cancel
Showing results for 
Search instead for 
Did you mean: 

good morning needing advice please

tag
Southerndude
Member

good morning needing advice please

HI MY CREDIT SCORE IS ONLY 652` AN EVERYTHING ON MY CREDIT REPORTY IS PAID OFF AN YHE ONLY REPORTING ON MY CREDIT REPORT IS A CREDIT CARD WITH A 1000 DOLLAR LIMIT .. BUT THE QUESTION IS WOULD IT BE WISE TO TRY TO GET A 2000 LOAN FROM MY BANK TO HAVE SOME MORE REPORTING ON MY CREDIT REPORT TO ESTABLISH MORE HISTORY THANKS IN ANVANCE ......

Message 1 of 6
5 REPLIES 5
Crossdivided
Established Contributor

Re: good morning needing advice please

typically, installment accts are not that heavily weighed, but in your case you have none so yes you would benefit from opening that account to increase your 'mix' of credit. keep in mind the initial benefits may or may not be positive. if your file is thin, then a new acct will spank your AAoA (avg age of accts), possibly dropping score. also, the bank will hit you with a hard inquiry (pull your report), that may lower score a few points.

 

long story short...yes, get the loan. will be necessary for your future credit 'big picture', but too many factors involved in the fico model to guess an initial net gain/loss of score.

Message 2 of 6
Crossdivided
Established Contributor

Re: good morning needing advice please

by the way, heres some basic info for understanding credit scoring:

 

 

Understand what affects your credit. The exact calculation of the FICO score is kept secret as proprietary information, but there are some general guidelines we can apply.

  • 35% of your credit score is based on your consistent payment history and only includes payments later than 30 days past due.
  • 30% is based on the percentage of your credit capacity being used; i.e., the ratio of current credit debt in comparison to total available credit or revolving credit. If you carry very low balances on credit cards, your score will be higher than if all your cards are nearly maxed out.
  • 15% of your score is determined by the length of your credit history.
  • 10% is based on the types of credit you have; i.e., installments (car payments, student loans, or a mortgage), revolving (credit cards or lines of credit), and consumer finance (bank loans and the equivalent).
  • 10% is based on recent searches for credit and/or the amount of credit you've recently obtained. Every time you apply for credit it affects your score negatively.

 

Evaluate your score. The point system used technically ranges from 0 - 999, but all or nearly all actual scores fall between 330 and 850.

  • 330 - 619: Poor credit. In banker jargon a person with a score in this range is considered a "Credit Leper."
  • 620 - 659: Sub-prime financing will be available to you.
  • 660 - 720: Prime financing will be available to you.
  • 721 – 750: Prime - x% may be available to you. That is, you may be able to get interest rates on loans that are even lower than the prime rate.
  • 751+: Excellent credit. May enable you to get even lower prime -x% interest rates depending on the credit type you're utilizing.
Message 3 of 6
Southerndude
Member

Re: good morning needing advice please

THANKS FOR REPLYING AN GOD BLESS ,,,

Message 4 of 6
Crossdivided
Established Contributor

Re: good morning needing advice please

you too man. welcome, and good luck.

Message 5 of 6
guiness56
Epic Contributor

Re: good morning needing advice please

When you say paid off, would this be referring to any collection accounts and charge offs?

Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.