Will having several credit cards hurt my credit when I go to purchase a new car?

November 15, 2007

Posted by talerance

( 0 ratings )

That are tons of different credit card scoring models out in the world. Which model the company you apply for a loan to buy the car is unknown. The points that factor into these models is what should interest you.

Points are given or taken away based on the amount of available credit used. For example, using the maximum spending amount on your credit card and paying only the minimum each month can lower your score. But, using a large percentage of your available credit each month, even when you pay the bills faithfully, can detract points if you are carrying a high balance at the time your credit history is scored.

Interestingly, the number of your credit accounts reported as “never late” or “paid as agreed” have a positive effect on your credit score. It just seems like the calculation is based only on negative factors.

Credit card companies are not legally required to report either good or bad credit card events to the credit bureaus.

Based on the information above, given your credit history and current balances what kind of score out of 10 do you think you have? 1 low, 10 high?

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November 15, 2007

Posted by katelinwhite

( 0 ratings )

Your better off purchasing your score through one of the national credit bureaus and not having to wonder.
The national bureaus are:
- Experian, www.experian.com
- TransUnion, www.transunion.com
- Equifax, www.equifax.com

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