Left curve something for me, does credit utilization only matter if you carry a balance? For example - starter card, low limit but consistently hit about 60% of the total monthly, but paid off in full each month, are you dinged for it?
Only acceptable reason to have a credit card balance)
The utilization will be calced based on the info available when your credit score gets pulled - but the info available depends on timing of when your balances get shared. So if you pay on the 20th, but the data in your credit score was pulled on the 19th it is showing that.
1) Are you tracking your credit score with credit karma/SOFI or does your starter card provide a FICO score? If so, is it generally good? If you already have a decent score, don't worry about it. If not...
2) If you have a less than stellar score and are going for a big loan (auto or home), you can always pay off your balance a month ahead of schedule so your utilization is guaranteed to be low.
My credit score is only 720, mainly because I am using 19% credit utilization with your 0% interest credit hack + recently applied for a card.
If you don't have a long credit history (my oldest card is just 4 years, and my average credit age is 2 years), does it make sense to get added as an authorized user to a close family member's account who has near perfect credit, and a long credit history? I estimate that my credit score would go up about 40 points if I were to do this, but not sure if there's some risks that I haven't considered.
Being added as an authorized user helps, although it seems like authorized users may get a little less weight than being the true owner.
The risks are largely they stop paying on the account.
If you think credit utilization is the issue and don't want to open more cards that would lower your credit age & new credit opening, you can also try contacting any cards you currently have open and see if they will raise the credit limit. Especially if your income or credit score went up since you opened the card.
Credit age is the annoying one since its just a matter of waiting. Also why it is important to keep your seasoned cards open and active.
That's a good idea. One of my earliest accounts is 4 years old and it just has a $500 credit limit on it. Bet I can get them to bump it up to at least $10K because my income has gone up much higher since then. Thanks for the advice.
$500 is usually the limit they give people with no credit history. Even if you just showed a bunch of months of continued payments, that should be a good proof that they can bump your limit up.
Left curve something for me, does credit utilization only matter if you carry a balance? For example - starter card, low limit but consistently hit about 60% of the total monthly, but paid off in full each month, are you dinged for it?
Great question -
Don't carry a balance.
(if you do, it better be because you are using the hack to pay off a high interest loan by taking a no interest loan as explained here https://effsigive.substack.com/p/infinite-free-debt-cheat-code
Only acceptable reason to have a credit card balance)
The utilization will be calced based on the info available when your credit score gets pulled - but the info available depends on timing of when your balances get shared. So if you pay on the 20th, but the data in your credit score was pulled on the 19th it is showing that.
1) Are you tracking your credit score with credit karma/SOFI or does your starter card provide a FICO score? If so, is it generally good? If you already have a decent score, don't worry about it. If not...
2) If you have a less than stellar score and are going for a big loan (auto or home), you can always pay off your balance a month ahead of schedule so your utilization is guaranteed to be low.
my 2 cents
1) I have a Costco card, I assume credit score's fine? I got a monthly limit of like 2/3rds my take home pay at the time. No prior history.
2) interesting, great to know!
My credit score is only 720, mainly because I am using 19% credit utilization with your 0% interest credit hack + recently applied for a card.
If you don't have a long credit history (my oldest card is just 4 years, and my average credit age is 2 years), does it make sense to get added as an authorized user to a close family member's account who has near perfect credit, and a long credit history? I estimate that my credit score would go up about 40 points if I were to do this, but not sure if there's some risks that I haven't considered.
Being added as an authorized user helps, although it seems like authorized users may get a little less weight than being the true owner.
The risks are largely they stop paying on the account.
If you think credit utilization is the issue and don't want to open more cards that would lower your credit age & new credit opening, you can also try contacting any cards you currently have open and see if they will raise the credit limit. Especially if your income or credit score went up since you opened the card.
Credit age is the annoying one since its just a matter of waiting. Also why it is important to keep your seasoned cards open and active.
That's a good idea. One of my earliest accounts is 4 years old and it just has a $500 credit limit on it. Bet I can get them to bump it up to at least $10K because my income has gone up much higher since then. Thanks for the advice.
It never hurts to ask. Worst case they say no.
$500 is usually the limit they give people with no credit history. Even if you just showed a bunch of months of continued payments, that should be a good proof that they can bump your limit up.
Thanks. They bumped it up to 5K. Credit utilization slightly lowered now.
Nice man. First step of many.