I was just poking around on here and someone mentioned that if you finance jewelry and make payments, it raises your FICO score 2 points per payment. Whereas with a normal account, it only raises your score 1 point per payment. Apparently jewelry is considered a 'luxury account'.
I can't find any info. to back it up. I'm not a jewelry person myself, so I won't be doing that, but I was just wondering how true it is.
OC1999
Favorite Answer
Not sure where you got that, but there is no set number your score will go up for each payment. Your score is based on several factors. Payment history is 35% of that but it is NOT the only thing.
Now if you get any credit card you should make sure that they report to the Credit Reporting Companies(Equifax, TransUnion, Experian). Some of these jewelry(and other stores) that offer credit do not actually report to the companies. If they don't report it does nothing to help your score.
When you do get one be sure to keep it under 30% of your limits, and pay every bill on-time. If you do happen to go over 30%, just pay as much as you can to get it below that amount quickly. If you do this then over time your credit score will rise.
Anonymous
Buy Jewelry On Credit
Anonymous
The basic idea is correct, but the whole 2pt theory is gibberish. If that was true my credit score would be perfect 850 or whatever. The more accounts you have in good standing, the better your score will be. So in general your score will go up over time if you make payments every month default. Just one missed payment can severly hurt your score.
GeneL
I've never heard of such a thing myself...it seems as though your Credit Score is not based so much on "what" you finance as it is how you pay off the loan or credit card account (e.g. payments on time, etc.).
You'll be able to raise your Credit Score quickly enough simply by NOT defaulting on any credit accounts, paying on time and living up to the agreements of the particular account.