Repair Credit Score

Archive for August, 2008

Question: If I apply for a pre-approved credit-card, will it hurt my Credit Score?

My Credit Score is currently good (about 735), and I don't want to ruin it. However, since I've been 18, I've only had one credit card, and I'm 22 now, and I need another. I just got approved for an American Express blue credit card, and I want to go ahead and get it, but I'm worried that it will hurt my Credit Score. Do you think this will happen? And if so, by how much? Thanks in advance!

Answer: Once a consumer makes their initial purchase using the American Express One card, $25 is deposited into a high-yield savings account with a current annual percentage yield (APY) of 3.5%. This account is also FDIC insured. After this initial amount is deposited, 1% of all other purchases are deposited into the account, and interest begins accumulating. There is no cap to deposits annually, and the card comes with a 12.99% APR with no annual fee.

How to take advantage of this offer:

Make timely payments. If late payments are made, the APR on the American Express One card will increase. Also, try to pay off as much of the balance as possible at the end of each billing period. If consumers pay off their balances in full at the end of every month, this card can act as a better savings acoount than those offered by local banks. Let's say that a consumer spends $10,000 per month on their American Express One Card. $1200 will be deposited into the savings account annually, earning $42 in accrued interest. This bodes for a very secure and profitable savings plan. Apply online for a best american express credit card at: http://www.credit-card-gallery.com/American_Express.html.

Are Free Credit Scores Worth The Price? - WWW.CREDITUNLOCKED.COM

Question: Credit Score?

Ok, so I was told by a real estate agent to have a friend or somebody with higher Credit Score to add me onto their credit cards, so that I can benefit from their history, but I just read that The scoring process is different and I won't benefit from their history.. is this true? or how does this work?

Answer: You would have to be added as a joint or co-signer to get any credit for the account.

This was changed for the very reason you are asking about, lot's of people bought seasoned accounts so their score would go up and they could qualify for loans that they would not on their own.

This is a big part of the sub-prime housing problems that we are reading about.

Buy, Close, Move IN!: Fix Your Credit Score and History Forever

Question: Why is net worth not factored into the Credit Score?

Seems it would be a major predictor on your likelihood to default

Answer: Credit Score is an estimator of your likelihood of paying your bills on time. It is based on payment history, income, and debt. Net worth is a very minor factor in your ability or likelihood of paying your bills.

Changing Your Credit Score