If your FICO score is 581 and you have 2 credit cards both almost maxed but you have no late payments no collections and low credit hits why is your score so low?
Not only is your overall score based upon payment history which is very important, it is also based upon the credit to debt ration, "maxing out" an account has an extremely negative affect on the basic credit rating.
From the Federal Reserve's 2007 Payments Study Press Release: http://www.frbservices.org/files/communications/pdf/press/2007_payments_study_press_release.pdf "Among the three main types of electronic payments, the annual use of debit cards increased by about 10 billion payments over the survey period to 25.3 billion payments in 2006. Debit cards now surpass credit cards as the most frequently used electronic payment type. Over the same period, automated clearinghouse (ACH) payments grew to 14.6 billion, an increase of almost 6 billion payments. Credit cards…
Capital One offers ten different credit cards, depending on one's needs, wants, and current credit score. Some of these include the VentureOne, the Classic Platinum, and the Cash Rewards. All credit cards are able to be used for online payments, and information can be viewed from one's online banking account.
Credit cards are issued to customers of companies who offer lines of credit. The card can be used to make purchases or payments in stores and online. Debit cards on the other hand are issued by banks or prepaid debit card companies. They have the same role as a credit card allowing consumers to make payments or purchases in stores and online, but can also be used to withdrawal money from an ATM.
Is it better if I pay of my credit card balaces with money I have on side or if I just keep paying payments that I can each month?
The answer to that question depends on how much interest you are paying and how much interest you are earning. Almost all of the time it is better to pay off your credit cards. But if you need to borrow for something else then you need to compare interest rates before you pay offthe credit cards. But ALMOST ALL of the time paying off a credit card and not paying interest is in your best…
If you pay a collections account in full and have no credit cards or other debts how soon can your score go up?
You build up credit by making purchases on credit and making payments for them. Since you may not qualify for major credit cards, you can start with either debit cards or get department store credit cards such as Sears, Macys, Kohls, etc. The store credit activity becomes part of our credit history.
Start off first by getting a Sears, Target, Circuit City or similar in-store credit card. After making purchases and payments on that for six months, you should become eligible for small limit credit cards. Keep making purchases and payments on all credit and shortly you will have established a ground credit. DO NOT GO OVER LIMITS, MISS PAYMENTS, OR INQUIRE INTO TOO MANY CREDIT ACCOUNTS.
It can, but it depends. If you pay your monthly bills on time, you will probably have a higher credit score. However, if you do not pay bills on time, or you have been sent to collections (people are sent to collections if they do not pay their bills), then this may effect your shopping power in the credit world. That is, if you are pertaining to credit cards and credit scores. Thanks!
I would say the average household has 4 credit cards? One for the mom, one for the dad, and a business credit card for each. That is wrong the average household has eight credit cards, and owes more than 8,000 on them. About 50 percent report having problems making the minimum payments on their bill.
Balance credit cards are those that allow the holder to transfer balances (debt) from other credit cards to this one. Since these credit cards usually come with a promotion that includes several months of no interest payments, they can be used to consolidate and pay off other credit card balances. The balances must be paid during the promotional period for this to be of benefit. Managing and paying off debt this way, saves money and…