No FICO score to $8000 CL in 7 months!

[fast_times]

An update:

After having my first three credit cards that I'm primary on, for a year, I applied and was approved for an AmEx Blue Cash card with my highest limit yet of $9600.  A couple of months ago I also got an instant CLI on my Citibank card increasing from $4000 to $6000.  My total available credit is now $19,100 after two years.  Again, I started with a completely blank credit file, and started the ball by getting added as an AU to two long-standing clean accounts.  My FICO seems to be stuck a 750 for some reason, and I'm trying to figure out what my next move might be to push me to 780 or so.  I may add a secured personal loan to increase my mix of credit.  Would cost me only 1% interest at my local Credit Union (and no credit pulls at all).

Summery of my accounts to date:

AU on BofA CC $12,500 11/1975 (added as AU 1/2011)

AU on CapOne CC $14,000 8/2003 (added as AU 1/2011)

Cap One Rewards $750 9/2011

Chase Freedom $3,500 11/2011

Citibank Dividend $6,000 (stated at $4,000) 11/2011

AmEx Blue Cash Everyday $9,600 11/2012

AU works, so don't give up!

PS: Citibank gives out CLI online with a soft-pull, so the +$2000 CLI didn't even cost me an inquiry.  Haven't tried CLI on my other cards yet, because I'm saving hard pulls for new accounts.

[tennisfan78]

wow, that is great. Congrats!!!

[distantarray]

I always told people Chase likes AU's =p but people keep saying it doesn't work ;\ but from my personal experience and yours seems like they factor in AU's just fine. But instead of the dividend I think you should've got the Forward, but atleast you can change Dividend to World ELITE mastercard in 6months to 1 year =) it's the only elite mastercard option (you have to ask) with no annual fee that I know of =)

[calihlove75]

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@PetRaccoon wrote:

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@fast_times wrote:

Keep at it.  If at all possible, find someone(s) that will add you as an AUs.  The instant history will really speed up the process.

I never worried about credit before, choosing to pay cash.  I hate paying interest.    When I recency bought my home, I paid cash in full so figured who needs credit?  But I realized I was passing up too many opportunities not being able to demonstrate credit worthiness.  Even things like homeowners insurance rates are influenced by FICO.  And, also I might actually need a home loan one day. (heaven forbid)  Plus, I realized as a cash customer, I was subsidizing those that used credit cards to make purchases, with higher prices, with nothing in return.  So, if you can't be 'em, join 'em.  I'll use the free perks and the banks won't see a penny of interest from me.  That's the plan anyway.   Good luck.

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Does that instant history really work? Just wondering, cause I was considering asking my dad about adding me to his 10+ yr accounts and just sticking the card in his drawer just so I could raise my credit score.  Hes a bit paranoid like I am, but if he has the physical card and the number is the same I don't think he'd worry too much.

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It did with my son. He kept getting denied for credit for having no history. I added him to one of my cards that only had 8 months history and he was approved for walmart, amazon, and cap one. It did not work with discover or barclays but the others were instant approvals for him., It does work!. He has had the same job for 2 years so he has alittle income..maybe 13,000 a year

Of course, I cut up the card I received from Chase for adding him as a authorized user. I love him, but not going to share my account with him..lol

[fast_times]

My new AmEx BCE finally reported to the CRAs.  Just checked me FICO with TU and it's jumped to 764.  Finally in the top teir.

All I have on my reports are CC accounts.  Next year I'll get a small secured personal loan to add to my mix of credit and hopefuly push my score to 780+.  Once I finally hit 780 I'll be done with my active score-building.

[espnjunkie]

while being added as an AU can certainly help get a person started, I would still urge caution. That credit history was given from another person, not earned, meaning the AU still needs to learn and demonstrate responsible use of credit before taking on too much. You also run the risk that the account you are an AU of goes bad for whatever reason.

It's not too difficult to build credit for yourself from scratch with responsibility. The AU way isn't wrong per se, but having to build it yourself really teaches an understand of how to both build and maintain your own credit.

Just be mindful not to take on more than you can handle, pay off everything in full each month whenever possible and never be late!

[fast_times]

IMO, it's silly to make building up your credit take years longer than necessary.  There is no down-side to being an AU.  IF the AU account goes bad, it only takes a call to be removed from the account and the account data is completely removed from AU's reports.  You lose any benefit from the account, but no residual damage done to your CR. 

I am building my credit by myself.  The AU accounts just gets the ball rolling.  No need to start with worthless starter cards with predatory fees, toy limits, and no perks.  The way I see it, being added as an AU says you have been "per-approved" by another responsible user of credit.  The theory goes that if you know responsible people that will add you as AU, you are probably also responsible.  Same for someone being added as AU to an account with lates-- the AU is probably also a less than perfect user of credit.

If someone can't handle credit, being an AU won't help much, because they'll just get lates/default after receiving their first card approval anyway.  Most people here are serious about (re)establishing credit and probably wouldn't make these mistakes.

I personally have never needed credit of any kind.  I bought everything I own, including my house and vehicles in full with cash.  Unfortunately, more than just an approval for a loan or credit card hinges on your credit score-- from insurance rates to job offers.  This was the reason I've bothered to take the time to establish a credit report.  The free money from rewards is a nice bonus.

AU accounts are the most powerful tool in the task of starting a credit file.  It's less useful in re-establishing credit when someone has already damaged their credit.  When they have served their purpose, AU accounts can be completely removed with a phone call.