What improves credit score?

[candie]

Since I qualified for care credit. I looked at my score. It was around 700.

Compared to 3 years ago when I was decline, how did it improved it?

Is payment on rent part of it and paying my electric and others bills part of it? I'm still trying to figure that out. If this is true then I know I'm doing very well

 

[denice]

There are a number of things that go into your credit score. Did you have a ding on your credit at one time? An account that was past due or went into collections? Once it is taken care of as it gets older it becomes less important and eventually drops off as far as your credit score. Do you have open credit accounts that you are paying on? The general categories that go into a credit score are the mix of types of credit used, age of open credit accounts, making payments on time, percentage of available credit used, and applications for credit.

 

[candie]

Well I took out a 300 loan yrs ago I was approved and paid it all back. I had no credit score and didn't had credit cards. I was confused on how it went up

 

[denice]

There have been efforts in the last few years to include rent and utility payments in credit scores. I don't know where that is at but that could be part of it. Before renters were at a disadvantage, mortgages have always been part of credit scores. In the past only derogatory things from utilities were reported but some areas have started reporting payment histories on utilities to credit bureaus.

 

[Willowy]

If you're renting from a large rental company, they might report your rent to the credit bureaus. If you rent from a small-scale landlord they probably don't.

Have you ever had any other installment payments or loans?

How long ago was the loan? If less than 10 years it's probably still on there, and since you paid on time it's still showing a positive effect.

If you make your payments on time and don't use the full amount, the Care Credit card should improve your credit score.

 

[candie]

3 years ago . That's why I'm confused how no credit score went to 700

I did paid more to pay back care credit

If you're renting from a large rental company, they probably do report your rent to the credit bureaus. If you rent from a small-scale landlord they probably don't.

Have you ever had any other installment payments or loans?

How long ago was the loan? If less than 10 years it's probably still on there, and since you paid on time it's still showing a positive effect.

 

[vansX2]

There are a number of things that go into your credit score. Did you have a ding on your credit at one time? An account that was past due or went into collections? Once it is taken care of as it gets older it becomes less important and eventually drops off as far as your credit score. Do you have open credit accounts that you are paying on? The general categories that go into a credit score are the mix of types of credit used, age of open credit accounts, making payments on time, percentage of available credit used, and applications for credit.

Back in 2017, I was looking to buy a new car. At one dealership I went to. I was told my credit score was 796. How did it get so low I thought. The dealer said I must have paid off a big debt. I had, not knowing that my credit score Would suffer. I was able to turn that number Around but it took another 8 months.

 

[denice]

Paying back Care Credit is helping. Opening a credit card like a VISA account will raise it over time. That is how I rebuilt credit after a divorce. Put a couple of things that you are going to buy or pay anyway on it every month and then pay it off each month. I know I get a discount on my cell phone and monthly car/renter insurance payments by having them on autopay. Have them go to a credit card.

 

[MonaLyssa33]

Hard inquiries into your credit also negatively impact your score (like what usually happens before you get approved for a loan) and they get removed from your record after a certain point. Paying on time definitely increases your score dramatically. I think my score about a decade ago was in the low 600s and according to my credit monitoring account, I've made on-time payments for over 10 years and my score is now nearly 800.

It's really weird and I personally think it's dumb and honestly racist because people of color are most affected by poor credit because systemic racism has prevented them from attaining generational wealth, but I will get off my soap box for now.