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Author: meirasmith Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: My Credit Score Date: 2/22/2001 4:44 PM
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I recently got a MBNA line of credit to do a balance transfer. I asked them what determined my interest rate, and they told me it was my credit score, which she told me was 630. Is this a decent score??? How can I make it better?!

Thanks in advance for all yur foolish advice!
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Author: BLE103 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 59128 of 308782
Subject: Re: My Credit Score Date: 2/22/2001 5:05 PM
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What is your interest rate on your LOC with MBNA?This should give you an idea how you rate.A score of 630 is below average as far with credit scoring goes.Have you been in default in the past?A score of 680 or more is good score for any low interest rate credit no matter what type of credit that you are seeking.Most likely you have a A.P.R. of 21.99% if not higher on your MBNA loan.That is my guess based on your score.There are others on this board that can give you their opinions on your credit score,and what they think of that number.What i can say is that this score does carry high interest rates on all loans.

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Author: meirasmith Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 59137 of 308782
Subject: Re: My Credit Score Date: 2/22/2001 5:31 PM
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My LOC is at 15.99% which I am pretty happy with considering my CC is at about 20%. I will save some bucks.

I have a heavy debt load right now, but am finding my way out. All of my accounts all say never late on them, with one acception. FCNB is still reporting an account in 1994 that was 60 days late. This does say it was closed at their request (not true - I paid it and closed it!), and I have been trying to get them to fix it for several months.

In the early 90's I was beyond irrisposible, but have been a good little fool ever since. I am working hard at reducing my debt so I can buy a home in a few years. I was preapproved for a mortgage by GMAC at a great rate, unfortunately I couldn't find a house in Mass for $114,000 which is the maximum I could get because of my debt ratio.



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Author: BLE103 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 59145 of 308782
Subject: Re: My Credit Score Date: 2/22/2001 6:57 PM
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630. Is this a decent score??? How can I make it better?!


How can you make it better?Your first step is to avoid adding anymore debt if all possible.Now step number 2 is to paydown on all of your outstanding balances,and get them down to aleast 50% of total amount owed.Your credit score will get much higher,and you can get better interest rates,infact when MBNA sees that you are improving your score they will lower your interest on your LOC loan with them.How will you know when your score is getting higher over time?Your mailbox will have the answer.How?Just look for "pre-approved credit offers" only,not "pre-selected,or by invitation only" because these are just applications of credit only,and this don't have a pre screening like "pre-approved" offers do."pre-approved offers indicates that you have met the min. criteria for their credit card,or loan offer.If you would submit to one of these offers marked "pre-approved" they will do a full evaluation of your creditworthness to see if you still meet their criteria,to get this they take all of your information on your form when you send it in,and will obtain a credit report which will mark an inquirie on your credit file,and see if you meet all their requirements,if so you get approved for their card,or loan product.Your income, your job how long you have been with your employer,wether you own,or rent your place and how much outstanding balances you owe,are just a few to name on them making their final credit decision on qualifying for their offer.Now just don't take any pre-approved offers,just look at the ones the are offering lower interest rates then what you are currently paying now.Most lenders don't want to see your debt to income ratio greater then 41% including housing all togeather.Also when you start seeing these offers coming in your mail,this would be the time to call MBNA,and get your LOC interest rate lowered.It is most likely you will qualify for a lower interest rate on their LOC.Also you should review all 3 of your credit reports,and do it aleast on a yearly bases to make sure that they are acurate.Also don't apply for too many because every time you do an inquirie is noted on your credit report,and too many of these are negative to any lender.Limit no more then 2 to 3 inquiries each year.I hope this helps you out,and good luck on getting your credit score higher.





BLE103

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Author: Windowseat Big funky green star, 20000 posts Top Favorite Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 59151 of 308782
Subject: Re: My Credit Score Date: 2/22/2001 7:32 PM
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I was preapproved for a mortgage by GMAC at a great rate, unfortunately I couldn't find a house in Mass for $114,000 which is the maximum I could get because of my debt ratio.

I understand that out in western Massachusetts there are some old shacks without plumbing that are close to that in price.;)

There are reasons why I rent. <sigh>

Nancy

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Author: married2debtor Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 59177 of 308782
Subject: Re: My Credit Score Date: 2/23/2001 8:34 AM
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I thought when you made the inquiry yourself that it would show on the credit report to YOU but not to potential lenders. Do they also report self inquiries to the lenders?

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Author: FixitWoman Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 59207 of 308782
Subject: Re: My Credit Score Date: 2/23/2001 10:14 AM
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I thought when you made the inquiry yourself that it would show on the credit report to YOU but not to potential lenders. Do they also report self inquiries to the lenders?


You are correct. When you make an inquiry on your credit report, it's called a "soft" inquiry. Meaning only you will see it. You'll also find CC companies have soft inquiries on your report when they check your credit to determine if they want to send you a pre-approval. NOBODY sees these inquiries but you.

"Hard" inquiries are when you apply for credit or request a company to check your credit for something.


Kim

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