That is simply something that is completely untrue. Credit Scores are driven off multiple factor. I am a credit analyst for a major credit card company and I hear so many misconceptions about credit that I can't help but to laugh at some of them.
Opening, Closing, paying credit cards off, charging balance onto the car, obtaining an installment loan (like a mortgage, car or personal loan) all affect everyone differently based on how loan you've had credit, how much debt you currently have, how many recent inquiries for credit, the average age of the accounts that are already open, the time since you last opened an account, how many open accounts you have, how many open but inactive accounts you have, if you have any delinquent account such as medical collections, utility collections, or late pays or charges off on you current credit report. Ehat it boils down to is that nothing with affect 2 different people the same way when it comes to credit because even though all the history could be the same there will always be slight various that will change it up for most people.
As an example...I recently opened a new credit card with a $15,000 limit and transferred $9000 to the account and paid off all of my other credit cards, however even though I had a high credit limit and paid off other card rather than adding debt my score dropped by 30 points...due to the inquiry to get the account open, the adding of the account to the credit report and then the balance...that is what really made it hurt...the account was new and new accounts with balance in excess of 50 percent of the credit line tend to have a huge impact on credit scores.
However, I have know people that had 3 or 4 cards completely maxed out to the limit and opened a new account and transferred the balance and there scores went up because they weren't as maxed out on the other accounts any more.
Best thing to do...get a copy of you credit report and score before and after the account is opened and compare the information.
Yes, it is perfectly legal to check your credit score before opening an account with a bank. The bank themselves would run a credit check on you before finalizing the account opening procedure. However a good credit score is not mandatory to open a deposit account.
== == Yes, when you transfer a balance you are required to close that account. Closing an account decreases your score up to 20 points. You then increase the balance of a new account. Opening a new account decreases your score up 20 points. If you have a balance on an account that is already open and your transfer more money into that account you are increasing your balance; which will decrease your score up to 20 points. So, be careful with this process, and be aware of the affects.
I recent late payment on an open account can hurt your credit score up to 60 points.
While there's no definitive answer with respect to how many points your credit score may drop after a collection, a collection account is a clear indication that a loan, credit card or retail card was not repaid and payment history is one major contributing factor to your credit score. This can have a negative impact on your credit score.
You have to have a open active account in order to get a credit score increase.
I check my friend's credit score monthly as I manage her finance for her. Addition of 1 derogatory mark (account went to collections and got reported to the TransUnion) resulted in a whopping 27 points drop in credit score. Next month the score went up by 13 points and a month after that by another 10 points. Third month after derogatory mark appearing on the credit report, the the score is 4 points lower than it was prior to getting the mark.
You can expect at least 10-15 point off of your credit score with an unpaid account. Remember the older the account the less it will affect you.
how many points dose foreclosure decrease your credit score
The number of points a credit score goes up after three negative accounts have been removed varies. It depends on the type of account removed and the person's score prior to the removal of the items.
No, only the primary cardholder's credit score is affected.
Actually, it does. It uses the available credit you have so when that goes down the credit score does too.
Make sure that you stay below 30% of the credit limit if you want to have a decent credit score. There is a scoring module that Credit Reporting Agencies go by that we as the consumers don't know about. I will tell from experience that your score could decrease anywhere from 10 - 20 points from each bureau that your account is being reported with.
It depends on if the account was good and helping your score or a bad account that was holding your account down. Removing a good account cold lower your score.
A recent late payment can drop your credit score about 60 points.
== == Collection account are 20% of the total credit score module.
If you have a chargeback, that is a credit to your account. This will not affect your credit score negatively or positively.
THERE ARE ALOT FACTORS INVOLVED WHEN POINTS ARE ADDED UNTO YOUR CREDIT SCORE. IF YOU PAY OFF AN OLD BILL YOU CAN RECIEVE ANWHERE FROM 15-20 POINTS ADDED UNTO YOUR CREDIT SCORE. If by the term "old bill" you mean a collection account, then paying it off may not raise your score at all. Credit scoring software disregards the balance (or lack of) on a collection account. The fact that the account is in default PLUS the "date last reported" are what cause deductions to the score. So if this "old bill" had not been recently updated and you pay it, causing it to be updated NOW to reflect a zero balance; you may have just significantly harmed your score.
Nothing, you will have a bad record in Mexico not in the United States.
No, only if the account is a paid closed account. What affects your score is utilization of your credit limit, which should only be about 25 to 35%.
Your score is like a report card, it takes time. Payment updates, opening a new account or closing an account could cause your score to fluctuate. If you plan on keeping the card after paying it off, this could help increase your score because it will show that you have an available line of credit. Having bank card accounts with a valid credit limit can have a positive impact on your credit score.
Each credit reporting agency can have different rules. When I did it, I bumped up somewhere between 5-10 points, but it took a month or so for it to register.
That totally depends on what your credit score is to start with.
No, if you fill out applications to open a line of credit then that will change your credit score but simple inquires of your personal credit score will not ruin it. It is better to keep an eye out on your score and report to make sure no one has opened an account in your name or to dispute anything that doesn't seem right on your report. Always pay your bills on time and more than the monthly payment to increase your score. A Excellent score is above 800 points and 700-799 is a good score.
Closing an account will affect your credit score and decrease your score.