Good score?

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Volthian
 
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Good score?

Postby Volthian » Mon Oct 17, 2016 5:41 pm

I just checked my FICO credit score with Experian. I just recently turned 20 and have had this credit card account with Bank of America (Cash Rewards card) for 1 year 4 months. It's my first credit card and I have a credit limit of $1,700. The score that Experian gave me was 639, with a posted credit debt of $82 (for a bill I payed just a few days ago, so I'm not sure how much that would impact the score).

I'm in college so I have student loans. I'm curious though if this is a good score for someone my age, given the little amount of time I've had a credit card, and also looking for general tips on how to keep improving my score. Thanks!


Tubpbs
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Re: Good score?

Postby Tubpbs » Mon Oct 17, 2016 7:22 pm

Volthian wrote:I just checked my FICO credit score with Experian. I just recently turned 20 and have had this credit card account with Bank of America (Cash Rewards card) for 1 year 4 months. It's my first credit card and I have a credit limit of $1,700. The score that Experian gave me was 639, with a posted credit debt of $82 (for a bill I payed just a few days ago, so I'm not sure how much that would impact the score).

I'm in college so I have student loans. I'm curious though if this is a good score for someone my age, given the little amount of time I've had a credit card, and also looking for general tips on how to keep improving my score. Thanks!


Experian should have shown you some things that are helping your score and some things that are hurting your score.

Did that happen?

I think the score is fine for your stage in the process. At this point there are only some things you can have any affect on. Focus on those things. Think about what card you might want next. When you're ready and you've found something that suits your needs, you should add another card (Just my opinion). You may get other advice from others on the forum.

Meanwhile, see what Experian said...
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

JonE
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Re: Good score?

Postby JonE » Wed Oct 19, 2016 10:22 am

For where you're at it's decent. Good scores generally run in the 690-760 range, but that's a decent enough score to get approved for some things. Be careful to select another card that fits your needs, and not just the flavor of the month that won't match your spending, but looks cool in a wallet.

Also (and I concede this is strange advice coming from someone with my signature) be careful with store cards, in fact if possible I would advise getting NO store cards, and just sticking with the regular network cards (VISA/MasterCard/Discover/AMEX) from reputable banks that will do more for your rewards wise in the long run. While you could get 5% cash back from an Amazon card, it's merely in the form of statement credits. Where Discover IT has Amazon as a 5% Cash back category this quarter until the end of December. You've got more going for you there with the cash back (that you can redeem as a statement credit or have sent to your connected bank account, or use through Discover Deals) and protection from fraud and purchase protection that a store card wouldn't offer.

Store cards are nice (one or two of them) starting out, but they aren't keepers.
Current Cards: Chase Freedom, Discover IT
Future: TBD

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Vattené
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Re: Good score?

Postby Vattené » Thu Oct 20, 2016 11:04 am

Welcome, Volthian! That's a perfectly fine score for someone with a very limited history. It takes time to establish a strong score, and when your credit history is as short as yours the score honestly isn't that meaningful. The most important thing you can do for your credit is manage everything your have responsibly, and you'll build a good credit profile over time. Make sure you make 100% of your payments on time. Even one 30-day late payment will hurt you, and it will stay on your profile for years. Pay your credit card bills in full, too (it won't hurt your score to pay less than the full balance of each statement, but just from a personal finance perspective it will keep you from paying interest unnecessarily and keep you in the habit of only using credit as a payment method - it should never become a way to finance everyday expenses). Don't allow any derogs or collections to pop up.

If you want to focus on improving your score, I agree that getting another account (or a few at least over time) will be best for you. You may also be able to get a credit limit increase from BofA. Your student loans are installment accounts; presumably you don't have to pay anything on them yet, which is good while you're in school, but also means the proportion of outstanding balances to original amounts of these loans will be high for the foreseeable future. That is a factor that will hurt your score, but there's nothing you can do about it now. The length of time your accounts have been established will be a factor that hurts you for a while, and the only way out of that is time. Getting more accounts now will mean that there are more accounts in your credit profile to start aging and building a good history for you. You don't even have to use them if you don't want to, but using them will mean you have more records of positive payments building up in your history. Put a single recurring charge on them, like a cell phone bill, and pay if off after the statement cuts to show that you use them and pay them on time.

If you want advise on what cards to go after, the people on this forum will only be too happy to help. For a college student, another simple cash back card will probably be best. Credit card rewards are a great thing, but keep them in perspective: they should be completely secondary to good financial habits. If you don't let credit cards drive your spending you can get a lot of value out of them. You may not need to hear this, but it is important to keep in mind (if you spend a lot of time on various forums you can get egged on into applying for things and treating credit cards as a competitive sport, which will only harm you in the long run). Personally, I think store accounts are a good tool for establishing credit (*edited to add: I agree that they aren't keepers*). They have lousy terms, but if you pay them in full they don't cost you anything. If a store card and a secured card are one's only options, I'd rather have a store card than an account that requires you to tie up funds. You may be past that already, however. You've already got a good rewards card, so another rewards card may be attainable for you.

Hope this was helpful. Good luck!
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

g35x955
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Re: Good score?

Postby g35x955 » Wed Oct 26, 2016 9:35 pm

Volthian wrote:I just checked my FICO credit score with Experian. I just recently turned 20 and have had this credit card account with Bank of America (Cash Rewards card) for 1 year 4 months. It's my first credit card and I have a credit limit of $1,700. The score that Experian gave me was 639, with a posted credit debt of $82 (for a bill I payed just a few days ago, so I'm not sure how much that would impact the score).

I'm in college so I have student loans. I'm curious though if this is a good score for someone my age, given the little amount of time I've had a credit card, and also looking for general tips on how to keep improving my score. Thanks!


Im one year older than you with 1 year 7 months of credit history. Only one card (discover it) but no student loans. My score is higher than yours most likely bc i don't have student loans but at this point in our life don't sweat it to much.. we're young. You have plenty of time to grow your score. Just be smart and try paying it off in full each month and keep the utilization low. Do that and before you know it your score is gonna be great. Its gonna be so great that its gonna make america great again. Trust me.
Discover IT $3000 (3/15)

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Vattené
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Re: Good score?

Postby Vattené » Wed Oct 26, 2016 10:51 pm

g35x955 wrote:Im one year older than you with 1 year 7 months of credit history. Only one card (discover it) but no student loans. My score is higher than yours most likely bc i don't have student loans but at this point in our life don't sweat it to much.. we're young. You have plenty of time to grow your score. Just be smart and try paying it off in full each month and keep the utilization low. Do that and before you know it your score is gonna be great. Its gonna be so great that its gonna make america great again. Trust me.

I'm hearing from a lot of people that I called this. In fact I'm getting a lot of credit for being so right about this.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

KennethHardy
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Re: Good score?

Postby KennethHardy » Wed Nov 02, 2016 12:51 am

Your credit rating can affect your ability to borrow money using products such as credit cards, loans and mortgages. If your credit rating isn’t in the best shape there are things you can do to build it up again and fix any problems.

Pay your bills on time.

Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO Scores.

Check your limits.

Make sure your reported credit limits are current vs. lower than they actually are. You don’t want it to look as though you’re maxing out the plastic each month. If the card issuer forgot to mention your newly bumped-up credit limit, request that this be done.

If you have missed payments, get current and stay current.

The longer you pay your bills on time after being late, the more your FICO Scores should increase. Older credit problems count for less, so poor credit performance won't haunt you forever. The impact of past credit problems on your FICO Scores fades as time passes and as recent good payment patterns show up on your credit report. And good FICO Scores weigh any credit problems against the positive information that says you're managing your credit well.

KennethHardy
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Re: Good score?

Postby KennethHardy » Wed Nov 02, 2016 12:58 am

Your credit rating can affect your ability to borrow money using products such as credit cards, loans and mortgages. If your credit rating isn’t in the best shape there are things you can do to build it up again and fix any problems.

Pay your bills on time.

Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO Scores.

Check your limits.

Make sure your reported credit limits are current vs. lower than they actually are. You don’t want it to look as though you’re maxing out the plastic each month. If the card issuer forgot to mention your newly bumped-up credit limit, request that this be done.

If you have missed payments, get current and stay current.

The longer you pay your bills on time after being late, the more your FICO Scores should increase. Older credit problems count for less, so poor credit performance won't haunt you forever. The impact of past credit problems on your FICO Scores fades as time passes and as recent good payment patterns show up on your credit report. And good FICO Scores weigh any credit problems against the positive information that says you're managing your credit well.

Negotiate.

You can’t deny that you stopped paying a credit card bill when you were unemployed last year. But you can ask creditors to “erase” that debt or any account that went to collection. Write a letter offering to pay the remaining balance if the creditor will then report the account as “paid as agreed” or maybe even remove it altogether. (Note: Get the creditor to agree in writing before you make the payment.)

mountaindewvoltage
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Re: Good score?

Postby mountaindewvoltage » Wed Nov 02, 2016 3:37 am

Volthian wrote:I just checked my FICO credit score with Experian. I just recently turned 20 and have had this credit card account with Bank of America (Cash Rewards card) for 1 year 4 months. It's my first credit card and I have a credit limit of $1,700. The score that Experian gave me was 639, with a posted credit debt of $82 (for a bill I payed just a few days ago, so I'm not sure how much that would impact the score).

I'm in college so I have student loans. I'm curious though if this is a good score for someone my age, given the little amount of time I've had a credit card, and also looking for general tips on how to keep improving my score. Thanks!


When I was 20 I had a 705 score. One credit card by itself won't raise your credit scores into the 800 range. You need a variety of different types of credit., i.e: student loans payments (which you should start making right away), personal loan payments, car payments, etc. 639 is about average for someone your age.

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Vici
 
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Re: Good score?

Postby Vici » Mon Nov 07, 2016 9:22 pm

Volthian wrote:I just checked my FICO credit score with Experian. I just recently turned 20 and have had this credit card account with Bank of America (Cash Rewards card) for 1 year 4 months. It's my first credit card and I have a credit limit of $1,700. The score that Experian gave me was 639, with a posted credit debt of $82 (for a bill I payed just a few days ago, so I'm not sure how much that would impact the score).

I'm in college so I have student loans. I'm curious though if this is a good score for someone my age, given the little amount of time I've had a credit card, and also looking for general tips on how to keep improving my score. Thanks!


I turned 20 a month ago and have just over a year of history. My score is 717 EX with a Cap 1 card and an auto loan so I think I am doing alright. My score would be slightly lower if I had student loans though. You are in a decent spot just keep paying off your card and never max it out to pay it off later, always keep your utilization low. There really isnt a way to suddenly boost your credit score, it just takes some time and if youre responsible it will rise :cheers:



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