Credit Reports and Scores

[preciousjeni]

Originally Posted by Drolefille

Ok, so first off you probably didn't get scammed if you bought it through AMEX.

That's why I went through them, but I've never heard of identical scores. Weird!

Second off you should have been able to get a free credit report following the rejection of your credit for the checking account. That's pretty standard.

I ordered a free report from the bureau they cited as having given the bad score, but I had to purchase the scores separately since they aren't reported. The notification I got from the bank specifically said it was a problem with the "score."

Assuming everything accurate on the report, credit's been tightened up a LOT recently and it may be less about your number and more about your history or something along those lines.

Boooooooooooooooooooooooooooooooo!

THANK YOU!! My paranoia kicked in on this one.

Originally Posted by PiKA2001

2. You score is about 40 points higher than mine and I'm never declined for credit so maybe that isn't your real credit score. Not to pry, but if you are maxed out credit wise in relation to your income it could explain why you were denied the line of credit.

I'm an open book when it comes to this stuff. I've never been maxed out credit-wise. In fact, every year or so - depending on the credit card - I request a limit increase just for the debt-to-credit ratio. Right now, I'm creeping up to $40,000 if you add up all the limits and I pay the cards off completely every statement.

[AlphaFrog]

Originally Posted by preciousjeni

I'm an open book when it comes to this stuff. I've never been maxed out credit-wise. In fact, every year or so - depending on the credit card - I request a limit increase just for the debt-to-credit ratio. Right now, I'm creeping up to $40,000 if you add up all the limits and I pay the cards off completely every statement.

I'm not an expert at this, but I'be heard that it isn't always a good idea to increase your credit line like this. Yes, you want a low debt to credit ratio, and you don't USUALLY use all of the credit you have, but it makes banks nervous to lend to you, because while you USUALLY don't use all your credit, there's nothing STOPPING you from using it and all of a sudden owing $40,000 to someone on top of what your credit limit is with whatever bank you are trying to get a line of credit from.

[preciousjeni]

Originally Posted by AlphaFrog

I'm not an expert at this, but I'be heard that it isn't always a good idea to increase your credit line like this. Yes, you want a low debt to credit ratio, and you don't USUALLY use all of the credit you have, but it makes banks nervous to lend to you, because while you USUALLY don't use all your credit, there's nothing STOPPING you from using it and all of a sudden owing $40,000 to someone on top of what your credit limit is with whatever bank you are trying to get a line of credit from.

I'm certainly not an expert either. It's taken me a looooooong time to get back on track credit-wise. I've found that the larger the cushion between my credit limit and my balances, the better. The bureaus actually track the highest balance I've ever had on my cards which must factor into the credit score.

Early last year, I put nearly $20,000 on a card because I was doing work on my house. However, it was paid off at the appropriate time, so the balance was zero. My highest balance on a card (which was a mistake on my part) was $300.

I am extremely particular about my finances and pretty stingy because I used to be in really bad place financially.