@JoshNurse wrote:He said he has about 10 cards. Each card has an automatic recurring payment to it. For example (netflix, auto insurance etc...)
The cards pay themselves in full automatically every month. He uses 1 card (Amex Gold Card) to make his restaurant, entertainment spending). Again paid in full each month.
He also said he gets 1 new installment loan (personal loan) every year. He gets the loans for about $5000+ using different lenders. He pays it off in 3 months. He doesnt need the $5000 just does it because of his FICO addiction.
He has not applied to any cards for over 2 years.
He has over $100,000 in open credit and utilization is 1% at most.
Now what do YOU do to raise your fico to over 800?
Well at the start of my credit journey I think my score was 620, of course this was the first time I ever got my score so it could have been lower or higher when I first started out.
When I met my now husband we decided shortly thereafter that this looked like it was going to be a forever thing, so before we combined our financial lives we sat down with both of our credit reports and all of my debts (I had a bunch of small outstanding debts and bad credit over the years). We contacted each company and offerred to pay. Slowly, very slowly those now paid accounts left my CR. From 2001-2010 I had no credit in my name, I just paid off every bad mark and let my reports catch up and then I kind of ignored the situation and paid for everything with cash. I forget why but I needed a credit card so in 2011 I went to my bank and applied for a secured card,it unsecured after one year and has grown steadily since.
That's the backstory, here's what I do now to keep my score up;
I have digital magazine subscriptions, those go on my Barnes and Noble card, I always PIF.
My month to month bills (cable and phone) are paid on my BofA card (though I must confess, I forget and sometimes pay on debit). Always PIF
My random charges have now gone on my AMEX, I charge about $35 on each card so I'm sure this one will end up being about the same. My statement balance was $5.40 when I first paid it!
On each card I charge $30-150 a month TOTAL, I don't charge and pay it off and then do it again, I am frugal so yes I really only charge about $30 on each card in a given month and always PIF. This month is a little wonky because my new cards have different statement dates, but I should have it down to a science by next month. At most my cards report at about 3% usage. I am not a stickler for letting a certain amount report nor do I worry about statement dates, I just pay close to the end of the month in full.
Now I have tiny balances,that's not a possibility for many of you, but I think if you PIF or even pay twice a month to keep the reported balance down you'd have similar results that I have.
So in short:
I cleaned up my credit reports
I only applied for credit I actually needed
I ignored store cards and went the secured route (with the exception of Target because I actually shop there)
I always PIF
Hope that helps.
Edit to add: I only use credit cards, I do not have any sort of installment loan or car loan in my name. The mortgage however is in both of our names, hubby had the house when I met him and when he refinanced my name was added, it doesn't show on my CR though
