(Please note these answers are condensed, please look at the more information link if you need more info)
What is your credit history? How do you find it?
It’s all your history for previous credit cards, loans, and other credit related financial items. Some of the information that is included is: how much you spend each month, do you make payments on time, and if you have ever declared bankruptcy.
There are 3 major companies that record this information: Transunion, Equifax, and Experian. These reports can be viewed here: http://www.annualcreditreport.com/
More information can found here: https://www.consumer.gov/articles/1009-your-credit-history
What is your credit score comprised from? (Using the most used Fico Score graph)
Amount Owed: The total of all your statements divided by your total credit limit.
Payment History: Have you made all your minimum payments on time?
Credit mix: Do you have credit cards? Loans? Etc…
Length of Credit History: Age of oldest line of credit + average age of your lines of credit.
New Credit: How many new lines of credit have you opened?
Want daily updates of your credit score (TransUnion)?: https://wallethub.com/free-credit-score/
More information can be found here: https://www.consumer.ftc.gov/articles/0152-credit-scores
What’s a good credit score?
Generally above 720 is considered very good.
What are Hard inquires? Soft inquiries?
An inquire is when a creditor checks your credit score/history. Hard inquiries can only be done under your approval because they will lower your credit score by 2-5 points. Soft inquiries on the other hand can be done without your approval because it doesn’t lower your score.
When you open up a credit card, a hard pull will be performed. On the other hand, a soft pull is normally done when you open up a bank account.
More information can be found here: https://www.creditkarma.com/article/hard_inquiries_and_soft_inquiries
Do you want more credit cards?
Generally the more credit cards you have, the less of a chance you have of getting another one (Same applies to loans and such). So… I would say try to have between 3-5? That’s a safe number.
What’s the best student credit card?
How do I improve my credit score?
General recommendations include keeping a low utilization (20%>) and paying all your credit cards on time/in full. If you want a more in-depth guide we recommend taking a look at:
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Updated on: 9/17/19