What is considered a "good" credit score? How do you improve said credit score? Mine is fairly high but we don't really have much debt at all other than student loans (which is great!) which are all paid on time. So how do you improve a credit score? What's "good"? I mean, without saying what mine is it's pretty high so I'm not worried about that, just curious since I don't know much about them at all!
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I think 700s is considered a good score.
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700-800 is good. Length of debt-credit, a certain number of accounts open/closed.
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BAHAHA I'm so proud of you, you checked it off your list! Anything in the 700s is a good score. In your case, one of the reasons yours might not be higher is because you *don't* have debt. Sounds crazy, but they score you on your longest line of credit, and how much of said credit you are using. So in some cases, not having/using a credit card can actually ding your score!
P.S. Don't tell R I told you to get a credit card.
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@autumnlove: How dare you get a new picture!? I was so confused at first!
@lawbee11: Oh that's a great table of info! Thanks!
@Bookish: HAHA! Maybe I'll start using the one I already have...
I'm feeling pretty good about my score based on this info! Considering I don't really have anything other than student loans and one CC I haven't used in 3+ years!
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Your credit score is based on the following components.
I found that my credit score increased once I had a mix of credit lines (e.g. adding a car loan and mortgage bumped it up significatnly). I also have really low utilization % which also contributes to a higher score (e.g. using only 5% of my total available credit). It's not super clear, but the "Amounts Owed" section is based upon utilization.
More reading: http://www.myfico.com/crediteducation/whatsinyourscore.aspx
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@lawbee11: You are always so quick and helpful! That's a great outline. Thanks.
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I think using and paying off a credit card monthly actually helps to show payment history too. I'd never had debt of any kind to show any sort of payment history but used and paid off credit cards every month for years and my credit score was in the mid 700's when I finally checked to buy a house.
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My husband and I have all joint accounts, with two exceptions. I had a small auto loan before we got married and he had a small balance on his student loan.
My credit score is higher than his. What could account for that?
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@PurplePumps: Our lender told us to carry a rolling $15 balance. We were paying them off in full each month (only use it for groceries and bills and promptly pay). We have great credit, and pay the balances in full like you. He told us a tip is to carry $15 each month helps show you can manage debt and will get us into 800s. He was like, mind you DON'T carry $$$$$ each month and not pay it off. $15 bucks rolling each month is sufficient.
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@Kimberlybee:
We just had a financial advisor come talk to everyone at our office and he gave us lots of helpful info (including all this about credit scores). @Mrs. Jump Rope: Have you had a credit card longer than he has?
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@lawbee11: I have not.
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@Mrs. Jump Rope: Hmm that's odd. A car loan is secured credit and a student loan is unsecured, so maybe that's the reason.
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@lawbee11: I have no idea what that means but I love telling him my score is higher
it's only by a handful of points but enough to make me do a happy dance.
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@Mrs. Jump Rope: it's not an exact science so there may not be a "real" reason if the numbers are very similar. And it might flip flop over time. My husband and I have also had joint finances for a loooong time. The last time we bought a car he was a few points higher than me, just this week we were pre approved for our mortgage and I was a few points higher than him.
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@Mrs. Jump Rope: Lol. Do yo happy dance! It basically means that if you don't make your car payments your car can be repossessed, but if he doesn't make his student loan payments they can't repossess his degree.
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@dc yoga bee: Interesting, I've never heard of that. I don't see the need to get to 800 either though. Would someone with a 800 really get a better rate than say a 750?
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@PurplePumps: I personally have no idea. I handle the legal stuff, and DH is an accountant/auditor and handles the number crunching
The lender told us as long as you have a 640, you will get approved, and as long as you have a 700 you will get a good rate. We ended up signing another lease since we didn't find anything in the area we want to be in, so we won't be home searching again until next spring!
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@Mrs. Jump Rope: This is why I kind of dislike credit scores! All the reporting agencies keep their "formula" proprietary, so you'll never be able to figure it out, which is completely ridiculous if you are trying to educate people about credit!
My husband and I have only had joint finances in the US for a year, and his credit score is about the same as mine, so, to say I am a skeptic is an understatement!
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@PurplePumps: I don't think so.. my parents have outrageously high credit scores while DH and I have mid/upper 700's. My dad just bought a new car about 2 months before DH and I did and we got the same interest rate as him.
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@Mrs. Jump Rope: it could be that you've had credit longer than him. Even the ones that have been closed out may still be reflected in your credit report and those dates are still counted. Eventually they'll filter off your report, but that could be it. Also, it could also be that your auto loan was for a greater amount than his student loan.
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@aegie: my auto loan definitely wasn't for more than his student loan
He has had a credit card since 16 and I didn't get one until 19/20. He was on his parents account for a long time, and they have perfect credit.
Anything we can think of points to my husband having the higher credit, yet I'm the one with a better score!
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@Mrs. Jump Rope: I wonder if part of the FICO calculation includes gender (like auto insurance rates, for example) and women get a couple point bump over the dudes? Hmmmmm
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@yoursilverlining: we are insured under my husband, if that makes any difference. Before, I was on a company policy. I've never had auto insurance under my name.
This is interesting! There doesn't seem to be a concrete reason why my score is higher. On paper, his should be the higher score!
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@Mrs. Jump Rope: before you converted everything to a joint account, did you have other credit cards? Or did you just make him an authorized user on yours and vice versa for him?
@yoursilverlining: from what i know, gender isn't considered a factor in FICO scoring.
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@aegie: we each had one credit card and made one another authorized users. He's had his card since he was 16, I had mine at 19/20. We have one joint credit card that we applied for together.
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Something to also keep in mind is most lenders look for comparable credit if your looking at anything unsecured. Has nothing to do with your score, but has to do with the underwriting processes of apply for a loan. Fwiw
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@Mrs. Jump Rope: debt to income?
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@Cupcake: if anything, I have more debt.
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@PurplePumps: There are buckets for various rates and they depend on the lender. One lender might have the same rate for 740-760 and another lender might do the same rate for 750-800.
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@Mrs. Jump Rope: hard pulls on credit? pulling a credit report for car loans, mortgage preapprovals, credit card approvals...
We just had a financial advisor come talk to everyone at our office and he gave us lots of helpful info (including all this about credit scores). 
it's only by a handful of points but enough to make me do a happy dance.
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