r/CRedit • u/soonersoldier33 • Jul 16 '25
Hello r/CRedit,
I'm u/soonersoldier33, a long-time and frequent contributor to the sub and several other credit related subs, and recently, I've been given the opportunity to become a mod here at r/Credit. Many of you have probably seen my comments in various threads offering facts, opinions, and advice in the various threads posted on the sub. After destroying my own credit in 2019 (maxed credit cards, charge offs, collections, the works), I began my rebuild in 2021, and I had the great fortune to find this sub. Several of the frequent contributors here at that time provided me invaluable information and guidance to help me through my rebuild, and during that process, I discovered I was/am fascinated by all things 'credit', most specifically the 'secret' and so often misunderstood credit scoring system that is such a major factor in our financial lives. Since 2021, I have become a total FICO metrics junkie, and I have spent countless hours researching and learning about credit scoring, collaborating with others to compile data points and learn from their knowledge and experience, and just glean every morsel of knowledge and information out there in an effort to bring some transparency to the 'black box' that is the FICO scoring system, along with many other aspects of 'credit' separate from just FICO scoring.
I am creating this r/Credit FAQ - Megathread to serve as a central hub to link posts that will cover...well...the most frequently asked questions or most frequently posted topics from our sub. Eventually, I will migrate much of the information in these posts to update the sub's Wiki, but I want to be able to get these in a highly visible location first, where the relevant posts can quickly be referenced and linked as these topics appear in posts to the sub. A little different than the Credit Myth series that fellow contributor u/BrutalBodyShots created to attempt to dispel common, credit-related myths and misconceptions, this megathread will present detailed information that will attempt to simply answer FAQs and/or address our most frequently posted topics. My goal with these posts is to provide factual information about these topics, and anything I include in these posts that is merely opinion will clearly be denoted as such.
I'm going to tackle the most basic ones first...credit reports and scores, FICO scoring, a breakdown of utilization scoring, charge offs and collections, medical collections, etc., but if you have suggestions for topics you'd like to see covered, please list them in the comments to give me ideas. I look forward to providing some content that will be useful to both our sub 'regulars' and to those first discovering our sub. It's going to take a little time to effectively grow this thread to cover many of the 'FAQs', so bear with me, and both positive feedback and constructive criticism are always welcome. I hope this thread grows into a helpful addition to our sub. Til next time...
~ Sooner
"It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." ~ Mark Twain (maybe)
Credit Basics
FICO Scoring
FAQs
Other Useful Information
r/CRedit • u/Funklemire • Jun 18 '25
Like many other sub regulars, I've found u/BrutalBodyShots' Credit Myth series informative and also helpful in explaining these myths to others. A while ago I started compiling them in order to make it a lot easier to link to them in my comments.
I figure I might as well share the list I made, because more than once I've told people to search through his post history if they want to read them all. Also notice at the end I included several other threads of his that I've found useful, especially the one that contains that utilization flow chart. I can't tell you how much typing that's saved me since he made it.
I'll try to keep this list updated as more Credit Myth threads come out, but even if I fall behind this is a great place to start. And if anyone finds any mistakes or messed-up links, please let me know.
u/BrutalBodyShots on the Credit Myth series:
"I started the Credit Myth series in 2024 after continuously running into the same credit-related misconceptions on these subs. Having fallen prey to almost all of them myself, I completely understand how most believe what are in fact credit myths. It took me years to overcome many of them, so hopefully through the Credit Myth series that process can be significantly shortened for others.
With over 60 of these threads to date, most of the 'big ones' have been debunked at this point. The series isn't yet complete however, and perhaps never will be since over time additional myths seem to surface. If anyone has any ideas for future topics that aren't already covered, always feel free to reach out and let me know.
Special thanks to u/Funklemire for creating this thread and offering to maintain the master list, as well as to u/soonersoldier33 for seeing value in it enough to keep it front and center on r/CRedit."
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Credit Myth #1 - You only have one credit score.
Credit Myth #2 - Some credit scores are fake or inaccurate.
Credit Myth #3 - Paying down debt slowly over time builds credit.
Credit Myth #4 - Credit scores can change for no reason.
Credit Myth #5 - Credit monitoring services can tell you why your score changed.
Credit Myth #6 - Making multiple payments per month builds credit.
Credit Myth #7 - Number or percentage of on-time payments impacts your score.
Credit Myth #8 - When you close an account you lose its credit history.
Credit Myth #9 - Average Age of Accounts (AAoA) only considers open accounts.
Credit Myth #10 - Closing a credit card hurts your credit.
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Credit Myth #11 - Closing a loan will tank your credit.
Credit Myth #12 - You are approved or denied credit because of your credit score.
Credit Myth #13 - Any credit score above 750 is just bragging rights.
Credit Myth #14 - You shouldn't use more than 30% of your credit limit(s).
Credit Myth #15 - Credit limits are a Fico scoring factor.
Credit Myth #16 - Hard inquiries "age" and become less impactful slowly over time.
Credit Myth #18 - Revolving Utilization makes up 30% of your Fico score.
Credit Myth #19 - Goodwill requests don't work.
Credit Myth #20 - Checking your own credit can hurt your score.
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Credit Myth #21 - Remarks/comments on your credit report can impact a credit score.
Credit Myth #22 - You can have a credit score of 0.
Credit Myth #23 - The best approach to credit repair is "dispute everything!"
Credit Myth #24 - Credit bureaus only provide factual information.
Credit Myth #25 - Fico scores and credit knowledge are directly related.
Credit Myth #26 - Those in the [credit] business only give good advice.
Credit Myth #27 - The amount you spend is a Fico scoring factor.
Credit Myth #28 - Credit scoring simulators are always accurate.
Credit Myth #29 - Approval odds for credit cards online are accurate.
Credit Myth #30 - Income and/or DTI are Fico scoring factors.
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Credit Myth #31 - Credit Repair Companies can do things you can't do yourself.
Credit Myth #32 - Higher utilization always means higher risk.
Credit Myth #33 - A creditor must tell you the reason they denied you credit.
Credit Myth #34 - Removing a negative item from your reports will result in a score gain.
Credit Myth #35 - Your Fico score will drop if you pay off a credit card.
Credit Myth #36 - The more accounts you have, the better your Credit Mix.
Credit Myth #37 - Low utilization improves CLI chances.
Credit Myth #38 - Paying off loans or cards faster builds credit.
Credit Myth #39 - Credit cycling will get you shut down.
Credit Myth #40 - If you open a new card, your score will recover in 3-6 months.
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Credit Myth #41 - If you pay off a collection your score will increase.
Credit Myth #43 - Credit scores are a debt score!
Credit Myth #44 - Personal loans or in-store financing will help / can't hurt your credit.
Credit Myth #45 - There are certain times during the month you shouldn't use your credit card.
Credit Myth #46 - Lenders "see" more with a hard inquiry (HP) than a soft inquiry (SP).
Credit Myth #47 - A hard inquiry is worth a few points.
Credit Myth #48 - Experian, TransUnion and Equifax are credit scores.
Credit Myth #49 - The best way to rebuild credit is to open new accounts.
Credit Myth #50 - "Experian Boost" can help improve your credit.
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Credit Myth #51 - A Credit Lock is better than a Credit Freeze.
Credit Myth #52 - "Pay in full" means to pay your current balance to $0.
Credit Myth #53 - You shouldn't open any accounts in the 12 months leading up to a mortgage.
Credit Myth #54 - Carrying a small balance builds credit.
Credit Myth #55 - A credit account can be closed for no reason.
Credit Myth #56 - VantageScore is a good predictor of a FICO score.
Credit Myth #57 - It's illegal for lender to change a negative reporting.
Credit Myth #58 - Outside lenders have no idea how much you pay toward your accounts monthly.
Credit Myth #59 - You should never close your oldest credit card.
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Credit Myth #61 - Age of accounts metrics go by number of calendar days.
Credit Myth #62 - There are days during the month that you shouldn't use a credit card.
Credit Myth #63 - A product change means a new account.
Credit Myth #64 - Credit scores are a scam!
Credit Myth #65 - If your score drops following a loan closure, it'll bounce back quickly.
Credit Myth #66 - FICO scoring is a "black box" and no one really knows how it works.
Credit Myth #67 - There's never any downside to keeping an old unused credit card open.
Credit Myth #68 - The best place to get your credit reports are from the credit bureau's websites.
Credit Myth #69 - Credit "ratings" provided by a CMS matter.
Credit Myth #70 - Authorized user accounts are a great way to build credit.
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Credit Myth #71 - The dollar amount associated with a late payment impacts FICO scoring.
Credit Myth #72 - Keeping utilization low is good advice for budgeting purposes.
Credit Myth #73 - ChatGPT/AI only gives good credit advice.
Credit Myth #74 - Closing young accounts improves Average Age of Accounts (AAoA).
Credit Myth #75 - You need to satisfy diversity of Credit Mix first in order to obtain real loans.
Credit Myth #76 - A purchase or payment made can immediately impact a credit score.
Credit Myth #77 - FICO negative reason codes and lender denial reasons are the same thing.
Credit Myth #78 - An elevated "highest balance" on a credit card is always a bad look.
Credit Myth #79 - You should only freeze your credit if you encounter an issue with your reports.
Credit Myth #80 - DTI and revolving utilization are the same thing.
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Credit Myth #82 - Unsecured credit cards build credit better/faster than secured cards.
Credit Myth #83 - The best place to get your credit scores are from the credit bureau's web sites.
Credit Myth #84 - Credit cards are for emergencies.
Credit Myth #85 - Whether an account is closed by consumer or credit grantor matters.
Credit Myth #86 - Being denied credit hurts your score.
Credit Myth #87 - Your due date comes before the statement closes.
Credit Myth #88 - All credit scores with a "max" of 850 can be achieved.
Credit Myth #89 - You can only get your credit reports from annualcreditreport.com once per year.
Credit Myth #90 - With auto pay, you can "set it and forget it."
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Credit Myth #91 - FICO scores are for consumers.
Credit Myth #92 - The utilization myth no longer applies because trended data is now used.
Credit Myth #93 - You need to watch out for the "All Zero" penalty.
Credit Myth #94 - You need a lot of accounts in order to achieve perfect credit.
Credit Myth #95 - "Credit builder" apps are a great way to build credit.
Credit Myth #97 - FICO scores are always lower than VantageScores.
Credit Myth #98 - As a co-signer, you have less responsibility than the person you co-signed for.
Credit Myth #99 - It costs money to monitor your credit.
Credit Myth #100 - For an account to remain "paid as agreed" you need to make payments.
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Credit Myth #101 - Different FICO scores are always similar.
Credit Myth #102 - Higher interest rate credit cards are worse than lower interest rate cards.
Other helpful threads:
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Goodwill Saturation Technique (GST)
Goodwill Letters - Using the "CART" approach.
Credit Karma 101: The good and the bad.
Credit Karma targeted email manipulation #1: On-time payments.
Credit Karma targeted email manipulation #2: Confirm your cards.
Credit Karma targeted email manipulation #3: Closed account.
Credit Karma targeted email manipulation #4: Approval odds.
Credit Karma targeted email manipulation #5: Come back!
Credit Karma targeted email manipulation #6: You paid off your balance.
Credit Karma targeted email manipulation #7: Metal cards.
r/CRedit • u/Guilty_Brilliant257 • 16h ago
I got denied for the gold card all year last year. 4 cards with them currently, customer for 5 years… but they just rather approve people for charge cards who barely make 20k annually… I made 120k last year and on track of 210k this year… scores sitting around 720-740 ALL year...
Seeing stuff like this makes me want to close my cards.
r/CRedit • u/shemadeitout • 1h ago
Ive been monitoring my credit for awhile and my Equifax score never moved and has always been lower than the other two. Equifax finally moved after months and I paid down a CC. Even after the 29 point increase, Equifax is still super low compared to the other two.
I have pulled my reports and reviewed them, I have myfico which updates monthly.
Is there anything specific I should be looking for on my Equifax? There isnt any difference I can spot between the accounts being reported.
Any help is appreciated.
I’m trying to help a college-bound 18-year old remove a credit freeze so he can open a credit card account. He spent hours going through the AI chat, never found the option to remove the freeze, and each request to speak with a live rep ended in a hang-up with a referral to the website. The Experian website is equally useless, as it leads back to the same 800-number and AI chat. There appears to be no solution. Has anyone found a solution?
r/CRedit • u/Ahmad_899 • 1d ago
Chase increased limit from $5,000 to $8,800 in less
than 5 months from openning account😁😁!!! I'm happy with the credit cards and their limit I have🥳
CSP $8,800
BCP $18,000
Qsilver: $3,000
r/CRedit • u/theebabyb • 59m ago
I am 24f and trying to figure out to get my ~500 credit score up. I desperately need to buy a car and can’t get a rate less than 18%!
I have one Midland Credit collection that I owe $105 on, made a few payments and then stopped when life changed. I’m going to ask them for a pay for deletion deal, but will that make my score go up? Or would it be better to make a few on-time payments?
Next, I have a TrueAccord collection from Charter. It has the wrong last name, and is completely foreign to me. The only thing I could think it might be is that my old roommate defaulted on something that had been in my name, but Im pretty sure I took my name off everything. It is only being reported to TransUnion, not the other bureaus. Should I send them a validation letter? Or just dispute it through TransUnion? If I do that, what would I need as proof? I don’t have anything really to prove it isn’t mine.
Last is a Verizon account through Credit Control LLC. It is showing I owe more now than I started with. Since it is still owned by Verizon I believe, what would be the best, cheapest way to get dealt with?
Honestly, if you have any advice at all, please drop it. I messed it up when I was younger and have completely avoided using my credit for about 2 years. Just need to know where to start so I can buy a car.
r/CRedit • u/Substantial-Shop2019 • 5h ago
I know this is probably a long shot, but I’m hoping someone here has actually had success.
I have a $9 charge-off from Affirm that’s my only derogatory account, and it recently caused my rental application to be denied.
The frustrating part is that I wasn’t ignoring the debt. I’ve been trying to pay it for months, but I couldn’t access my account. Every time I called Affirm I got a different answer. Some reps told me there were multiple accounts associated with my information, others said they couldn’t verify me correctly, and on my most recent call the representative couldn’t even access my account because of a system issue. They opened another escalation, but this has been going on for months.
Has anyone here actually gotten Affirm to remove a charge-off or goodwill delete one?
If you did
What did you say?
Did you go through Executive Relations?
How long did it take?
Did they remove the entire tradeline or just update it as paid?
I’m looking for real success stories (or honest experiences if they said no). Thanks!
r/CRedit • u/ApprehensivePut3658 • 7h ago
Recently had a collection deleted and that made my transunion score jump almost 100 points. But the other two scores have not moved. Why is this happening?
The collection has been removed from Experian and Equifax as well so the score should have gone up.
r/CRedit • u/needtostopcarbs • 6h ago
So I had around $90k in credit, no loans or mortgages in the past 10-15 years. I only use roughly .5% or less of my credit each month. Carry a balance on 2 or 3 of around $200-$300 total, which is paid in full each month when statements close. I started doing that & got my FICO 8 score up to 803 finally. Used to bounce around 780-790 until I read the hint that said ppl tend to carry a statement balance on 2 or 3 cards then pay off in full each month.
Fast forward to July 1st where I applied for another BofA card that has a $20k limit. I couldn't find anything to say when statement closes & missed it (the 10th) so had a statement balance of $250. All of my other cards were paid in full before statements ended. My score is now 784. Wondering when/how to get back up?
Also does this affect authorized users on 2 cards I have with no balances on them but limits of $15k-$20k?
r/CRedit • u/funk_heals33 • 6h ago
I am a Chase customer. For over a year, my CCs(2) have been over 26% interest. Finally called them and asked for some assistance. Told them I was a long time customer and have paid on time. They denied me, I asked for a supervisor. She was amazing and helped get my APR down to 12% for 60months on both cards.
This will help me a lot to finally cut down this debt. Don’t be afraid to ask for a lower CC rate and if denied, ask a for a supervisor to speak to about the matter. Happy hunting.
r/CRedit • u/Ok_Wrap388 • 6h ago
I understand the importance of paying my credit cards off in full and on time, and keeping my utilization low (at 5% is what I’m going to keep to). I don’t understand for what timespan that credit/utilization is for? Could I hypothetically spend the 5% utilization and then pay it off and then the next day do the same thing? I’m not even sure if I’m wording the question correctly to be honest.
For example, say my limit is $100. I only allow myself to charge $5. I pay that five dollars off the same day. How would it affect my credit score to then the next day spend $5 and then pay it off?
I apologize if this makes no sense 😅
r/CRedit • u/Drowsyuwu • 1d ago
26M After two years, I had a credit score of 498. I had multiple missed payments, collections, and charge-offs. Currently, I have one late payment on my Experian and TransUnion accounts, but none on my Equifax account. I don’t have any collections or charge-offs on my accounts at the moment. My average credit score between all three bureaus is currently between 740 and 760. At the beginning of the year, I opened an account with Navy Federal. I just applied for their credit card and was able to get approved for a credit limit of $11,700. I’m really proud of myself for this accomplishment. If I can do it so can you
r/CRedit • u/Advanced_Yak_2258 • 5h ago
I just called Jefferson Capital about an account that went to collections and they said I can start paying monthly to get these things off my credit. $ 279 for the first month. Does anyone know if they actually work ? I don’t want to pay for something and don’t get results. I know it’ll probably take a couple of months to see any results so I’m prepared to pay if I have too? Can someone help
r/CRedit • u/Snootchie-boochie • 10h ago
A little background:
Haven't missed a single payment in probably 3-4 years (mortgage, car, student loans, credit card)
Nothing in collections.
I had a chapter 13 bankruptcy that was completed/closed 3 years ago.
I have one credit card and maintain a very low balance on it.
For the last 2 years, I just haven't been able to break 700. Do I just need to wait the 7 years for the bankruptcy to fall off?
r/CRedit • u/introvertAnxiety • 6h ago
I could really use some advice about a collection account from Portfolio Recovery Associates.
Right now, it’s only showing on my Experian credit report. The original Synchrony Bank account isn’t showing on any of my reports with Experian, Equifax, or TransUnion.
I know PRA offers Pay for Delete, and they’re willing to settle the account for $1,250, which they say will result in the collection being deleted.
DOFD: April 6, 2021
My questions are:
Should I dispute the balance first, or is that likely to backfire?
If I dispute it, is there a chance PRA could update the account with all three credit bureaus or cause the original Synchrony account to start reporting?
Given that this is my only derogatory collection account and it’s only reporting to Experian, what’s the smartest course of action?
The biggest issue is that I don’t really have the money to pay the $1,250 settlement right now, so I’m trying to avoid making a decision that could make my credit situation worse.
I’d appreciate any advice or experiences with PRA.
r/CRedit • u/PurpleKoolAidGrapes • 13h ago
I have a Verizon wireless account I paid off in full right before it was charged off by Verizon. I paid Verizon directly in full but now it's showing on my credit reports as a charged off account that is paid in full. Is there anyway I can get these scumbags off my credit reports??
Nobody:
Credit Journey score: Nice job managing your credit. Here's your lower score:
r/CRedit • u/timkellogg • 1d ago
Hello everyone,
I am 20 trying to increase my credit score before buying a house. A couple of the lenders I have talked to said if I could get my score up I could get a slightly better interest rate. Seems like the consensus is get up to a 780. I have zero debt and 4 accounts. Zero loans ever to my name just credit cards. I have gotten a 5.875% 15yr conventional with lender fees waived. I just keep taking estimate letters and approval letters to different lenders. Any advice is appreciated.
r/CRedit • u/pinarsd • 23h ago
This is mostly just venting. I submitted a dispute online to Equifax because my credit report shows two SSNs, one is mine, one is an incorrect one. I uploaded a scan of my Social Security card. About 30 days later, they responded, saying they updated my SSN..... to the incorrect one! Even with the social security card I attached, they removed the correct SSN...
Now I need to file a new dispute, hoping they get it right this time.
r/CRedit • u/Frequent-Leg-459 • 19h ago
Hi, I would truly appreciate all constructive advice and experiences in this situation. To preface we live in the Bay Area, California.
In July 2023 I found out I was pregnant and the father and I were not together. However I knew to be able to trust him to be a good parent he needed to be there so we decided to move in together for the first year. We moved into our apartment December 2023 and have lived here since. When we applied I knew he had bad credit from a previous place he lived and the manager of the apartments and my best friend advised us to see if his mom could sign the lease. She agreed and we went with it because our friend the manager could be trusted. Fast forward to 4 months ago she left this job and had to move back home so there’s a new manager.
She knows I live in this apartment and has seen my boyfriend because she’s our neighbor. My concern is we will get caught and evicted because this violates the lease. We are working on fixing the credit he owes it’s currently 573 experience credit score but mid to high 400 for transunion. We checked his score and it shows he owes $17000 to a past apartment complex he lived in and it currently is with a law firm not a collection agency. He also owed $200 on an old credit card which is closed and we know we can pay. We are unable to locate any info on the date of delinquency for the $17000 and only know the case was created 5/23/23. We have tried looking and annual credit report website like other posts suggested. We have also looked at our free or non profit agency as well.
My fear is he gets sued for the amount because he’s still within the 4 years since we have no confirmation of DOL. do we request the itemized proof of debt with the DOL and we end up being in the 4 years since window and sued because of it.
On the other hand we could attempt to negotiate a pay for debt to raise his score.
Does he need to file for bankruptcy? However this won’t help his score either.
Should we work with a lawyer to help clear the debt and not get sued?
The firm that has the collection is Kimball, Tirey, & St. John.
I’ve read so many things in Reddit and understand we do not accept the charges or agree to anything or pay anything before proof of a pay for debt in with g. However I’m scared that we will mess up and restart the clock.
Please provide any resources or advice possible. We were trying to figure this out but feel confused and stuck. We have checked Chase app for FICO scored and the annual credit reporting as well and all scored are low and show the delinquency.
UPDATE: the date of delinquency is 12/20/22 and there is a 4 year statue of limitations. We have seen reviews stating the firm does not provide information requested, won't answer the pgone, or does not take them to court. Not sure if this is important in this case.
r/CRedit • u/Content_Economist_99 • 1d ago
I am currently 19 years old with a 742 Fico score according to my Wells Fargo app. I am interested in buying one of my dreams cars within the upcoming months. It’s roughly $40,000 and I will have over $10,000 to put as a down payment. I have little to no current debts (roughly a grand) which can be paid off before or immediately after. So I’m financing roughly $30,000. I make around $50,000 a year and have no living expenses currently. Will I be able to get approved?
r/CRedit • u/Any_Effort3439 • 1d ago
So i opened a secured credit card with key today. i’m just alittle confused with the savings account it also opens. it says the the security deposit for the credit line will be placed in a savings account to grow, but the savings account it opened only has 1 cent in it. the new secure credit card account also opened up in my app with the 300 dollar limit so im just confused as to where my 300 went.
r/CRedit • u/_mdeleon • 1d ago
I have an account that went to collections because I was 18 and decided I’d trust my brother to pay off a store credit card that he used under my name and he didn’t.
So I’m going to start making payments on it starting next month (I finally have a good job and I can afford to make these payments now) but I was wondering I keep on seeing back and forth debates about settling or paying off in full. I always assumed it’d be best to pay off in full, but I’ve read that it doesn’t matter.
I want to improve my credit since I would like to buy a new car soon.
I was wondering if I should just settle or pay the card off and is a pay to delete agreement worth it?
Please let me know, and thank you in advance!
r/CRedit • u/hustler-baddie-23 • 21h ago
I have atlas credit builder credit card the metal one and it seems to be helping my credit score a lot I’m up 50 points and I’m knocking debts down a lot so I want to keep the card but idk if it’s smart for me to or not