this article is NOT informative. i recommend reading wikipedia articles on FICO and vantage scores
janiesuper's response was:
I was denied for this back when i was shopping for cards. I did get approved for two citibank credit cards at 10% and my CK score is currently 714, and was lower when i got the cards. citibank premier pass (reward points) and citibank diamond preferred. I dont think a high credit score is necessary to get the lowest rates, just go with a different card.
This isn't a map of financial responsibility. Someone who has never had a credit card (credit history) could be very credit worthy, but they don't have a high score. I think the value in this map is your chances of obtaining a good loan in each state. The lenders will compare your score to the average of the people in the city or the state, and you may need a higher score in California just to compete.
i have read elsewhere that it makes no difference in the calculation of the FICO. Can the moderators expand on this in a new article? it would be helpful thanks.
janiesuper's reply was:
Its Feb 2010 now. The highest interest rate you can get on a CD or money market is around 2.7% if you are lucky.
same thing happened to me, i feel your pain.
its Jan 2010, what does credit karma use now? i recently bought my vantage score and it is in the 500s! my CK score right now is 714
dont close any of your accounts because a long history is good for your score. routinely use your cards every 2 months and pay them off in full in order to keep them open (some cards will close due to inactivity). I've heard that the type of charges affect how your card company views you. If you can, use your cards for items that make you look more serious like paying for household goods, rather than paying cash advances at the casino.
think about what you need good credit for? likely you would say, to borrow money when you need it, like now, to buy a car. if they finance a car loan for you, then dont worry about it, but I am doubtful they will, so you may not have any choice but to wait.
last year i joined www.mint.com and i found i had more than 46K of credit card debt. I called all my credit cards and asked them to reduce my interest rates, preferably below 10% and preferably FOR LIFE, and some of them actually did! then, i used this calculator http://cgi.money.cnn.com/tools/debtplanner/debtplanner.jsp and i continue to use it. I figured out my debt payment needs to be 1150 to get out of debt in 36 months. This month my total cc balance is 33K and im almost on track, perhaps added an extra month of payments, not bad. I shopped around and recieved about 5 new cards with 0% intro rates. I think i got lucky though, i did all of this right before the stock market crash, and my score was pretty good back then. However the poor economy caused some of my cards to reduce my limits and some cards closed my accounts, further lowering my score. the locked in rates help alot as they save me money and i can pay down faster. finally, most importantly, i use mint.com like a fiend to keep my budget in check. i still love to spend, but then i know when to slow down. knowledge is power. you can do it. dont ruin your credit history by settling or doing payment plans. 7-10 years of bad marks is a very long time.