I'm clearing through my papers and I have the flyer for my Bank of America Rewards (SM) American Express (registered trademark) Card, which is for average credit.
I have a ten-year credit history with no late payments, and I own a home: I'm one third through my mortgage. Very very lucky to not have had crises like health or divorce compromise my financial security. I have two other cards that I use regularly (stopped using one, actually, last month). How can I improve my credit? Apparently making timely payments in full, and paying off vehicular loans early is not getting me past the "average credit" setting. I am careful not to go beyond 30% utilization of the credit limit on my cards. I did apply for 100% financing on my motorcycle in 2005, but I paid off the balance within twelve months last year.
What do I do to have "good credit" so I can apply for and get cards better than the Bank of America (SM) American Express (registered trademark) Card? Every time I call Yank of America and ask for something better they refuse me. So either Yank of America is evil, or it hates me because I am of "average creditworthiness." If I knew what I could do to improve my creditworthiness, I could do it and then it would only be a matter of "is Bank of America evil by not rewarding me for my improved credit."
Honestly, when people improve their credit scores, do their credit issuers ever proactively reward them, or do the people have to take their credit requests elsewhere?
Help! I think I have 'average credit'
September 30th, 2007 at 08:27 pm
September 30th, 2007 at 10:28 pm
October 1st, 2007 at 03:52 am
October 1st, 2007 at 05:58 am
October 1st, 2007 at 08:57 am
Keep in mind it doesn't account for how much money you have, how much money you make, or anything you own without payments - house, car, whatever.
The score shows the banks who the best customers will be. Most agree that being a good customer of Visa isn't really a great thing for the consumer.
October 1st, 2007 at 10:39 am
October 1st, 2007 at 01:14 pm
In my case I cleaned up my derogotory entries, judiciously added new credit cards, took advantage of the 0% BT to show I can make timely payments and most recently took out a 12 month 5k loan against my paid off 11 y.o. car.
Why even bother with such a loan? Because Discover wouldn't give me a gas card. They informed me that I showed no mortgage/car loans on my credit reports and therefore they couldn't see how I would be a good credit risk despite my high FICO.
So, OK I didn't get a Discover card (yet) but my car insurance premium is $221/6 months for all kinds of coverage. Sweet revenge.
October 1st, 2007 at 02:07 pm
Ah, there's the rub. My Equifax score was 792, high enough to get the best rate on a home equity line of credit, but not high enough to convince Bank of America that I was deserving of a better credit card (return to 25 day grace period, APR below 12%). Interesting that my credit union has no problem extending HELOC, line of credit, and a credit card to me for terms I readily accept. My error was in thinking there was a connection between payment history and credit score, and credit score and insurance rates!
As you've shown with your personal anecdote, a high FICO score does not mean that credit will be issued according to the merits of the applicant! Thanks for setting me straight! I wonder how many other people get sucked into making the same thinking error as I.
January 10th, 2008 at 09:51 pm