Do I need to open a credit card account to increase my FICO (use it sparingly and just to up the FICO score)?
If yes, which card is recommended or should I use my bank (M & T bank) for a credit card?
I have no credit cards, a paid-on-time student loan, and all other bills paid on time (no adverse actions) - yet, my FICO is stuck at 671.
The suggestion I received from my bank (M & T provides an Equifax FICO and Key Factors) is:
You might want to show new activity on any credit card. If you already have a credit card, you can do this by using it and paying it back on time. If you don't have a credit card, consider opening one. However, be aware that the credit inquiry associated with applying for a new card may lower your FICO score in the short term.
Starting Score: 671
Seems my score goes up once every three months, then gets stuck; I am going to go with the suggestion of a CC through M & T to drive up my score.
The two explained (score) negatives:
1) Short credit history (that will vanish November 2011);
2) No revolving account history
Thank you to all who responded!
@-Cain- wrote:
Sorry to also go off topic, but DI's post was from May. Haven't seen DI on the boards since late July/early August or so.
I did not even notice that, I just assumed it was a recent reply from DI since this thread was responded to recently, did not even look at the date 
Thanks -Cain- for bringing that to my attention, I hope he's OKAY.
Sorry OP for going off topic again.
Dear FICO forum members,
Care Credit (GE Money) is an interest-free period of six-months (depending on the agreement, some agreements extend upwards to three-years interest-free) to pay-off the balance or pay it with interest @ 27%.
I applied for Care Credit for expensive, emergency Veterinary treatment of a sick cat. The Care Credit limit was a lot more than the cost of the treatment (the "limit" thing gets me, why not just approve the cost of the treatment?)and this is where I am stumped. I was told Care Credit could be use for anything veterinary, medical, or dental -as long as the card was accepted (by the provider). No thanks; at 27% interest I would use a bank for loan or credit card if things came to that for a (human) family member. *
Care Credit is 27% interest after deferred (interest free period) no matter who you are or what your credit score.
Problem: My credut score dipped 40 points upon applying for Care Credit, and remained 40 points dipped for an entire month. My score has since gone back up but only 30-points. I'm missing ten points, and have not received any benefit (FICO wise) for using Care Credit despite paying more than the monthly amount, and on time. Care Credit is reporting I am paying on time AND also showing "deferred."
As of January 2012, I am on my third (out of six) months to pay, and have a $145 balance (I have paid more than the monthly amount to date).
My questions:
1) Why a fourty-point hit to my score?
2) Does Care Credit count as revolving credit; is it even a credit card? (I'm thinking this is more like a "loan," not a credit card). Even Care Credit / GE Money) won't (or can't) answer this for me. For purposes of FICO score, is it a credit card.
3) Should I just pay off the $145 and be done with Care Credit? I am thinking so , and certainly would not go all the way to the six-month mark.
Thank you!
CareCredit counts as a revolving credit account. You took a dip because of the inquiry and because of a new account. You will see a decrease any time you have a new account, especially if you have limited credit history. Once that CareCredit account ages a bit it will do nothing but help your score.
