10 tips on building a high credit score.

[M.J.]

29 minutes ago, *Jack* said:

your credit score will determine whether or not a landlord will rent to you, will influence the amount you pay for car and home owners insurance, will determine whether or not an energy company will give you the best rates or if you’ll have to put down a deposit, will determine whether or not you can finance a new phone and whether or not you can get certain jobs. Credit is very important in the US.

Very true. I once walked into a car dealership and after they checked my credit score (which was higher at the time) and credit history, they didn't even bother to check anything else, not employment, salary, nothing, they just said, you're good, and I signed the papers and bought the car.  

 

[New World Explorer]

4 hours ago, M.J. said:

Very true. I once walked into a car dealership and after they checked my credit score (which was higher at the time) and credit history, they didn't even bother to check anything else, not employment, salary, nothing, they just said, you're good, and I signed the papers and bought the car.  

Yes, but did you get good interest rate? if yes, that's excellent. 

With good documentation, you get better deal when it comes to interest rate.

Good documentation 3.9%  - 6.9 % interest rate 

No documents 10.9% and higher. 

Australian interest rates. 

 

The "devil" is in the details. 

[New World Explorer]

4 hours ago, M.J. said:

For credit scores in Australia, Equifax uses a scale ranging from 0 – 1,200 to rank credit scores.

Equifax, like I said I do not care about my credit rating as I do cash transactions, hate the loans. 😉

I don't even use credit on a credit card. 

[Cushi]

On 7/22/2022 at 4:10 PM, New World Explorer said:

I only use credit card to generate reward points and online purchases, never go in debt with it. Always have top up amount that would require me to spend considerable money to level with my approved amount. 

Whatever I spend I quickly replenish. (Banks do not like me) 

 

Credit card debt is bad! avoid it. (Don't do below,  LOL )

 

I thought I replied to this comment but I see I didn’t. I agree. People shouldn’t go into debt. That’s why I said previously in post #4 that I think it’s a good idea to have an emergency fund of 6 months to a years worth of expenses before they even get a card. That way the won’t have to rely on it. I also said in post #11 that it’s more beneficial to pay your credit card bills every month in full. I practice everything I’m suggesting. I’ve had my credit card for over 5 years and have never paid one penny in interest. Carrying over balances and acquiring credit card debt is unnecessary. Credit cards can be a good thing when used responsibly.
I find it beneficial to use a credit card to buy things you were already going to purchase for the month and pay it back in full. That way you can earn cash back and interest on your money in your account if you bank or credit union allows for it.

 

And I’m the same. Banks hate people like me too because I get things like bonus cash back rewards, cash back and “borrow” their money every month for years without paying any interest. 

[Cushi]

11 hours ago, M.J. said:

Very true. I once walked into a car dealership and after they checked my credit score (which was higher at the time) and credit history, they didn't even bother to check anything else, not employment, salary, nothing, they just said, you're good, and I signed the papers and bought the car.  

 

It’s a great feeling to walk in a dealership with good credit because you know you have leverage. Sometimes they can act like this 😆

 

I had a good experience when I got a brand new car last May. The saleslady ran my credit and came back with a big smile on her face. I got the car at a 2.49% interest rate, which was the best rate at the time. It was a really good feeling.

800 is a really good score to have because if you apply for a loan and it lowers your score, it may not put you below the 760 range (which is the score that usually earns you the best interest rates like an 800 and above does). This guy goes into depth about that. His channel is called water your soil. He has really good information, explains things in a very simple manner and doesn’t use profanity.

 

 

[DarinS]

can I add Debt to Income ratio

 

if you make $100,000

but owe $80,000 in cars and houses and credit cards - your credit will suffer badly

 

thats why older folks often have better credit - they have paid down their bills or paid off their home

 

if the rating is in the 600's - you will pay high interest to buy a car - even with a large deposit when applying

 

my daughter tried to buy a used car put down $5k for a $12K car and the interest was 8-12% from the car dealer

i had her check the bank - they offered 7%

i added my name it went down to 3%.....

so the car dealer also offered 3% .... part of it was a scam and part was my Credit rating is High

 

but it took a long time to get a great rating and i paid off ALL bills except the house - thus the high rating

 

SO PARENTS - teach your kids about credit early - maybe help them get a Gas card or such to start building credit

 

i started my kids with a gas card @ 17 and a small credit card @ 18 (paid off EVERY MONTH)

and their credit is 50-100 points above their equal peers

[M.J.]

11 hours ago, New World Explorer said:

Yes, but did you get good interest rate? if yes, that's excellent. 

With good documentation, you get better deal when it comes to interest rate.

That was a while back, but it must have been a good rate, or I wouldn't have bought.

[Cushi]

4 hours ago, DarinS said:

can I add Debt to Income ratio

 

if you make $100,000

but owe $80,000 in cars and houses and credit cards - your credit will suffer badly

 

thats why older folks often have better credit - they have paid down their bills or paid off their home

 

if the rating is in the 600's - you will pay high interest to buy a car - even with a large deposit when applying

 

my daughter tried to buy a used car put down $5k for a $12K car and the interest was 8-12% from the car dealer

i had her check the bank - they offered 7%

i added my name it went down to 3%.....

so the car dealer also offered 3% .... part of it was a scam and part was my Credit rating is High

 

but it took a long time to get a great rating and i paid off ALL bills except the house - thus the high rating

 

SO PARENTS - teach your kids about credit early - maybe help them get a Gas card or such to start building credit

 

i started my kids with a gas card @ 17 and a small credit card @ 18 (paid off EVERY MONTH)

and their credit is 50-100 points above their equal peers

This is very true 

[Cushi]

On 9/18/2022 at 11:16 PM, M.J. said:

Very true. I once walked into a car dealership and after they checked my credit score (which was higher at the time) and credit history, they didn't even bother to check anything else, not employment, salary, nothing, they just said, you're good, and I signed the papers and bought the car.  

 

I just realized this is your vantage score. Your FICO score may be higher than you think. Credit score websites like Credit Karma and some other places use a vantage score, which is calculated differently than your FICO. FICO is what most lenders use. Only about 10% of lenders use the vantage scoring model. 
There’s some good things about Credit Karma, but credit score information isn’t one of them. It isn’t accurate. To get an accurate FICO score, what lenders actually look at, signing up with experian.com may be a good idea. There, you can see your actual FICO score. I wouldn’t suggest using the experian “boost” feature on their website, though. 
 

The reason why I say your FICO score might be higher is because my vantage score is always like 80 points lower than my FICO. I’ve heard many people say their FICO is higher than their vantage score.

[M.J.]

Hmm, I just realized what you said, that Credit Karma uses FICO. I'll have to look around, I think one of my credit cards gives me free FICO updates...thx

[Cushi]

10 hours ago, M.J. said:

Hmm, I just realized what you said, that Credit Karma uses FICO. I'll have to look around, I think one of my credit cards gives me free FICO updates...thx

You’re welcome. Credit Karma uses the vantage score. The majority of lenders use FICO, not vantage. I’m with Capital One and they show me my vantage score on the app. Google to find out if your credit card company shows your vantage or FICO. The FICO is the one you want. Like I said, experian.com shows your FICO. I think Discover does too.

[Cushi]

4 minutes ago, *Jack* said:

You’re welcome. Credit Karma uses the vantage score. The majority of lenders use FICO, not vantage. I’m with Capital One and they show me my vantage score on the app. Google to find out if your credit card company shows your vantage or FICO. The FICO is the one you want. Like I said, experian.com shows your FICO. I think Discover does too.

Also, Experian shows your Experian FICO score and Discover shows your TransUnion score.

[Cushi]

This video highlights why it is important to build your credit up as early as possible. It’s always best to buy things in cash and avoid debt to begin with. However, you don’t want to find yourself in a situation where you need good credit and you don’t have it. You could find pay thousands more in interest than you would if you had good credit.

 

 

[Cushi]

Here’s an in depth video on credit cards. It has good information, although I don’t agree with using credit cards to pay for everything unless you already have the money in your account. Notice anything interesting at 4:24 🤔

 

 

[Abigail]

On 3/12/2023 at 5:12 AM, *Jack* said:

Here’s an in depth video on credit cards. It has good information, although I don’t agree with using credit cards to pay for everything unless you already have the money in your account. Notice anything interesting at 4:24 🤔

 

 

4:24??

[Cushi]

8 hours ago, Abigail said:

4:24??

It was a scene that was shown in the drama Jehovah guides us in the way of peace part 2 at the 31:09 mark. I should have said notice anything familiar?

[Cushi]

 

[Cushi]

Always check your credit report!

 

 

[Cushi]

 

[Cushi]

 

[Cushi]

This is the most thorough video I’ve seen on how credit scores are calculated.

 

 

Edited September 24, 2023 by *Jack*

[Cushi]

 

[Lori]

My credit is horrible.    Really bad.    I was thinking about filing for bankruptcy.  

[Cushi]

10 hours ago, Lori said:

My credit is horrible.    Really bad.    I was thinking about filing for bankruptcy.  

I’m so sorry to hear 😞 Bankruptcy is an option if you have debts you can’t pay but will stay on your credit report for 7 years (chapter 13 10 years). Keep in mind that some debts like student loans can’t be forgiven through bankruptcy.

[Lori]

9 hours ago, *Jack* said:

I’m so sorry to hear 😞 Bankruptcy is an option if you have debts you can’t pay but will stay on your credit report for 7 years (chapter 13 10 years). Keep in mind that some debts like student loans can’t be forgiven through bankruptcy.

I had student loans forgiven because of my disability.