Governor Gavin Newsom announced on Thursday an agreement that requires all California high school students to take a semester-long personal finance education course starting by the 2027-28 school year.
Although you generally are solid in 2 to 4 range, the more important thing as it turns out is (aside from prompt payments) to make sure the credit limit is high. Those store cards with 300 limits are looked down upon.
A big ding to your credit score itself is actually a low amount of lines of credit, I think 10+ is considered “good” which is ridiculous
Apparently I was wrong, and learned something new today. Your score comes from:
35% - payment history (everything paid on time, etc)
30% - amount owed
15% - age of credit history
10% - how many new lines of credit
10% - credit mix (just credit cards vs credit cards, auto loans, etc)
I have about 10 of them because cancelling is considered bad. I product change to another card when the annual fee hits to avoid it, and generally get a few cards a year to take advantage of bonuses.
They still keep giving me 5 figure credit limits on every one, for reasons I can’t explain
If you don’t have self control, a credit card is a bad idea. If you do have self control, a credit card can make value for you just by spending on things you were already going to buy.
We had to take that class on our senior year many, many, many moons ago. Back then they taught us that having a credit card was good though. LOL!
Having a credit card is still generally considered good.
Key word is “a”, as in one.
Although you generally are solid in 2 to 4 range, the more important thing as it turns out is (aside from prompt payments) to make sure the credit limit is high. Those store cards with 300 limits are looked down upon.
A big ding to your credit score itself is actually a low amount of lines of credit, I think 10+ is considered “good” which is ridiculousApparently I was wrong, and learned something new today. Your score comes from:
35% - payment history (everything paid on time, etc)
30% - amount owed
15% - age of credit history
10% - how many new lines of credit
10% - credit mix (just credit cards vs credit cards, auto loans, etc)
https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-affects-your-credit-scores/
Credit scores don’t measure how responsible with your money you are. They measure how much you’re willing to pay lenders.
In the US at least, this is false.
I have about 10 of them because cancelling is considered bad. I product change to another card when the annual fee hits to avoid it, and generally get a few cards a year to take advantage of bonuses.
They still keep giving me 5 figure credit limits on every one, for reasons I can’t explain
My teacher in 2019 tried to convey this to us in economics class too. But to this day I still refuse.
If you don’t have self control, a credit card is a bad idea. If you do have self control, a credit card can make value for you just by spending on things you were already going to buy.