Hi, I'm new to this forum and this is my first post. I remember reading an insider's report on the credit industry a few years back, and one of the points made was that there things that improve one's credit rating. Specifically, I remember the article specifically mentioned that for some inexplicable reason having a "gas card" was one such thing. The purpose of this post is twofold: 1) To verify that a "gas card" does improve one's credit rating. 2) To find out what other things improve one's credit? Thank you!
Not sure about the gas card, but having a good credit "mix" does improve your rating. I think a good mix can include three major credit cards, one department store card and one installment loan. Also, it's good to have one or two cards with high limits (>5,000) that are reported to the CRAs so that even if you carry a balance from time to time, your debt /limit ratio will not be that high which is good.
1. Lack of inquiries. 2. Length of time of accounts. 3. Balance ratio (!!! REAL BIGGIE !!!) I'd say theres 40-50 points on carrying a large debt ratio to being all paid off on credit cards. Inquiries knock off a ton of points too. Too many new accounts (<2 years old) hurts a lot as well. #3 is the biggie, but if you are maxxed out, you can see where #1 and #2 could be adversely affected in attempts/getting debt ratio back down, huh. all in all, a gas card is a waste, imo. Get a target card, or something, at least then you have a store card that gives 1% to your favourite school, when u use it.
I know exercising your credit will get you lower rates and higher limits. Don't underestimate the power of a good payment history. www.creditsense.com
