Why do i have low credit score when i have thousands in my account and no debt.?
My credit score is 607 i never get out credit cards or loans and i pay all my utilities and phone bills 2 days before due date. Rent is 200 per week, and both my cars a paid off so i just pay for fuel but most of the time its on my bosses fuel card. So i have no debt whatsoever. I always have 30k sitting in my savings account and normally have 4k in my personal account for spending each month. My friend is making 40k a hear still living at his parents house but he told me his credit score is 850 so he helped me check mine and it was only 607 i was like wtf.
- zipperLv 65 months ago
You need dept to have a something for them to score you on!
- Anonymous5 months ago
good question very good.
- Casey YLv 75 months ago
1. Your friend is lying about that credit score.
2. You need to use credit to show you are credit worthy...
- EvaLv 75 months ago
If you never use credit, you will have a low score. Part of the score involves how much credit you already have and how responsibly you use it.
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- curtisports2Lv 75 months ago
He lied to you. 850 is the highest score possible and fewer than 1% get a perfect score.
Do you understand that a credit score is a record of your credit use and that when you deal mostly in cash, there is very little to score you on? You are probably as high as you are because of those past car loans that are paid off. But you have nothing else. It is time to start using some credit. Get two cards and start using them to buy, as much as possible, the things you have been paying cash for. Keep track of what you spend - which you can easily do online with your cards - so that you know what you have to pay when it's time to pay. Pay the balance in full before the due date so that you don't incur interest. Maybe use one card for your everyday spending and use the other card to make utility, and insurance bills.
If you're making it fine on $4k every month to spend, get that $30k out of the bank and get it invested into something that will earn more than the almost nothing you're getting at the bank.
Investing is a separate issue, but you need to invest.
- DON WLv 75 months ago
None of the things you mention have any effect upon your credit score.
To raise your credit score, get one credit card, maybe from the bank where you have your money, use it about once a month for small purchases, and always pay it off in full when the bill comes. You'll find that your credit score gradually moves into the 700s. If your bank won't give you a regular credit card, see if you can get a "secured" credit card. It will have the same effect on raising your credit score.
- oklatomLv 75 months ago
You do not use your credit card of have loans, so nothing gets reported monthly to your credit score.
Utilities and rent are not loans and do not go on your credit score.
If you want your credit to improve and have a credit card, use it on occasion and pay it in full when you get the monthly statement, your score will improve in time.
- Donnie PorkoLv 75 months ago
How does the credit bureau know how much money you have in your account. It doesn’t. So you can have a trillion dollar in your account and you’ll still not get a great credit score.
You improve your credit score by taking out loans and paying off your loans. If you pay off your car without a loan, the credit bureau doesn’t know you bought a car.
- PearlLv 75 months ago
rnaybe you should ask whoever siad that this question
- StephenWeinsteinLv 75 months ago
Because you never got out credit cards or loans. You have a low score because you have not done those things.