I hate saying this but this is one time where i believe some type of federal regulation is required as an oversite on the three credit bureaus. They are allowed to make up their own illogical,ambiguous.and inconsistent guide lines. The public could and should be informed in a very easy to understand format as to what makes for having a good credit score and how to keep it and what determines a lower rating and how to improve it. They have to much power not to be kept an eye on.
ballbeater's reply was:
I agree totally our credit system in many ways is *** backwards. I reduced the amount of credit on my cards, knowing i would never use nor need but my credit scores went down trying to be responsible also i will never understand that if one exceeds their toatal credit lines by charging more then 30 percent of what my limits are that also lowers ones score regardless that it gets paid off immediately.Also i have only two cards and have been told to have more if i want my score to increase.What a system
That interest rate sounds good was that based on very good credit scores?
ballbeater's response was:
You are so right, do not forget if one eliminates a card that is a negative, if you reduce the amount of credit on a card which i also did because i did not need $15,000 credit line on that card and reduced it to $5000.00 and that also was a negative on my score but if you want to increase your score generally by adding an additional card. NONE OF THIS MAKES SENSE.
Our credit system is unfair and a joke, it is amazing that if an individual wants to reduce their credit limits or close a credit account that they should be penalized. How about something real simple if you pay off all your balances on time that is what really counts.These credit agencies design the system to be very complex and there is really no need for it.
Good article but that they said one skould keep between 4-6 credit cards that is absurd.
At what percentage of debt in proportion to ones available credit does it become a negative towards your credit score regardless if you pay it off each month?.
What does putting a freeze on ones credit actually do to help against fraud ?