Improve credit score without increasing debt

[Redneck1919]

Biden says credit bureaus are racist and wants to eliminate them.

https://www.forbes.com/advisor/cred...-plan-to-change-credit-reporting-and-scoring/

 

[jimireece]

Biden says credit bureaus are racist and wants to eliminate them.

https://www.forbes.com/advisor/cred...-plan-to-change-credit-reporting-and-scoring/

I want them eliminated too, but for entirely different reasons.

 

[whiskerz]

Mine dropped after I paid off my house. The penalty for less debt

 

[HKMurkure]

I am a mortgage lender and there is no benefit to your interest rate / loan pricing / costs by increasing your credit scores. Anything over 740 on a purchase in considered the same. Here is a screenshot from a mortgage pricing engine that shows this info. CAMSDADDY

 

[Scorpius]

Anything over 750 is considered excellent credit. So 750, 850 or anything in between really makes no difference as to the rate you will be offered. Shop around.

Factors - credit cards longevity. Your average should be 9 years to get max score in this area.
Example. If you have 1 card for 10 years and open another new account, bam you just made
Your average account for credit to 5 years. Your score will be lowered.
I have ~ 2 times my annual salary in credit lines across multiple cards. I rotate them. 1 pays my monthly Netflix, another my annual Microsoft family, another my annual TurboTax. Each month I pay in full. Worst case never utilize or have a balance exceeding 10% of your available credit line. Once you u break 10% you drop your score.

Open a HELOC. Use it for small home related stuff. New floors, carpet, anything for your home. I opened one for about 1/6th of my current home value.

If you must do something on credit use what I call the rule of 10. If item costs $1000 then I must know I can COMMIT to paying 10% each month. Note: month 2 my balance is $900 plus slight interest if any. I would still pay 10% of my original balance. If you can’t pay it off in 10 months. You don’t need it or you need to figure out something else.

Use your credit but treat it like a check you wrote out. Get points? Cash back? These days it’s easy to rack up free points but you MUST be disciplined.
Example. $300 on groceries with my cabelas card at sams club. That night I send an online payment for that amount to cabelas. If I do 20 charges in month I’ll see 20 credits and zero due.
This gets you points for stuff your buying anyhow and builds your credit score while keeping you at a zero balance. (Note: I’m religious with this. The majority of society is not) if you can’t bill pay it immediately like you pulled it from your checking then don’t even attempt it.

Guidelines but if you do these things your increase your score quickly.

Credit is good, and necessary but very dangerous if you’re not diligent in not overusing it to live beyond your means.

 

[CAMSDADDY]

I have a one credit card that I have had for 15+ years. We put most things on it and I pay it off once a week or every other week. Would only paying it off once a month and "using" more of my credit improve things? I only have a $6000 - $7000 limit and have never increased it. I have not carried a balance in years. I have not increased the limit in years either. I normally charge $1500-$2500 a month but pay it off

 

[C ountry]

I have a one credit card that I have had for 15+ years. We put most things on it and I pay it off once a week or every other week. Would only paying it off once a month and "using" more of my credit improve things? I only have a $6000 - $7000 limit and have never increased it. I have not carried a balance in years. I have not increased the limit in years either. I normally charge $1500-$2500 a month but pay it off

I feel shorted. I don't have a credit card.

 

[JDG.]

I have a one credit card that I have had for 15+ years. We put most things on it and I pay it off once a week or every other week. Would only paying it off once a month and "using" more of my credit improve things? I only have a $6000 - $7000 limit and have never increased it. I have not carried a balance in years. I have not increased the limit in years either. I normally charge $1500-$2500 a month but pay it off

I did something similar. I ask for an increase on one of my cards to increase my available credit. That should also help with utilization ratio's lower. Also I don't pay off every week. the interest charges are once a month. However if paying off every week helps you to budget, that should be considered. I use the same card for all my bills and daily spending, but keep the limit on that low in case of theft.

I honestly think paying cash would help with spending but the rewards points pay for a large chunk of our Christmas shopping as well.

 

[CAMSDADDY]

I did something similar. I ask for an increase on one of my cards to increase my available credit. That should also help with utilization ratio's lower. Also I don't pay off every week. the interest charges are once a month. However if paying off every week helps you to budget, that should be considered. I use the same card for all my bills and daily spending, but keep the limit on that low in case of theft.

I honestly think paying cash would help with spending but the rewards points pay for a large chunk of our Christmas shopping as well.

Cash makes spending real. Swiping a card doesn't have the same emotion as seeing those greenbacks leave.

 

[StuP]

I owe on my mortgage, nothing else, have a couple of cards, not huge limits, total maybe 60k, which never have a balance at statement time, I clock mid 800's.