This is invaluable advice. I think this is probably the most useful thread I've ever read and ever will read. Thank you for your generosity, NoSoup. Now I have a lot of questions...
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Originally Posted by NoSoup
Being an authorized user on someones card helps your credit
True - Usually, it will report to the bureau exactly like a card on your name - although of course, it will not be helpful if the person is near the limit or late on payment.
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I was under the impression that being an authorized user didn't give you any credit at all... in the past, I've been turned down for credit cards (I thought) because I didn't have any credit myself. How much can this help or hurt compared to having your own credit line? Say my mother (who has me as an authorized user) is too close to her limit - how does that compare on my credit score with myself having a line of credit that is charged too close to the limit? And does the comparison hold true the other way, namely for good behavior (under 50% of limit and timely payments) on her part versus mine?
Also, where do student loans rate in all of this? I have both federal and private loans. The federal ones are consolidated and I'm making regular on-time payments for that. I can't consolidate my private ones yet because I never finished my degree and I can't find anybody who will consolidate them. I'm in forbearance on those and unable to make even partial interest payments right now because of my meager income. What will this do to my credit score?
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Originally Posted by NoSoup
Keeping your balances below 50% of the limit
This is important because the CRAs keep track of the highest balance you have ever carried on your revolving credit - aka credit cards or other revolving lines. Fortunately, however, if you were near or over your limit, the more time that passes the less it affects your score. If you recently went near/over your limit, a quick fix to this is to simply increase your credit limit and don't every go above your previous high balance.
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Does this mean 50% in each credit line or 50% of the total credit limit? I mean, does it matter if I max out my $2000 credit line (because of the 0% introductory APR) when I need to pay for classes in January and then only use my $3800 credit line for the spill over costs ($200-$300)? Is that different from spending $1000 from the $2000 credit line and $1300 on the $3800 credit line? (Side note: thank god for somebody on the TFP who can answer this question... I don't know anybody else who can.)
I wait with bated breath... many, many, many thanks in advance.
