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Looking to boost first FICO score

Senior Contributor

Re: Looking to boost first FICO score


DavioKanuri wrote:

Well, I'd be looking @ a secured card if I were you. Try the Secured Visa® Card from First National Bank of Omaha. It has a variable 18.99 APR with no fees @ all.


IMO, APR should be the last concern of someone just starting out in the credit world.  Why?  Simply because they should be focusing on adopting sound credit behavior out of the gate, which involves paying in full every cycle.  When one does that, APR is irrelevant.  Pointing toward APR (suggesting it's "good" or low) only suggests to someone that it's acceptable to carry a balance, something they shouldn't get in the habit of doing when first starting out.

Message 11 of 17
Valued Contributor

Re: Looking to boost first FICO score


BrutalBodyShots wrote:

DavioKanuri wrote:

Well, I'd be looking @ a secured card if I were you. Try the Secured Visa® Card from First National Bank of Omaha. It has a variable 18.99 APR with no fees @ all.


 Simply because they should be focusing on adopting sound credit behavior out of the gate, which involves paying in full every cycle.  


100X this.

 

I wish someone taught me young that credit works best as a money making tool and not a way to pretend to have more money than you do.  Since I learned this, I haven't used credit for any depreciating asset or paid interest and just use credit for building wealth versus losing it.

 

If you can live on debit cards, you can use credit cards the same way and accumulate wealth versus using debit cards.  I can't believe how much money I've left on the table in 20 years, plus how much I paid in interest on depreciating assets.  Literally would be millions of dollars now had I used credit wisely for the first 20 years of adulthood.

 

Now my credit cards are used like debit cards: I charge, I PIF.  If I can't afford to PIF today, I don't charge it today.

FICO8FICO8Visit my posts:
03/1712/17My 11 Rules to Credit RebuildingFree FICO Scores!
550EX
570TU
559EQ
710EX
701TU
734EQ
FICO alert: why did my credit score drop???
Message 12 of 17
Contributor

Re: Looking to boost first FICO score


Seezer wrote:

I made a few topics about new credit, but I am looking to build my first FICO score. My Vantagescore is 675, but it is essentially useless. I do not have a FICO score yet. I have 1 capital one quicksilver card with a very low CL. I have been reading that it is advisable to have 3 credit cards. Now, I don't want inquiries to lower my score. But since I already have a Capital One unsecured card, would it be beneficial to get a capital one secured card as well? 


Why? Credit scores are a tool to be used.  While a high credit score is a better tool, if you want to save points for the purpose of saving points, it's like digging with your hands so your shovel doesn't get muddy.

 

Unless you have a specific need for a higher score at a specific time, it shouldn't matter too much what your score is between uses. Especially if the loss of a few points today means a higher score 6 months from now, or a much higher score 2 years from now.  Think of it as investment.  You can't sell a stock for 100 monies if you didn't first buy it for 10 monies.

Message 13 of 17
Senior Contributor

Re: Looking to boost first FICO score


Kree wrote:



Why? Credit scores are a tool to be used.  While a high credit score is a better tool, if you want to save points for the purpose of saving points, it's like digging with your hands so your shovel doesn't get muddy.

 

 


Great point and well put.

Message 14 of 17
Established Member

Re: Looking to boost first FICO score

What is a good shared secure loan to apply for? Like with what bank, or company? And it's a secured loan, so I should automatically be qualified right?

Message 15 of 17
Established Member

Re: Looking to boost first FICO score

My utilization is at 5% right now. Why should it be 1-8% before applying for shared secure loan?

Message 16 of 17
Senior Contributor

Re: Looking to boost first FICO score


Seezer wrote:

What is a good shared secure loan to apply for? Like with what bank, or company? And it's a secured loan, so I should automatically be qualified right?


9 times out of 10 the suggested source is Alliant.  That's the suggested one in the SSL technique thread and the most commonly used among forum members here.  There are plenty of other options though, I'm sure, such as your local CU or whoever you have a current account with.

Message 17 of 17