Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Insurance
Profile Image

Question By
Olddutchman

1 Contribution
1 Person Helped
Why is my score only 762? It seems to me it should be higher.
Except for my mortgage I am virtually debt free.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
432 Contributions
364 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Because being debt free is not an indication of good credit. Payment history of paying debts, however, is. It is best to carry some small amount of debt with a much larger amount of available credit.

Also, you need to be aware that there are many credit scoring companies each using a very different scoring model. 762 from one company may be the same as an 850 at another. If you are seeing a 762 from TransUnion the it is certainly because you are carrying no debt and/or have minimal debt.

Top Contributor
7346 Contributions
3805 People Helped

Helpful to 0 out of 1 people

Credit Karma is a FREE site that offers a lot of information and credit management tools on a virtual interactive site to help individuals improve their credit score.  There is no PANEL OF EXPERTS available, other than those of us who have actually experienced many of the things spoken of.  We are on a forum and each of us had the benefit of experience to offer advice.

Personally, I have an AAS in Accounting and a BS in Management, plus having been taught tax preparation.  But I have made mistakes, too, and learned from them.

What mdtaylorlrim said is very true because I tried very hard to be totally debt free and had a bad credit score.  The best score is shown by those who have a fair amount of AVAILABLE credit and have shown proper use of that credit.  If you had $10000 in available credit and regularly used up to $1000/month in credit which you paid in full when the statement came in, you would likely have a higher score, and that score will go higher if the credit accounts have been active for a long time.  The age of the available credit accounts is very important.  My score is not as high as I would like because my credit accounts are fairly new.  I paid cash for my car and my mobile home was owner carried, neither of which would show on a credit report.  So time and proper usage (I try to never carry a balance so I don't have to pay interest) will work on my side for an increased credit score.

Try using the Financial Tools on this site, such as the credit simulator, to find out what effect different actions might have on your credit score.  When I did, I discovered that consolidating the high interest cards I had would increase my score, so I did that (went through my credit union) and my score jumped.  It is a fun, painless way to make decisions without having to suffer the pain of "hard knocks" that often come from life experiences.

Hope this helps. 

1 Contribution
1 Person Helped

This is Olddutchman.

Helpful to 1 out of 4 people

I asked the question. I need an answer from your experts.

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.