Just wondering, as i intend to buy a house next year and want the best possible credit score.
At the mo ive got a loan and a credit card, which makes your credit score lower right?
Anyone know anything about it? And how long does it remain on your credit record and effect your score?How long after paying off a loan or credit card, does your credit record change?
Having a loan and credit card balance may not lower your score.
It's a whole picture sort of thing ... basically your plus money (income)
vs your minus (debts) and what you've got in the bank and how well
you pay your bills - they like to see you pay consistently and on time
not always paying everything off (besides a balance makes them money) How long it takes to change a credit score ? don't know but
I'm sure like everything else a negative probably shows up faster than a positive ---- and good luck on your home purchase !How long after paying off a loan or credit card, does your credit record change?
No, having a loan and a credit card doesn't lower your score. As long as you pay them on time, they will build your credit score.
It is best not to carry balances on your credit card. Use it and pay it in full every month. This will give you more good payment history -- the longer the good history, the better the score.
If you only have these two items on your credit report, you might want to get another major credit card to expand the number of tradelines. Use the card for small purchases every month and pay in full.
Many other factors go into consideration for a home loan. Your employment history, salary, debt to income ratio, assets like saving/IRA/401K, and downpayment.
If you are not already doing so, put a set amount in a savings account every payday toward the downpayment and closing costs.
