Credit

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Ready for your questions!

Dear Penny
Hey, friends! I hope you’re all staying safe and healthy during these trying times. This week, I’d like to invite you to submit your questions about what coronavirus means for your money here in The Penny Hoarder community group. It’s a scary time we’re facing right now, but we’re all in this together. Send your questions my way and I’ll do my best to answer.Read More...

how to get a loan

Mary Keil
I got a store card and built up my credit and score. Then I got a loan and paid it off in a timely matter. I got another loan 18 months later. I have also been approved for other store credit cards. I have not tried for a regular credit card, because my income is not very good now. But that's how to build your score. My score was 0 and I built it up to 742Read More...
Ms. Andra powell Henderson, Thank you for replying to my dilemma. Would you be so kind to supply more info on the Internet Marketer job you mentioned in your reply. I would like to look into that further. Thank you.Read More...
Before getting a loan, make sure you get your rates from all possible/available lenders. Even minor difference in rate can lead to lot of savings. Also if you apply together as a joint application, you could get better rates if your joint applicant has a good credit historyRead More...
Last Reply By [email protected] · First Unread Post

Closing a secured credit card

Frugal Loo
My husband and I each opened a secure card over 2 years ago from our bank. We have been with USBank for over 15 years. When we opened our secured cards they required a $300 each. We asked if we could build credit faster if we did $500 each and the banker said yes. He told us that if we make on time payments and paid it off every month for 6 mo to 1 yr that they would automatically change us to unsecured cards with a higher amount of credit. Of course we believed him and he pulled up the...Read More...
As Robin Hartill mentioned, I would go directly to the bank to close those secured cards. Unfortunately, there is so much fine print in legal agreements that there may even be penalties or other surprises besides a small hit on your credit score for closing these cards out. Don't forget the shenanigans Wells Fargo served to their "valued customers" for which they basically just received a slap on the back of their fraudulent hands! I am always a bit shocked when reading the terms included...Read More...
@Frugal Loo What you're doing is the right path. I echo what @Robin A Neumann says. It was good sound advice by the Lender, kudos to him/her!Read More...
Last Reply By mintjulep · First Unread Post

Closing Credit Card Yes or No

Ana24
Hello everyone, I need some expert advice. I was thinking about closing 2 of my credit card one is secured Capital One and the other one is First Premier unsecured. Thinking of closing them after we get our house. I have both of my cards for almost 10 years now. I was wondering what will be the effect towards my credit score if I did close them? Thank you in advance.Read More...
Good advice about using it every other month or so--I applied for a loan once and got it super quick because I had so much open credit - had a $10,000 limit on a card I didn't use....because I didn't use it the company closed the account and my credit limit shrunk by 10K!Read More...
It will drop your score and take away from your credit history. Just cut them up or put them away so you dont use them. Then put something small on it about once a year and pay or off to keep it active.Read More...
Last Reply By Jeanne Featherston · First Unread Post

Topics

Drop in credit score

My credit score was in the 600's with in 1 week 5 days I checked my Experian or others and my credit score went down 72 pts !! There was a big zero score since then march 12th my new credit score is 4 pts my TransUnion I believe is 500 + that dropped some. I do have suspicion of somebody using my social security number. When adk to verify myself on S.S. site they froze my # I have a screenshot of the person's name ( My 1st guess) was a friend on F.B. and I'm guessing I have his old Cell ph #...Read More...
You need to get in contact with any of the 3 credit bureaus and explain what is going on- either by phone or internet- if you are locked out, prepare to have lots of documentation to describe your true identity. They all offer a service to help you do this (for $) but you can do it yourself once you start the process- then you need to go through and dispute each incorrect item. I would also recommend filing a police report for stolen identity- ID theft. That goes a long way to help you with...Read More...
Last Reply By Makingithappen2019 · First Unread Post

How many credit cards do you own?

mintjulep
As I read the Penny Hoarder posts and note the "wins" with credit card perks like cash back and the "losses" if carrying long term credit card debt, I've become curious this morning about how many credit cards PHs have open. I only have 2, but thinking about adding an airline card.Read More...
Wow! Everyone has such different ideas about credit cards. We have quite a few but really only use a couple. I use Kohl's card when I get 30% off (not every time) but we use credit cards for almost all purchases for the perks. We always pay the balance in full every month. We have gone on a few trips and not had to pay for the hotel with cash because we had points on the card. Also, my husband just got a card from BJ's (MC) that he gets 10 cents off per gallon of gas at BJ's stations and...Read More...
I have lost count how many I have, but honestly have that amount to not only boost my credit score with a low utilization, currently 9%, but to earn money from the credit card companies. I earn anywhere from $600 -$1,000 annually from sign on bonuses and cash back rewards. I rotate between which cards I used based on their 5% cash back categories. For instance, I will use the credit card that earns me 5% back on groceries for that quarter. It may not seem like much but when you spend...Read More...
Last Reply By Savingsmama · First Unread Post
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Credit

James Keefover
I have been trying to buy an auto but they are reluctant to loan money because they said I don't have bad credit but I don't have good credit eather they said I don't have any credit. For about 10 years now I have been buying all my high price things like washers dryers refrigerator's and such at a rent to own store and I have perfect credit with them but they don't count that. So what am I to do?Read More...

200 point drop in two months

Toiya Anne Paige
Good evening, Thank you for answering my question. What can I do? I had a credit score of 670 two months ago. My mortgage lender said I need a 700. He suggested a credit card. I got two. I used one sparingly. My credit score is now down to 540! My other categories on my statement are all excellent: history, usage, marks, etc. What can I do to get my first house?Read More...

How to boost my credit?

T'Ianna Moore
I have credit, not necessarily good, but I have some. How do I raise my credit score?Read More...
You might take a look at Experian Boost, which can increase your credit score. Also, I have accounts with Credit Karma and Credit Sesame. But I don't know if these latter two can increase your score or not.Read More...
First thing is to pay off or resolve any adverse issues on your credit report. If you don't have any and just want to build credit, then the most viable option is a credit card. There are hundreds out there and just about everyone can get one, although lower credit scores may have to get a secured one (pay a deposit of $200 to get a $200 credit line). Use it for something you already have money set aside for, such as gas or groceries, then pay it off with that money. But, it's a slow...Read More...
Last Reply By lismox · First Unread Post

Payoff Focus

Rick Campbell
I have a question, what should I focus on paying off first, my credit cards or my loans? My credit cards have ZERO interest for at least 12 more months and the balances are not very high. My loans are charging interest and it is possible to pay one or both off in the next 10 months allowing me time to possibly pay off the zero interest credit cards. I am just not sure if I should focus on the credit cards or the loans. My goal is to reduce my monthly payments every month by paying off the...Read More...
That's my plan pretty much, it may vary a little depending on when interest starts on the cards and if I have time to pay the personal loan off first or do the cards then the personal loan after, this is after the auto is paid first.Read More...
Personally, I would pay off anything with an interest rate first and pay the minimum (or more if possible) on zero interest loans or cards after.Read More...
Last Reply By Rick Campbell · First Unread Post

Credit Score impact for paying off an auto loan ?

Rick Campbell
I am curious, if I pay off my current auto loan, will it have a negative, positive or no impact? It should not be negative because the account will stay on my credit report but will be paid and closed, but will it impact the credit age or anything? Because the account will still be on my report but it will be closed and paid instead of open with a balance. Not sure if it will help, hurt or do nothing. Anyone with knowledge or personal experience please reply, thanks.Read More...
Hi everyone! Sometimes your credit will take a hit when you pay off your car or any other loan, especially if it's one of your oldest accounts. (This happened to me when I paid off my first car loan. My score fell by around 50 points, but I should note that I was a 20-something without much credit history, so the effect might have been more acute.) Your score usually bounces back pretty quickly, though. I think mine did within a few months. The important thing for credit scores is to always...Read More...
Tagging The Penny Hoarder credit expert @Dear Penny for a quick dose of her wisdom! Also, please take a look at the Q&A archive of the live chat she hosted in January. Lots of great relevant discussion took place that I think you will enjoy reading through: https://community.thepennyhoar...nny-credit-card-debtRead More...
Last Reply By Dear Penny · First Unread Post

BUILDING CREDIT FINANCING A PHONE

lori wulff
I am a Boost mobile customer and I recieved a email one day from them about building up my credit by financing a new phone with them. To make a long story short, I did upgrade and I financed a Samsung S9. I have made 8 payments of $33.00 so far. 10 left to go. Is this true? Will my payments get reported to the credit bureau?? I would love to hear any responses.Read More...
Unfortunately phone companies do not normally report to the bureaus unless you are late, similar to utility companies etc. Car loans, credit cards etc almost always report monthly. That boost ad about building credit is very typical but very misleading. Probably in the fine print it says you will build your credit at boost only. lol.Read More...
I Am A Boost Customer As Well.Read More...
Last Reply By DipperDave · First Unread Post

Build credit

How to build up my credit fastRead More...
Credit isn't something you can build 'fast'. One of the factors in your credit score is the age of credit. There are things you can do to start building your credit and there are a few things, depending on your situation, that might make it jump up in points, but building credit is a journey...sometimes a very long journey.Read More...
Hi @Brandon Romano ! I shared some articles from The Penny Hoarder in a thread last month about how to build your credit. Here's the link -- hope this helps get you started! https://community.thepennyhoar...2#517265456996453622Read More...
Last Reply By JeremyM · First Unread Post

Credit Score Questions

Rick Campbell
I have been working on my credit for a while now. I have Credit Karma and Credit Sesame accounts, I use the credit score features on my credit cards I have, so I monitor it closely. My score is at a point now to where it is getting difficult to see any substantial improvement to it. Most of these sites usually have six criteria they rate and from Best (Green) to okay (Yellow) to needs work (Red). On all of my reports everything is Good or Green except for inquiries and credit age. They are...Read More...
Thank you all very much. Your very quick, honest and helpful. My score currently with about 9%-11% Debt ratio, depending on the credit bureau, is 754 and with paying off my credit cards there is very little improvement and still under 760. I will run the simulator on paying off the person loan, auto loan and both to see what it says. There may not be a huge benefit in my score to paying these off early but having them paid and a smaller percent of my income dedicated to bills or debt, takes...Read More...
The average age is probably whats holding it back as you stated. If you need a quick jump, you can become am authorized signer on someone's cards in which they have a long history at a company which reports for authorized signers. This could help with the age. Other than that, if you have overt 750 you may find that there isn't much benefit to look forward to . Do dont stress over the numbers too much.Read More...
Last Reply By Rick Campbell · First Unread Post

buying a home

Lorna L Julien
I am a single mom with 2 grown sons at home, both with medical issues. I was raised with the belief that if you didn't have the cash, you didn't need it in the first place. So, no credit cards. I had one, years ago, just to see what it was like. NEVER again would I have one. I got into to debt too easy and it was difficult to get out of. I have been renting a house for 20+ years and have the opportunity to buy a house that is within my budget. my credit is not all that great but I have been...Read More...
Not all loan officers are created equal! Is there another loan officer at another bank or a mortgage broker you can talk to? You will likely be charged to pull another credit report by the bank, or you could pull your own thru Experian, Equifax, or TransUnion? You are allowed 1 free credit report every year with each of the "Big 3" and if you are being denied a loan based on the status of your credit report you may pull one for free, as well. If you pull your own report you can hand carry a...Read More...
It appears an FHA loan might be something for you to consider? This link has information about the FHA loan which may not require a credit card and may work for folks with little credit? This is not a recommendation to use the company presenting the info, just for the info itself. https://themortgagereports.com...n-assumable-203k-mipRead More...
Last Reply By mintjulep · First Unread Post

Drastic Score change!

Jerri Ucantstopme Cherry
Hello, we recently bought a house at the beginning 2019...bought a car at the end of 2019. Score was over 700 AFTER car purchase...we were late on our credit card payment (once) and paid the late fee...then I needed to upgrade the car we had; requested credit was given approval for $35k...dealership ran HARD credit...decided it was not a good deal. Now score has dropped almost 200 points!!! OMG, I almost fainted...what the heck happened? We worked so hard to get up there...and the simulator...Read More...
It's all about paying on time... if possible, have automatic payments set up for all your outstanding debt so you won't be late again. Time is your friend, however... the longer you keep making on-time payments, your score will go up. I learned not to trust those simulators, they can be all over the place. Many people are using Experian Boost by tying their utility payments into their credit history so maybe that's something for you to consider. Credit scores will make you crazy- not enough...Read More...
Last Reply By TekkieChikk · First Unread Post

Experian Boost

Leslie Kay
Anyone else had any good or bad experiences with adding that Experian Boost to your credit report. It instantly added 37 points to my credit report by adding payment history for my utilities. It only adds accounts with a good solid payment history. I was wary but so far so good.Read More...
Oh, my! Thanks for sharing. How awful for you. There ought to be a law! I was thinking of trying it too. Now I won't.Read More...
I've had good and bad experiences with Experian Boost. When I initially got Experian Boost, I had a 20 to 25 point increase. Then, about 6 to 7 months down the line, I took a 30+ point drop because of Experian Boost. My anal bank, left me with no choice but to reset my password to my account. This directly affected my Experian Boost and my score. I had to delete the bank account and readd it with new password. To this day I still haven't gotten any score raises due to Experian Boost, despite...Read More...
Last Reply By MsD · First Unread Post

Credit

Annie Lee McGinnis
Was just wondering how to get my credit score back upRead More...
As @lismox said, and I echo, get a secured credit card. I would also like to suggest look into to a credit builder loan. A credit builder loan works like this, for example, you agree to pay $25.00 a month for 12 months. The loan gets put in a CD, to earn interest(for the company, they have to make their money). At the end of your agreement you get the loan money(in a check and/or direct deposit). I know about this because of articles I have read that were suggested by credit building...Read More...
Depends on your situation. But general guidelines are keep utilization below 30%, keep longest card or account open, pay all bills on time.Read More...
Last Reply By Prince_Alarming · First Unread Post

reporting to credit beauros

Grandma C
I, not my spouse, had to file bankruptcy a few years back due to medical bills and my score is "fair", not quite 650. My spouse does not have a credit rating because everything was in my name, therefore she cannot get a credit card or loan. We have apartment rent, checking accounts and utility bills, all of which have been in excellent standing for a couple of years now. So, are rental companies, banks and utility companies required to report to the credit bureaus? If not is there a way for...Read More...
Sign up for Experian Boost. They will view your utility payments and monitor the status of your checking account. If everything is in good standing, that will show on your credit report.Read More...
Last Reply By KerryE · First Unread Post

Want to buy a used car with fair credit

T'Ianna Moore
Okay, my credit is fair and I need to buy a car, like three months ago. I have a significant amount saved up to go towards a down payment or purchase. How do I go about finding a good deal and not get stuck with a lemon? Any and all suggestions are welcome! :)Read More...
Okay everyone, car shopping is hard. So, I had a few vehicles in mind, but they have been shot down due to high mileage and old age. What is a good amount of mileage and a good age for a used car, as well as price?Read More...
Hello all! thanks for all the suggestions! I will make good use of them and have also solicited the help of my grandfather who is knowledgeable about everything and is walking me through this. I will keep you all updated on my progress.Read More...
Last Reply By T'Ianna Moore · First Unread Post

Pay off credit card monthly

Grandma C
When I pay my credit card in full each month do the credit bureaus acknowledge this and up my credit score? I have been told I need to have a balance carried over to the next month and then pay it off along with the interest in order for it to show up on my credit report. It seems to me that paying interest on a credit card defeats the whole purpose of trying to up my credit rating.Read More...
Paying the cc off monthly eliminates interest, which on many is sky high. It is the way to go.Read More...
I pay off my card every month and having it has helped my credit rating.Read More...
Last Reply By redcatcec · First Unread Post

Airline points cc

Is there a thread analysis of CC with the best Airline points? Anyone know how soon one could use the card once approved (have to wait for the actual card in mail?). Thanks!Read More...
Thanks for recommendation of wise bread.im not so find of need wallet. They seem to be more in the promoting cc co businesst they were years back.Read More...
I would think you would have to wait until the card arrives before you can use it. You can check reviews of credit cards on sites like Nerd Wallet - www.nerdwallet.com . Another site that I like with credit card reviews is Wise Bread - www.wisebread.com .Read More...
Last Reply By Kumba · First Unread Post

Amazon Prime Rewards credit card

Sierra
Looking for advice about the Amazon Prime Rewards Visa Signature credit card. It tends to have AMAZING reviews from credit card websites (because of the 5% cash back on amazon and whole food purchases) but it has trash reviews from the majority of users. It's something I know I would need to pay off in full every month, but other than that, it looks like most people have a problem with Chase Bank screwing up their credit when they use the card. I'm asking for advice from people who know much...Read More...
I have this card--it's the only credit card I have, in fact--and honestly? I'd only recommend keeping the card if you do a lot of shopping on Amazon and are able to pay the balance off every month. I unfortunately ended up deep in debt with mine (because it's a dangerously easy thing to do) and while I've been working at paying mine off, I may have to look into closing the account just to make any headway. As others have said, the interest rate is pretty high.Read More...
I have had the Amazon rewards credit card since 2012 and I have never noticed any credit score problems. I agree that it's absolutely imperative that you pay it off every month, because missing a payment or carrying a high balance from month to month really adds the interest up (for comparison, I don't have really have this problem with my Discover credit card). My strategy is to use this card for recurring things (Netflix, Language subscriptions, etc) occasionally gas if I happen to grab...Read More...
Last Reply By Patricia Jernigan · First Unread Post

Amazon Prime Chase Credit Card

Karen Kosmoski
I have had this card for several years and recommended to those who purchase a lot from Amazon. I tried to pay my balance off every month, if I have a large bill or purchase that I would normally use my debit card for, I put it on this card and then pay it right off. I have had no problems with Chase on this card, and it gives me a free credit score every month. I wouldn't hesitate to use this card.Read More...

Differences in Credit Score

Why is it that when I check my credit score I see 700+ and when my mortgage company checks it the tell me it is in the low 600s?Read More...
Wow, that is really unfair. This seems just another example of how stupid a credit score is, when they can't even narrow it down to one reliable source. I would open wherever you are checking your score to get the 700 and show it to someone at your mortgage company and make them explain why there is such a difference.Read More...
Last Reply By KerryE · First Unread Post

Building Credit Score

ChefSue
Hello! I found out the hard way that the credit bureaus will close your accounts for non-activity and it's all legit. This week alone, I had 12 Dept. of Education student loans closed on me by Experian. When I called, they started arguing with me. Then, they drop your score because you show a "thin" credit file. What can we do about this?Read More...
As E Allen stated, the credit bureaus absolutely cannot "close an account" they only report what is given to them. If you had several student loans that are inactive/paid off or other inactive/paid off accounts, they will eventually drop off your credit report. The score dropping because you show less accounts than you did before is a part of their credit score algorithms that have been in place since FICO and other credit scores were developed. If you want to increase your credit score...Read More...
Not sure what is happening here. But credit bureaus cant close your account. Only Your creditors can.Read More...
Last Reply By DipperDave · First Unread Post

FICO Score

John Donaldson
So I thought I was making a positive move regarding my FICO score and paid off my credit card balance before the statement date. My FICO score went DOWN because, they said I wasn’t showing proper use of my available credit. Their suggestion, take out a loan or open another credit card! Exactly what I don’t need. I left a small balance on the card this month and my score went back up. Go figure!!Read More...
Must be why I have never had that issue. I use credit every month. However, my credit score did fall when I paid my car off. They say the higher your score, the more little things like that affect it. So I worry less about the number as long as its over whatever the minimum is to get the best service or productRead More...
I don't plan on ever borrowing money again, so if my score goes up or down, I really don't care. I own my house and car outright so hopefully I'll never again need to purchase either one.(Plus I just turned 60 so that may be coloring my attitude). I want my debts paid off for my own peace of mind. The credit score can pound sand for all I care.Read More...
Last Reply By E Allen · First Unread Post

Credit Repair vs Credit Monitoring

Reginald Cole
What must one do get their credit report cleared from negative remarks?Read More...
While not everything can be removed from your credit report, there are different things you can do to remove negative things that may be in error. I do not have a lot of knowledge on this topic but I found this article that details several ways to potentially remove things from your credit report: https://bettercreditblog.org/h...our-credit-report-2/Read More...
Last Reply By Moore Income · First Unread Post

This week in... The Penny Hoarder Community

Ashlee
Happy Friday! Whew! Where has this week gone? Here’s your weekly round up of announcements to get you through today and into the weekend... We’ve crowned our November Member of the Month. Join me in congratulating Lisa Acu ñ a (@lismox) for being selected this month’s winner! We all appreciate your help around here, Lisa. Each month we look to crown a new winner. We’re looking for someone who is super helpful and active in the community. Each winner receives a $25 gift...Read More...
Not a problem, @Lesley Michele .Read More...
Thanks Average Joe😁😁😁😁Read More...
Last Reply By AverageJoe · First Unread Post
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