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5speedsuv

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My score is nowhere near where it should be and I'm doing everything right, what's wrong?
I do have two credit cards with balances but never late or maxed out. I have a home mortgage (most do) which has never been late and I pay more than the required payment. I have no car loans, no student loans, no cell phone, no cable or internet services. According to Credit Karma I have a letter grade "B" for what that's worth and have never had at any time a judgement or collection against me. Get ready for this my score is a whopping 704. That's only after I got it up a whole 8 points over the last year. I have a friend who has recently left her husband ( within a year) and she has a garnishment and a warrant in debt on her. She has balances on her cards and a car loan. Her score is 749. This is a conspiracy, the banks and the nation do not want you to do what's right. I pay too much for health insurance and too many taxes yet I get screwed. I know people who don't have to pay for their or their kids insurance, housing, electric , phones,cable, or food and make as much as I do. I pay my own way and their credit score is higher. PLEASE EXPLAIN.

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Top Contributor
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Here is how your credit score is calculated:  35% is payment history (which you are great on).  30% is utilization - keep a balance of no more than 10% on all credit cards to help that portion.  15% is credit history, which is the age of your accounts- not much you can do about that, but let time do it's thing.  10% is inquiries, if you shop for credit it will hurt.  10% is mix of credit - this is where most folks are lacking.  There are many types of credit but most folks, such as yourself, only have 1 or 2 types of credit.  You have credit cards, which is revolving and a mortgage.  Your score would increase if you had other types of credit.  It is a crummy system and I agree that it is not in the consumer's favor, but we gotta play by their rules.  For more info, visit www.credit.about.com.  Best of luck!

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5speedsuv

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So the more money I borrow the better my score. I think this is why our country is in the state it's in. I pay all my bills and if I wanted to pay interest to credit cards just to  build my  credit score sounds like a racket to me. My main question was why she has a better score than I when EVERYTHING on her report is worse than mine.Thanks for your help.

Credit Karma Team
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Raising your credit score can be a lengthy process. Two of the factors that are easiest to control are limiting your credit card balances to below 30% of your total limit, and limiting the amount of new hard inquiries on your credit report. For more tips, I suggest reading this article: https://www.creditkarma.com/article/5StepsTowardsHealthyCredit

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So basically you buy your credit score. If you were to put 100.00 on every credit card and pay insane interest for three months then pay it off wait a month and charge another 100.00 on it and so on , you would greatly increase your score. Furthermore , having a home mortgage is ludacris because well we know it hurts your credit score even if you pay it religiously but renting is giving money away foolishly especially when mortgage rates are 3%, you can own cheaper than rent but..........if you rent that doesn't show up on your credit report so it makes your debt to income looks great to the credit bureau and your credit score goes up. In other words if you **** away money they reward you with a good score , you think smart and manage your money well( like buying instead of renting) they punish you.

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