Raising my credit by one point...

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Alby
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Raising my credit by one point...

Postby Alby » Mon Jul 27, 2015 4:20 pm

This is my first post, so I apologize if I have it in the wrong area.

In July I had applied for a house loan and had run into some issues with my credit. Long story short, I haven't had any debt for the last 5 years (besides the one I'm about to mention) and the only thing I had reporting was an old account (maybe 6 years old) that I had forgotten about and paid off in full this past April. After fixing the issue with that old debt (the way it was reporting) my credit has come up one point shy of being able to secure the loan. My middle credit score was 639 and I needed a 640 before they could approve the loan.
My mortgage agent had told me to get a credit card that reports to all three bureaus and that would report within the a few days of my payment, so I did. I ended up getting a Capital One Quicksilver card with a $300 limit. I made a purchase of $85 then it also hit me with the $40 annual charge as well. I paid that within 48 hours of it posting. I let my agent know and he said I have to carry a balance over for it to affect my score, so I put a new balance on it today.
My statement is generated on 08Aug2015 and is due on 05Sept2015. Capital One says it reports to all three bureaus 2-3 days after the bill is generated then normally a week or two before the bureaus update my scores. So my question to you guys are as follows:
When do I need to make the minimum payment? (Is it best to pay it on the 8th? If so will it report as min payment paid?)
Is that one payment going to be enough to raise my score by one point?
Is there any advice or anything I should know that will help me out?
Normally I don't reach out for help like this and just let the cards fall as they may but I'm currently paying month to month on rent which is at an increased rent amount due to not being into a contract. I know my landlord it getting frustrated since we told her we were trying to get into this house for a few months now. (Every issue we ran across our mortgage agent assured us it would be the last and we would be moving in July) He claims that this will absolutely take care of the one point and we should close by the end of August but he has been wrong every other time. So I'm reaching out to see if this is something I should be looking forward to or if I should start looking for a new place to rent!
Any advice, comments or suggestions would be greatly appreciated! Thanks in advance to everyone for taking the time to read this and help out!


Nixon
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Re: Raising my credit by one point...

Postby Nixon » Mon Jul 27, 2015 10:39 pm

Capital One takes forever to report, You should have gone for a Barclay card, or a Synchrony product if you wanted FAST reporting.
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Vermonster
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Re: Raising my credit by one point...

Postby Vermonster » Tue Jul 28, 2015 8:40 am

yeah I wouldn't bank on anything happening instantaneously. But more importantly you should only let that card generate a bill with a balance of $30 or less. Any more and you'll be using more than 10% of the credit limit which can look bad for mortgages. So before Aug 8 make sure your balance is $30. Then anytime after August 9th and before September 4th Pay the full amount. You will most likely have a $25 minimum anyway. Now, theoretically it will post to the CBs within 2-3 days. But you can never be sure. (My Amex is over 60 days of not reporting), also there is a possibility that your score can drop initially, mostly from the Hard Pull and new account affecting the AAoA.
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thom02099
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Re: Raising my credit by one point...

Postby thom02099 » Tue Jul 28, 2015 9:54 am

Regarding the "points game"...

Keep in mind also, there is an impact of the inquiry for the new credit card, as well as an impact of the new trade line. These are usually negative. A very general rule of thumb is that, with a new inquiry/TL, you're likely to lose ~10 points, but you will get them back and net 5 additional points when the TL ages some, usually in a few months; your history has to build up some. As with everything credit wise, YMMV. This was something a financial advisor told me about early on in my credit journey, with the caveat that this was a simple generality for educational purposes.

As a sidebar, I just had one of my accounts closed due to a fraud alert, and a replacement card sent. Lost 5 points in the process. No big deal, it will bounce back, but just to illustrate how TL activity can affect scores.
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CarefulBuilder14
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Re: Raising my credit by one point...

Postby CarefulBuilder14 » Tue Jul 28, 2015 11:52 am

To have a FICO score, do you need to have a currently open account that has been open for the last six months?

Or would a person still have a FICO score if the only account with 6+ months of history was closed, but hadn't fallen off?

And if someone is routinely wrong about matters in their supposed area of expertise, it's best to get the opinions of others before acting on that person's advice.
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Alby
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Re: Raising my credit by one point...

Postby Alby » Tue Jul 28, 2015 1:43 pm

Thanks everyone for the advice and comments. My lender said he would do a "rapid credit rescore" once the statement is generated and I've paid the min amount. I did tell him that this was the last straw though, although I think in the long run his advice is sound (getting a cc, fixing the credit issues I had, ect) I don't know that he is right on getting that one point after on month of having the cc. We'll see though! It would be nice to get into a house by the end of the year but I'm not foreseeing that happen in my current state =/

Alby
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Re: Raising my credit by one point...

Postby Alby » Thu Aug 13, 2015 2:10 pm

Just to update everyone on what the result was:
Our bill generated on 08Aug and was on my report this morning. I haven't paid the min balance on the card yet (due 7Sept) so I have $28.72 of the $300 limit used. So the credit was reported and it increased my score by 18 points bringing me in at 657, which exceeds my one point needed. I'm pretty stoked that we will be getting the house and that in 30 days one credit card opened raised my credit by so much. Thanks everyone for their comments and I hope this helps someone else someday!



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