What can I do with a good credit score? - Got really lucky with a bunch of payments

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Watchfuleye275

kiwifarms.net
Joined
Dec 22, 2023
So, long story short, over the past year I have obtained large amounts of money incrementally throughout the year outside of checks from working. I was able to use this money to pay off thousands in CC debt over the course of 4-5 months. My credit score is now 720.

What are some things I can now do with a "good" credit score? I know I will be able to get better mortgages, autoloans, etc. but are there more benefits? Another one I know of is raising the borrowing limit on my card/possibly applying for a new card with a better interest rate.

I don't use credit a lot as my job pays me well enough to live and I want for little, so I am quite new to it.
 
This is slightly off topic, but can you explain to me why my credit score dips 20 points every few weeks then jumps back? I pay off my card the day the statement exists, nowhere near my credit limit, have never missed a payment. The only thing I can think of is it's because i've only been creating credit for a year and a half?
 
This is slightly off topic, but can you explain to me why my credit score dips 20 points every few weeks then jumps back? I pay off my card the day the statement exists, nowhere near my credit limit, have never missed a payment. The only thing I can think of is it's because i've only been creating credit for a year and a half?
One factor is the balance to credit limit as opposed to just timeliness of payment. For example, if you have a $10k limit and charge $9k then your credit score will decline until that balance is discharged. Instead of paying it all when the statement arrives you instead want to pay off right after the charge if possible and keep the total balance low. Not sure if that's your case, but something to consider.
 
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The prudent, cautious, correct advice on using a good credit score is 'use it only for those things that you must'. Think of your credit score as a objective metric by which someone can asses that you will or won't reliably pay back a debt. Higher the score, the better your rate will be for a given loan due to the risk of your default being lower.

Use it to buy a house or car within your means if that is your ambition. Otherwise, stay debt free.
 
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Get fucked wumao!!!! Enjoy -5000000 social credit!!!!
 
Another one I know of is raising the borrowing limit on my card/possibly applying for a new card with a better interest rate.
Better might be to think about whether you're someone who can benefit from credit cards (ie pay off the balance 100% of the time, making the interest rate irrelevant), or someone who credit cards profit from (ie will your increased limit and low utilization just cause you to run up a balance again).

If the former, sure increase your limit, keep your balance near zero, and enjoy the slight improvement to your credit score from low credit utilization. If the latter, just close the thing and pay cash. You can always open one in the future if you "need" it (lol) or think you're in a better position to handle it, and not having it immediately available might help curb bad habits.

As for what to do with the high score, ideal would be nothing, just keep up the good financial habits and know that when the day comes to go for that big mortgage, you'll benefit from better terms. But spending and borrowing more just to make use of your score is backwards.
 
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