Those are two of the surprising results I got playing around with the freeCredit Score SimulatorfromCredit Karma.
What Does the Credit Score Simulator Do?
The Credit Score Simulator is an educational tool,Credit Karmaexplains.
Explore, adjust and ponder, but just remember these are estimated outcomes and not predictions.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Go ahead and start now, but be sure to bookmark this post so you might easily return later.
Well keep it updated as offers changes or expire.
In the years Ive had my account, Ive never had to pay a cent.
And in all cases, of course, your real-life results might vary from the simulators estimates.
New Loan
I selected auto loan you might also choose mortgage or personal and entered $12,000.
I found this result shocking, but the simulator also reported these positive notes:
1.
With on-time payments, the negative effects usually wear off.
Your score may even benefit from the new credit card in the long term.
If you already owe that much and transfer it, your score may not be hurt so much.
Credit Denial
Chase recently denied me a new card despite my over 800 FICO score.
However, it also noted, The negative effects of hard inquiries will usually fade after a year.
To avoid this, check online for any reasons you might be denied a particular offer.
Investigate before you apply, and youll save yourself a penalty.
In general, my score has only slightly bounced around with all of my new accounts.
Closing anoldaccount can negatively impact your score because it will lower the average age of your credit history.
If you have several credit cards you may be able to avoid hard inquiries altogether.
Just ask for the increase fromcredit card issuers who do a soft inquiry for a credit limit increase.
Bigger or Smaller Balances
In general, lower credit balances are better for your credit score.
I couldnt test that on the simulator because I dont carry balances I pay in full every month.
Either way, my score will drop by 93 points if one of my card accounts is past due.
Clearly, you do not want to make any late payments ever.
Taxes Unpaid
My credit score will drop 24 points if I dont pay my taxes.
Account in Collections
What happens if I have an account sent tocollections?
My score drops 187 points!
Planning to make one of these money moves in the near future?
Disclosure: We have a serious Taco Bell addiction around here.
The affiliate links in this post help us order off the dollar menu.
Thanks for your support!
Steve Gillman is the author of 101 Weird Ways to Make Money and creator of EveryWayToMakeMoney.com.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
