Comments on: How to Improve Your Credit Score

By: barbara

barbara — Fri, 16 Oct 2009 23:35:55 +0000

You know, I have the same issues. I think the way it appears to work is that you should stay in debt to support the bank and credit card componies

By: Ryan

Ryan — Fri, 24 Apr 2009 02:18:24 +0000

Terry: From what I understand, completing a mortgage is very good on your credit score/report, because it shows you have the ability to pay off a major loan. I don’t think it will hurt your score at all. However, I am not an expert in this specific situation, so you may consider calling a lender or mortgage broker and asking them. Best of luck to you.

By: Terry C

Terry C — Wed, 22 Apr 2009 19:08:32 +0000

I have a house and want buy one in a new area. I’d like to pay off my current mortgage but am reluctant to do so because there will no longer be anything reported to the credit agencies showing that I can pay back debt on time. Also, after reading that you need a good mix of credit on your report, has me question whether I should pay off my mortgage.

If I don’t find a new house for 2 years, would it negatively affect my FICO score to pay off my current mortgage now? Is there a look back?

By: Ryan

Ryan — Thu, 15 Jan 2009 14:42:15 +0000

Steve C: Not only did you insult me, but you are living in an “ideal world.” Not everyone can afford to go through life without ever using credit.

Having a strong credit score can help people get access to a line of credit, which when used properly – as a financial tool and not to finance a lavish lifestyle – can be an important factor in one’s finances. Notice that I did not say it was the most important factor.

Credit by itself is not bad; it’s how one uses the credit that matters – just like other “dangerous tools.”

Earning a high credit score comes through using credit properly, not by living beyond one’s means and only making minimum payments on a maxed out credit card. I do not advocate buying more home than one can afford, or living beyond one’s means. In my opinion the most important factor in personal finance is living within your means (earning more than you spend and spending less than you earn). A good credit score can help people manage to do that.

By: Steve C

Steve C — Thu, 15 Jan 2009 13:16:44 +0000

While the information on managing your score is good, the article is garbage overall – “Having a strong credit score is one of the most important things you can do to help control your finances” – The best thing you can do to control your finances is to not buy things on credit. The only thing you should buy on credit is a house. It is probably OK to have a credit card as long as you have the money to pay the full balance. You should also have money in case of an emergency. Don’t beleive me – look at how much money you pay in interest for that status symbol tV or car you bought on credit. You will always be living paycheck to paycheck if you use credit to “control your finances.”

By: Ryan

Ryan — Fri, 05 Dec 2008 02:24:53 +0000

threadbndr: There is no way for me to know your exact situation, but there could be several factors. Your score could be lower if you recently closed any accounts or applied for new lines of credit. Your score could also change if your credit limits changed because that can change your utilization rate. Another possibility is an incorrect item on your credit report, or the remote possibility of identity theft.

If it is an issue, you may consider contacting the credit bureaus, checking your credit history, or signing up for identity theft protection (if applicable).

By: threadbndr

threadbndr — Thu, 04 Dec 2008 21:35:55 +0000

One question that is driving me nuts. I actually paid off my mortgage five years ago. And now my score is DROPPING. I have actually reduced my credit card debt. And now my score is lower than it was when I had a mortgage and a nearly maxed out card. What gives???

I haven’t missed any payments or been late, so it’s not that.

puzzled …..

By: How Not to Buy a Car | Military Finance Network

How Not to Buy a Car | Military Finance Network — Fri, 29 Aug 2008 02:17:03 +0000

[...] he wanted, got dealer financing approved, and paid full sticker price. He didn’t know about credit scores, negotiating, or anything about buying a new [...]