Do you have specific credit card questions? If so, feel free to e-mail with any questions you may have and I will do my best to answer them and the post the result here. No question is too big or too small, so don’t be afraid to ask. We can all learn more about credit from the experiences of others.
Q: How long does it take for a credit score to go up once you have cleaned up your credit report?
A: First you need to wait for the three credit bureaus to receive all the new information. This could take 30 days or more for each tradeline.
Then you’ll need to wait for the score to be reflected, which could happen after those 30 days, but will depend on how long each bureau takes to report the new information. It could take longer for some of the bureaus.
And it depends what you cleared up. If there were mistakes that were removed, the scores should rise fast. If it was balances paid off, it will take a couple months once reported to see a nice jump in the score.
If you’re impatient, you could do a rapid rescore, but that costs money. And takes about 72 hours, and is does not guarantee scores will be as high as you may want them.
The bottom line is that credit shouldn’t be rushed, and if you aren’t applying for anything major, there’s no reason you should be worried about your credit score. Just keep doing the right things, and the score will reflect it.
Q: What can credit card companies do to me if I don’t pay them?
A: Unfortunately, credit card companies can do a number of nasty things to ruin you both financially and credit wise. If you fail to make payments, you wil be assessed late fees, and if fall more than 30 days behind on a payment, they could report it to the credit bureaus. From there your credit score can tank and you may end up with a collection on your credit report and debt collectors on your tail. If you never pay, you could face a lawsuit if the amount is deemed large enough.
Q: Can you put money back on a Visa gift card after its balance was 0?
A: Yeah you should be able to call the number and recharge the card.
If it’s a Visa Buxx card that is.
If it’s another type of gift card, it may be a one-time use card. It’s best to check by calling the number on the back and inquiring with VISA.
If that particular card isn’t rechargeable, you can get a new Visa Buxx card that is and use that in the future.
Q: When does your credit score begin to accumulate? As soon as you begin to use your credit card or after the period in which interest apply?
A: It doesn’t matter if interest accrues or not. The credit bureaus begin watching your credit about a month after it’s been open. On your credit report you’ll see a little tick next to the account with a 1, 2, or a 9 depending on the status on the account.
Those ticks are monthly, and show the status of the account, whether it is in good standing or late, and so on.
Your credit score won’t reflect any new credit items until they are reported to the bureaus, which takes time. And interest has nothing to do with it. You could have a 0% APR credit card and pay no interest for 12 months, but your credit score would still be affected regardless.
It’s based on your payment performance and the amount of activity. Not on the amount of interest you accrue or pay.
Q: How can i clear my bad credit history?
A: You can’t simply clear credit history. Everything stays on your credit report for an average of 7 years. So anything bad that was your fault will stay put.
You can clear things up metaphorically, and start fixing your bad credit however. Get a free copy of your credit report at Annualcreditreport.com
Then analyze the report to see what is derogatory, and if you have any collections or charge-offs, make sure they are accounted for or disputed if need be.
In time your credit history will improve, regardless of whether those items still remain physically on your credit report.
Q: Where can i find a credit card application online for people who dont have good/and or any credit?
A: There are definitely cards for people with bad credit, but they usually have annual fees. Check out www.creditcards.com they have a whole list of credit cards for people with bad credit. I’m not sure what your credit score is, but they might have something to help you.
Don’t apply multiple times though. Find a company with a card that looks suitable, then try calling and asking what their credit score requirement is to see if it’s worth applying.
Q: I recieved a pre-paid debit card from National City for christmas and I’d like to but something on the internet, can you use these cards online?
A: Of course, what you received was basically a prepaid credit card. You have to activate it first, but once you do that, you can use it anywhere that type of credit card is accepted.
I’m assuming it’s a VISA or Mastercard. Those are accepted everywhere.
The card basically acts like a credit card, meaning you can use the card in place of cash to buy things. The difference is that it’s already paid for and has a set limit. So you don’t need to pay it back, but you can only spend what is pre-paid for the card.
Q: What do your credit score have to be in order to not have a co signer?
A: It’s not so much about the credit score. It really comes down to what you’re trying to get financed for, and what type of credit depth you’ve got.
Say you have one credit card with a $1,000 limit, and you want to lease a car. You may well have a 700 credit score, but no lender is going to lease you a car if you’ve only got a total credit line of $1,000.
On the other hand, if you’ve got a 660 credit score, and 5 credit cards, a mortgage, and another auto loan, you’ll likely not need a co-signer because you’ve proven to the lender that you’ve got a lot of credit history, and a decent score of 660.
Q: Why do I need to give my credit card number for a free on-line credit report?
A: It’s because the site you’re using will charge you after the first 30 days and enroll you in a credit monitoring program. If you’re looking for the free credit report site, it’s located at: annualcreditreport.com
You can order a credit report from each of the 3 bureaus once every 12 months.
Q: Credit scores: Why does everything have to be so clandestine?
A: There are a ton of factors that go into credit scoring and approval for credit cards and store cards.
Make sure you get a copy of your credit report, whether you get it from Experian or from the official www.annualcreditreport.com
Take a look at the credit depth and history, since you say you’ve got no derogatory accounts. If you only have one credit card that you pay on time, it may not be enough to prove to other creditors that you’re a solid borrower.
You need to have credit history, and multiple lines of credit to prove yourself. That’s why it is important to open several lines of credit, whether they be credit cards, utilities, cell phone, mortgage, auto, etc, and keep them open and active.
No one wants to lend to someone with only one credit card with a limit of $500. People want to see a solid credit history with plenty of activity.
If this isn’t the reason, it could be that you have a random collection or some other misinformation on your report that you need to clear up. Either way, reviewing the credit report is the only way to solve this.
