Improving credit

Don't cancel your credit cards as it will shorten your already short credit history. How many credit cards do you have? Try to use your credit cards for little purchases or for gas and pay them off. Don't ever carry high balances.

Note: I was thinking. If you have a lot of credit cards that is not good because creditors may assume you are risky borrower. If you were to cancel a credit card don't cancel one of your first cards but cancel one of the more recent ones you have. Your first credit card started your credit history.

I have two major credit cards but I only use one. The other one I got when I was in college. Now I use the newer one that has a lower interest rate. I also have four other cards. They are store cards they aren't used often usually if I make a big purchase and get no interest terms in which I can pay off the balance before interest starts. I wanted to get rid of the newest one. None have balances. So would it be good to get rid of the newest card and just not apply for any others or have any credit checks?

They will still be listed on your credit report, but should be noted as cancelled.

the agencies' formula is a mystery. i've cancelled cards and seen my score drop, even though i have a very long, good credit history. i've found that tinkering with stuff can cause more harm than good, generally. there's probably some formula for dinging people who are obviously doing certain things to try to improve their scores.

definitely keep all cards below the 50% mark. And if you're responsible, then using them doesn't hurt. I'm not sure how much it actually helps though. i think it's more the length of time they've been opened than your average use, and a high average balance doesn't help you either.

having different types of debt definitely helps. Not saying to go buy new shite just to have diversified debt, but the more different types of current (not just historical) loans you have, the better, as long as your total debt isn't too high and your available credit ratios are good.

If you have a student loan, a car loan, some dept store cards, an amex, and a mortgage loan, you are in the best shape, in that regard. But i don't know how heavily weighted this factor is.

I bought a new car a few months ago, because prices were so low and got basically interest free financing. put a good chunk down. but the dealership guy told me i couldn't get the lowest rate without my wife co-signing because whatever system they use came back saying the reason i didn't rate in highest tier is because i don't have a car loan! very dumb. at the time, we already owned three vehicles free and clear, and i've had probably 6 car loans in my life.

i need to check my scores now. i have no clue what they are. Your scores are very good. if you could get them above i think 760, there's little diff between that and anything higher (it may be 780, but somewhere in that range is where you sort of plateau for most purposes).

thanks for the advise guys. Probably in the next year or two I'll be buying a house. Let's say the scores stay the same would I be able to get a good rate on a mortgage? I know rates change all the time I'm just looking for a ballpark.

you're doing fine...just stay on the track that you are on and you will do well....

quote:

---

You are definitely on the right track. The important thing is don't do anything to ding your credit scores. Your scores will only go up in a year or two if you continue what you're doing. Also you have the time to save for a down payment which is key in this market.

---

Yeah I'll be saving my arse off to avoid PMI and be able to put 20% down. So I guess I just keep using the cards I have, not letting my debt get too high, and making every payment on time.

get rid of the store cards

quote:

---

What doi you consider exceptional? With those scores you can buy anything you want. Keep doing what your doing.

---

I don't know I would have thought that 780+ would be be excellent. Although I was pretty happy to see that my scores were as high as they were.