Comments on: Increase Your Credit Score

By: Pianist

Pianist — Thu, 07 Apr 2011 23:15:12 +0000

I wasn’t too specific…some things show up on your credit report for 7 years and 10 years on some matters of law and forever on unpaid liens. The effect is minimized after 2 years. Your credit score is weighted heavily ( 70% ) on the past 2 years from today’s date. Everything older than 2 years has limited effect. This is why some credit repair people tell you not to pay collections and stuff if they are old.

By: Cyndi Patterson

Cyndi Patterson — Thu, 07 Apr 2011 19:45:36 +0000

They show more than 24 months. Transunion in 2010 shows up to 48 months. And, on one of the reports, I forgot which, (shredded already), it showed an 81 month history.

By: Chris Jordan

Chris Jordan — Thu, 07 Apr 2011 02:40:30 +0000

I am beginning to wonder about creditworthiness. After about 20 years- I kept credit card low after 5 years of overspending. I borrowed and paid 3 larger personal loans during that time, and all 3 credit scores are excellent.

After keeping myself dependable on the books and getting 3 reports this year I tried to get a small loan but was turned down.

My home was red-tagged as unsafe to live in which means having to borrow for repairs or to move. If I can not borrow for anything; a high credit score is beginning to look like a lot of hooeey to me.

By: TakeitEZ

TakeitEZ — Wed, 06 Apr 2011 18:51:44 +0000

@Pianist – Thanks for the info! I thought it would be much longer than that. Good to know!

By: Amy Saves

Amy Saves — Wed, 06 Apr 2011 18:03:19 +0000

Yes, it’s a cash back card. I might just keep it open b/c I’ve had it so long and not really use it that much.

By: pianist

pianist — Wed, 06 Apr 2011 18:00:32 +0000

@Amy – If there’s a 59$ annual fee, I’m hoping there’s a rewards program with the card. If so, see if you can spend in a way so that the rewards you redeem offset the cost of the card.

@ez – Credit reports show 24 months of payment history. Two years from the date you got “back on track” you should be blemish-free.

By: Amy Saves

Amy Saves — Wed, 06 Apr 2011 17:44:12 +0000

I have had a credit card for 10 years and they recently imposed a $59 annual fee on it. Should I keep it open?

By: TakeitEZ

TakeitEZ — Wed, 06 Apr 2011 17:29:08 +0000

I went into default for one of my student loans last year but after making consistent payments I am no longer in default status. How long does my default stay on my credit record?

By: OrchidGirl

OrchidGirl — Wed, 06 Apr 2011 04:20:45 +0000

If you have a one time bill (like a medical bill) show up on your report in error, contact the place – not the collection’s agency it was sold to – to get it straightened out and removed from your credit report. I had a case where they sent the bill to a nonexistent address (they hybridized the mailing and billing addresses). When they realized the mistake was on their end, it was quickly settled and removed from my credit report.

By: Pianist

Pianist — Wed, 06 Apr 2011 01:16:54 +0000

Jon-

My recommendation is if you’re activating a card only to get the ‘sign up bonus,’ I wouldn’t sign up at all. There isn’t an exact time frame on when you should cancel the card to “look the best.” By opening the Amex and Penfed cards your score may have suffered briefly (I would guess around 24 pts) but that will adjust back to your usual score over a few months time.

@FLEXO: Awesome article! It’s amazing how much a credit score determines, and how little most consumers know about what goes into the score. Even outside of loans, it can decrease car insurance or waive a required security deposit for some utilities.

I’m glad you mentioned Annualcreditreport over Freecreditreport. Although the jingle is catchy, I wouldn’t pay the $14.95/month for the monitoring service.

By: skylog

skylog — Tue, 05 Apr 2011 20:13:11 +0000

good call shelleye. this has been my strategy. while each report may have some “variations,” due to who and what reports, i feel it gives one a good overall year round picture of one’s situation.

By: Dr Dean

Dr Dean — Tue, 05 Apr 2011 19:39:46 +0000

I think the store cards are the most insidious. They tempt people like me who want to save the most at purchase time. But they usually have the lowest limits, and highest rates-so when they are maxed they affect your credit score more.
We don’t do store cards at our house anymore.

By: Jenna

Jenna — Tue, 05 Apr 2011 18:32:37 +0000

Actually have credit history. And pay off credit cards on time.

By: Rob

Rob — Tue, 05 Apr 2011 17:40:34 +0000

Jon, can you elaborate more on what happened to your score after opening multiple credit cards? I have excellent credit history and a high score (760), but about 2 months ago I opened up 2 new credit cards (Fidelity AMEX and PenFed) and closed 2 others because they had much better rewards/cash back deals.

But, I recently have been getting crazy sign up bonuses in the mail for additional cards ($250 sign up bonus from Chase Sapphire, 20k points from JetBlue) that I have a hard time turning down. I’m just worried that I’m completely thrashing my credit score by doing this. I just paid off my car and won’t be purchasing a house within the next 3 years or so, but still…

Also, does anyone have any idea how SOON I can cancel credit cards after signing up and obtaining the sign up bonus? Does it look bad if you cancel them within 6 months of opening?

By: krantcents

krantcents — Tue, 05 Apr 2011 15:38:29 +0000

I recommend checking your credit report periodically. I have always had good credit, but 25 years ago I was denied a credit card. It was because of a mistake on my credit report. It took me 6 months to have it removed. These credit reporting companies are dealing with a lot of information and a mistake occurred. If I did not check, it would stayed on my report and affected my credit.

By: Jon | Free Money Wisdom

Jon | Free Money Wisdom — Tue, 05 Apr 2011 15:14:33 +0000

And be careful about opening up too many credit cards, don’t make the mistake I made! Spread out credit card accounts, preferably 6 months in between each new account open. And don’t try to apply for four cards at the same time like I did! If you can, keeping unused credit cards open will be better than closing them. This decreases your available credit figure and decreases your debt to credit ratio.

By: wylerassociate

wylerassociate — Tue, 05 Apr 2011 14:24:55 +0000

besides obviously paying more than the miminum each month, I make it a point to only use my credit card for things I need, not what I want. I also use websites like http://www.creditkarma.com and http://www.creditsesame.com to manage my credit as well.

By: Flexo

Flexo — Tue, 05 Apr 2011 14:20:58 +0000

That’s true if the error appears on all three reports, but most errors only appear on one report. In general, it’s a good idea to pull one credit report every four months — that’s what I do (or what I try to do).

By: Josh

Josh — Tue, 05 Apr 2011 14:12:10 +0000

Credit.com has a neat feature called the Credit Report Card, which gives you an estimated range of your credit scores. The service is free, can be accessed any time, and is updated every 30 days. The last time I logged in to check mine, I noticed they had started something new, an identity theft risk assessment, that is also free.

By: shellye

shellye — Tue, 05 Apr 2011 13:56:56 +0000

Everyone is entitled to one free credit report per year, per credit bureau. To keep tighter tabs on your report, you should request a credit report every four months from a different bureau, and keep them rotating. In other words, today request your report from Experian, four months from now, request one from Trans Union, then four months after that request one from Equifax, then start over four months later with Experian. That way, there’s less time that goes by before you notice an error.

By: Ceecee

Ceecee — Tue, 05 Apr 2011 13:45:14 +0000

Also in the past you have discussed the secured credit card, where a monetary balance is kept in an account to secure the credit card. It helps those with poor credit build their rating up.

By: Flexo

Flexo — Tue, 05 Apr 2011 13:35:49 +0000

Accounts in good standing stay on your credit report ten years after being paid off.

By: Sustainable PF

Sustainable PF — Tue, 05 Apr 2011 12:52:54 +0000

Pay your bills on time, always. While your credit likely won’t be adversely affected until your account is sent to a creditor learning to pay off bills, in full and on time is a great habit to get into to ensure you have good bill payment habits. If possible automate this activity so you don’t even need to remember to pay the bills.

Keep old credit cards – especially your oldest. I didn’t do this when I got frustrated at the new PIN technology and bank policy so I cancelled my oldest (of 14 yrs – one I never used). I now wish I did not do this. While the credit from that card will remain on my credit history for 7 years it will eventually disappear – but at that time I lose the ability to show 21 years of great history on that card.

By: rewards

rewards — Tue, 05 Apr 2011 12:41:27 +0000

How long do positive items stay on one’s credit report? Items such as paying off student loans, car loans, mortgage, etc.?