what is your credit score?

Question

if its low, explain what made it bad?
if its good, what did you do to make it good?

my credit is 734. but I cant get it any higher, and it says there are 30-40% of people with a better score than me....

maybe cuase im young. im 21 and only had credit for 3 years. it said the average credit history is 15 years, so basically it wont go to 800 till im in my 40's?

if i take out a car loan, pay it for 3-5 months, then sell it and pay it back help my score? im going to sell it any ways because i want to lease instead so i dont have a car loan when i go to apply for a mortgage.

Answer 1

It's well over 750.

Credit scores are made up from the following;

1. Payment history 35%.
2. Time in bureau 15%.
3. Types of credit 10%.
4. New credit 10%.
5. Debt to credit ratio 30%.

As you can see 1,2&5 are the most important as far as score is concerned, but you need much more then a great score you also need a great credit profile.

This is achieved by having at least 3 credit card accounts (revolving) with less then 30% debt and at least 2 autos, homes, boats, furniture or personal accounts (installment) all with good long pay historys.

Since you have only been in the bureau for 3-years you can not have much of a file.

I look at credit all day and see young people that have 700 scores that can not buy a car because their score is made up of 1-credit card with a $500.00 limit paid 15-times and a couple of student loans.

While this profile doe's result in a great score it doe's not really show the ability or the willingness to really pay anybody.

Don't worry about the car loan. Even if you get it, it will not raise your score unless you keep paying on it for at least 12-months. And as far as buying a home, a car loan and a car lease are both looked at the same. They both show obligations.

Answer 2

First of all , buying a car and re selling is stupid as an investment , cars do not gain value, say you take out a loan for 25 grand for a car , they do not loan you 100% so you have to have 10% down plus average in finance charges for the total of the loan , minus the depreciated value of the car at purchase = stupid , borrowing money does not improve your credit score, borrowing only adds debt thus decreasing the amount of credit you can get . The best thing to do is not worry about credit. when you are ready to buy a home ..if the loan is based on a beacon score you are getting a suckers loan . AND if you lease a car you could really be screwing up ...before you get yourself in real deep debt read the book by Dave Ramsey called Total Money Makeover. ...it is a good start , I did those things well before the book came out , I am now 37 , I have 2and a half years left on a 15 year mortgage , no car payments ( all 4 cars are about two years old ) , and I will be retired before I am 50 years old . On the mortgage find a lender that does their own underwriting , and bases their loans on your real history, and ability to pay ...not the sucker score ... and do not think borrowing money for anything helps you , it does not . it only helps keep you broke..

Answer 3

Nearly 800.

With a 734 credit score, its unlikely that you will be turned down for a mortgage based on your credit. You may still be turned down for your mortgage if, for example, you have excessive debt compared to the amount of income you earn.

I agree with an earlier post that buying and selling a car in a 5 month time span is not wise. Auto loans and leases show up on your credit report.

Just continue to make payments on time and don't worry about your credit score.

Lastly, if you want that chunk of real estate, you'll be able to afford more if you purchase an 'affordable' car for someone that is 21, rather than buying something that people will 'wow' over.

Answer 4

734 is a very good score...

Lenders view you as an excellent credit risk.. so dont worry about that score one bit.

The average range is considered 630-680.

Answer 5

there are over 1,700 calculations that go into that score

so- make sure NO payments are late
don't over-extend your credit

and don't apply for a new credit card every month

don't change jobs every season

stability counts