Credit Scores

[ShoMeSomeFun]

Well i've landed a really great job in Tampa, Fl; that I will start in three months. However I looked up my credit score and it was only at 700 but there is no open accounts that I dont know about on all three reports.

 

With my new salary I'll finally be able afford a home, and I would like to purchase one within the next year and a half with say like 10% down on a 200,000 home. But I would like to improve my score so I can get a really good rate.

 

So how can I improve my credit score to say a 780 and how fast could I get that done?

 

And if you want to throw in things on home loans on what to look out for that be great too.

[Nitrousbird]

You don't need 780...you need your middle score of the 3 reports to be 740 (or higher).

[SPL_Josh]

700 is a decent score already. pay loans on time. if you dont have a credit card already get 1 and always pay it off each month.

[Bam]

Do not apply credit anytime up to a year in advance of getting a loan. It could bring your score down and possibly make you seem like you're desperate or need loans/cc to get by.

[John Bruh]

you wont get to a 780 until a few loans, and equity in those loans (lower balances like owing 50k on a 200k house)

 

Really 720+ can buy anything. 740+ better rates

 

800 you can buy anything you want for the absolute lowest rates out there

[bbboti]

Do not apply credit anytime up to a year in advance of getting a loan. It could bring your score down and possibly make you seem like you're desperate or need loans/cc to get by.

 

im not sure on that one. i thought i heard somewhere that you could have up to 3 pulls in 12 month period and not get dinged on you score.

 

i would recommend using any open credit you have. use credit cards and make payments on time. i believe it is actually best to carry a running balance month to month to show that you make payments

[John Bruh]

Do not apply credit anytime up to a year in advance of getting a loan. It could bring your score down and possibly make you seem like you're desperate or need loans/cc to get by.

 

 

not really true.

 

dont take out a huge loan!

 

I had a 715 when i bought my house, 8mo later i had a 736.

Edited May 29, 2009 by John Bruh

[Bam]

AFAIK, no credit scoring system takes into equity on a loan, no way too really.

 

And you should NEVER leave a balance on your credit card, it in no way helps to raise your score, only costs you money.

 

And yes, inquiry's for a loan WILL hurt your score by lowering it, one may not, but it could, if you didn't have a $10k car loan one day, and the next month you did, you're almost certain to have a lower score because of it/the app.

[Bam]

im not sure on that one. i thought i heard somewhere that you could have up to 3 pulls in 12 month period and not get dinged on you score.

 

i would recommend using any open credit you have. use credit cards and make payments on time. i believe it is actually best to carry a running balance month to month to show that you make payments

 

The second part doesn't really make sense...if you don't carry a balance but use your card monthly and pay it off, you still have record of you making payments....without wasting money on interest.

[Farkas]

The second part doesn't really make sense...if you don't carry a balance but use your card monthly and pay it off, you still have record of you making payments....without wasting money on interest.

 

I always keep about a quarter of my limit in running balance on my cards because i've heard exactly the opposite(not from bankers, but family). Banks want you to keep some kind of balance and keep paying on them to show you're a loyal paying customer and show that you're always making payments on time.

 

I've always done this on my cards and I'm well above 700 in credit rating at the age of 23, without taking out any loans.

[John Bruh]

you can be over 700 with out any loans. i bought my house with out any single installment loan and im 21

[Bam]

Well I've always done the opposite, and have heard to do from people within the financial workforce, (friends/people I know within the financial industry, not joe schmoe at a bank), and I as well have north of a 750 at an age of 23, with a mortgage in my name and plenty of available credit.

 

Not trying to start any fights here or spew incorrect information, so anything is possible, but as with many things, I'd recommend anyone not take TOO much seriously from an internet forum. For REAL financial advice, seek elsewhere.

 

Just my .02

[ICEMAN1647545504]

700 is a very good score... Dont worry... You will qualify fine...

[Farkas]

Well I've always done the opposite, and have heard to do from people within the financial workforce, (friends/people I know within the financial industry, not joe schmoe at a bank), and I as well have north of a 750 at an age of 23, with a mortgage in my name and plenty of available credit.

 

Not trying to start any fights here or spew incorrect information, so anything is possible, but as with many things, I'd recommend anyone not take TOO much seriously from an internet forum. For REAL financial advice, seek elsewhere.

 

Just my .02

 

Agreed. :nod:

[Bam]

I always keep about a quarter of my limit in running balance on my cards because i've heard exactly the opposite(not from bankers, but family). Banks want you to keep some kind of balance and keep paying on them to show you're a loyal paying customer and show that you're always making payments on time.

 

I've always done this on my cards and I'm well above 700 in credit rating at the age of 23, without taking out any loans.

 

If I, or anyone with any real amount of credit available to them, kept a quarter of their available credit as a running balance each month, we'd have a lot more people in HUGE debt. I'm not going to say what a quarter of my available credit is, but I know if I have this much at 23, people 20 years my senior have got to have rediculous amounts of available credit, but does that mean they need to use it?

 

Think about it....it's most likely a scam from the bank/card issuer to milk money from you.

 

And...I'm done. Enough of my blabbering for a thread, good luck to the OP on the job and a house.

[Ramsey]

Dont do anything i have done.

[Doug1647545489]

I always keep about a quarter of my limit in running balance on my cards because i've heard exactly the opposite(not from bankers, but family). Banks want you to keep some kind of balance and keep paying on them to show you're a loyal paying customer and show that you're always making payments on time.

 

I've always done this on my cards and I'm well above 700 in credit rating at the age of 23, without taking out any loans.

 

Not true. I have never used my only credit card since opening it in 2004. It's only for emergency. So that means no balance...ever. Only debt I have is my car. Why would you carry a balance and pay interest if you don't have to? Fuck throwing money down the drain.

 

My middle score when applying for my first mortgage a couple weeks ago was 762. They were actually suprised at how high it was with no mortgage. After a year or so into my mortgage I should be closer to 800.

[dakotart]

Not true. I have never used my only credit card since opening it in 2004. It's only for emergency.

 

I've always read that this is bad. its also a reason that many peoples cards were canceled by banks. they weren't using them at all.

[Bam]

I do agree NEVER using them is bad, but leaving a balance on them for no reason is WORSE.

 

I have 2 primary cards that I use monthly, they both have cash rewards. The rest of my credit cards I only use sparingly, like once every 3-6 months to keep them active.

[copperhead]

Best way to build credit is to get a sunoco card since that's the only gas anyone on here uses, and only use it for your normal gas purchases, then pay it off every month with the money you would normally be using on gas anyway. Only its a little bit cheaper since you are using their card.

 

Running a balance = pissing away money, unless you flip from one zero percent interest card to another.

[Nitrousbird]

Carrying a balance actually HURTS your score, and the closer you are to the max on your card, the MORE it hurts your score.

[Tractor]

With a score of 700 you probably can't raise your credit much by using a CC. My wife recommends people with very low scores to get one, use it, and pay it off and change cards from time to time. This will help get a bad or low score up a bit.

 

700 won't get you the best rate possible, but you can use a first time home buyer program (there are many out there) to get some deals. You'll just need to find an agent who knows the market and knows the business, oh and one who you feel is actually working for you along with his commission.

[Snowflake]

Carrying a balance actually HURTS your score, and the closer you are to the max on your card, the MORE it hurts your score.

 

 

Truth...

[gillbot]

800 you can buy anything you want for the absolute lowest rates out there

 

Not true.

 

Carrying a balance actually HURTS your score, and the closer you are to the max on your card, the MORE it hurts your score.

 

This IS true. They like to see open lines of credit with a zero balance but revolving activity.

[ShoMeSomeFun]

With a score of 700 you probably can't raise your credit much by using a CC. My wife recommends people with very low scores to get one, use it, and pay it off and change cards from time to time. This will help get a bad or low score up a bit.

 

700 won't get you the best rate possible, but you can use a first time home buyer program (there are many out there) to get some deals. You'll just need to find an agent who knows the market and knows the business, oh and one who you feel is actually working for you along with his commission.

 

Ive heard of the first time buyer program, my friend said that he knows someone that received 7500 by filing an attachment to their w2 or something on their taxes.

 

The only credit I have is credit cards.

 

Speaking of credit balances. I have paid off a couple of them and they show $0 owed but are under revolving balances does that hurt or does it just show that I pay my debt off.