Building Credit/increasing credit score

For just about anything you want to get off your chest about credit cards.
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lobbythis
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Postby lobbythis » Sat Sep 27, 2014 2:19 am

Good info takeshi! Thank you.

I had some similar questions.


lc1125
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Postby lc1125 » Sat Sep 27, 2014 10:02 am

takeshi wrote:Why are you fixated on 800?


Because I have been in the 700 range for a few years..I want to see improvement :)

While reducing the balance on the $18K auto loan can help, paying off an installment won't give you the most gain in your scores and you may actually see a drop.


So I should focus on reducing both loans but keeping them open?

Closing an account doesn't increase your AAoA either.


I understand that - which is why I am questioning paying off my first car loan. It would be nice to not have the high payment monthly, or the debt, but I am not sure if keeping it open longer would be of more benefit.

Did you calculate this or are you relying on what CK told you? If the latter, keep in mind that CK provides AAoOA, not AAoA. AAoA is what matters.


Good to know! I am relying on CK for that, but, AAOA shouldn't be much different - the closed card was maybe only a year older than my now oldest one, and the closed auto loan was only a few months old, if that, when we switched it.


Definitely get that down. Payment History has the biggest impact on your score but utilization is the second biggest factor. Do not exceed 30% and for ideal scoring purposes keep it at 10% or less.


I definitely will! I honestly didn't know until recently that it was an issue, or that paying it off before the statement was issued would help. I am going to focus on this! Honestly no one really ever explained to me how credit worked, other than the obvious of paying the bills off each month in full. So I am learning on my own.

You need to look at the reason(s) for denial and address what you can versus just relying on time.


I just got the letter explaining why and it just said because I had an increase in the last couple of months, and to wait until it had been 6 months. So good to know.


Ideally 10% and only one balance reporting. That said I have balances reporting on nearly all my cards and I've been over 800 until recently (now at 797).


Thanks!

OP has several cards and 2 auto loans.


Two (open) cards and two (open) auto loans :) . Eventually we will be wanting to buy a house so that is part of me wanting to increase my score.
Citi AAdvantage Bronze MC | 2007 | $5,300
Discover It | 09/2014 | $6,500 | 5% categories, shopdiscover purchases
Amex BCP | 10/2014 | $10,300 | groceries and gas
CapitalOne Quicksilver | 10/2014 | $10,000 | every day card
Kohl's | 2012 | $1,000
Victoria's Secret | 10/2014 | $750

Credit Karma | 713 (10/13/2014) | TU (Discover) | 758 (10/5/2014)

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Vattené
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Postby Vattené » Sat Sep 27, 2014 11:06 am

lc1125 wrote:Honestly no one really ever explained to me how credit worked, other than the obvious of paying the bills off each month in full. So I am learning on my own.


That's the most important thing. If you do this, your credit will be solid. Given this foundation, the rest is just understanding the method that is used to score us all and playing games with the tricks that are used.
-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



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