A Few Credit Questions?

Question

Hi, I have a few questions.

1) I am 19 and found out that I have a credit score of 740. How good is that score?

2)I was also wondering if there are any drawbacks to having a high credit score.

3)Also, I just left the air force academy and I am thinking about going to another college soon. Should I pay using a credit card or a student load? If I get a student loan, will that lower my credit score because outstanding debts factors into my credit score?

4) I have 4 credit cards (on from each company) right now each with around 2000 credit limit. Is it bad to have that many cards? I rarely ever use them and alternate their usage.

5) I heard from a random adult one day that keeping a small balance on my credit cards all the time is good for credit, is that true?

6) I occasionally call the credit card company probably around once every 4 months and ask them to raise my credit limit for the heck of it. Is it bad for your credit score to have high credit limits on my cards?

Thanks!

Answer 1

1) I am 19 and found out that I have a credit score of 740. How good is that score?
Fair score to most lenders

2)I was also wondering if there are any drawbacks to having a high credit score.
It can cause you to get too many credit offers and if you accept them, you can find yourself with a lower score from having too many potential obligations.

3)Also, I just left the air force academy and I am thinking about going to another college soon. Should I pay using a credit card or a student load? If I get a student loan, will that lower my credit score because outstanding debts factors into my credit score?
I would lean to a student loan. Rates are better and interest is often deferred until you finish school and start repaying the loans. Credit cards are revolving debt and that can pile on debt in a hurry when the interest starts being added.
4) I have 4 credit cards (on from each company) right now each with around 2000 credit limit. Is it bad to have that many cards? I rarely ever use them and alternate their usage.
It's not bad to have that many cards as long as you don't keep them maxed out and make minimum payments. Pay them off monthly and you are the one benefing.
5) I heard from a random adult one day that keeping a small balance on my credit cards all the time is good for credit, is that true?
Paying it off is probably better; the credit card interest rates are usually the worst structurally and rate-wise.

6) I occasionally call the credit card company probably around once every 4 months and ask them to raise my credit limit for the heck of it. Is it bad for your credit score to have high credit limits on my cards?
If you are carrying balances at your limit, it is bad. It will just get you in trouble, especially if you are making minimum monthly payments.
Good luck on your future endeavors!

Answer 2

To answer your questions in order.

1. Your score is great. The average in this Country is 675 so you are doing good. You need to ad at least 1 installment line of credit to your bureau in the future like a car, boat, furniture, home or personal loan to get the best profile to go with your great score.

2. No.

3. Go with the student loan, this shows on your credit as a installment loan.

4. There is nothing wrong with having 4 credit cards as long as you use them responsibly, pay on time and keep your balances below 30% of your limit.

5. True, but not required.

6. No. See answer 4 above.

Answer 3

You have a good credit score, keep it up! No draw backs to having a high credit score at all. Pay for college with a Student Loan, it's cheaper on the interest rate, low monthly payments & you can write it off on your tax return. It is bad to have too many credit cards, if you don't use all 4, it's best to get rid of 2 cards. Don't keep a balance on your credit card too long. It's not bad to have high credit limits, but you don't want to owe on the credit cards all the time. You want to keep the low balance & pay it on time every month, show the creditors you can pay off your debt regardless.

Answer 4

First, that's an excellent score. The average is 675. Having a high score means you egt solicited a lot for pre approved stuff. But, evertime you get one, it means they checked your credit score. Each time your credit score gets checked it lowers by 1-7 points or more.
Get the student loan, lower interest and no payments till after you graduate. Paying them on time will build credit too. $ cards in this day and age is too many. 2 are plenty. Remeber that you are paying high interest when you use them. If you have a small amount on your credit card, say $50.00 to $100.00 and you make the payment each month, it does build credit. But, again, your paying interest too. So don't charge too much.
Remember to contact the credit bureau's online and request that you NOT be contacted for pre approved cards etc. This will keep your score higher too.

Answer 5

Your score is perfect...
To keep it this way watch those credit cards you have...
Also go with a student loan...
Good Luck in the future