Will this affect my credit score?

[IntlSet]

Hi ladies,

I'm thinking of buying a place in Chicago (if I end up there) instead of renting (*wave to Selena*) so I'm starting to think about what my credit score might be... I just read on this on the PBS website:

Even if you make your credit card payments on time, the credit card bank can raise your interest rate automatically if you're late on payments elsewhere -- such as on another credit card or on a phone, car, or house payment.

I run a website for my dad and I pay for its monthly fee out of my credit card. The past two months my card had been declined because the first one expired, then the second one was cancelled after I lost my wallet. For some reason, even though I put in a new third account, it didn't charge that new card and my account was "suspended." Because I didn't pay this account, has my credit score dropped? And if so, what can I do about it?

I wasn't even charged a late payment fee so I didn't get too worried but now I am...

Thanks, ladies! I'm only 21 so I'm pretty new to this.

 

[amanda]

i don't think it will, i think places like that are unlikely to report to credit bureaus. like i don't think TiVo would report me if my credit card was decline one month...i think you're probably safe.

 

[LucreziaCA]

Probably not.
The business/vendor has to actually file a "30 day Late" with the credit bureau for it to affect your FICO score. Though it is true that CCs can raise your rate if you are late on your other bills, it rarely happens. It is far more detrimental to your FICO score for you to be late on your cc payment.

The best way to keep your score high is to pay everything on time, and don't max out your cards. You get dinged if your balance is more than 33% of your credit limit. Also avoid, store credit cards- like the one's from Zales or Best Buy or Circuit City. They affect your score negatively, because they are soooooo easy to get. My husband and I bought a house when we were very young, we are master FICO score manipulators.

 

[Care]

you're definitely safe.

I was told by my friends in banking industry that possible ways of lowering credit scores are late payments to credit card companies in consecutive months (2 or more) or excessively openning bank accounts or any activities that will require they checking your credit score.

 

[IntlSet]

Great, thank you girls... the company hosting my dad's site is Yahoo. I hope they don't file reports!

 

[glily]

Intlset, if you are truly worried about your credit score, you can always get a copy of it. Actually, when you meet with a mortgage banker/broker, which you should do even before looking at a place to buy, one of the first things they will do will be to pull your credit report. I am always amazed by the accounts that I thought were closed and are still open!!

I think the girls above are correct...I don't think you have anything to worry about in this particular situation. Also, I have never heard of a credit card company being able to raise their rate due to late payments to OTHER companies, only on the credit card itself.

 

[angelica]

I seriously doubt it. It wasn't a credit/loan bill that is late. Buy an equifax score power and credit report. It will give you all kinds of info on what your score is and how lenders may see you. It also has a FICO score simulator to help you make future credit decisions. I buy one every six months. www.equifax.com or www.myfico.com

 

[devoted]

Apply for a Providian credit card, you are able to view a monthly updated FICO score online for free. It's the only credit card company (that I know of) that offers that service. It's really worth it.

https://www.providiancard.com/bap/pvnwa/jumpApp.jsp?Offer_id=prb03

Now, you won't be able to view as much information that a credit report would contain, but tracking your credit score number will make you aware of any sudden charges, etc.

Oh, and you are able to recieve a free credit report once a year from the top three credit companies.


https://www.annualcreditreport.com/cra/index.jsp

 

[mello_yello_jen]

You get dinged if your balance is more than 33% of your credit limit.

Also avoid, store credit cards- like the one's from Zales or Best Buy or Circuit City. They affect your score negatively, because they are soooooo easy to get.

My husband and I bought a house when we were very young, we are master FICO score manipulators.

Ohh I never knew that about the 33% of your credit limit, I always thought it was 40% Oh well, I hardly reach 40% of my limit anyways but I won't even go that far now that you told us. Thanks!

Is that true about store cards? I had a store card before I had a credit card and I thought it contributed to my high credit limit when I applied for my first credit card.

Care to share more info? Haha, just kiddin! Thanks for sharing though, it was a lot of help, especially since I'm trying to increase my credit score.

 

[Selena]

The most important thing is to get a copy of your credit report and clean it up prior to getting a mortgage. One small blemish will not cause anything major. Another thing that affects credit scoring for the bad is having alot of credit. So say you have 3 credit cards and your balance is $0 on each one but your credit limit on each one is $20,000.00 this will negatively affect your credit score. Because even though you owe nothing the possibility of debt is great. Also do not apply for charges alot. Every time you inquire about your credit card and ask for credit, it counts against you. You might want to find a reputable mortgage company (century 21) and consult with them ahead of time. Also be sure you do not get inticed by a low mortgage offer by a rinking dinky company. A friend of mine when with a company who promised her a lOW rate in writing and 5 hours before closing said the rate changed and even though they were wrong and she could have fought it, if she did, she would have lost her property or taken a big hit on her deposit. Do your research and if you need any help let me know!

Best of luck to you!!
Selena

 

[organic]

even applying for a new credit card or closing an old one can affect your credit score. everything affects it.

 

[LucreziaCA]

Ohh I never knew that about the 33% of your credit limit, I always thought it was 40% Oh well, I hardly reach 40% of my limit anyways but I won't even go that far now that you told us. Thanks!

Is that true about store cards? I had a store card before I had a credit card and I thought it contributed to my high credit limit when I applied for my first credit card.

Care to share more info? Haha, just kiddin! Thanks for sharing though, it was a lot of help, especially since I'm trying to increase my credit score.

If you are just starting out, having a store card is a good way to build your credit- again, because they are so easy to get. If you have a good payment history then you will begin to get offers for better cards.

Once you are established, and carry different sorts of debt, those cards are a bad idea. They are classified as "revolving consumer debt", and affect your score negatively, because people default on those type of cards so frequently. So a Circuit City card with a balance and no negative payment history will affect your score more than a Mastercard with the same ratio of balance to credit.

 

[Sina]

When you meet with a mortgage broker they are going to check your credit for you. Just make sure you don’t pull your credit too much, because even that lowers your credit score! Maxing out your credit cards is another way to lower your score as well.