February 25, 2009 1 Comment
So I joined Credit Karma because I wanted to get an idea of my credit score (how bad it really was).
Turns out it isn’t great (as expected) but not HORRIBLE.
Right now it is 679. I’d like to get it above 700. The nice thing about Credit Karma is that they update you every month about your score, give you reasons why your score is lower than perfect and also help make predictions about what things you can change that will make it higher.
The reasons why my score is where it is are as follows:
* Not enough revolving debt experience
* The balances on your bankcard accounts are too high in comparison with your credit limits
* There was recently a late payment posted on your credit report
So essentially the first two I feel amount to too much debt, the last one is because my cell phone is billed to my credit card — and it was too close to the max for it to charge so I got a late fee. I switched over my cell phone to my checking account today so this wouldn’t happen anymore.
These are all things that I hope will be fixed in the next few years. According to their credit score simulator if I can have 12 months of no late payments then I’ll be able to raise my credit score above 700. So this is definitely something to strive for.
I found this site really useful and hope to be posting some awesome graphs my my credit progress in the coming months!