Crosel

2 Contributions 373 People Helped

Member Since: April 2012

Most Helpful Contribution

Trends by Age

Oct 08, 2012
Helpful to 367 out of 421 people

The key to high credit scores and low interest loans and or mortgage is to plan ahead and budget.

Why budget? If you have a budget it is less likely that you will be short on money by the time the bill comes (this bill should be paid in full). You should never buy something that you can't afford NOW (exception house and maybe car) so at the end of the month it is paid in full. Keep Util rate between 1% and 9% as creditors want to see responsible and controlled usage. Plan ahead means that if you want to buy a house you (this is a big decision) you begin planning stage at least 1 year prior to the search of a home. This gives you time to verify credit scores, fix anything that is not accurate, lower balances should you have any balances not paid in full, pay off loans to decrease Debt-to-Income ratio, in other words, make yourself as attractive as possible to a potential lender.

There is no excuse to living paycheck to paycheck (save a terrible accident or terminal illness..), if you overspend, don't budget, don't plan ahead then it is YOUR fault that your credit score and life situation aren't as good as they can be.

Activity (2 Total Contributions)

Trends by Age

Oct 08, 2012
Helpful to 367 out of 421 people

The key to high credit scores and low interest loans and or mortgage is to plan ahead and budget.

Why budget? If you have a budget it is less likely that you will be short on money by the time the bill comes (this bill should be paid in full). You should never buy something that you can't afford NOW (exception house and maybe car) so at the end of the month it is paid in full. Keep Util rate between 1% and 9% as creditors want to see responsible and controlled usage. Plan ahead means that if you want to buy a house you (this is a big decision) you begin planning stage at least 1 year prior to the search of a home. This gives you time to verify credit scores, fix anything that is not accurate, lower balances should you have any balances not paid in full, pay off loans to decrease Debt-to-Income ratio, in other words, make yourself as attractive as possible to a potential lender.

There is no excuse to living paycheck to paycheck (save a terrible accident or terminal illness..), if you overspend, don't budget, don't plan ahead then it is YOUR fault that your credit score and life situation aren't as good as they can be.

I dont understand Avg. Age of Open credit Line.

Dec 10, 2012
Clarifying things
Helpful to 6 out of 6 people

Though this is an old post, it still comes up when you look up how to calculate AAoA, I'd like to add something to help new users. First, the score from this site isn't the actual score a lender will pull (lenders usually pulls a variation of FICO, which you have to pay to see unless you have a particular product that offers it for free such as a walmart card). This website only offers information from Transunion and there are 2 other bureus (equifax and experian) and the score may vary between the 3. Second, AAoA takes into account ALL your accounts, open and closed (closed will count for 10 years after closing) so you won't see a drop in scores from closing a card unless you need it to keep Utility down, in which case you should either bring balance down or keep the card open.

AAoA is calculated by adding all accounts, example:
1 closed account aged 5 years

2 open accounts aged 4 years

1 open account aged 1 year

total age: 14 years

oldest account: 5 years

AAoA: (5+4+4+1(/4)) = 3.5 years.

While credit karma is a useful website, it should only be taken as a free report and free monitoring service.