Q. Will I get penalized for pulling my credit report more than once a year?
A. Every time you apply for credit, the application shows up as an inquiry on your credit report — which can impact your credit score. But remember that certain inquiries for pre-approved credit offers or for an account review by a current creditor do not get reported and have no impact on your credit score. Visit www.AnnualCreditReport.com for more information.
Q. How can I establish good credit when credit cards are viewed so negatively?
A. The difference is learning to use the card responsibly:
- If you buy items with your credit card that you are able to pay off in a month or two, then you are using it responsibly.
- If you are charging items excessively and carry a balance for more than three months, then you should re-evaluate your spending habits.
Q. How long does it take for my credit score to become healthy again?
A. Generally after six to nine months of responsible credit use you will begin to see an increase in your credit score.
Q. What is a "good" credit score?
A. Most folks rely on Fair Isaac Corporation (FICO) to retrieve their credit score. Scores can range from 300 to 850. Generally, anything above 720 is considered a healthy credit score.
If you have a question about planning and paying for college, credit education, or managing your money while in school, email FinMan@nelliemae.com.
We will update this page every month. You can see more information on Nellie Mae's Financial Success series.
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