Years ago, I took loans for college. After graduation, payment became due at $50 per month, and the interest came out to about $200 per year. In other words, 25% of my monthly payments were just going to interest alone instead of paying down the debt.
I decided this might be good for my credit score. A long history going on for years, of steady payments on a loan. Next month, the final payment will be done.
I will have paid $600 in interest on a loan for $3,800. That's around 15%.
It was nice being able to make such ridiculously low monthly payments. But what of my credit score?
Will I look like pure awesomeness? We'll find out.
AnnualCreditReport.com allowed me to check my Experian and Equifax details.
ReplyDeleteHowever, if I want to know my SCORE, I have to pay for it.
Experian showed that I owed $100 in Texas from 2007 to a Cable company and that was never paid so they sent it to collections. That means that my old employer forgot to pay the internet bill. Lesson learned, don't open an account in your own name.
I paid some cash...
My credit score is average at 683
They want to see more revolving accounts, mortgage accounts, a higher percentage of department store charge accounts, different total outstanding amount on credit cards.
ReplyDeleteThings that matter:
ReplyDeleteUsually, it is a good idea to keep your oldest credit account open, as a high average account age generally demonstrates stability to lenders. Also, especially if you have been managing credit for a short time, opening many new accounts will lower your average account age and may have a negative impact.