@Anonymous wrote:
My credit score is in the lower 700's. I have maybe 8 credit cards with high limits, no debts. I pay everything off immediately and have done this for the last 7 years. I owe not a penny to anyone.
As stated above even those with scores in the 800's have reasons listed. You need to carfully review your own credit reports with an understanding of how the various factors impact your scores to see what you can do. Start with this:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
And keep in mind that reported utilization should not exceed 30%. Ideal utilization is much lower -- typically 10% or less. Fewer balances is generally better as well. The general recommendation when optimizing utilization (i.e. when applying) is to allow only one balance to report at 10% or less.
Pull all your reports and carefully go over them. If you have derogs then address them. If your utilization isn't in check then get it in check. "Paying off immediately" doesn't really tell us what your reported utilization looks like. Don't assume that you have no reported balances if you're paying statements in full. Most cards report on statement date so if you have a balance on that date then that is the balance indicated on your reports.
@Anonymous wrote:
Who makes up this stuff?? Now they WANT me to charge to my accounts? What does that prove? This is all so stupid. I'd like to strangle the people who thought this up.
No, they're suggesting that an installment may help your scores but, as stated above, an installment only benefits your mix of credit while it's open. If you pay it off you'll lose the benefit to mix of credit. We generally don't recomend adding an installment just to improve scores. Howeever, if you need an installment then certainly get one.
The system is designed to allow creditors to assess risk. Whether or not you agree with it it is the very same system that we're all subject to.
Are you actually intending to apply for anything? If not, why are you worrying over your scores?
@Anonymous wrote:
I use a couple of my cards a lot, but always pay off the balance. In that way, they are not able to charge me interest. I am to be punished for that?...for not allowing them to make money off of me?? And I disagree...profitable customers are NOT responsible with money...they spend it and they pay unnecessary interest charges. That's may be why the credit card companies like them...and people like me who are VERY responsible with money get punished. I DO use my credit but I pay off the balance. Seems to me I am MORE responsible than those who just pay the minimum payment and then have to pay interest charges. Please clarify. Thank you.
You're not getting punished. In the link I provided above you can see that scoring has nothing to do with interest paid. You just don't understand the system. You can be repsonsible, not pay interest on revolving accounts and have a good score. You just need a better understanding of how the system works and how to manage your accounts leveraging that knowledge.
Something in your credit is holding your scores down. You just have to determine what it is and address that. We can probably help you to determine what it is but we'd need more information.
