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Established Member
GOALIS850
Posts: 38
Registered: ‎12-25-2012
0

What's next?

Hi I will be turning 19 in a couple of months and since I turned 18 I have been trying to build my credit. Background: I am a full time student and I work part-time making about $38,500 a year. I was approved for a car loan for about $18,750 about 4 months ago. Also, I was able to get the Journey CC from Capiltal one with a $300 cl about 5 months ago and just recently I was approved for the NFCU CashRewards with a $500 cl this month. Both of these credit cards are on my own name. I stay under a 30% utilization and also to never carry a balance. I recently signed up'd with credit karma and credit sesame which have been of great help. I have a 672 under CK. Finally, what do you think I should do next? I am not sure if I should just lay off apps for a while or keep going. What do you guys think? All advices will be very much appreciated!!! Thanks
Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011
0

Re: What's next?

Those services are cool to see use but do you have your REAL Fico scores and not FAKO?  Knowing that can help people give you more advice.

 

Also if you get your util down to less than 10% showing on only one card your scores will increase.  


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: What's next?

I don't see the need for a FICO score to give advice on this. 

 

I would say hold off on applications for a little while. Your credit limits are low, so lenders don't appear to have a lot of confidence in your current income and credit history. Any applications you do now will likely continue that trend. I would suggest trying to wait as long as possible to app for another card (another 6 or 7 months to get that first unsecured card up to a year old. During that time, think of a plan for what to apply for next. At that time maybe you can get a higher credit limit by showing that you are committed to paying your bills on your car loan and CCs. 


In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Established Member
GOALIS850
Posts: 38
Registered: ‎12-25-2012
0

Re: What's next?

Thanks Rhaeny!!!! One question: So can I have more then 10% uti on my other cc? or is it on both?

Established Member
GOALIS850
Posts: 38
Registered: ‎12-25-2012
0

Re: What's next?

Thank you Snack Trader!

Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011
0

Re: What's next?


GOALIS850 wrote:

Thanks Rhaeny!!!! One question: So can I have more then 10% uti on my other cc? or is it on both?


Well for the BEST score advantage, only one card should show a balance of less than 10%.  The closer you get to 1% on one card is the sweet spot where your scores will be at the highest it can be for your current situation.  However, the most ironic thing is that if all of your accounts report out at a zero balance you take a ding for that as well.  Strange isn't it?  But its the truth.

 

So lets just make it easy.  When the time comes that you are ready to apply for something else, make sure that one of your cards report a zero balance and the other reports say 1% to 3%.  Find out when your credit cards report to the CRA's and what balance they report.  Some companies report the statement balance and others have some obscure date.  Once you find out that date then you must pay down your balance to zero by or before that date.  I would do this about a 2 months before (or if you get really good at it, it won't take anything but a month...LOL) you are ready to app.  That way you are in a position of having your highest possible score when you apply.

 

That is the only time you really need to worry about paying like this.  When you are not applying anywhere just pay your bills on time.  Speaking of paying bills on time, I'd like to offer you a tad bit of advice.  It is something that I do as old as I am...LOL!  I have all of my CC's setup to make the MINIMUM payment automatically at each cards website.  I do this because as you start to grow your credit, there are times when you might just forget that a bill is due.  This prevents that dreaded late payment,  a nose dive in your scores and a 7 year punishment because that's how long that late payment will be on your reports.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Established Member
GOALIS850
Posts: 38
Registered: ‎12-25-2012
0

Re: What's next?

Ok awesome! Thanks for all he info! So are you saying that I dont need to worry about my util if I know I won't be applying for anything soon? Or should I still keep it under 30%? If one month I go over the 30% and lose a few FICO points can I recoup them the next month by keeping my util under 10%? and finally wouldn't it be better to have both cards reporting a util of 1% instead of 0% and 1%? Again thanks for all your help!

Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011
0

Re: What's next?

[ Edited ]

GOALIS850 wrote:

Ok awesome! Thanks for all he info! So are you saying that I dont need to worry about my util if I know I won't be applying for anything soon? Or should I still keep it under 30%? If one month I go over the 30% and lose a few FICO points can I recoup them the next month by keeping my util under 10%? and finally wouldn't it be better to have both cards reporting a util of 1% instead of 0% and 1%? Again thanks for all your help!


Everything you said is spot on except the red.

 

In response to the red comment.  No...one card and one balance less than 10%, preferably at 1% for YOUR MAX potential score.  You can test it out yourself to see how Fico fluctuates.  Let one of your cards report at zero and one at 30%, the next month let one of your cards report zero and one at 10%, and then the next month 1%.  The proof is in the pudding.  

 

I will say this though, 1% reporting on both of your cards is not a deal breaker for a score typically, meaning that I don't think that typically it makes a huge difference (1% on all cards).  But the problem may lie in the fact that you only have 2 cards so it may hit you harder.  Again, all you have to do is test and you will find out how it will work out for you.  For me it might make a difference of less than 10 points but that could also mean the difference between an approval or denial or max reduction in apr or CLI.  

 

 


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: What's next?

[ Edited ]

Rhaeny wrote:

GOALIS850 wrote:

Ok awesome! Thanks for all he info! So are you saying that I dont need to worry about my util if I know I won't be applying for anything soon? Or should I still keep it under 30%? If one month I go over the 30% and lose a few FICO points can I recoup them the next month by keeping my util under 10%? and finally wouldn't it be better to have both cards reporting a util of 1% instead of 0% and 1%? Again thanks for all your help!


Everything you said is spot on except the red.

 

In response to the red comment.  No...one card and one balance less than 10%, preferably at 1% for YOUR MAX potential score.  You can test it out yourself to see how Fico fluctuates.  Let one of your cards report at zero and one at 30%, the next month let one of your cards report zero and one at 10%, and then the next month 1%.  The proof is in the pudding.  

 

I will say this though, 1% reporting on both of your cards is not a deal breaker for a score typically, meaning that I don't think that typically it makes a huge difference (1% on all cards).  But the problem may lie in the fact that you only have 2 cards so it may hit you harder.  Again, all you have to do is test and you will find out how it will work out for you.  For me it might make a difference of less than 10 points but that could also mean the difference between an approval or denial or max reduction in apr or CLI.  

 

 


This is mostly correct.  1% isn't the best for everyone.  Some people find their absolute max at 2% or 7%, etc.  And there are some people that can have balances on more than one card and not see a difference.  In general though, only letting one card report and having it report 9% or less of that card's CL (not total CL) gives the best results.  Where the sweet spot is, from 1% to 9%, really varies by individual report.  But you're talking about only a few point difference at that point. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Established Member
GOALIS850
Posts: 38
Registered: ‎12-25-2012
0

Re: What's next?

Awesome! Thanks Rhaeny! One last question I was looking at my credit report and it shows whats the highest balnace that I've had througout the month even if I pay in full every month. Will it look bad if in a month that I know I won't be apping if a card with a 1000 limit reports 900 as highest amount used? I always pif every month.


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