How will this make my credit look like?
Ok check it out, I’m young, no credit history.
1. Have a department store card(use every 2 or 3 months)
2. Personal Loan (1600)
3. Auto Loan (around 10,000)
I auto pay all of this and on time every time, so around the 6 month cycle what should my credit score number be around?
Also does paying insurance raise your credit score?
Tags: auto loan, credit, Credit Check, credit history, credit score, Department Store, Insurance, like, Look, Personal Loan, Score Number, this
3 Comments at "How will this make my credit look like?"
Insurance has nothing to do with having a credit rating.
You do have a credit history now as you stated above you have a dept store card, I personal load and an Auto loan which is all a part of your credit rating.
If you’re in fact paying off the bills as you say you are then you will have a good credit rating. The min you stop paying them and go into default thats when you get the bad credit rating. There isn’t exactly a “scoring” system, its just a matter of whether or not you have a good credit paying history or if you don’t. Once you go into default then you shouldworry. Until then don’t worry about what you credit score is. And don’t go beyond your means just because you have a good credit rating. Also you need to think about age as well as income if you plan to go into more debt. That’s where a lot of people get done because they think “Well I have got this this and this on credit, I can go and get this that and the other” and in the long run, some banks will just hand out money and you’re by far going beyond your means which in turn leads to default and bad credit ratings because you can’t afford the repayments
It sounds like you are doing well. Insurance will not have an effect on your credit. It’s just another expense like groceries. The department store card, personal loan and auto loan all do have an effect on your credit score.
A credit score is just a measure of how well you use credit and how reliable you are. The exact calculations that are used are somewhat secret to keep people from working the system, however most of this is common sense.
Make your payments on time. That will help a lot. Don’t over extend yourself, having too much debt for your income level will hurt your score (and make you pretty miserable trying to pay it all off).
Don’t worry about your score, it fluctuates frequently depending on balances. Focus on keeping your history clean and the score will take care of itself.
I hope this helps. Please return and select a Best Answer from all of those submitted.
You are on the right path if you make regular monthly payments. The credit bureau considers anything less than 36 months as being either not enough history or a thin file. It looks better to have at least 18 months – 2 years history but you have 3 major items and you’re paying on time. Keep it up and you should build a great credit history very quickly.
If you want to know what your score is or how you look to the bureaus, request a free report from Trans union, Experian, & Equifax & look it over. Dispute anything you don’t recognize. You can request one free each year.