Have two cards; want to get above 720

[Anonymous]

I have i credit card with a 8k balance, 21k credit limit. @ 6%

I am also an authorized user on my husband's card (which i understand does not effect my score like it once did?) He has a 18k limit with a 200.00 balance @ 9%.

What do you all think i should do to raise my score with regard to my credit cards?

I can't seem to get over 720.

edit: this post was split off from "How many CCs is considered Optimal for FICO Scoring?" to form its own thread. Only the subject line was edited to provide the new title.

Message Edited by haulingthescoreup on 12-26-2008 11:13 AM

[haulingthescoreup]

Which score is this --EQ, TU or EX? And I assume you're talking about a FICO score, not one that you got from TU or EX, or from a credit monitoring service. What negatives are listed on screen two of your FICO score report? That will give you a very good idea of where to head.

The FICO 08 formula was changed: authorized users will still get the benefit of the card on their history. However, there is some method they're using to determine whether the AU actually has a relationship with the primary cardholder, as opposed to strangers buying history.

That being said, you have two cards reporting for you. Your husband's card is in great shape. But the util on your own card is a bit high --almost 40%, and your total util is over 20%. I'd work on getting your own card paid down and off, if for no other reason than that your CCC might start rate-jacking you or dropping your credit limit. Banks are wanting their money back these days. Also, having both cards report a balance might be hurting as well.

The APR's are irrelevant for FICO scoring, btw, although obviously these low rates are good financially.

Do you have any lates or other derogatory items on your reports?

If these two cards are the only items on your credit report, then you're being hurt by having no real mix of credit. I suppose a retail (store or gas, no Visa, MC, etc. on it) might help. A third card in general would probably help. Do you and your husband have a current (open) mortgage, and if so, is it on your reports as well as on his? Do you have an auto loan or other installment loan reporting? Don't go get a loan for the sake of helping your mix, but adding a retail card might help.

Again, though, check the negative comments on the second screen of your FICO reports. In most cases, that's what's holding down your scores.

If you haven't already, please read Credit Scoring 101 and the myFICO PDF booklet called "Understanding Your FICO Score," both of which are linked in my siggy.


edited to insert new thread title

Message Edited by haulingthescoreup on 12-26-2008 11:14 AM

[Anonymous]

If you can get a gas or department store card (non-visa) that will help your credit mix.  As revolving charge accounts, they are in a slighty different category from Visa/MC/Discover (which are revolving credit accounts).  They will also help towards your overall UTIL (see the many threads on maxing out UTIL). 

As far as a particular dept store card, I like Macy's card (I live near one, and they're always sending coupons), but if you always stop at the same gas station, you might consider getting their card.

[RobertEG]

The 38% util on the one card is something you should address, and get it to under 10%.

Also, the number of cards reporting balances affects FICO scoring.  You now have 100% of your cards reporting balances each month.   Get hubby to PIF each month, and then get your own card below 10% util.  That will give you only 50% of cards showing balances, and an overall %util for all cards of under 10%.  FICO likes both of those.