Credit Score Advice

[niko_lanzi]

I'm trying to figure out what to do with my credit cards before I go pick up my car. Does anyone with more experience know if it's better to pay off all cards and owe $0 or is it better to just owe a small amount on the accounts. I have heard both things but don't know what to do. I only owe about $1,300 out of $4,300 limits right now.

[TAG UR IT]

It helps to build your credit score to have a low monthly amount on the charge as you make the payments. However, it works to your benefit to have the high score and no balance when you go in to buy the car.

In other words, a small balance that is paid for each month gets your good credit. But, to get the big prize, you need to get rid of the balance so you show to owe nothing. Um. ...I hope that made sense.

[niko_lanzi]

Yeah it does I am going to pay everything off before I go in then. Thanks

[TAG UR IT]

That's what I would do. No payments for anything else just make it look easier for you to pay off the note you want to get. Less owed to others means more you could borrow...usually.

[Hemlawk]

my credit score sucks, but tis all my fault. I recently paid off all my delinquent stuff since ts manditory by the bank when you by a new house. New I just need some time for the score to improve before I go for the camaro

[Number 3]

Keep in mind, the only thing the financial institution will know is what's on your Credit Report. Don't send a check and then go to the bank. If you want it to show 0 then you would have to pay it off, wait for all the credit card companys to show 0 then have your report pulled.

Otherwise you'll be saying, "no, really, those are all paid off. I just sent the check".

[ssdavidw]

As Number 3 said, there is a lag between what's on your account shows up on your credit report.

Your credit score will change based on healthy behavior over a period of time. If you pay off in full today, even if it shows up on your credit report next month that you have $0 balances, it might take another month or two or three before your credit score starts to really change.

However, in your overall evaluation when you're applying for a car loan, having $0 balances will help lower your risk level in the eyes of the bank.

I'm going through this right now. I was originally expecting a September/October/November delivery and am carrying some credit card debt. I was budgeting paying down my debt based off that. Now it looks like my car will be here next month so I'm not going to see the full advantage of what I've paid down.

But at the end of the day less debt = win, no matter what.

[cam2fst4u]

yea credit card companies are a lil slow on reporting a 0 balance but miss one payment and they are all over it...lol... pay them off pronto if you can afford to do it.

[tribone]

Originally Posted by ssdavidw

.....

I'm going through this right now. I was originally expecting a September/October/November delivery and am carrying some credit card debt. I was budgeting paying down my debt based off that. Now it looks like my car will be here next month so I'm not going to see the full advantage of what I've paid down.

But at the end of the day less debt = win, no matter what.

I'm going through this too. But I'm not complaining

[Mr Twisty]

Get a copy of your credit report. We're doing a home refinance and our score was fine, 708 for me, 760 for the wife, I said WHOA horsie, somethings wrong here... I pay out big bux each month and am NEVER late! About 8 years ago, I had a Kansas pike-pass I returned because it's just as fast to pay the toll. Well, it seems there was an un-paid balance on it no one mentioned, so it's been dragging down my score for a piddly $40 unpaid toll fee.

[PQ]

Originally Posted by TAG UR IT

It helps to build your credit score to have a low monthly amount on the charge as you make the payments. However, it works to your benefit to have the high score and no balance when you go in to buy the car.

In other words, a small balance that is paid for each month gets your good credit. But, to get the big prize, you need to get rid of the balance so you show to owe nothing. Um. ...I hope that made sense.

Tag is spot on here. I have 5 credit cards. The owest limit being 1500.00 and the highest being 10,000.00 and two business cards both at 15,000.00 limits. (scratch that, one of them just closed, bank failed or somehting) But I usually rotate them with paying monthly bills and such and then pay the cards off with the bill money. There is usually a balance on at least one of them. Accasionally I will see something I want that would go beyond my ability to pay it off at the end of the month but I'll pay it off as quickly as I can. Anything that would go 3 months or more I would usually just go with financing and pay it down as quickly as I can. Point being, there is usually some balance somewhere on one of my cards or accounts.

I said all of that, to say this;
Like Numbe3 said, get it all paid down a couple FULL months ahead of time. I paid all of my stuff down to zero 3 months before my car came in. You gotta give the banks time to get the updates to the credit agencies and sometimes they don't for a while. Sure, there is a way to force them to update but that takes the same amount of time. I was able to get 5.25 from the dealer. It will be better to have everything you can, paid down to zero.

[PQ]

Originally Posted by MisterCamaro69

Get a copy of your credit report. We're doing a home refinance and our score was fine, 708 for me, 760 for the wife, I said WHOA horsie, somethings wrong here... I pay out big bux each month and am NEVER late! About 8 years ago, I had a Kansas pike-pass I returned because it's just as fast to pay the toll. Well, it seems there was an un-paid balance on it no one mentioned, so it's been dragging down my score for a piddly $40 unpaid toll fee.

Again,

Same thing happened to us when we bought Bonnies Lexus. they came back with 10.25 and I freaked. I've allways done the 'Free Credit Report.com' thing. I only ever did it on me. Not Bonnie. Come to find out that when we swithced to Geico () in 2005 we had a 49 dollar balance with Progresive. Well, they sent it to collections. As soon as I took care of it her score went back up but we ended up paying dearly for it with the interest on her car. One simple 49 dollar collections, had her score at 651 and a month later after taking care of it her score showed 729.

Free Credit Report .com is awesome. for 12 bucks a month you can check it everyday if you want to. I've learned over the years that they only update once a month so I just check once a month but anytime something changes you get an e-mail. Also keep in mind, the score you get with FCR.com is alot lower than your FICO. My FCR.com score stays around 735 but my FICO score is around 760. Not sure what the deal is there but it's true what they say, it can save you a bundle knowing your score all the time. We went ahead and took the BS rate they gave us because she wanted her car then and not wait 2 or 3 months for the report to update.

[Number 3]

Originally Posted by irpq11

Again,

Same thing happened to us when we bought Bonnies Lexus. they came back with 10.25 and I freaked. I've allways done the 'Free Credit Report.com' thing. I only ever did it on me. Not Bonnie. Come to find out that when we swithced to Geico () in 2005 we had a 49 dollar balance with Progresive. Well, they sent it to collections. As soon as I took care of it her score went back up but we ended up paying dearly for it with the interest on her car. One simple 49 dollar collections, had her score at 651 and a month later after taking care of it her score showed 729.

Free Credit Report .com is awesome. for 12 bucks a month you can check it everyday if you want to. I've learned over the years that they only update once a month so I just check once a month but anytime something changes you get an e-mail. Also keep in mind, the score you get with FCR.com is alot lower than your FICO. My FCR.com score stays around 735 but my FICO score is around 760. Not sure what the deal is there but it's true what they say, it can save you a bundle knowing your score all the time. We went ahead and took the BS rate they gave us because she wanted her car then and not wait 2 or 3 months for the report to update.

Wait.............what?

[PQ]

Originally Posted by Number 3

Wait.............what?

Ok, Ok. A little decieving. LMOA Dude, nice catch.

Ok try 12.95_creditreport.com