Related Posts
What is LOI in amex?
What are people’s thoughts on the crypto.com app and their currency CRO? The debit cards they released come with honestly some great benefits (free Spotify/netflix subscription, 10%+ on staking, free airport lounge access) as long as you’re willing to stake a certain amount for 180 days.
Would love to hear from anyone who has contemplated and either decided for or against! Also which card level did you jump in at if you did?
Is FXIAX good for Roth IRA?
More Posts
Most successful way to slide into a CD's dms?
Additional Posts in Personal Investment Chatter
Conversation Starter
Conversation Starter
How much of your credit limit do you utilize? This should be below 30%.
CC is revolving debt. Typically, you need multiple forms of debt such as loans, mortgages, etc. to build a higher score. Else, it stagnates. Mine has been hovering around 785 for last 3-4 years. Unless, you are planning a home purchase soon, you have nothing to worry about.
Thanks! I usually use well under 10%
Use credit karma, it tells you all aspects that are impacting your score. For example. I had no idea the amount of credit cards/lines I had was too low, so then I was comfortable with opening up new credit cards and after a little while it increased.
787 credit score here: let me start off by saying, no one is going to treat you much differently from having a 750 to anything above that, so what I’m going to suggest isnt required, my true advice is for you to just be happy being a 750. Chasing A high net worth is greater than chasing a high credit score.
I think it’s because you don’t have a variety of debt or your accounts aren’t old enough. It sounds like you only have your CC now, I’m not saying go out and buy a house, but carrying a balance on some type of debt actually helps your credit score. First go to credit karma and see the average age of your accounts, if they’re in the green then move on to the next step. The best thing you could open that shouldn’t affect you financially (I.e no interest) is to put a utility bill in your name. Your other option is to go get another CC to increase the number of open accounts. Sounds like you’re smart with paying off your debt, so I would apply for one that has a bonus that you find attractive like “250k airline miles when you spend $1000 in 3 months” get your points then don’t use the card anymore.
I’ll share how I’m at where I am. I have about $90k credit limit, like you, I always pay my CC off. I have a personal loan for my business, I have a business CC, student loans, 2 car loans, and 2 mortgages. Sounds like a lot of debt to most people, which is why I don’t typically advise my method to most people as it wouldn’t work for them. I have side businesses that pay for the majority of that debt. For ex, I haven’t made a single payment towards my cars or car insurance (~$1k/mo) from my own W2 since Jan, and the money that is spent on those cars from one of my business is partially a tax write off.
What I’m saying is, the more sophisticated you get with debt, the closer to that 800 credit score you’ll be
Chief
Pay attention to the bands. If you're 10-20 points into the excellent range, it won't matter the precise score. But definitely give yourself wiggle room as different lenders use different scores.
That being said, the thing that is probably holding you back, ironically, is having no debt. Monthly payments to loans/mortgages is a huge factor. I guess it makes sense in a way. If I'm a lender giving you $500k for a mortgage, I want to see that you have a history of making regular payments on a loan.
Or it could just be your age. Good notes stay on your record for several years (7?). So if you don't have a ton of accounts that are being captured, then it's harder to move the needle.
I had 8 undergrad loans. I didn't consolidate them. So by the time they were all paid off, I had years of ontime payments. Alongside CC payments too.
Get your free credit report (not score) to check and see what lenders see.
34yo here with 834 credit score. I got my first CC at 18 so age of accounts is definitely a factor, among debt to credit limit ratio. I have 10 open credit cards (no balance carrying) and no debt— student loans are paid off and I sold my condo.
Get a mortgage