We got an email via Ask The Expert recently with some great questions about credit. I thought all of you might benefit from a little credit Q&A as well, so here are some highlights of my response to the reader:

Q: Is it a good idea to get a credit report for myself? I have heard that requesting your own credit report decreases your score; I don't even know what my score is.
A: Anytime a person requests their own credit report or score (also known as a self-inquiry), neither is affected. You can request a credit report from each of the three credit reporting agencies (Experian , TransUnion  and Equifax ) annually free of charge . However, you'll have to pay for your credit score, which you can do at any of the previously mentioned credit reporting agencies. To find out where you stand currently, I'd recommend purchasing your score.

Q: I have one credit card that is two years old with a $3,000 limit that I don't use — have never used — what is this doing to my credit score?
A: This credit card that you don't use increases the available credit you have, so you're using less of your possible credit, which is a good thing. You've also had it opened for a while, so it may be helping your length of credit history. One thing you want to consider with this card is that because you don't use it as frequently, you might not catch any fraudulent activity as quickly.

Q: I have another credit that my mom thinks I should switch to a miles rewards card. Is switching the balance a good idea and what will it do to my credit score? Can I ask them to decrease my interest rate?
A: If you decided to switch the balance to a new card, you may have an inquiry by the credit card company that could affect your credit score. If you think that the rewards you'd get from a new card would be worth it, switching may work for you — be sure that you research all the terms of the new card before you make any changes. If you stick with your current card and are interested in lowering your rate, I'd say ask. If they say no, at least you tried!

We'd like to talk more with you about credit in some upcoming posts! What credit questions do you have?

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (4)
Found in Credit, Credit cards, Credit history, Credit score, Financial education, Money management, Reader questions, Wells Fargo Bank