How can I get a better credit score?

rpbanker · 2021-02-06T13:10:55+00:00

You can have good credit without having debts. You do it with credit cards.

Assuming your score has plummeted so far that you can't get a normal credit card, you'll need to get a secured one. Do a search and find a secured card with no annual fee and, if possible, reward points. Use the credit card to pay for things instead of your debit card.

There are 2 ways to avoid having a large, unpayable cc bill at the end of the month:

1) When you use your cc to pay for something, transfer an equal amount of money from checking to savings, then use that money to pay the bill in full at the end of the month.

2) You can pay your credit card every day! Just go onto the site and pay it in full every day or two. This keeps your month-end surprise to a minimum.

Secured cc are just listed as normal cc on your credit report, and getting one may spike your FICO up as much as 100 points. Once you're in the high 600s or low 700s, you can apply for normal cards. Keep your utilization (credit line vs. amount used) at under 30%.

I have approximately $60k in revolving (cc) accounts available, and I never pay interest, because everything is paid in full by the due date. I have earned thousands in cc rewards, just by using my cc to pay for things I formerly used my debit card to pay for. The only time I use my debit is to get quarters for laundry or cash from the ATM. Bank-reported FICO is 804, which will vary somewhat depending on who pulls my credit and for what reason.

rbep531 · 2021-02-06T12:59:09+00:00

It seems backwards, but sometimes it helps you to have a small debt that you pay off over time like a car payment. It's not a good financial move to have a car payment, but it proves that you will pay off your debts like a good little consumer. Being debt free is the way to go, IMO, but it can hurt your credit score.

The thing I would ask is this: What do you want the good credit score for? Do you want a low mortgage rate? That may be the one area where having a good credit score actually makes a difference. However, if you're already the debt-free type of person, you might buy your house with cash or you'll end up paying off your mortgage very early, so the credit score won't do you much good in the end.

My credit score is very high, but it's kind of useless because my house is paid off and I'm not interested in car payments.

sadbasturd99 · 2021-02-06T16:17:47+00:00

People on reddit advised me to get a credit card I think it is called "secured" where you keep like $500 in a bank account and get $1000 credit. Use is all the time and pay it off in full each month. Buy all groceries or whatever. My credit score went way up in a couple years and is very good now. Also monitor it via credit karma, it can sometimes give you reasons for why your credit is dropping or rising.

Bourbonandcigars06 · 2021-02-06T16:51:13+00:00

Sure minimize debts and scores will come. Yes its good but Dont make this total priority or focus. Its really only mea,ningful if taking loans or mortgage. Sure don't want a bad score but put attention in right direction

Keep debts down, only buy within budget. Strive for net worth is better measure of personal financial health but does not help with loans

Others said it, purchase with card and pay off each week. If don't have cash then don't use credit

burnett-lignon · 2021-02-06T17:49:58+00:00

I have one credit card with a limit of $28,000 , which pays back 2% of purchases, and I pay the balance entirely each month. No other credit or debt. I use the card for business (house remodels.) and usually charge and pay off from $4 to $12 thousand monthly, and when it's enough I use the cash back credit toward a trip or a toy. My credit score, which I don't care much about is about 820. I don't think about my credit score, don't intend to incur any debt and don't see why you would care if you don't plan to borrow.

Perseus_the_Bold · 2021-02-06T19:55:09+00:00

The way to fix your credit is to open up a stable credit line, contrary to instinct, having no debt lowers your credit because creditors cannot see how good you are with paying your debts. If you have credit lines that show you pay your bills on time and you have a modest income that usually raises your credit score. Think of it this way: When you are borrowing money the creditor needs to see how likely you are to pay him back. That is what a credit score really is. It's like the stats in baseball that serve to predict how good a player is. Your credit score is to show how reliable you are at paying your debts and how big of a debt you can handle and will be able to pay it back.

The things that kill your credit score are not paying your bulls, maxing out your credit cards, defaulting on payments, and having too many credit lines open where you owe too much money to too many people.

deathdealer351 · 2021-02-08T07:37:52+00:00

Credit is about % of total credit used.

Get a card with a high balance. And use less than 10% of it for every day purchases. A nice rewards card will do. The balance will depend on how much you spend each month. Spend 5k you need a 50k limit.. Spend 1200 you need a 15k limit.

Then have 3-4 backup cards with about half the balance of the main card and use 1-2% of those.

Then pay off all balances in full each month. Never use the debit card or cash... Your score should rebound to 815-830 pretty quickly.

Title	How can I get a better credit score?
Author	someoneelseiknow
Upvotes	7
Comments	10
Date	February 6, 2021 12:40 PM UTC (5 years ago)
Subreddit	Posted in /r/MGTOW2
Original Link	https://old.reddit.com/r/mgtow2/comments/ldwxhd/how-can-i-get-a-better-credit-score/
Archive Link	https://theredarchive.com/r/MGTOW2/how-can-i-get-a-better-credit-score.1600564 https://theredarchive.com/post/1600564

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