the credit card debt in the U.S. and spread it out among all the households, each household would be over $15,000 in debt, it is tempting to think that most American’s have terrible credit.
One difference would be is that they give you different types of credit — revolving and installment credit. Once the loan is paid off, you also no longer have an active credit account. Assuming the secured card is paid responsibly and the balance is kept low (relative to limit), you should be able to qualify for an unsecured card reasonably soon.
When you know the kinds of activities in your credit that can affect your scores, you can work to take better care of your credit, too. Things like late payments, liens or bankruptcies all have varying levels of impact in your credit scores since they’re reflected on your credit report, too. Getting familiar with your credit report can help you see the impact these kind of events can have in your credit.
If your FICO score is 840, for example, you’re just 10 points shy of the highest score possible, and your credit is “super-prime.” But if you have an 840 VantageScore 2.0, it’s not as spectacular because you’re 150 points away from the highest possible score.
im 19, and have a score of 750. on my 18th birthdya i went to my credit union and got a student credit card, and then proceded to pay it off in full every month. i then got a Macys credit card and paid that off in full. three months later i got a nordstrom credit card and that dropped my score by a hundred points almost. i was looking at a 680. so for six moths i balanced the three credit cards making sure my credit utilazatuion was under thirty percent and paying off almost everything. Because i am impulsive i got in way over my head with shopping and found myself spending my whole pay check to cover myt losses. i soon started a budget for my self and stop using both store cards for awhile. my Macys card raised my credit limit, which helped me lover my credit utilaztion score. My nordstrom sis the same and i paid both off and now barely use my one student credit card. i use each only once a month to buy something under thiry bucks from each store to show i have good standing. i have never missed a payment on all three cards. i now i have a score of 750 again since six mothns has passed since i open my nordstom card. all in all, i have learned my lesson, but am still frustrated by how easy it is to swipe without thinking. This has lead me to leaving my cards at home or in my car. i guess for me it was harder than some because i worked in a mall and was surronded by retail. Now im happy with my score and i got a job at a bank, and i now save money while paying off my student loans. i guess what angers me the most is seeing how much i spent with those two cards and realizing i could have paid of my student loans. i hope other people find something to learn from my story
I disagree strongly. The FICO system isn’t biased. It is a good indicator of ones ability to pay back debt. It’s also possible to have a very poor credit rating and within 7 years have an excellent rating. As already mentioned paying your monthly payment on time and staying under 20% of open credit line will benefit huge. It’s takes several years to get an excellent credit score and about 90 days to have a poor score. People that have paid their debts on time and show a long history of this should get the best rates. They earned it. It wasn’t just given to them. While it is true that those with hits on their credit will pay a much higher interest rate they will also be required to put down a substantial down payment and have co-signer(s) willing to put up collateral. Their past history will typically follow suit. Lenders want people to pay their loans. They aren’t in the business to foreclose or recover assets from non paying borrowers. If the general public would smarten up and stop living paycheck to paycheck burdened with debt and get ahead of it then they would never have to worry about if they are approved. If they stopped missing payments and filing for bankruptcy protection the interest rates would drop down for everyone and borrowing would be much easier. It’s already been proven that having a lot of high risk loans has a huge detrimental impact when they aren’t paid back. Housing bubble = huge lending mistake. People were approved for mortgages that shouldn’t have been period. This caused a surge in real estate price then pop. Here we are now. All they did is just set back all the debtors who borrowed during that time and didn’t default on their loans. Instead they are upside down in their mortgage. What are they getting from the government? Not a thing. Instead their property value will barely cover the inflation rate for years to come.
Yeah, keeping credit cards even if your home and cars paid off and no loans.the cards can keep your credit active and maintain it..really no need to punish people by dropping their score for paying off all their depts..even if no credit cards..thats not right morally
But trying to pin down a specific number that means your credit score is “good” can be tricky. After all, there are lots of different credit scores that lenders use when trying to decide whether to grant you a loan. What one lender may view as a “good” score may fall into another lender’s “fair” credit category. (Not to mention, you may score differently from model to model.)
Consider your credit score a “Debt Score”. Your score really reflects your ability to STAY IN DEBT, and of course, pay bills on time. When the data breach at Target happened, I checked my balances often and was actually downgraded 20 to 30 points on my fico score for accessing my bank balance too many times. How silly is that. Credit scores are a joke. Work hard, save hard and pay with cash. Over a lifetime, the average joe would save $1000’s if not $10’s of thousands in interest charges.
It also does not help when the stock market crashes twice in the final 8 years of a person’s working years. There is nothing worse than having to live on Social Security because all you worked for in 45 years went down the tubes. That happened to a dear friend of mine who spent many years since high school and the military working as a mechanic. The only thing that allows him to live on SS is because his health care is free with the VA from his military during Vietnam. And his non-taxable income (tiny) as a Commander at an American Legion.
And we, the taxpayers, bailed them out. That’s the icing on the cake. And Congress, the REAL bastards who were supposed to be on our side, didn’t force these banks to renegotiate the loans so Americans could keep their houses. These politicians smile in your face, shake your hand, and claim to feel your pain—in reality: they have NO IDEA what it’s like to struggle to pay their bills because we, the people, pay their bills every month.
798 FICO credit score qualifies you for the best mortgage terms available, which can mean saving up to 1% on your mortgage interest overall. Over the course of your loan, this means thousands of dollars in savings. Interest rates should hover around 4%. While improving your credit won’t make much of a difference at this point, you can decrease your interest rates further in a variety of ways, such as making your home environmentally friendly (depending on where you live) or making a larger down payment.
Just like a professor who grades your college coursework, credit-scoring models grade you on your credit activity. So while you might think you deserve a perfect score, the professor — or in this case, the credit-scoring model — has the final say over your grade.
The number of new credit accounts you’ve applied for are considered hard inquiries on your credit report and can negatively affect your credit score. The impact of hard inquiries reduces over time. (Note that checking your own credit does not impact your credit score.)
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The average credit score by state ranges from 642 in Mississippi all the way to 702 in Minnesota. And both states are fairly representative of their broader regions, as you can see below. If you’re wondering, blue states have a higher average credit score (676) than red states (667).
Ron, I’m thinking the drop in score is because of the addition of the inquiry necessary to get any credit card, not because of the balance. If you pay the balance before the statement it will show $0 on your statement and they will not report the payment made on time because I did that the first month with my secured card and found that out. Your score will improve, just remember to keep your inquiries in check just like your debt percentage and payment history.