Official Credit Questions and Answers Thread.

[DrYeRLiNt]

With threads popping up every so often about credit scores, improving them, and establishing credit, I figured an official Credit Questions and Answers Thread was needed.

I'll kick things off...




How many lines of credit (credit cards) is good/bad to have? I know your debt to income is a big factor, but i hear having too many credit cards is also a big deal. How many is the optimal/maximum a person would want?

 

[SpectorV]

I have a Question: My wife back when she was young had a GAP card. She didnt get the statment for a bit and finally did and paid for it before 90 days (probably before 60) but it is on her report. Its been years. Should she contest it to GAP or should she contest it on one of the credit reporting agencies? Never had to contest anything so any tips on that? How that works? I have heard if you contest it and they dont come back in XX amount of time its removed, this true?

 

[codyPKA]

How many lines of credit (credit cards) is good/bad to have? I know your debt to income is a big factor, but i hear having too many credit cards is also a big deal. How many is the optimal/maximum a person would want?

^^^ wondering the same thing

 

[HomeboyNorm]

I read that 3 CCs is generally the thereshold before they start to possibly consider it as too many.

 

[got hp]

I read that 3 CCs is generally the thereshold before they possibly start to consider it as too many.

Are you serious? I better start cancelling some cards then lol!

 

[HomeboyNorm]

I have a Question: My wife back when she was young had a GAP card. She didnt get the statment for a bit and finally did and paid for it before 90 days (probably before 60) but it is on her report. Its been years. Should she contest it to GAP or should she contest it on one of the credit reporting agencies? Never had to contest anything so any tips on that? How that works? I have heard if you contest it and they dont come back in XX amount of time its removed, this true?

How long have it been on her report?

I think some things older than 7 years get expunged off the credit reports, but then if not you can try to contest it.

The more responsible thing would have been to call GAP and inquire about the missing statement, but that's too late now. We all make mistakes at one time or another.

 

[HomeboyNorm]

Are you serious? I better start cancelling some cards then lol!

Well, that's what they say in some of the financial articles which I read, but then I am not a financial analyst/advisor by profession. I also read that if you must cancel some credit cards how it is better to cancel the newest ones as the oldest good standing accounts will help with ratings more.

I guess it is all in relative to how much you make for your earnings. People who make $100k annually and pay above the minimum payments on balances less than half the card limits would not look as bad with 10 cards than people who make $30k annually with high balances near the limits and always pay the minimum amounts.

I hope my personal analysis will not get :bash: on! :lol:

 

[ON D BIT]

there are a lot of threads on this very subject! my best advice is go ask 3+ professionals in this field to find the true answers on this very subject! ie experienced mortgage agents, underwriters, and other loan officers.

the post from before are filled with speculation and heresay! most of it is not accurate.

 

[Sinister04L]

It's not really how many credit cards you have, it's how much is on the card relative to it's limit. It's better to have 10 cards that have a little bit on each and have plenty of room left on them than to have 3 that are right on the limit.

 

[dsrtdukone]

It's not really how many credit cards you have, it's how much is on the card relative to it's limit. It's better to have 10 cards that have a little bit on each and have plenty of room left on them than to have 3 that are right on the limit.

Actually, high limits on credit cards can be a deterent for many lenders regardless of the balance amount carried on the card. It is often viewed as "potential debt", and thus frowned upon.

 

[got hp]

Actually, high limits on credit cards can be a deterent for many lenders regardless of the balance amount carried on the card. It is often viewed as "potential debt", and thus frowned upon.

If I were ever to go crazy and max my cards, I could buy a new Z06 so I can understand that oke:

 

[Juruense]

See my posts in the other threads, not typing it all again.

 

[RDJ]

It's not really how many credit cards you have, it's how much is on the card relative to it's limit. It's better to have 10 cards that have a little bit on each and have plenty of room left on them than to have 3 that are right on the limit.

And what do you base this on? post up a link to your source of info. I have done a ton of research in getting my credit straight the last 10 years after my divorce. NO ONE in the financial field has ever stated anything close to this.

3 or 4 credit cards are the max. if you currently have more than that DO NOT CLOSE them. if you have less than that don't get anymore. Never EVER close a credit card after it is open. two reasons:

1. It lowers your credit available/used ratio. the more unused credit you have on your current cards the better off you are. the general consensus is you should use no more than 30-40% of your available credit.

2. SOME (not all) credit reviewers look at a person who closes accounts as a bigger risk than those who don't. if YOU don't trust yourself with credit why should they. leave it open and unused until the creditor closes the account it will look better. and DON"T call the creditor and ask them to close the account because it shows up on your credit report as "closed per account owners request" my score went up with the one I closed that way dropped off my report, even tho it was "paid as agreed".

 

[mc01svt]

I have a question......... I bought my truck with relatively no credit history and no consigner, plus I had a few late payments on the 1 credit card I had in college. So I ended up getting a pretty bad deal. I was told that after a few months of consistent payments my score would shoot up. We'll 3yrs into it and my score is not going up. So after I finally got a full time job I decided to start monitoring my credit. I have NO deliquent accts and no bad marks in the last 18 months. Got a monthly update this week and my score went down about 15pts. WTF!!! :shrug: Its been 4months since I started watching it and all of a sudden my score went down. :??:

 

[RDJ]

I have a question......... I bought my truck with relatively no credit history and no consigner, plus I had a few late payments on the 1 credit card I had in college. So I ended up getting a pretty bad deal. I was told that after a few months of consistent payments my score would shoot up. We'll 3yrs into it and my score is not going up. So after I finally got a full time job I decided to start monitoring my credit. I have NO deliquent accts and no bad marks in the last 18 months. Got a monthly update this week and my score went down about 15pts. WTF!!! :shrug: Its been 4months since I started watching it and all of a sudden my score went down. :??:

Your problem is the old delinquencies. they stay on your credit report for at least 5 years so your credit score will not go up much if any at all until they drop off. did you get another credit card? or other credit? those will make your score go down.

 

[My Cobra]

who are these credit professionals that you guys are talking about? Where do you find these people and what do they charge to point you in the right direction? Two years ago i bought a house, my credit score was 735 now it has dropped and nothing has changed. I am 2 months ahead on my morgage payment, i have no car payment and no credit cards or other loans. I don't get it. so i want to find somebody to look in to it.

 

[RDJ]

who are these credit professionals that you guys are talking about? Where do you find these people and what do they charge to point you in the right direction? Two years ago i bought a house, my credit score was 735 now it has dropped and nothing has changed. I am 2 months ahead on my morgage payment, i have no car payment and no credit cards or other loans. I don't get it. so i want to find somebody to look in to it.

you don't need to look into it. Buying a house WILL drop your score for a bit but it should not have dropped much. Paying a mortgage ahead does not improve your credit score since the only thing that gets reported is "pays as agreed" or "pays on time" there is no entry for "pays ahead". It is benificial to do so because it pays you mortgage early.

on your score anything above 680 you really don't have to worry about. paying a professional to "look into it" as you put it is a waste of your time and your money. even if they find out why it went down there is nothing you can do about it.

 

[Got Boost?]

being 16, i've always been curios when/how to start building credit. only bill i have is my insurance, and i dont know if they report or not? so if anyone wants to school me on how to start, or if ill have to wait till im 18 or not. feel free.

 

[y0rascal]

I have a Question: My wife back when she was young had a GAP card. She didnt get the statment for a bit and finally did and paid for it before 90 days (probably before 60) but it is on her report. Its been years. Should she contest it to GAP or should she contest it on one of the credit reporting agencies? Never had to contest anything so any tips on that? How that works? I have heard if you contest it and they dont come back in XX amount of time its removed, this true?

might want to try a "goodwill adjustment" which is were you send a letter basically saying you screwed up kiss their arse and ask for them to remove it off of the credit report...

 

[y0rascal]

With threads popping up every so often about credit scores, improving them, and establishing credit, I figured an official Credit Questions and Answers Thread was needed.

I'll kick things off...




How many lines of credit (credit cards) is good/bad to have? I know your debt to income is a big factor, but i hear having too many credit cards is also a big deal. How many is the optimal/maximum a person would want?

3 is good and should be the minimum.... just make sure your overall utilization stays under 8% and you will have and keep a good credit score....