Why is my credit rating poor(589)???
I just checked my credit report, and it's a 589! It said I have 0 negative items, and 27 items in good standing. About 10 out of the 27 items were student loans that added up to about $25,000, 2 of the items were credit cards that added up to $5000. I've never been late on any payments, and I have no idea why my credit rating is poor. Is it because of the ratio of how much I have in comparison to the lines of open credit?? Like, if you oh more than 50% of all your lines of credit, does that knock it down? I'm going to be paying off these credit cards very soon, how many points do you think it will increase once I pay them off? Thanks thanks wizip for completely NOT answering my question.
Public Comments
- This is how your score breaks down: 35%- payment history 30%- total debt outstanding 15%- length of time you've had credit 10%- types of credit 10%- inquiries and new credit
- Yep your credit score is based on how much you have borrowed...they figure how much you make each year and if you make less then what is charged then it effexts your score...try to consoliate you bills thru your bank...this will give you one payment and will eliminate high interest rates you may have..
- OK, you already have the breakdown from the previous poster, from what you describe I would say that it is your debt that is dragging your score down. Anytime you exceed 30% of your credit limit your score suffers. I have seen this a thousand times, people that have never been late to the bathroom and their score is in the toilet due to debt. Once you pay off your debt and get your balance where it should be, you can expect your score to go up substantially.
- Wizjp gave you part of the answer, Spifi finished it up, but I got a few things to add. Although paying down the credit cards will definitely help, the amount you still owe on the student loans is still far greater than the available credit. A few months after paying the cards down or off, I would request a line increase on both cards to boost your utilization. Now I'm not suggesting that you spend anywhere as much as you did if you're able to get the lines increased on them. Use them as lightly as possible, and for emergency puposes. I'll give you an example if you were able to get the lines increased on both cards to where they both totalled $10K, then it would look considerably better. But once again, I wouldn't spend that much.
- Sounds like you need a better understanding of how credit works. . Usually companies charge hundreds of dollars to simply pull your credit and send correctly worded dispute letters—this is the key…..people will tell you that you can do this yourself for free but the truth of the matter is that the credit bureaus will throw your letters away or simply reject them. There is an easy to use online kit that will deliver the results you want available for just $19.95 at the source website. A similar kit is being sold via infomercials and radio talk shows for seventy dollars more but they try to solicit you repeatedly for other services after the fact.
- First of all you have a lot of accounts -- thats the biggest problem I see here. You should consolidate all your student loans into one -- this will boost your score... also $5000 is a lot of debt to have... a big chunk of your credit score is calculated by what's know as the debt to credit ratio. You should never use more than 20% of your available credit.. This is also impacting your score. There are a lot of things you can do now to help though.. check it out... # Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score tracking listed below. It really helped my get my score up.) # Never Miss a Payment, Starting Today # Never use more than 20% of your Available Credit # Keep Credit Cards that Have No Annual Fees Open For as Long as Possible # Extend Your Credit Limit on Cards You Already Have before You Get New Ones # Get Credit Cards that Have CashBack Rewards to Contribute to your Balance # Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit- # If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan # Take out a Small Personal Loan and Repay it Over a Year # Ask Someone With Good Credit if They will Account Shadow you If you credit score is low its probably time to fix it, and a good first step like I mentioned is to start tracking it -- which you can do with some of the links below! =) Good luck!
