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llecs
Posts: 32,880
Registered: ‎08-04-2007
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Re: International Student - What can I do to improve my credit?

[ Edited ]

HiLine wrote:

Good advice, but hasn't FICO recently stopped considering AU accounts in their scoring model?


No, AUs are fully counted. At one point they made an announcement that they would limit AUs after pressure from lenders. Many lenders were experiencing heavy losses because borrowers would artifically prop their reports with purchased TLs, and then would default after borrowing money. FICO made a move to stop that by limiting AUs on the newest FICO versions only (hardly anyone are using them now so it probably wouldn't matter anyway). After a review of the Equal Credit Opportunity Act, FICO backed away from that AU claim for fear that spouses without any credit could be harmed with this change. AUs are scored in the newest versions. Lenders can still decide though who or what they allow within the reports though. There are some examples in here of mortgage lenders asking borrowers to remove AUs.

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HiLine
Posts: 2,870
Registered: ‎10-19-2012
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Re: International Student - What can I do to improve my credit?


llecs wrote:

HiLine wrote:

Good advice, but hasn't FICO recently stopped considering AU accounts in their scoring model?


No, AUs are fully counted. At one point they made an announcement that they would limit AUs after pressure from lenders. Many lenders were experiencing heavy losses because borrowers would artifically prop their reports with purchased TLs, and then would default after borrowing money. FICO made a move to stop that by limiting AUs on the newest FICO versions only (hardly anyone are using them now so it probably wouldn't matter anyway). After a review of the Equal Credit Opportunity Act, FICO backed away from that AU claim for fear that spouses without any credit could be harmed with this change. AUs are scored in the newest versions. Lenders can still decide though who or what they allow within the reports though. There are some examples in here of mortgage lenders asking borrowers to remove AUs.


That's great news! Thanks for the demystifying!!!

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jamie123
Posts: 782
Registered: ‎03-22-2012
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Re: International Student - What can I do to improve my credit?

I would suggest you apply for a Walmart card at the end of this month. Make sure that you have 6 months history with your Wells Fargo card before applying. Walmart might start you out with a really low limit but they are really great with automatic credit line increases. You also get a free TU FICO08 score after signing up for electronic bill pay.

 

I would also suggest that you apply for a Captal One (Journey) card after the Walmart card. You should easily be approved as long as you have that 6 month history with Wells Fargo.

 

You have a VERY thin file and the sooner you get more good credit reporting the better.

 

Once your Wells Fargo card turns 1 year old, apply for a BoA 1-2-3 Rewards card and a Chase Freedom card.

 

Good luck!



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