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    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
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    #1

    May 19, 2015, 05:47 AM
    FICO Score
    My church member is worry about his FICO score 764. Some people have told him, he doesn't charge enough. He has completely paid off $6,000 in credit card debt. He hates the idea of charging his credit cards just to get a favourable FICO score.
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    ebaines's Avatar
    ebaines Posts: 12,129, Reputation: 1307
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    #2

    May 19, 2015, 06:08 AM
    I would suggest that the best way to improve one's credit score is to always pay bills on time, and if/when a large purchase is made on a credit card pay it off quickly - perhaps even before the next monthly statement arrives. It's best to keep the ratio of credit card outstanding balance to credit limit as low as possible. Also, if he has multiple cards it's best to not carry small "nuisance" balances - for example if he has two credit cards it's better to have $100 outstanding on one card and $0 on another than $50 balances on each. Finally, he shouldn't fret about it too much - a score of 760 or higher is typically considered to be good enough to qualify him for the best mortgage and car loan rates.
    talaniman's Avatar
    talaniman Posts: 53,885, Reputation: 10852
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    #3

    May 19, 2015, 06:45 AM
    I think your friend is correct in what he has done paying down his credit card debts. With a fico score of 764 he already enjoys many options that a low debt to income ratio brings him. Adding debt on credit cards you just paid off for a few more fico score points is not a wise way to manage finances, as ebaines has pointed out.

    Not to mention low credit card debts well below the limits is more cash in your pocket every month for savings and investments, or any other option that you want to leverage.
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
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    #4

    May 19, 2015, 07:00 AM
    Any FICO score above 750 means excellent credit. But the only use of a FICO score is to determine eligibility for credit. If this person doesn't need to apply for credit, then why worry about the FICO score? But with a score of 764 it is unlikely he will be turned down for a reasonable loan.

    Also where is he seeing his score? Several places are now offering to provide the score. Many banks are making it available as well as services like Credit Karma ( a great resource btw). But the scores vary depending on who is reporting. I recently got different scores using the same reporting service from different sources.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #5

    May 19, 2015, 07:31 AM
    As was mentioned, that is not a bad number, its actually above average. I believe 850 is a perfect score. If he was in the 600's or lower then he would have reason to worry.
    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
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    #6

    May 19, 2015, 07:57 AM
    Wonderful advice from you folks. He had a 17% interest rate from discover he paid off recently.He only has Bank of america for $3,000 at 9% to be paid off.
    Then he will free of debt
    talaniman's Avatar
    talaniman Posts: 53,885, Reputation: 10852
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    #7

    May 19, 2015, 08:14 AM
    *save* *save* *save* *save*
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #8

    May 19, 2015, 10:33 AM
    With a 764 he should be able to get a card with a lower rate or one with a interest free balance transfer.

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