I am trying to rebuild my FICO score. I know time will be my better friend, but this is going to be a hobby in the meantime. I am not really in need of any big purchases soon as I already have a home, AND I will not finance any vehicles (I think). Our budget is fine otherwise since rebounding from disaster several years ago.
I made the apparent mistake years ago of closing all CCs out of frustration. So my EQ shows "There is no recent activity on your revolving accounts" as one of my score downfalls. I also want to drown out some of the baddies that wont fall off for a while with current lines. So, I applied for a Cap1 a week or so ago and got an instant 1k cl. This new card is my only CC. I have already paid most of the 39 annual fee and left a 4 dollar balance. I plan on making very small transactions and leaving a very small balance every month as I am normally a cash only person. I have only one inquiry on my reports, and a 12 yr AAoA showing, however, TU shows only 10 yrs. I am feeling like maybe I should try another app or two, but I don't want to push it. Any advice on how many I should get without inquiries or AAoA hurting the score too much? I was even thinking of the Walmart card for the monthly fakeo score. I don't Walmart, but I do have a Sam's Club membership and I think the Walmart card works there. Thanks for any advice
Walmarts cards give you the actual TransUnion FICO score, not a FAKEO score.
Personally, I would recommend applying for as many reward cards as you can (that you need, and will use) if you aren't applying for any loans or mortgages any time soon. This is because you can get all of the credit cards that you want now and within 1 year all of these inquires will fall off together, hence boosting your credit score and helping you save money in the long run.
I agree, I would stick with cash if thats what got you where your at now. FICO likes 2-3 cards reporting so if your still interested in giving credit another shot id go for an everyday rewards card that will fit your spending habits. Wait at least 6 months before applying.
I would be cautious about going out on an app spree with your current baddies showing. I agree with LS for the most part and think you should give your Cap 1 time to age and show your current level of responsibility to creditors. Just having that one card report should help your FICO.
Your primary goal for an ideal FICO should be to prepare for those baddies to fall off. Perhaps add another card or two before the baddies fall off (slowly, and without excessive inquiries), and then do not add any inquiries for a year before the baddies fall off (if you can avoid it). Then, when that last baddie falls off, go for the gold! I bet your score will be through the roof at that time.
Thanks for replies. I went with the two cards (Cap1 and Walmart). Two inquiries now with the two new cards and I will just utilize them monthly, without the interest rates being a factor.
I also feel you should apply for a card at your bank, this way you can pay with your credit card and show some utilization, and pay whatever you charge weekly or bi- weekly from your account. I'm at US Bank and I can pay from either of my checking or savings accts. to my credit card via balance transfer thru their website. The transaction is immediate so it theoretically is like paying with cash...