No Debt

Submitted by suewh14 on Mon, 01/17/2011 - 22:33
Forums

I retired, sold my home and moved. In the process I closed down my credit cards..I honestly thought this would help my score. I pay for everything on debit cards to get higher interest on accounts. I have 3 credit cards but they were all issued by department stores, one I use and pay off as quickly as I use it..I just liked being debt free.
Now I run my credit score and it is not good. It says it is because I have no mortgage, no installment accounts and too low a credit line. Well, how do I fix this without lowering my score further? Do I go to a bank and bother money I don't need?
Do I open up a couple new credit cards?
I have no negative comments of any kind on my credit. Nothing is really there as I have been paying for everything in cash.

I would suggest getting a major like visa/mastercard. Use for expenses instead of your debit card. pay it off every month. Choose a card that does not charge a yearly fee. This will allow you to improve your credit without changing your use of credit or expenses for credit. I don't think you need to get a loan for nothing.

The next question is why do you need a high credit score? I am sure that it is frustrating to see it go down, but if you aren't using credit then you don't need it.

Tue, 01/18/2011 - 20:03 Permalink

sit down with your bank or mortgage broker. Can you put down 20% or more? these days that can be more important than your score. especially since you have no negatives.

Wed, 01/19/2011 - 01:01 Permalink