Okay I'm still trying to learn about credit.
So I have a Visa with a limit of $1000. Then I have a co-signed account with Leons Furniture with my Mom so I could buy a coach. That account is completly paid off (wasn't late, not due until late February). No student loans or nothing (Paid with cash and worked during college). I got a leased apartment, never been late/NSF. Now does it look bad to have a credit card and on average I have between $150-500. (depending on what was going on that month). It's always paid off at the end of the month (if not, it's only something like $20). Does this still look bad to a credit company?
I'm just trying to keep my credit as clean as I can because I am aspiring to finance a car in the next year or so.
2007-01-14 11:16:08 · 7 answers · asked by chevgirl101 2 in Business & Finance ➔ Credit
Also I have a 3-year cell phone contract (2 phones, my boyfriend and I). It is in my name...never late payments though.
2007-01-14 11:18:33 · update #1
Even if I have it payed off by the end of the month, I should keep it below 25-30%? I wouldn't think it would matter...but this is why I ask this question so I know! I'm so paranoid about it.
2007-01-14 11:23:42 · update #2
Your credit score is based mostly on:
1. Length of credit history
2. Payment history.
3. Ratio of credit used to available credit.
4. Number of credit inquiries you authorized.
If you cancel your card, you'll be hurting your credit ratio. (#3).
You want to deliberately keep your oldest credit card open, even if you never use it.
You want to always pay the minimums of each loan on time every month.
You want to keep your available credit high, but actually only have balances equalinig 25% or less.
You want to keep your credit inquiries to a minimum. Try for no more than 3 or 4 per year for any type of loans.
You do these things and your credit score will quickly soar into the 700s.
2007-01-14 11:26:40 · answer #1 · answered by Uncle Pennybags 7 · 1⤊ 0⤋
Actually, I was always told that you need to keep your balance at 50% below the limit. Even if you pay if off every month, you still don't want to max your card out. Your ending balance is what reports on your credit report every month. This is usually reported before your payment is due. It is not reflecting the fact that you pay off the card every month. If you can not keep your balance below 50% ask the creditor to raise your limit but do not raise your spending or you will be back in the same situation. I have seen my clients scores raise at least 30 points by doing this.
2007-01-15 01:30:49 · answer #2 · answered by HappyDaisy23 1 · 0⤊ 0⤋
Your credit should be quite good. As long as you keep your credit card below 25% of it's limit then you'll be fine.
2007-01-14 19:21:37 · answer #3 · answered by hasgr8boyz 3 · 0⤊ 0⤋
You should keep a low balance on your card. Below 30%.
2007-01-14 19:21:45 · answer #4 · answered by Philip D 2 · 0⤊ 0⤋
Creditors like to see a long history of payments. credit cards are good to have as long as you use them pretty much like you already are.also your income to debt ration is a big factor they do not want to see you owe more than you make. credit unions are good to have on your side as well
2007-01-14 19:26:43 · answer #5 · answered by dmck105 2 · 0⤊ 0⤋
it sounds like your doing great to me. just make sure you keep paying off your credit card and you will be all set. dont miss a payment because if you miss one then you will be all screwed up.
2007-01-14 19:27:13 · answer #6 · answered by mommyof2 3 · 0⤊ 0⤋