As I have said before, I can see how my readers find CreditMattersBlog.com. I don't collect any personal information, but I can see search terms that people use to find the site. This information is like the center of Lifesavers candies. Or doughnut holes. Rather than letting them fall by the wayside, I figure that I should put these search queries to good use.
Here are the rules: I will edit search queries for syntax purposes. Otherwise, I will leave them alone. I'll also phrase queries in the form of a question whenever possible. By request, these Q&As are published whenever I have received 10 questions (through Google and other searches).
Q: Which Citibank card is easiest to get?
A: Historically, the Citi PremierPass card (plain vanilla version) and the Citi Aadvantage cards (there are several to choose from) have been the easiest approvals at Citibank.
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Q: Do authorized user accounts still matter?
A: They do. Originally, Fair Isaac's FICO 08 scoring model was going to exclude authorized users. However, the company reversed course (story here) and decided that it would include authorized users in its model after all. TransUnion will start offering the FICO 08 score this month. Equifax plans to offer the score during the spring; and Experian has not yet committed to a date. You can read all about FICO 08 here (link).
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Q: What FICO score for Citibank?
A: This is one thing that consumers should get into their heads. Credit scores are just one part of the application equation. A good score is not a guarantee that you'll be approved. That said, a high score will improve your odds. But there is no magic number that will assure that you're money in the bank.
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Q: Do you have to pay your full balance with USAA American Express card?
A: No. Unlike the American Express charge cards that are issued by Centurion Bank (in New York), the USAA American Express card allows customers to carry balances and pay over time. The USAA American Express card is a credit card -- not a charge card. Therefore, even though you should strive to pay your bills in full each month, it's not a requirement with USAA.
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Q: Why is my USAA card being declined?
A: Cards get declined for any number of reasons. You could be over your limit. Your card could be expired. The payment network could be down -- which prevents the transaction from going through. Your card could be flagged for fraud, which would cause USAA to decline the transaction. These are just some of the reasons for a declined transaction.
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Q: Bloomingdale's closed credit card still on credit report?
A: Assuming that your Bloomingdale's card was closed less than ten years ago, it's not surprising that the card would still appear on your credit report. As a general rule, closed accounts remain on credit reports for about ten years (give or take a year).
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Q: How many cardholders does American Express have?
A: I don't know how many American Express cardmembers there are, but I can tell you that there were some 92.1 million cards issued worldwide as of September 30, 2008. That information comes directly from American Express's 10-Q SEC filing (link here). Of course, some customers have multiple cards, so it's difficult to know exactly how many American Express customers there are. But you do know how many cards are outstanding now. That's the best I can do for you.
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Q: How many people have a FICO score of 800 or more?
A: According to Fair Isaac, 13% of the population has a score of 800 or higher. You'll have to figure out how many adults there are in the U.S. and then strip out the 50 million or so adults that Fair Isaac claims to do not have scores. Once you've done that, you can get a rough estimate of how many adults have a score of 800 or higher.
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Q: Where is the Treasury Department printing the money?
A: The Bureau of Engraving and Printing is responsible for designing and producing paper currency (not coins) for the U.S. government. There are production facilities (link here) in Fort Worth, Texas, and Washington, D.C. For the record, the Bureau of Engraving and Printing was established in 1862.
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Q: [Score impact of] paying down car loans to 50% and FICO?
A: It's been my experience that auto loans have very little impact on FICO scores. FICO puts more emphasis on the revolving-debt portion of your credit report when it comes to utilization (link here). Indeed, I have paid off many auto loans and have never seen a score increase. Conversely, I have never taken a hit for a new auto loan appearing on my report either. I've also heard from plenty of readers who echo my experience. 
READER ALERT: For more credit questions and answers, the entire 10 Credit Questions & Answers index can be found here (link).
Thursday, January 8, 2009
10 Credit Questions and Answers at CreditMattersBlog.com (January 8, 2009)
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8 comments:
I understood the term 'printing money' meant the Federal Reserve is selling off Treasury bills. We are issuing more debt. It’s based on the market’s faith in our government’s tax collecting ability.
I know that was not the questions...just thought I would throw that out :-)
Anon, no worries. I was really being literal with the question. Where is the money printed? In Texas and DC.
But you're welcome to add anything you'd like.
No problem.
Learned something new today. Did not know that FICO puts so little emphasis on auto loans. Thanks CMB!
No hit for a new auto loan? There will be a hit for the inquiry though.
There is the hit for the inquiry. Yep.
But it's been my experience that auto loans don't do much else. I remember when I first realized that paying off auto loans had no impact. It was irritating. But since I have also seen that it doesn't hurt me to get auto loans, either, it's all good.
Debt to income ratios are another thing though. But as for FICO, no big deal.
You also get a new account ding for the new auto loan, but you will get a boost from improved credit mix if you didn't already have one. Overall, an installment loan will help your credit.
Athens, I imagine that my thick file mutes the new account. I remember back in the day when I thought that paying off an auto loan would be a great thing for my score. No dice.
It was good for my pocketbook, though.
I have a question, maybe for an upcoming 10 Credit Questions & Answers post...
Can having more revolving loans in relation to installment loans hurt my FICO score?
Pane, I will add this to my next 10 Questions.
Thanks.
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