Q&A: How might one decrease the disadvantages you listed such as higher insurance premiums from using a credit card?
Question by Kamisha C: How might one decrease the disadvantages you listed such as higher insurance premiums from using a credit card?
Best answer:
Answer by Nicole
Using a credit card in itself won’t increase your insurance premiums. In personal home and auto insurance, the company runs an “insurance score” aka your credit score. The better your credit, the better your rate. I’ts a way for the insurance company to find a preferred market, just like them running your MVR. The fewer violations, the better your rate, etc.
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Why is this credit score not higher (see details)?
Question by StephenWeinstein: Why is this credit score not higher (see details)?
According to the information below, (1) the only reason that I do not have a perfect credit score is because of one inquiry, and (2) my score is 68 points below perfect. A single inquiry should not affect a score by 68 points. Why is the score not higher?
“The Following Records are Based on Your [my] Equifax Credit Profile”
No Public Records Found
No Collection Items Found
4 Revolving credit cards, credit limits from $ 9000 to over $ 40000, and 1 utility company account. All 5 “Account Status: Pays account as agreed”, no delinquencies. Combined balance less than $ 500.
1 Inquiry.
3 addresses (1 current and 2 former).
“on a scale of 350 to 850 points, you have a score of: 782”
“You have never been late with your payments, and no collection accounts or negative public records are listed…”
Average credit limit over $ 17000.
Using “1%” of available credit.
Only listing under “top factors that lower your score:” is
“applied for credit 1 time(s) in the past 12 months”.
My oldest account is from 1994. The length/age of the credit history is over 10 years.
The only closed account on the credit report is the utility company account that I mentioned. I did close some other credit card accounts years ago, but they do not appear on the credit report used to calculate the score.
I did not apply for any type of credit. I applied for an HSA (a deposit account with unusual tax implications) and the bank checked my credit report. It is misreported on the credit report as a credit application, when it was actually an application to deposit money, not to borrow money.
Best answer:
Answer by Slimick
Only the top 1% of the population breaks the magic 800 barrier in the FICO score. I would not be concerned with a score of 782. FYI, although the main factors behind the FICO score are known, the exactly calculation method is proprietary. So it’s impossible for anyone to say for sure which factor or sets of factors will cause your score to go up by X points. In your case I’m guessing that it’s the age of your credit history that is keeping you down a tiny bit. The passing of time will remedy this. Regardless, any FICO score over 780 is A+ credit, so don’t sweat over this issue.
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