Quote:
Originally Posted by achiam
Speaking of credit bureaus, I read online and have heard from other friends that to increase your credit/FICO score, it would go up quicker if you had a huge limit of available credit but used as little/none of it as possible.
Does anyone know if this is true?
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your FICO score depends on ratings from 3 different agencies and they all rate your credit slightly different. (Equifax, experian, transunion)
Try not to find a way to build your rate "quickly". There is no short cut (whether by having large unused credit, or by having large amount of loans and pay them off promptly and on time). It all takes time.
But I do recommend people, who can manage their money in some way (i.e. spend what they make and not over-spend), to use credit cards as much as they can.
I am not saying he/she should be using credit card and go buy a $3000 TV, when he/she cannot actually afford that $3000 TV.
I am saying, you should probably use your CC to buy those $30, $50 weekly groceries, or make that $50 month cellphone payment on CC (if free of charge of course).. and accumulate maybe $1000/month balance while you have an income of, say, $2000.
Point is, again, dont overspend and spend what you have. I guarantee you, by doing this for 2-3 years, even if you have a bad rating now, you'll at least move into the next bracket of maximum allowable loan, when you might need it the most down the road.
Also, with advancement of online-banking, you can just print everything and download every item to your Excel spreadsheet and just see where you spend your most money and even analyze on it. (you dont even have to spend money on softwares such as Quickbook, which is very good BTW).