Need advice on best way to steadily improve credit

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Hamster
 
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Need advice on best way to steadily improve credit

Postby Hamster » Thu Jul 10, 2014 4:12 pm

More than 10 years ago, I declared bankruptcy and it ruined my credit and has been an uphill battle repairing it but I have steadily improved. I've since qualified for a low-interest mortgage taking advantage of a state HUD program which I've stayed on time with payments for 4 years now, qualified for a car loan which I've paid on time for its duration, and have two credit cards. One is a Capital One Mastercard (taken over by Orchard) with a $520 limit, the other is a US Bank Platinum Visa with a recently increased $1500 limit. How can I get my limits increased (obviously, the US Bank Platinum Visa will have to wait a while now since it just increased) and what other cards would be a good bet for me with a 690 credit score?

Also, initially I had not been charging anything on these cards to keep my usage ratios low, but last month I charged my US Bank PV up to it's limit and they promptly issued me an additional $500 to my credit limit without my asking. What's the best way to utilize the credit I have to get higher limits and/or better credit cards? Should I charge more and pay off before the statement closes so my ratios still look low? Thanks in advance!


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PlyrStar93
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Postby PlyrStar93 » Thu Jul 10, 2014 7:12 pm

Hamster wrote:What's the best way to utilize the credit I have to get higher limits and/or better credit cards? Should I charge more and pay off before the statement closes so my ratios still look low? Thanks in advance!

When using, just keep in mind never try to go over your credit limit (which means at any time your available credit should not reach 0).

Figure out when the card issuer reports balance to credit bureau, and pay most balance before they report so they will only report as you have a low balance. Do the same thing for each card. This debt-to-credit ratio should not be higher than 30%. So you have $1500 on your US Bank card, then no more than $450 should be reported. Same goes for your other card. Of course, if you only leave 1% to 10% and let the balance report, it is even better. After the statement, pay the entire balance anyway to avoid interest.

Hamster wrote:How can I get my limits increased (obviously, the US Bank Platinum Visa will have to wait a while now since it just increased) and what other cards would be a good bet for me with a 690 credit score?

Capital One Platinum MasterCard has a policy that if you use credit responsibly within certain time after account opening you can get an automatic increase. You can call to ask for increase if they allow one for soft inquiry. But if you not, just don't try to waste a hard inquiry. With this score you definitely can wait for some months to let your FICO increase so you have better chance to get a good card.
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takeshi
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Postby takeshi » Sat Jul 12, 2014 9:08 am

Limits all depend on one's credit, income and the criteria of the underwriter.

If you have derogs then address them first as they will always be the biggest problem on any report. Payment History is the biggest factor in scoring. Utilization is next. Keep it under 30%. You can micromanage when applying if you want to eke out some additional points.

With a mortgage, auto loan and a couple of cards it sounds like you have a good mix of credit. All the rest just takes time and responsible usage.



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