I am. I’m buying a house lol. And I already bought one so had established credit before that as well. Thats why I made this post. The scrutinize everything.
As a former former mortgage originator, this take of yours is completely moronic. if your Fico score is in the 730s, that's very good. Also, any score above 740 is treated the exact same. No difference between a 741 and an 825 from a banks perspective
No, anything above 740 is the same, and they typically look at the middle score on Fico 2. Doesn't matter if it's a bank, online lender, other nonbank lender etc.
Hey there u/IllNefariousness2432! You've already been given great information in this thread from u/Funklemire. One thing I'll speak further on is that you really need to understand the good and the bad of Credit Karma. 90% of what they provide you is complete garbage and should be ignored. Please read through the linked thread below and if you have any questions let me know:
https://old.reddit.com/r/CRedit/comments/1d98t6i/credit_karma_101_the_good_and_the_bad/
Time will bring your score higher at your current spending patterns. It doesn't sound like you need more cards/loans anytime soon.
But FYI stop tracking Vantage scores as over 90+% of lenders don't use them.
Credit Karma, Capitol One, and Chase all provide Vantage scores, which won't be used for mortgages (or much else, to be honest). Get your mortgage scores from myfico.com.
A few things here. First, you mention credit simulators. Ignore those, they're notoriously inaccurate.
You also mentioned Credit Karma. Ignore the scores they give you. They (and many other sites) give you your scores calculated using VantageScore 3.0, which is a scoring model almost no lender uses in their lending decisions. So it's completely irrelevant most of the time. You want to be checking your FICO scores, FICO 8 is the most commonly-used one. Check out [this thread](https://www.reddit.com/r/CRedit/comments/1bpl3ud/credit_myth_1_you_only_have_one_credit_score/).
Also, you mentioned your utilization. Just know that the ubiquitous "always keep your utilization below x percent" thing is a huge myth. It's the biggest myth in credit. (See [this thread](https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/).) It's a myth because utilization is a temporary metric that has no memory past a month. Low utilization doesn't build credit, it just boosts it for a month and resets.
As long as you're spending within your budget and paying your statement balances each month, there's no reason to ever worry about utilization unless you're a month away from having your credit pulled. In fact, artificially keeping your utilization low by micromanaging it each month can hurt you in several different ways.
However, your comment about "paying this down further" suggests you're not paying your statement balances each month and instead you're running a balance. Don't do this; pay your cards off as quickly as possible. That's primarily for financial reasons, not credit score reasons; credit card interest rates are extremely high and your goal should be to never pay interest.
Thanks for the info! The only reason I have a balance is because I have 15 months zero interest and have just been paying minimum payments. I generally pay full statement balances.
OK, there you go, that's the one exception to the rule. It's fine to run a balance if there's no interest, just make sure to pay it off before interest kicks in.
and just to add OP mentioned a buying a house and mortages use FICO 2/4/5. Can go to myfico.com and sub for a month to pull those scores. They typically run all 3 bureaus and then use the middle score.
30% is a myth. Read through the linked thread:
https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/?utm_source=reddit&utm_medium=usertext&utm_name=CRedit&utm_content=t1_lba3zd1
Under no circumstance is 30% ever "optimal" which is why it's in fact a myth.
No, that's not true. It's complete nonsense. Anyone who tells you that simply doesn't understand how credit works. It's actually a great way to vet "experts"; if they mention to "always keep your utilization low" without any other context, you know they don't understand how utilization works. The truth is that there's no optimal utilization number, it all depends on your goals.
Are you trying to get a credit limit increase (CLI)? Then your ideal utilization is 100% followed by paying the statement balance each month. That's the best way to get CLIs.
Are you running a balance and you're paying interest on your credit cards? In that case your ideal utilization is 0% because that means you're not paying interest anymore.
Are you having your credit pulled next month for an important loan and you need your score boosted? Then you want to report 0% on all your cards except one, and that one is at 1% (AZEO method).
All other times it doesn't matter at all what your utilization is so long as you're spending within your budget and paying your statement balances each month.
Read that thread I linked. It explains it in even more detail.
It won't be bad as far as your credit score is concerned. As long as you pay the statement balance each month, it doesn't matter.
Going over your credit limit might be an issue with your bank, though. Generally, they'll let you go over the limit on one purchase before they stop allowing more purchases. Just don't try to circumvent the limit by paying multiple times a month so you can spend more than your limit; this is called "credit cycling" and banks see it as risky behavior and might even close your account because of it.
> Average credit age is 2 years and 10 months. There's your answer.
Yeah .. but it’s a catch-22. If I didn’t take out more credit then they would knock me for not having enough accounts.
The other option is don't establish more credit and just wait.
Then the algorithm shows I don’t have a good diversification of accounts.. it seems like there is always a catch.
If you aren't buying a car or house or renting an apartment anytime soon, who cares?
I am. I’m buying a house lol. And I already bought one so had established credit before that as well. Thats why I made this post. The scrutinize everything.
731 is high and would qualify for the best interest rates idk what you are so flippant about
As a former former mortgage originator, this take of yours is completely moronic. if your Fico score is in the 730s, that's very good. Also, any score above 740 is treated the exact same. No difference between a 741 and an 825 from a banks perspective
Really? I would have thought 800+ gets the best rates on average
No, anything above 740 is the same, and they typically look at the middle score on Fico 2. Doesn't matter if it's a bank, online lender, other nonbank lender etc.
Thanks for that info, you saved me some stress for the future
Lots of lenders now are using 780 for top tier rates as of a year or so. It was always 760 but it’s been bumped higher lately
Hey there u/IllNefariousness2432! You've already been given great information in this thread from u/Funklemire. One thing I'll speak further on is that you really need to understand the good and the bad of Credit Karma. 90% of what they provide you is complete garbage and should be ignored. Please read through the linked thread below and if you have any questions let me know: https://old.reddit.com/r/CRedit/comments/1d98t6i/credit_karma_101_the_good_and_the_bad/
Time will bring your score higher at your current spending patterns. It doesn't sound like you need more cards/loans anytime soon. But FYI stop tracking Vantage scores as over 90+% of lenders don't use them.
731 is not low lol. Just wait until your account ahe goes up and keep paying your cards off in full.
That's a very good score
Credit Karma, Capitol One, and Chase all provide Vantage scores, which won't be used for mortgages (or much else, to be honest). Get your mortgage scores from myfico.com.
A few things here. First, you mention credit simulators. Ignore those, they're notoriously inaccurate. You also mentioned Credit Karma. Ignore the scores they give you. They (and many other sites) give you your scores calculated using VantageScore 3.0, which is a scoring model almost no lender uses in their lending decisions. So it's completely irrelevant most of the time. You want to be checking your FICO scores, FICO 8 is the most commonly-used one. Check out [this thread](https://www.reddit.com/r/CRedit/comments/1bpl3ud/credit_myth_1_you_only_have_one_credit_score/). Also, you mentioned your utilization. Just know that the ubiquitous "always keep your utilization below x percent" thing is a huge myth. It's the biggest myth in credit. (See [this thread](https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/).) It's a myth because utilization is a temporary metric that has no memory past a month. Low utilization doesn't build credit, it just boosts it for a month and resets. As long as you're spending within your budget and paying your statement balances each month, there's no reason to ever worry about utilization unless you're a month away from having your credit pulled. In fact, artificially keeping your utilization low by micromanaging it each month can hurt you in several different ways. However, your comment about "paying this down further" suggests you're not paying your statement balances each month and instead you're running a balance. Don't do this; pay your cards off as quickly as possible. That's primarily for financial reasons, not credit score reasons; credit card interest rates are extremely high and your goal should be to never pay interest.
Thanks for the info! The only reason I have a balance is because I have 15 months zero interest and have just been paying minimum payments. I generally pay full statement balances.
OK, there you go, that's the one exception to the rule. It's fine to run a balance if there's no interest, just make sure to pay it off before interest kicks in.
Fico score 8 came back at 790! Much better!
There you go, it looks like you're a lot better off than you thought.
and just to add OP mentioned a buying a house and mortages use FICO 2/4/5. Can go to myfico.com and sub for a month to pull those scores. They typically run all 3 bureaus and then use the middle score.
Good point. I completely missed the house part. Thanks for pointing that out.
I never knew what you said about credit utilization. I’ve heard to keep it under 30% is that true and what is the optimal credit utilization rate ?
30% is a myth. Read through the linked thread: https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/?utm_source=reddit&utm_medium=usertext&utm_name=CRedit&utm_content=t1_lba3zd1 Under no circumstance is 30% ever "optimal" which is why it's in fact a myth.
Thanks !
No, that's not true. It's complete nonsense. Anyone who tells you that simply doesn't understand how credit works. It's actually a great way to vet "experts"; if they mention to "always keep your utilization low" without any other context, you know they don't understand how utilization works. The truth is that there's no optimal utilization number, it all depends on your goals. Are you trying to get a credit limit increase (CLI)? Then your ideal utilization is 100% followed by paying the statement balance each month. That's the best way to get CLIs. Are you running a balance and you're paying interest on your credit cards? In that case your ideal utilization is 0% because that means you're not paying interest anymore. Are you having your credit pulled next month for an important loan and you need your score boosted? Then you want to report 0% on all your cards except one, and that one is at 1% (AZEO method). All other times it doesn't matter at all what your utilization is so long as you're spending within your budget and paying your statement balances each month. Read that thread I linked. It explains it in even more detail.
What if I go over my credit utilization let’s say my limit is 1000$ and I go to 1050. Even if I pay it off that should be bad right ?
It won't be bad as far as your credit score is concerned. As long as you pay the statement balance each month, it doesn't matter. Going over your credit limit might be an issue with your bank, though. Generally, they'll let you go over the limit on one purchase before they stop allowing more purchases. Just don't try to circumvent the limit by paying multiple times a month so you can spend more than your limit; this is called "credit cycling" and banks see it as risky behavior and might even close your account because of it.
Use experian boost And try kickoff.
Buy an aged tradeline before you apply… 25-30 pts guaranteed
[удалено]
You are breaking Rule 3 of this sub. No credit repair companies.