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- Apr 8, 2006
The following is regarding a CANADIAN.
Before I went to school I had incredible credit. Had three credit cards and a cell phone since I was 18, made above minimum payments earlier than on time.
When I went to school I continued to make payments on time, only this time I had abut $30,000 line of credit.
After school is said and done the line is maxed and so is the credit cards. Payments are continued to be submitted on time, and it should all be paid off within 18 months of graduation.
Here is my concern. I ran a credit report before and after getting this $30k line of credit. The second time I ran it my score had dropped 150 points, effectively bringing me from "Excellent" to "Poor"
This was on the report:
[h3]
I could try to decipher this but in reality it's just financial jargon.
Basically my question is once all of my credit cards/lines of credit are paid off, will my score go back to excellent or even higher?
What are really efficient ways to build credit in the mean time? A friend once told me that carrying a balance of 70% on your credit card and making the min payments is the best for building credit. I always thought it was a maximum value?
Before I went to school I had incredible credit. Had three credit cards and a cell phone since I was 18, made above minimum payments earlier than on time.
When I went to school I continued to make payments on time, only this time I had abut $30,000 line of credit.
After school is said and done the line is maxed and so is the credit cards. Payments are continued to be submitted on time, and it should all be paid off within 18 months of graduation.
Here is my concern. I ran a credit report before and after getting this $30k line of credit. The second time I ran it my score had dropped 150 points, effectively bringing me from "Excellent" to "Poor"
This was on the report:
[h3]
[/h3][h3]What's Impacting Your Score[/h3]
Below are the aspects of your credit profile and history that are important to your Equifax credit score. They are listed in order of impact to your score - the first has the largest impact, and the last has the least.
Number of trades with high utilization
Utilization for revolving trades
Average utilization for open revolving trades
I could try to decipher this but in reality it's just financial jargon.
Basically my question is once all of my credit cards/lines of credit are paid off, will my score go back to excellent or even higher?
What are really efficient ways to build credit in the mean time? A friend once told me that carrying a balance of 70% on your credit card and making the min payments is the best for building credit. I always thought it was a maximum value?