credit score.........?
im 18 and i just checked my credit score. it was 632. i didnt see anything wrong with just posting a credit score so i have a question......is that good if im only 18?? if not i have 2 credit cards in goood standing if i pay on them good will it make it higher??
Public Comments
- I do believe that if you continue paying your credit cards on time and the amount owed and if you don't have credit with another institute like a bank you might try getting that. However, from experience, don't overwhelm yourself with credit cards and charge accounts. Your score may go up as time goes by. Especially when you purchase your first home. Good luck and remember....too much credit can be a difficult thing to live with. Be careful.
- You should subscribe to a free credit newsletter form one of the big three credit bureaus. You are entitled to one free credit report per year from any of the credit bureaus. Pay your balances off every month if you can. Do not open too many credit card accounts, or this raises a red flag. Pay your bills on time and the credit granting entities will send you offers for low interest cards. You will be getting three to four offers per week. Use your credit wisely. Do not over extend yourself. Remember that a negative item on your credit history will be on there for an extended period of time, so be careful.
- Credit scores are based on a number of factors. Much of the credit scoring industry attempts to keep all known factors secret since Fair Issac's and Company came up with the credit scoring about a decade ago. However, the length of time you have had credit is a factor. Payment history is important. At your age you may not have had credit a long time. The mix of credit counts too. If you have a car loan, mortgage loan, revolving loans, and store cards, this will look better than two types of credit cards. Total debt to available credit counts. Of course any negative marks on your credit including inquiries for credit will pull scores down. Contrary to popular opinion, credit scores can be radically changed if you have a little understanding of the system. Without seeing your exact credit reports (remember there are three bureaus ) it is difficult to give specific advice. You may want to get a line of credit commonly called "overdraft protection" from your local bank. Take that and open up a savings account at another local bank. Now what you can do is borrow against that money from th local bank. Make sure that the bank reports your payments to the credit bureau. Even if they don't keep track of your payments and send a letter to the credit bureaus asking that your payment history for this unreported account is included in your file. Always make payments timely. You can also boost credit by paying better than expected. For example, you can make two payments in the same month on credit card, car loan, line of credit, ect. You can find out more from websites like creditboards.com, creditinfocenter.com, and fair issacs fico.com website. Or just go to Yahoo and put in the phrase "credit scoring" or "FICO" and see what comes up. Good Luck
- 632 is not good for any age. I would imagine that the two credit cards you have are near their credit limit. Pay down the cards and your score will rise in a couple of months. You may have a lot of inquiries also. That will lower your score. Your age will result in a lower score because you don't have any old debt, but it should be at least 680 now.
- A 632 is fairly common if you are 18 and have two open tradelines that have just been opened. If you make your payments consistently every month then yes your score will increase. Most companies will want to see three open tradelines with one rating back 24 months. Don't be in a hurry to make any major purchases yet ie. a house. At 18 years old you sound like you are on the right track but wait until you really know where you want to be and what you plan to do with your life before you commit to something that major, it is not always what it is cracked up to be.
- 680 is considered average,. anything above 680 is good and anything below is bad. Dont apply for more credit and keep ur card balances low. in 3-4 months u will c the difference.
