Your Questions About Good Credit Score
Nancy asks…
How to go about building a good credit score?
I have never owned a credit card, but I realize the benefits of having one and maintaining a good score. Also, I will need one when I start looking for apartments of my own. Does anyone know which companies offer credit cards with low interest rates with possible benefits to college/university students?
Any advice on the matter is welcome, thank you for your time.
Credit-Repair-Guy answers:
Hi Ophelia! Unfortunately, if you’re under 21, you may have a tough time getting a credit card. The new Credit CARD Act goes into effect on February 22 and requires that a person under 21 provide proof that s/he can repay the funds borrowed on a card or have a parent co-sign in order to qualify for a credit card.
There is another option from the traditional unsecured credit card, however: A secured credit card. A secured credit card is just like an unsecured credit card, only you put down a security deposit up front to provide assurance to the bank or creditor that any debt you take on will be paid. Because a secured credit card has built-in safety measures – for both you and the creditor – it’s a great option for many people who are just getting started with credit. And just like a “regular” credit card, a secured credit card will help you build credit, provided that you make all your payments on time.
Check in with your local bank or credit union for more information. Good luck!
Maria asks…
How long to build a good credit score?
i’ve had my first credit card for less than a year but have been consisent with payments. Is it too early to have a good score?
Credit-Repair-Guy answers:
If you have just one credit card and only for one year, you have a score but it’s probably not “good”. You need at least 24 months of consistent, on time payment history to see a “good” score. You probably have a decent score at this point tho.
CreditKarma.com offers a free score estimator based on your TransUnion credit report. It is not FICO (creditor’s use FICO — never pay for a non-FICO score). But it’s usually within 50 points or so. Good enough if you are curious about your score. You are probably somewhere in the 600 to 650 range which is decent.
Mark asks…
Will paying off a car give me a good credit score?
My credit is bad as of right now and my score is low, but I wanted to know that if I pay all my car paymeants on time till I pay the car off will that give me great credit and a good score?
Credit-Repair-Guy answers:
It is a step in the right direction. You got to keep at it starting now and forever. Your credit score will not jump to the outstanding range by just paying your car off. It takes time plus keeping current with other debts and not maxing out your credit limits. Stick with it.
Robert asks…
how much is the ideal number of credit accounts for good credit score?
My credit report shows that I have 17 accounts (11 open, 6 closed) and rates me as “D” (below average) in the TOTAL NO. OF CREDIT ACCOUNTS category. So does it mean I should I increase my number of accounts or decrease accounts to maintain better score?
Thanks.
Credit-Repair-Guy answers:
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – credit-report-score.10001mb.com
John asks…
What are the benefits of having a good credit score?
I’m a college student who got a credit card a little less than a year ago. I spend a lot (around $700 a month) and always pay back the total in full before the due date. My bank has increased my credit line three times since because of my good credit.
So are there any additional advantages to having a good credit score than easily getting approved for credit cards and getting large credit lines? Does it also project to any type of loans (i.e. it is easier to get approved for a car loan with a lower interest rate) or something?
Credit-Repair-Guy answers:
I agree with moonman.
Not only will good credit get you better interest rates, it has many other perks one of which moonman mentioned about renting. It also will get you a lower rate on your vehicle insurance, better job opportunities (yes you can be denied a job opportunity for poor credit or little credit history).
Good scores will help with basically anything credit/money related.
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