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Yes it is about the details including payment history, debt to income ratio, credit usage, type of credit etc. Not having or using credit actually hurts a credit score. Think about it, how can someone who is considering his credit application determine how he repays. I suggest you study how a FICO score is determined before posting.
Question is what happens when I pay off my mortgage, which will happen in the next few years? My wife and I have several credit cards but we pay them off in full each month, by automatic debiting from the checking account. Does that conduct hurt my score?
Just got my credit score and it's updated from about 820 to 835 now. The only difference I can see is that I actually USED a couple of credit cards (which I don't usually use) and paid them off in two or three months rather than immediately because we were remodeling a bathroom and simultaneously doing our taxes - LOL.
Anyway, I thought that was interesting - that I could actually be a little in debt for a couple of months and my credit score went UP.
Question is what happens when I pay off my mortgage, which will happen in the next few years? My wife and I have several credit cards but we pay them off in full each month, by automatic debiting from the checking account. Does that conduct hurt my score?
It will dip when you pay off your mortgage and then rise again if you keep using credit cards and paying them on time.
Paying them off each month is financially sound and will not hurt your score.
My FICO score is 824. For some strange reason I felt a lot of pride when I got the report. I feel like an elite.
Can anyone beat me in their FICO score?
Yes, but older and comfortably retired. It is just a matter of debt to income and payment history. I am basing this on two bank scores one of 852 and the other of 877 on a 900 scale.
My FICO score is 824. For some strange reason I felt a lot of pride when I got the report. I feel like an elite.
Can anyone beat me in their FICO score?
Summer of 2016 we applied for a mortgage for our (eventual) retirement home. The credit check they did came back at 842 out of 850. The mortgage broker said it may have been the highest score they've seen in their office. All the credit goes to my DH who diligently pays all bills on time. Other than mortgages, we have no debt and pay off our credit card in full each month.
Was going through the shred pile the other day, and noticed on a Citibank statement that we've had a credit card with them since 1997. Guess that counts as a good long banking relationship.
It does slightly, your average age of accounts is one of the things calculated into your scores. I have an account from 2003 that offers me no advantages compared to my others (cash back and rewards); so I just use it for occasional dry cleaning then pay it off so the account stays open. I keep it open simply because it raises my average account age.
Is there a benefit to manipulating your score this way? What does an 835 get you that 825 wouldn't (besides the headache of maintaining an unnecessary account)?
My score is 693, only 7 points away from being a 700. Might not seem like much to many people but when my husband died my score was more like 550. It's taken a lot of work, a lot of letters sent certified - return receipt requested and careful use of credit cards starting with a secured card in 2013. By 2014, I had 4 credit cards, now I have 3 since I paid the store credit card off but I'm keeping the account open so it looks good that I have a credit card with a $0 balance.
The 2nd card is utilizing 30% of the available credit. The other two are too high but I had to pay for my son's surgery co-pays and my cat's medical care last summer. I'm working on paying those down to 30%. I plan on using my VA benefits to buy a townhouse in early fall.
Once that credit score falls, it isn't always easy to get it back up.
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