Maxing my Credit Score?

Anonymous · ‎03-15-2015

A little background, i'm 20 years old with 2 credit cards at the moment I have a Kohls Charge with a 300$ Limit, and a secured Discover IT with a 200$ limit. I only have 3 months worth of credit history, so this question is for when I hit the 6 month mark and generate an actual FICO.

Should I add myself as an authorized user on one of my moms Capital One cards? she just got approved for it a few days ago and the limit is low, but i'm just looking for the biggest boost in my score possible in the next 3 months so I can maybe qualify for a card or 2 that I really want in june. Would adding a 3rd card to my credit report take my score down in the interim but benifit me in a few months?

sunkissed · ‎03-15-2015

I would not advise you to have your mom add you as AU on her card unless she intends to keep utilization low. If her credit limit is low on this card, she may have a harder time keeping utilization low. High utilization will not help you out.

Marths · ‎03-15-2015

Agree with what sunkissed said. What you could do is possibly try for a student card, or so in your own name. If you want one that has a marginally high acceptance rate you could try for Capital One Journey. It would probably be best just to get it in your own name so you only have to worry about your own spending habits.

265k FHA Home Loan @ 2.65%
19k Cap1 Auto Loan @ 2.65%

March 2019 - CK(TU-609, EQ-632),EX-590
May 2020 - CK (TU-673, EQ-666), EX-651
January 2022 - CK(TU-727, EQ-726),EX-704

Anonymous · ‎03-15-2015

About that, she was actually approved for 2 Capital One cards last week, so she'll have 2 cards each with 300$ limits. I'm thinking about taking her Capital One card that has no rewards and just using it for myself since my Discover Limit is so Low. I've been teaching her all about keeping utilization down and all of the basics you need to improve your score, but i'm still learning as well, which is why I'm asking here. In a perfect world with utilization being low and the statement being paid in full every month, is this benieficial? She's all for helping me short term so I can have a decent head start in the credit world.

Anonymous · ‎03-15-2015

Unfortunately i'm not a student, so I don't qualify. The only reason she has these credit cards is because I told her to get them so she can start repairing her credit. She really has no interest in using them all too often with the limits so low. I help her keep her finances in order, so her keeping the utilization high really isn't a concern for me. I have a 670 TransUnion and a 666 Equifax according to CreditKarma. I would love to qualify for a decent cashback card when I can actually generate a FICO. I hate using my Debit Card for everything, it's hard to keep track of all of my spending since money is in and out all the time.

sunkissed · ‎03-15-2015

Yes, it a perfect world adding yourself to one of her cards *may* benefit you. No guarantees. I still think it will be a struggle to keep utilization low on a $300 card. I have a $400 card. I used it and PIF, but the credit grantor (BoA) took their sweet time to report my updated balance to the CRAs. I’m not suggesting that Capitol One would do this. My point is, stuff happens. What you’re proposing will require pinpoint accuracy. In my opinion, it’s not worth the hassle. However, you may find that any potential bump is worth the hassle.

I would suggest you sit tight. Use your current cards responsibly. Keep your reported balances ultra low. Once you’ve established 6-12 months of perfect payments, go after a new card. Hopefully you’ll receive a credit limit you can use without making multiple payments to keep utilization in check. It just takes time. It’s frustrating to wait, but once it comes together for you, it will all be worth it.

This is just my opinion. Ultimately, you've got to do what's right for you. I'm rooting for your success regardless of the path you take.

Anonymous · ‎03-15-2015

Thanks for the input. If I wanted to I could tell her that i'm adding myself as an AU to her card and just take her origional card from her to use, she couldn't care less. She was approved for the QuicksilverOne card with 1.5% cash back and the Capital One Classic Platinum. The idea would be i'd take the Classic Platinum and just use it entirely for myself. But maybe i'll hold off and play it safe, but this 200$ limit blows. Thanks again!

JSS3 · ‎03-15-2015

Why not try for your own Cap1 card? They are good for builders and rebuilders. You can see if you're prequalified on their website.

Anonymous · ‎03-15-2015

I'm not prequalified for anything, unfortunately. my AAoA is only 3 months, almost 4. I'm just trying to set myself up for when I can actually Generate a real FICO in june.

I have 4 HPs on my report, I actually applied for a Cap1 card last week and was declined due to no credit history.

JSS3 · ‎03-15-2015

I had a thin file and couldn't generate a score. Took out a student loan 13 yrs ago. Closed in good standing. Then briefly had a $500 Cap1 card I closed. Never took out anything else so my history only started 2 yrs ago.

Jan 2013, tried to get a GE Amazon card and was denied(thin file).

Jan 2013, got a Fingerhut card 200 limit(I think)

Feb 2013, went to Cap1 and applied for Platinum $39 annual fee. Approved $500 limit.

Mar 2013
Went to Cap1 and applied for a Platinum $19 annual fee. Approved $500

After credit steps, $500 went to $3,500 on one and $750 on the other. Both upgraded to Quicksilver.

4 people I told about Cap1 had no credit history.
1 person bad history with fraud alerts on file.
1 person was only AU on mom's account. All appoved for either $300 or $500. All, except 1, applied for annual fee cards. The AU got $3,000 QS due to being solicited.