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What else can I help you with?
Can you classify the given credit instruments if who will be benifited And is it risky?
What credit instruments.
Does having more than one credit card hurt your credit?
Yes. Every time you apply for a credit card it shows on your credit report...having a lot of these is not in your favor.. The bankers I've talked to all recommend having two or three cards at a time. Too few, and you are seen as not having much experience managing credit. Too many, and you are seen as being risky/irresponsible. One loan officer recommended that I try getting two cards; use one for gas and groceries and the other for other purchases.
If your credit score is a 560 and you want to buy a house and have bad debt on your credit report should you pay them off or just get a few new accounts in good standing on your credit report?
Getting new accounts is the worst possible thing you can do. Obviously you have a problem using credit already getting new accounts will just dig you deeper. You need to pay off the accounts that you have and close a few of them out. The more open credit lines you have the more "Risky" you look to potential lenders. Also opening new accounts drops your score even more. It is going to be difficult getting a house with a score of 560, You may want to get an apartment lease for a year first and pay your rent on time to build your credit some. A car can do the same to. Best of luck.
What are the consequences of engaging in credit card kiting?
Engaging in credit card kiting can lead to serious consequences such as damaging your credit score, incurring high interest charges, facing legal action, and potentially being charged with fraud. It is a risky and illegal practice that can have long-lasting negative effects on your financial well-being.
What are the three places that your credit score comes from?
Here is the informaiton you seek regardng credit scores:Payment information on many types of accounts. These include credit cards (such as Visa, MasterCard, American Express and Discover), retail accounts (credit from stores where you do business, such as department store or gas station credit cards), installment loans (loans where you make regular payments, such as car loans), finance company accounts and mortgage loans. Public record and collection items. These include reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items count less than more recent ones. Details on late or missed payments and public record and collection items. A 30-day late payment is not as risky as a 90-day late payment, in and of itself. But recently and frequency count too. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Note that closing an account on which you had previously missed a payment does not make the late payment disappear from your credit report. How many accounts show no late payments? A good track record on most of your credit accounts will increase your credit score.2. Amounts Owed (30% of score).Owing money on different credit accounts does not mean you're a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. This factor takes into account: The amount owed on all accounts. Even if you pay your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report. The amount owed on all accounts, and on different types of accounts. In addition to the overall amount you owe, the score considers the amount you owe on specific types of accounts, such as credit cards and installment loans. Whether you are showing a balance on certain types of accounts. In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your score. How many accounts have balances? A large number can indicate higher risk of over-extension. How much of the total credit line is being used on credit cards and other "revolving credit" accounts. Someone closer to "maxing out" on many credit cards may have trouble making payments in the future. How much of installment loan accounts are still owed, compared with the original loan amounts. For example, if you borrowed 3,000 to buy a car and you have paid back 3,000, you owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you are able and willing to manage and repay debt.3. Length of Credit History (15% of score). In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks. This factor takes into account: * How long your credit accounts have been established, in general. The score considers both the age of your oldest account and an average age of all your accounts. * How long specific credit accounts have been established. * How long it has been since you used certain accounts.4. New Credit (10% of score). Research shows that opening several credit accounts in a short period of time represents greater risk, especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies (an inquiry is a request by a lender to get a copy of your credit report). This factor takes into account: How long it has been since you opened a new account. How many new accounts you have. How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Be assured, however, that if you request a copy of your credit report to check it for accuracy - which is always a good idea - it will not affect your score. This is considered a "consumer-initiated inquiry," not an indication that you are seeking new credit. Also, your score is unaffected by lender inquiries into your credit report for purposes of making you a "pre-approved" credit offer, or for reviewing your account with them, even though these inquiries may show up on your credit report. Length of time since credit report inquiries were made by lenders. Record of recent credit history following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a score over time.5. Types of Credit in Use (10% of score). This factor considers your mix of credit types: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It also looks at the total number of accounts you have; for different credit profiles, how many is too many will vary. This means it is not necessary to have one of each type, nor is it a good idea to open credit accounts you don't intend to use. The credit mix is generally not a key factor in determining your score - unless your credit report does not have a lot of other information upon which to base a score.Why Do Credit Scores Vary? The major credit reporting agencies - Experian, Equifax and Trans Union - consider only the data in your credit report at that particular agency. Since different lenders report to different agencies, one firm may generate a different score than another one. Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: * 720-850 - Excellent- This represents the best score range and best financing terms. * 700-719 - Very Good - Qualifies a person for favorable financing. * 675-699 - Average - A score in this range will usually qualify for most loans. * 620-674 - Sub-prime - May still qualify, but will pay higher interest. * 560-619 - Risky - Will have trouble obtaining a loan. * 500-559 - Very Risky - Need to work on improving your rating.
Can you classify the given credit instruments if who will be benifited And is it risky?
What credit instruments.
Does having more than one credit card hurt your credit?
Yes. Every time you apply for a credit card it shows on your credit report...having a lot of these is not in your favor.. The bankers I've talked to all recommend having two or three cards at a time. Too few, and you are seen as not having much experience managing credit. Too many, and you are seen as being risky/irresponsible. One loan officer recommended that I try getting two cards; use one for gas and groceries and the other for other purchases.
If your credit score is a 560 and you want to buy a house and have bad debt on your credit report should you pay them off or just get a few new accounts in good standing on your credit report?
Getting new accounts is the worst possible thing you can do. Obviously you have a problem using credit already getting new accounts will just dig you deeper. You need to pay off the accounts that you have and close a few of them out. The more open credit lines you have the more "Risky" you look to potential lenders. Also opening new accounts drops your score even more. It is going to be difficult getting a house with a score of 560, You may want to get an apartment lease for a year first and pay your rent on time to build your credit some. A car can do the same to. Best of luck.
What are the consequences of engaging in credit card kiting?
Engaging in credit card kiting can lead to serious consequences such as damaging your credit score, incurring high interest charges, facing legal action, and potentially being charged with fraud. It is a risky and illegal practice that can have long-lasting negative effects on your financial well-being.
What are the three places that your credit score comes from?
Here is the informaiton you seek regardng credit scores:Payment information on many types of accounts. These include credit cards (such as Visa, MasterCard, American Express and Discover), retail accounts (credit from stores where you do business, such as department store or gas station credit cards), installment loans (loans where you make regular payments, such as car loans), finance company accounts and mortgage loans. Public record and collection items. These include reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items count less than more recent ones. Details on late or missed payments and public record and collection items. A 30-day late payment is not as risky as a 90-day late payment, in and of itself. But recently and frequency count too. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Note that closing an account on which you had previously missed a payment does not make the late payment disappear from your credit report. How many accounts show no late payments? A good track record on most of your credit accounts will increase your credit score.2. Amounts Owed (30% of score).Owing money on different credit accounts does not mean you're a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. This factor takes into account: The amount owed on all accounts. Even if you pay your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report. The amount owed on all accounts, and on different types of accounts. In addition to the overall amount you owe, the score considers the amount you owe on specific types of accounts, such as credit cards and installment loans. Whether you are showing a balance on certain types of accounts. In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your score. How many accounts have balances? A large number can indicate higher risk of over-extension. How much of the total credit line is being used on credit cards and other "revolving credit" accounts. Someone closer to "maxing out" on many credit cards may have trouble making payments in the future. How much of installment loan accounts are still owed, compared with the original loan amounts. For example, if you borrowed 3,000 to buy a car and you have paid back 3,000, you owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you are able and willing to manage and repay debt.3. Length of Credit History (15% of score). In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks. This factor takes into account: * How long your credit accounts have been established, in general. The score considers both the age of your oldest account and an average age of all your accounts. * How long specific credit accounts have been established. * How long it has been since you used certain accounts.4. New Credit (10% of score). Research shows that opening several credit accounts in a short period of time represents greater risk, especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies (an inquiry is a request by a lender to get a copy of your credit report). This factor takes into account: How long it has been since you opened a new account. How many new accounts you have. How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Be assured, however, that if you request a copy of your credit report to check it for accuracy - which is always a good idea - it will not affect your score. This is considered a "consumer-initiated inquiry," not an indication that you are seeking new credit. Also, your score is unaffected by lender inquiries into your credit report for purposes of making you a "pre-approved" credit offer, or for reviewing your account with them, even though these inquiries may show up on your credit report. Length of time since credit report inquiries were made by lenders. Record of recent credit history following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a score over time.5. Types of Credit in Use (10% of score). This factor considers your mix of credit types: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It also looks at the total number of accounts you have; for different credit profiles, how many is too many will vary. This means it is not necessary to have one of each type, nor is it a good idea to open credit accounts you don't intend to use. The credit mix is generally not a key factor in determining your score - unless your credit report does not have a lot of other information upon which to base a score.Why Do Credit Scores Vary? The major credit reporting agencies - Experian, Equifax and Trans Union - consider only the data in your credit report at that particular agency. Since different lenders report to different agencies, one firm may generate a different score than another one. Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: * 720-850 - Excellent- This represents the best score range and best financing terms. * 700-719 - Very Good - Qualifies a person for favorable financing. * 675-699 - Average - A score in this range will usually qualify for most loans. * 620-674 - Sub-prime - May still qualify, but will pay higher interest. * 560-619 - Risky - Will have trouble obtaining a loan. * 500-559 - Very Risky - Need to work on improving your rating.
Your credit score is 605 how can you make it better?
605 is considered a risky credit score. 1. Payment History (35% of score).The first thing any lender wants to know is whether you have paid your past credit accounts on time. The payment history factor of credit scoring takes into account: Payment information on many types of accounts. These include credit cards (such as Visa, MasterCard, American Express and Discover), retail accounts (credit from stores where you do business, such as department store or gas station credit cards), installment loans (loans where you make regular payments, such as car loans), finance company accounts and mortgage loans. Public record and collection items. These include reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items count less than more recent ones. Details on late or missed payments and public record and collection items. A 30-day late payment is not as risky as a 90-day late payment, in and of itself. But recently and frequency count too. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Note that closing an account on which you had previously missed a payment does not make the late payment disappear from your credit report. How many accounts show no late payments? A good track record on most of your credit accounts will increase your credit score.2. Amounts Owed (30% of score).Owing money on different credit accounts does not mean you're a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. This factor takes into account: The amount owed on all accounts. Even if you pay your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report. The amount owed on all accounts, and on different types of accounts. In addition to the overall amount you owe, the score considers the amount you owe on specific types of accounts, such as credit cards and installment loans. Whether you are showing a balance on certain types of accounts. In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your score. How many accounts have balances? A large number can indicate higher risk of over-extension. How much of the total credit line is being used on credit cards and other "revolving credit" accounts. Someone closer to "maxing out" on many credit cards may have trouble making payments in the future. How much of installment loan accounts are still owed, compared with the original loan amounts. For example, if you borrowed 3,000 to buy a car and you have paid back 3,000, you owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you are able and willing to manage and repay debt.3. Length of Credit History (15% of score). In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks. This factor takes into account: * How long your credit accounts have been established, in general. The score considers both the age of your oldest account and an average age of all your accounts. * How long specific credit accounts have been established. * How long it has been since you used certain accounts.4. New Credit (10% of score). Research shows that opening several credit accounts in a short period of time represents greater risk, especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies (an inquiry is a request by a lender to get a copy of your credit report). This factor takes into account: How long it has been since you opened a new account. How many new accounts you have. How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Be assured, however, that if you request a copy of your credit report to check it for accuracy - which is always a good idea - it will not affect your score. This is considered a "consumer-initiated inquiry," not an indication that you are seeking new credit. Also, your score is unaffected by lender inquiries into your credit report for purposes of making you a "pre-approved" credit offer, or for reviewing your account with them, even though these inquiries may show up on your credit report. Length of time since credit report inquiries were made by lenders. Record of recent credit history following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a score over time.5. Types of Credit in Use (10% of score). This factor considers your mix of credit types: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It also looks at the total number of accounts you have; for different credit profiles, how many is too many will vary. This means it is not necessary to have one of each type, nor is it a good idea to open credit accounts you don't intend to use. The credit mix is generally not a key factor in determining your score - unless your credit report does not have a lot of other information upon which to base a score.Why Do Credit Scores Vary? The major credit reporting agencies - Experian, Equifax and Trans Union - consider only the data in your credit report at that particular agency. Since different lenders report to different agencies, one firm may generate a different score than another one. Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: * 720-850 - Excellent- This represents the best score range and best financing terms. * 700-719 - Very Good - Qualifies a person for favorable financing. * 675-699 - Average - A score in this range will usually qualify for most loans. * 620-674 - Sub-prime - May still qualify, but will pay higher interest. * 560-619 - Risky - Will have trouble obtaining a loan. * 500-559 - Very Risky - Need to work on improving your rating.
Will it hurt your credit score if you close some credit card accounts that are under 2 years old?
Closing any credit card account will affect your credit score in the short run. Not knowing your current score make answering this question a little more difficult, but the answer is yes, it will hurt your credit score. 1. Payment History (35% of score).The first thing any lender wants to know is whether you have paid your past credit accounts on time. The payment history factor of credit scoring takes into account: Payment information on many types of accounts. These include credit cards (such as Visa, MasterCard, American Express and Discover), retail accounts (credit from stores where you do business, such as department store or gas station credit cards), installment loans (loans where you make regular payments, such as car loans), finance company accounts and mortgage loans. Public record and collection items. These include reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items count less than more recent ones. Details on late or missed payments and public record and collection items. A 30-day late payment is not as risky as a 90-day late payment, in and of itself. But recently and frequency count too. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Note that closing an account on which you had previously missed a payment does not make the late payment disappear from your credit report. How many accounts show no late payments? A good track record on most of your credit accounts will increase your credit score.2. Amounts Owed (30% of score).Owing money on different credit accounts does not mean you're a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. This factor takes into account: The amount owed on all accounts. Even if you pay your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report. The amount owed on all accounts, and on different types of accounts. In addition to the overall amount you owe, the score considers the amount you owe on specific types of accounts, such as credit cards and installment loans. Whether you are showing a balance on certain types of accounts. In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your score. How many accounts have balances? A large number can indicate higher risk of over-extension. How much of the total credit line is being used on credit cards and other "revolving credit" accounts. Someone closer to "maxing out" on many credit cards may have trouble making payments in the future. How much of installment loan accounts are still owed, compared with the original loan amounts. For example, if you borrowed 3,000 to buy a car and you have paid back 3,000, you owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you are able and willing to manage and repay debt.3. Length of Credit History (15% of score). In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks. This factor takes into account: * How long your credit accounts have been established, in general. The score considers both the age of your oldest account and an average age of all your accounts. * How long specific credit accounts have been established. * How long it has been since you used certain accounts.4. New Credit (10% of score). Research shows that opening several credit accounts in a short period of time represents greater risk, especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies (an inquiry is a request by a lender to get a copy of your credit report). This factor takes into account: How long it has been since you opened a new account. How many new accounts you have. How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Be assured, however, that if you request a copy of your credit report to check it for accuracy - which is always a good idea - it will not affect your score. This is considered a "consumer-initiated inquiry," not an indication that you are seeking new credit. Also, your score is unaffected by lender inquiries into your credit report for purposes of making you a "pre-approved" credit offer, or for reviewing your account with them, even though these inquiries may show up on your credit report. Length of time since credit report inquiries were made by lenders. Record of recent credit history following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a score over time.5. Types of Credit in Use (10% of score). This factor considers your mix of credit types: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It also looks at the total number of accounts you have; for different credit profiles, how many is too many will vary. This means it is not necessary to have one of each type, nor is it a good idea to open credit accounts you don't intend to use. The credit mix is generally not a key factor in determining your score - unless your credit report does not have a lot of other information upon which to base a score.Why Do Credit Scores Vary? The major credit reporting agencies - Experian, Equifax and Trans Union - consider only the data in your credit report at that particular agency. Since different lenders report to different agencies, one firm may generate a different score than another one. Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: * 720-850 - Excellent- This represents the best score range and best financing terms. * 700-719 - Very Good - Qualifies a person for favorable financing. * 675-699 - Average - A score in this range will usually qualify for most loans. * 620-674 - Sub-prime - May still qualify, but will pay higher interest. * 560-619 - Risky - Will have trouble obtaining a loan. * 500-559 - Very Risky - Need to work on improving your rating.
Why does closed-end credit have a better interest rate than open-ended credit?
Generally, closed-end credit has a better interest rate than that of open-ended credit because closed-end credit is less risky insomuch as there is a limit on how much credit may be utilized (whereas there is no limit for open-ended credit). Because lenders look at the risk-reward aspects of the product portfolio, a lower-risk product warrants a lower interest rate than one having higher risk.
Will your credit score improve if you are added as a joint account holder on a credit card account?
The quick answer is no; but there are many factors regarding your credit score. All of this is to get your credit score calculated; here is the information about your credit score. 1. Payment History (35% of score).The first thing any lender wants to know is whether you have paid your past credit accounts on time. The payment history factor of credit scoring takes into account: Payment information on many types of accounts. These include credit cards (such as Visa, MasterCard, American Express and Discover), retail accounts (credit from stores where you do business, such as department store or gas station credit cards), installment loans (loans where you make regular payments, such as car loans), finance company accounts and mortgage loans. Public record and collection items. These include reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items count less than more recent ones. Details on late or missed payments and public record and collection items. A 30-day late payment is not as risky as a 90-day late payment, in and of itself. But recently and frequency count too. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Note that closing an account on which you had previously missed a payment does not make the late payment disappear from your credit report. How many accounts show no late payments? A good track record on most of your credit accounts will increase your credit score.2. Amounts Owed (30% of score).Owing money on different credit accounts does not mean you're a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. This factor takes into account: The amount owed on all accounts. Even if you pay your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report. The amount owed on all accounts, and on different types of accounts. In addition to the overall amount you owe, the score considers the amount you owe on specific types of accounts, such as credit cards and installment loans. Whether you are showing a balance on certain types of accounts. In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your score. How many accounts have balances? A large number can indicate higher risk of over-extension. How much of the total credit line is being used on credit cards and other "revolving credit" accounts. Someone closer to "maxing out" on many credit cards may have trouble making payments in the future. How much of installment loan accounts are still owed, compared with the original loan amounts. For example, if you borrowed 3,000 to buy a car and you have paid back 3,000, you owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you are able and willing to manage and repay debt.3. Length of Credit History (15% of score). In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks. This factor takes into account: * How long your credit accounts have been established, in general. The score considers both the age of your oldest account and an average age of all your accounts. * How long specific credit accounts have been established. * How long it has been since you used certain accounts.4. New Credit (10% of score). Research shows that opening several credit accounts in a short period of time represents greater risk, especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies (an inquiry is a request by a lender to get a copy of your credit report). This factor takes into account: How long it has been since you opened a new account. How many new accounts you have. How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Be assured, however, that if you request a copy of your credit report to check it for accuracy - which is always a good idea - it will not affect your score. This is considered a "consumer-initiated inquiry," not an indication that you are seeking new credit. Also, your score is unaffected by lender inquiries into your credit report for purposes of making you a "pre-approved" credit offer, or for reviewing your account with them, even though these inquiries may show up on your credit report. Length of time since credit report inquiries were made by lenders. Record of recent credit history following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a score over time.5. Types of Credit in Use (10% of score). This factor considers your mix of credit types: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It also looks at the total number of accounts you have; for different credit profiles, how many is too many will vary. This means it is not necessary to have one of each type, nor is it a good idea to open credit accounts you don't intend to use. The credit mix is generally not a key factor in determining your score - unless your credit report does not have a lot of other information upon which to base a score.Why Do Credit Scores Vary? The major credit reporting agencies - Experian, Equifax and Trans Union - consider only the data in your credit report at that particular agency. Since different lenders report to different agencies, one firm may generate a different score than another one. Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: * 720-850 - Excellent- This represents the best score range and best financing terms. * 700-719 - Very Good - Qualifies a person for favorable financing. * 675-699 - Average - A score in this range will usually qualify for most loans. * 620-674 - Sub-prime - May still qualify, but will pay higher interest. * 560-619 - Risky - Will have trouble obtaining a loan. * 500-559 - Very Risky - Need to work on improving your rating.
What is the spectrum of risk levels when considering investments, from least risky to most risky?
The spectrum of risk levels when considering investments, from least risky to most risky, typically includes: low-risk investments like savings accounts and bonds, moderate-risk investments like mutual funds and real estate, and high-risk investments like stocks and cryptocurrencies.
Can being a second card holder help you build credit?
Assuming the use and payment history is desirable and the account is not new, then yes. In fact, there have been reports of people "renting" their credit history out by putting people on as being authorized or second users, thereby giving them credit history and an account with positive payment status. While this is highly risky, it demonstrates that there can be benefits to being co-user of some accounts in certain circumstances.
Will my credit score improve with a good payment history on a joint credit card?
On a joint credit card yes! But if you are an authorized user it will not due to recent changes in the credit scoring system because of abuse. Here is more information on credit scores: 1. Payment History (35% of score).The first thing any lender wants to know is whether you have paid your past credit accounts on time. The payment history factor of credit scoring takes into account: Payment information on many types of accounts.These include credit cards (such as Visa, MasterCard, American Express and Discover), retail accounts (credit from stores where you do business, such as department store or gas station credit cards), installment loans (loans where you make regular payments, such as car loans), finance company accounts and mortgage loans. Public record and collection items. These include reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items count less than more recent ones. Details on late or missed payments and public record and collection items. A 30-day late payment is not as risky as a 90-day late payment, in and of itself. But recently and frequency count too. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Note that closing an account on which you had previously missed a payment does not make the late payment disappear from your credit report. How many accounts show no late payments? A good track record on most of your credit accounts will increase your credit score.2. Amounts Owed (30% of score).Owing money on different credit accounts does not mean you're a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. This factor takes into account: The amount owed on all accounts. Even if you pay your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report. The amount owed on all accounts, and on different types of accounts. In addition to the overall amount you owe, the score considers the amount you owe on specific types of accounts, such as credit cards and installment loans. Whether you are showing a balance on certain types of accounts. In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your score. How many accounts have balances? A large number can indicate higher risk of over-extension. How much of the total credit line is being used on credit cards and other "revolving credit" accounts. Someone closer to "maxing out" on many credit cards may have trouble making payments in the future. How much of installment loan accounts are still owed, compared with the original loan amounts. For example, if you borrowed 3,000 to buy a car and you have paid back 3,000, you owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you are able and willing to manage and repay debt.3. Length of Credit History (15% of score). In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks. This factor takes into account: * How long your credit accounts have been established, in general. The score considers both the age of your oldest account and an average age of all your accounts. * How long specific credit accounts have been established. * How long it has been since you used certain accounts.4. New Credit (10% of score). Research shows that opening several credit accounts in a short period of time represents greater risk, especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies (an inquiry is a request by a lender to get a copy of your credit report). This factor takes into account: How long it has been since you opened a new account. How many new accounts you have. How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Be assured, however, that if you request a copy of your credit report to check it for accuracy - which is always a good idea - it will not affect your score. This is considered a "consumer-initiated inquiry," not an indication that you are seeking new credit. Also, your score is unaffected by lender inquiries into your credit report for purposes of making you a "pre-approved" credit offer, or for reviewing your account with them, even though these inquiries may show up on your credit report. Length of time since credit report inquiries were made by lenders. Record of recent credit history following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a score over time.5. Types of Credit in Use (10% of score). This factor considers your mix of credit types: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It also looks at the total number of accounts you have; for different credit profiles, how many is too many will vary. This means it is not necessary to have one of each type, nor is it a good idea to open credit accounts you don't intend to use. The credit mix is generally not a key factor in determining your score - unless your credit report does not have a lot of other information upon which to base a score.Why Do Credit Scores Vary? The major credit reporting agencies - Experian, Equifax and Trans Union - consider only the data in your credit report at that particular agency. Since different lenders report to different agencies, one firm may generate a different score than another one. Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: * 720-850 - Excellent- This represents the best score range and best financing terms. * 700-719 - Very Good - Qualifies a person for favorable financing. * 675-699 - Average - A score in this range will usually qualify for most loans. * 620-674 - Sub-prime - May still qualify, but will pay higher interest. * 560-619 - Risky - Will have trouble obtaining a loan. * 500-559 - Very Risky - Need to work on improving your rating.
