Increasing my Credit score

For just about anything you want to get off your chest about credit cards.
7 posts
OSBRanger
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Posts: 5
Joined: Wed Apr 02, 2014 6:17 pm
Location: Texas

Increasing my Credit score

Postby OSBRanger » Wed Apr 02, 2014 6:24 pm

Hi, this is my first post to the forum. I hope you all can help answer my questions.

I am new to credit. I am 21 and I have had a BoA credit card for 5 months. Today I was approved for an AMEX Blue Cash card.

Before I applied for this card my score according to CK was 734 and it dropped to 710 after inquiring about the Blue Cash card...

I am able to pay my balance in full each month and I spend no more than 30% of my limit.

What are some ways I can increase that score?

Does keeping my utilization under 30% help with increasing the score?

I am about to sign a new contract for my cell phone with my parents. I get them to put it under my name and pay the bill, will that help my score?

What other advice/tricks (if any) can I have to help?

Thanks


Obi-dan
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Posts: 190
Joined: Fri Aug 02, 2013 2:35 pm
Location: Houston, TX

Postby Obi-dan » Thu Apr 03, 2014 10:52 pm

Congrats on staring life with a good score. I hope you can keep it going from here.

The cell phone bill will not help. What you really need is more time under your belt. Your score is composed of:

35% payment history (do you pay on time or not)
30% credit utilization (don't utilize more than 30% of available credit)
15% average age of account (how long have your accounts been open)
10% credit mix (they like a mixture of revolving, installment, etc)
10% inquirires (keep your inquiries under control)

So as you can see, you just need more history. Eventually you will probably get a car loan and that will help. Something you may want to do is apply for an AMEX as they will back date any future cards to the date of your original card. This can help down the line. Other than that, keep doing what you are doing. Some bankers I know recommend getting a short-term small loan but I don't think this a long impact on your score.

The best advice I can give you is to get an emergency savings account so you only use the cards for convenience. Remember, credit it not an extension of income.

Good luck.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

OSBRanger
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Posts: 5
Joined: Wed Apr 02, 2014 6:17 pm
Location: Texas

Postby OSBRanger » Fri Apr 04, 2014 12:06 am

Obi-dan wrote:
Something you may want to do is apply for an AMEX as they will back date any future cards to the date of your original card. This can help down the line.


What do you mean that AMEX will back date any future cards to my original card?

Obi-dan
Centurion Member
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Posts: 190
Joined: Fri Aug 02, 2013 2:35 pm
Location: Houston, TX

Postby Obi-dan » Fri Apr 04, 2014 10:47 am

OSBRanger wrote:What do you mean that AMEX will back date any future cards to my original card?


I opened my first AMEX card (a green charge card) in 1991. I upgraded it to a PRG but this card shows that it has been open since 1991. Last year I applied for a AMEX BCE and they are reporting that this card has been open since 1991.

Whatever your original Member Since date is, all future accounts you open will have this date. So now I have two cards with ages of more than 20 years which really helps the AAoA.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

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nismoZtuner
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Posts: 1105
Joined: Thu Jun 27, 2013 12:39 pm
Location: EARTH -CA

Postby nismoZtuner » Fri Apr 04, 2014 1:50 pm

OSBRanger wrote:I am about to sign a new contract for my cell phone with my parents. I get them to put it under my name and pay the bill, will that help my score?

What other advice/tricks (if any) can I have to help?

Thanks


As soon as my contact with my parents phone ends I`m getting my own line alone- I opened a contract with 3 lines hoping I would save some money compared to getting a line by my self- I have been paying extra charges that my parents have been making.. sooo just a tip- get the line by your self....

Edit: By the way we are the same age- and seems you're following the same steps as I have.. same 1st and second card.. after getting the BCE some few days later I went for a discover it card and a month later I went for the gold card!
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

Dman316
Centurion Member
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Posts: 108
Joined: Fri Mar 29, 2013 3:37 pm
Location: Pittsburgh, PA

Postby Dman316 » Mon Jun 02, 2014 4:58 am

Obi-dan wrote:Congrats on staring life with a good score. I hope you can keep it going from here.

The cell phone bill will not help. What you really need is more time under your belt. Your score is composed of:

35% payment history (do you pay on time or not)
30% credit utilization (don't utilize more than 30% of available credit)
15% average age of account (how long have your accounts been open)
10% credit mix (they like a mixture of revolving, installment, etc)
10% inquirires (keep your inquiries under control)

So as you can see, you just need more history. Eventually you will probably get a car loan and that will help. Something you may want to do is apply for an AMEX as they will back date any future cards to the date of your original card. This can help down the line. Other than that, keep doing what you are doing. Some bankers I know recommend getting a short-term small loan but I don't think this a long impact on your score.

The best advice I can give you is to get an emergency savings account so you only use the cards for convenience. Remember, credit it not an extension of income.

Good luck.


Agree with this.
My Cards

Chase Freedom Visa Signature: $5.2K
Capital One Quicksilver Visa: $7.5K
Discover IT: $5.5K
Huntington Voice World Mastercard: $1.6K

In the garden indefinitely.

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Terry
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Posts: 119
Joined: Fri Sep 28, 2012 9:22 pm
Location: Texas

Postby Terry » Wed Jun 04, 2014 7:59 pm

OSBRanger wrote:Hi, this is my first post to the forum. I hope you all can help answer my questions.

I am new to credit. I am 21 and I have had a BoA credit card for 5 months. Today I was approved for an AMEX Blue Cash card.

Before I applied for this card my score according to CK was 734 and it dropped to 710 after inquiring about the Blue Cash card...

I am able to pay my balance in full each month and I spend no more than 30% of my limit.

What are some ways I can increase that score?

Does keeping my utilization under 30% help with increasing the score?

I am about to sign a new contract for my cell phone with my parents. I get them to put it under my name and pay the bill, will that help my score?

What other advice/tricks (if any) can I have to help?

Thanks


FICO high achievers will keep utilization at or under 7%.
AMEX Green Card - NPSL [Member Since 1995] ;)
AMEX Everyday Card ($25,000) 6/14 Backdated to 1995 - For 20% Extra Points Benefit
Chase Freedom Visa Signature ($17,000) - For 5% rotating categories
Citi ThankYou Preferred Visa Signature ($16,000) - 2% dining
Discover IT Humane Society Design ($16,500) - For 5% rotating categories
Firestone ($2,600) - For 0% financing
Home Depot ($10,000) - For 0% financing
JCPenney Credit Card ($7,000) - For special discounts
Sam's Club MasterCard - ($20,000) - 5% off gas at any fuel pump
Wells Fargo Personal Line of Credit - ($15,000)

FICO's - 767 EX, 778 EQ, 790 TU [02/2015]



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