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I own @ halo
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I did the annual check of my credit today just to verify that all was still well but my credit score has dropped a full 46 points in the last year (758 to 712). I have never missed or even been late on a payment but in the last year I have refie'd my van and bought a bike and opened like 2 credit cards. What can I do to get my score back up? I'm trying to build my credit so I can buy a house in the next 5 years but at this rate it looks like I'll have to wait a while longer, I was hoping to get my score above 800 before purchasing.
 

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The guy Dale doesn't know
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everytime you makle a change to your credit, ie credit cards, bike loans, it changes. even at 700 though you're more than qualified to buy a house. i'd be more worried about a down payment than my credit score.
 

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Well.. Depending on how you got the two credit cards, that can affect it. If you take out a bunch of lines of credit all at the same time (say, within the same 6 month period or worse, less time) that can drop your score. It'll look like you don't have enough money for yourself and you're borrowing more that you can't pay back.

To gain the most credit, you want to have the most available credit (IE: Unused credit on your credit cards) for long periods of time. If you have an extra card, store it somewhere and don't use it. If you can show that you have a revolving line of credit that you don't touch, that shows you can manage credit and looks good on your credit report and raises your score.

Also, if you have all your credit cards used up most of the way, like say all of them are at 95%+ usage, that lowers your score too, as that is reflected on your credit report.

Another good thing to do is always pay more than the minimum payment amount when it comes time to pay your bill, as that is shown on your credit report as well..

Just some things to look at, and things to consider. Theres a billion different things that can affect your credit score, and you never really know what the problem might be.


-Brandon
 

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I own @ halo
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Discussion Starter #4
I'm workin on the down payment, I've got a couple thousand saved and any bonus I get from the army will go towards that as well I'm just concerned that it will drop still further though I don't see myself messing around with credit much in the next couple of years.
 

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everytime you makle a change to your credit, ie credit cards, bike loans, it changes. even at 700 though you're more than qualified to buy a house. i'd be more worried about a down payment than my credit score.
Thats true too. When my credit score was in the 630's, I had better credit then 90 something percent of americans. And 630's is considered "fair credit", where 660+ is considered "good credit" and I think its 775+ is considered "excellent credit".

But yea, if you have had that credit score established for a while, and theres nothing bad on your credit report, your very qualified to get a loan for a house.



-Brandon
 

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I'm workin on the down payment, I've got a couple thousand saved and any bonus I get from the army will go towards that as well I'm just concerned that it will drop still further though I don't see myself messing around with credit much in the next couple of years.

Thats weird, it shouldn't just drop. I know my credit score went up around 40-50 points after I made bigger payments on 2 of my credit cards. But thats mainly because I'm so young and considered to be in the "credit building stage" so my credit score doesn't actually mean anything anyways. :(



-Brandon
 

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I own @ halo
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Discussion Starter #7
Thats weird, it shouldn't just drop. I know my credit score went up around 40-50 points after I made bigger payments on 2 of my credit cards. But thats mainly because I'm so young and considered to be in the "credit building stage" so my credit score doesn't actually mean anything anyways. :(



-Brandon
What age defines "credit building"?
 

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What age defines "credit building"?
I'm 18, I'm not sure when the "credit building" stage is actually over, but I'm assuming somewhere around 20 or 21..

Lets put it this way, my credit score is pretty high. Very high for someone my age, and I manage it very closely, and yet I went into a credit union by me and they wouldn't give me a checking account because my credit score meant nothing. How stupid is that?


-Brandon
 

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I'm 18, I'm not sure when the "credit building" stage is actually over, but I'm assuming somewhere around 20 or 21..

Lets put it this way, my credit score is pretty high. Very high for someone my age, and I manage it very closely, and yet I went into a credit union by me and they wouldn't give me a checking account because my credit score meant nothing. How stupid is that?


-Brandon
I think I might have a possible explanation for the score not meaning anything. It may have something to do with all the 18-20 year olds that have mommy and daddy paying off their credit cards for them every month. Banks and such may look at your high credit rating, and assume that you have someone else paying it, instead of you paying it yourself.
 

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Don't poke the Bear!
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everytime you makle a change to your credit, ie credit cards, bike loans, it changes. even at 700 though you're more than qualified to buy a house. i'd be more worried about a down payment than my credit score.
Yep, every time to apply for a credit card or loan it shows up as potential debt and that can effect your score.

X2 on the down [email protected] 700+ you shouldn't get turned down as long as your debt (potential included) to incmome ratio is OK
 

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I think I might have a possible explanation for the score not meaning anything. It may have something to do with all the 18-20 year olds that have mommy and daddy paying off their credit cards for them every month. Banks and such may look at your high credit rating, and assume that you have someone else paying it, instead of you paying it yourself.
Yea, thats probably part of it too. Plus they think that since you've only had credit for a short period of time, you have no financial history.. So for all they know you could be:

(1) managing your credit for a few good months/years based on parents money
(2) trying to build your credit real quick to buy something then not worry about your credit and let it drop
(3) managing it good now, but that doesn't mean you'll manage it good forever sot hey are just trying to let you build more history

Plus, in every industry young people are looked down upon. Credit, Jobs, Insurance...


-Brandon
 

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Yea, thats probably part of it too. Plus they think that since you've only had credit for a short period of time, you have no financial history.. So for all they know you could be:

(1) managing your credit for a few good months/years based on parents money
(2) trying to build your credit real quick to buy something then not worry about your credit and let it drop
(3) managing it good now, but that doesn't mean you'll manage it good forever sot hey are just trying to let you build more history

Plus, in every industry young people are looked down upon. Credit, Jobs, Insurance...


-Brandon
Tell me about it...I may have been given a lot by my parents, but I also learned responsibility from them.
 

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I own @ halo
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Discussion Starter #13
Tell me about it...I may have been given a lot by my parents, but I also learned responsibility from them.
:sonicjay: :sonicjay: :sonicjay:

My 'rents gave me a respect for money that I'll never forget, they filed for bankruptcy when I was 12 and it took a full 8 years to get out from under it. I never want to go through that myself. We were so broke I had to start buying my own clothes with the money I earned working at my uncles fur farm.
 

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Uhh, you're credit is fine. Go buy your house. You'll have no problem getting financed. You sound smart enough to know what you're doing.

As far as you younger guys go, you can build up a good credit history quickly. I was able to buy new cars and take out unsecured loans up to $10k before I was 21. Just pay all of your bills on time. That means all of them.
 

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Yea.. I just bought my Jeep and got financed for around $7k when all was said and done.. Thats without a co-signer, and me having been 18 for like 8 months at the time...


-Brandon
 

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I own @ halo
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Discussion Starter #17
Post 800, I don't know whether to laugh or cry. Thanks for the advice guys. I think I may just look into buying a house on my current timeline but hopefully it will be in the northwest if I can get stationed out there. I'd like to buy a foreclosed duplex or fourplex to fix up and use as a rental property both while I am there and when I get transferred down the road.
 

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I got rid of all my credit cards except for one. There's really no reason to have multiple cards.
I've heard this a lot. I've also heard people saying they aren't going to get a credit card because they don't want to ruin their credit score.

1st off. You need to prove you can handle having more than one revolving line of credit (IE: Credit cards or loans) to get any credit score at all.. And second, if you don't have any credit cards, then you have no credit. You have to use credit to get credit.

I guess having only one card is good for people who aren't responsible enough to have multiple cards, but its best to have a few cards and only use one of them (If your trying to build credit quickly).



-Brandon
 

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Lego Dude
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To gain the most credit, you want to have the most available credit (IE: Unused credit on your credit cards) for long periods of time. If you have an extra card, store it somewhere and don't use it.
I disagree here...

Don't use that credit card often, but make sure to use it a little now and then, maybe put a tank of gas on it every other month and pay it off. It looks better for you that way (going again with the managing multiple credit lines).

And also with the credit score you have, definitely more worry about the down payment like mentioned above. I have been looking for land to buy and build on, but the down payment is the biggest thing holding me back currently (I am 23, credit score is 740)
 
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