Ghoshida wrote: gabo864 wrote:
takeshi wrote:We would need to know what your credit is like in order to help you improve it. However, we can provide some general guidelines. When was the last time you pulled all 3 reports? You should be regularly reviewing them for accuracy and fraud.
What kind of info about my Credit would you need? Right now I use CreditKarma. Is this a good website? like I said my Credit Score is 676 according to discover, Credit Karma says my Score is Transunion 684 and Equifax 678 (Which score would you say is more accurate Credit Karma or the one given by Discover?). I have a total of 7 inquiries, I know these are not so good, but they are not all from Credit Cards, One was from Verizon and other home services (some of them are about 6 to 7 months old). My highest Credit card utilization was 34%, but most of the time I keep it under 30%. I have no derogatory marks never had a late payment, My credit payment history on CK is 100%, most of the time I pay in full or pay more than the minimum payment since I have 0% APR for the rest of this year on my discover and until june 2016 on my AMEX. My Credit History is about 8 months according to CK.
Should I keep doing what I'm doing? should I get one more credit card to help my debt utilization ratio? Thanks.
My thoughts (coming from someone who was in the same spot 2 years ago):
(a) Utilization: You've got a good enough profile for Discover. Try their CLI button. It should tell you if they want a HP before doing a HP, or give you a SP CLI straight-away. I got my first CLI through a HP, and it was fine with me. I needed the limit; you decide if you need it. If they indeed ask for HP, try with a large number, like 5k or 10k and let them counter. That should give you (along with the AMEX) enough room to play utilization game.
Who issued you the Visa card? Maybe they have an SP CLI policy as well?
30% is good, but 10% is better. Unless you get a CLI on Discover, you might want to keep $500-$1000 balance (ideally lower) on the AMEX and zero on the other two cards. Your score then should reach or exceed 700s.
(b) New Credit Card: Apply for new credit cards because you need their benefits (better cashback, rewards, miles, sign-up bonus, maybe BT deal) and not because you need utilization padding. This is my opinion; not everyone agrees to this. However, I think utilization is better handled through credit limit increases; save the HPs and AAoA dings for things like rewards and sign-up bonuses.
Hope it helps.
So as soon as I read y'alls answers I went to Discover and I clicked on CLI, it asked me about my annual income and my employer so I typed in all the info, at the bottom it said "After reviewing your application, we may need to pull a credit bureau report, which may affect your credit score. In these cases, we will proceed with the application only with your consent." So I clicked submit because I'm guessing if they required a HP they would let me know first, but as soon as I clicked Submit, it said they had approved me for a $3000 credit increase on my account
. I'm guessing they only did a soft pull since I was never warned about having to do a HP on my credit scored, right?! I'm very excited because now I have $3750 with my Discover card
Btw, My Visa card is with a local bank, it's a Credit Union bank. I didn't get any promotions with this card since it was the very first card I got since every other issuer kept denying me a card, but even though I only have $500, it did help build my credit a bit more and be able to get the other 2 cards. I don't really use this card so it never has a balance.
Now my question is, I know I should be under 30% utilization, but is this 30% per each card or the total balance of all my cards? Thanks guys you have been very helpful.