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Credit score question
Posted on 6/22/13 at 6:08 pm
Posted on 6/22/13 at 6:08 pm
What would be more likely to raise a low credit score?
Keeping a paid off balance monthly on a low limit credit card or paying off an installment loan early?
Installment loan has late payments on it and would be paid off 4 months early. Wondering if the early payoff might not even matter with the late payments. Credit card would be something like a $500 limit with what I am sure will be a laughable interest rate.
And would either of those make any difference on a credit score over a 6 month time period?
Thanks for any insight.
Keeping a paid off balance monthly on a low limit credit card or paying off an installment loan early?
Installment loan has late payments on it and would be paid off 4 months early. Wondering if the early payoff might not even matter with the late payments. Credit card would be something like a $500 limit with what I am sure will be a laughable interest rate.
And would either of those make any difference on a credit score over a 6 month time period?
Thanks for any insight.
This post was edited on 6/22/13 at 6:10 pm
3
Posted on 6/22/13 at 6:39 pm to SJS101
I don't think either will make too big of an impact, but probably do best to keep the installment loan open and make damn sure you pay on time for the remainder, and use the credit card, but never going over50% of your available credit line and pay it off monthly as well
Posted on 6/22/13 at 6:46 pm to Tigerpaw123
quote:
use the credit card, but never going over50% of your available credit line and pay it off monthly as well
Anyone have any experience with a secured credit card? Pretty sure that will be the only kind of card the wife can get. Do those even get reported to the credit bureaus like an unsecured? I have read both great and horrible things about secured cards but would like to hear some personal stories.
Posted on 6/22/13 at 6:59 pm to SJS101
I suspect that just not using the card would help the most. The reason why is that with such a low limit it's nearly impossible not to have a high ratio of used/available.
Financially there should be nothing wrong with using the card provided the balance is paid in full every month, given that there is no interest charged for the first thirty days. It's just that the number they use for the "used" portion is whatever your month-end statement shows is the balance, even if you pay it off on time.
So I'd limit use of the card.
Financially there should be nothing wrong with using the card provided the balance is paid in full every month, given that there is no interest charged for the first thirty days. It's just that the number they use for the "used" portion is whatever your month-end statement shows is the balance, even if you pay it off on time.
So I'd limit use of the card.
Posted on 6/22/13 at 7:39 pm to SJS101
quote:
Anyone have any experience with a secured credit card? Pretty sure that will be the only kind of card the wife can get. Do those even get reported to the credit bureaus like an unsecured? I have read both great and horrible things about secured cards but would like to hear some personal storie
They get reported but will show that it's a secured card. That won't hurt her score but may make banks leery of loaning her money. Try Capital One, they're pretty lenient. Also, paying off the loan early won't help her score. Just pay it on time every month. Use the credit card and pay it off every month. If you don't use if, you risk them closing the account.
ETA: Look into a Credit Builder Loan at a credit union. They're designed to help build a good credit history.
This post was edited on 6/22/13 at 7:41 pm
Posted on 6/22/13 at 7:40 pm to foshizzle
Thanks for the information 
Posted on 6/23/13 at 7:43 pm to SJS101
I went to myfico and did the scorewatch. It has a credit calculator to help raise it based on your debts.
Posted on 6/23/13 at 9:22 pm to Hu_Flung_Pu
quote:
I went to myfico and did the scorewatch. It has a credit calculator to help raise it based on your debts.
This and look at the credit rebuilding forum message board on MyFico.com. Lots of useful information there for someone trying to build or rebuild credit.
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