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Credit card over 2k, how important?


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So i was on experian and looking to see if anything made my score increase and im looking thru it and the website is telling me because i dont have a credit card over 2k that its hurting me, if i were to get one for over 2k how much can i expect it to help me? Please advise?

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You need to put  what the CRAs tell consumers in context.  First, the"score" they're talking about is what we call a FAKO.  Its their guess at what FICO (the only score that anybody who is going to lend you money looks at) would report.

 

Second, there are like 17 different FICO scoring models.  The only one us consumers are allowed to see directly from FICO, is the FICO Consumer Score.   This is closest to the FICO Bank Card score...which is the score that CCs use to predict who they will make money from, by charging interest and occasional late fees, etc.  That's why the FAKO/FICO Bank Card scores include factors for "available unsecured credit" and "utilization".  Therefore, NOT having a CC with a $2000 limit, and a 30% balance hurts your FICO Bank Card score (what I call, the "sucker score").

 

FICO also has scoring models for mortgages, new cars, medical bills, insurance, etc...NOT having a CC has varying effects on those.

 

IMHO, you probably should get a CC with as high a limit as you can (up to about $10k) for emergencies and keep a zero balance.  Use a debit card on your checking account when you don't want to carrry cash.

 

Read my signature....

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Ya ive read that plenty of time makes all the sense in the world, i have cards and they only have like 10-50.00 on them i got me a southwest sirlines card thru chase right now, 4500.00 limit i dont plan on using it, just gas and stuff but pay off monthly

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The sense is, the amount indicates the level of [...WTC edited to remove link...]  responsibility and credit worthiness. 

 

 

WTC from here down...........................................................................

 

Bordering on spam.  Be warned.

 

And, as I said...the "sucker score" has nothing to do with "credit worthiness".  It predicts who CCs will make money on.  The "sweet spot" is in the 600-650 rrange.

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