credit score factors Archives - Page 3 of 4

Are Student Loans Installment or Revolving?

People building credit from scratch often lean on their student loans as their main account — and then wonder why their score isn’t moving the way they expected. The answer usually comes down to the type of debt. Are student loans installment or revolving? They’re installment loans, and that distinction matters more than most people realize when it comes to how your credit score is calculated. Related: which type of debt is most often secured — worth reading if this applies to you.

Continue reading “Are Student Loans Installment or Revolving?”

Will Closing a Bank Account Affect Credit?

Short answer: closing a bank account usually won’t affect your credit score — because checking and savings accounts don’t appear on your credit report to begin with. But “usually” is doing some work in that sentence. There are a few specific situations where closing an account can bite you indirectly, and they’re worth knowing before you make the call. If you’ve already seen a sudden drop, my post on a credit score that dropped 100 points covers what usually causes it and how to recover.

Canceled by Credit Grantor: What It Means

I’ve had buyers reach out before purchasing a tradeline, confused about something they spotted on their credit report: “canceled by credit grantor.” It’s an unsettling phrase if you don’t know what it means — and most people don’t, until it happens to them. So let me break it down, because I’ve been on the receiving end of this one personally.

What Credit Score Do You Need to Get a Credit Card?

People come to me with a specific goal more often than a vague one. Not “I want better credit” — more like “I need a 680 by March to apply for this card.” The credit card question comes up constantly, and the answer is more nuanced than a single number. It depends entirely on which card you’re applying for.

Continue reading “What Credit Score Do You Need to Get a Credit Card?”

Sinking Fund Categories That Actually Make Financial Sense

I put a $2,200 HVAC repair on a credit card once. Didn’t think much of it — I’d pay it off in a couple months. But in the meantime, that card went from about 15% utilization to over 70%. My credit score dropped around 30 points. I wasn’t planning to apply for anything, so I didn’t notice for weeks. That was the last time I “just charged it” for an expense I knew was coming.

Continue reading “Sinking Fund Categories That Actually Make Financial Sense”