Tips on increasing a stable credit score.

[lincar66]

I agree Ishould have went into more detail as to why I said to go on an app spree.   I apologize Deadlypersona.

The reasons I say to go on an app spree is....

1.Thin file (you need to add some cards to show your ability to manage multiple account)

2.You have no recent inquiry's.

3.The best time to get credit is when your not in need of it.

4. If you add amex and say 2 or three other cards your AAOA would become invincible. 

5. Let all accounts age at once.(amex backdates)

6.by the time you actually want a specific credit card you will be in great position.

Is that a good enough list of reasons as to why I say go on app spree

[MarineVietVet]

Please stop the squabbling.

Out of respect to the OP take it to PM's if you have a problem with someone.

[Anonymous]

I would agree with the suggestions to add more tradelines now - especially an American Express. I would recommend the Everyday Credit Card or one without an annual fee. Just use any new card once every few months. The reason adding additional credit cards now is to help you maintain a stable score later in life when it's more important like when you have a family or want to buy a home. Your AAoA makes up roughly 15% of your score.

You didn't give the age of your accounts so some assumptions will be here but say your 'Retail' (Walmart) account is 2y0m, your 'Bankcard' (CC, Chase Amazon) is 2y0m and your installment is 3y0m. This makes your AAoA 28m (2y4m). If you were to now add an AMEX and another credit card it would reduce it to 16.8m (1y4m). Then in 5 years if you got no new accounts it would then be 6.4y. However if you were to wait 2 years before you added 2 new cards then in 5 years your AAoA would be 5.6y.

Once you have an AMEX any new account will them will be reported as the month you opened the new account and then the year from your member since date. This is the only card issuer that does this. This helps soften the blow new accounts have against your AAoA. By having a thin file (few tradelines) new accounts could have a big effect on your score when new accounts report.

I wish I could of played it different and I would of added more accounts sooner in life. I just added 6 new accounts in the past 4 months and my AAoA went from 4y+ to under 1y and reduced my scores by 50-80 points each. It would be even lower, although FICO has a floor at 1 year, if I hadn't gotten serveral small secured personal loans 5-6 years ago - wish I had gotten more.

I would go even further to suggest getting at least one but thinking long term as many as you can taking out a small personal loan of $500-$1000. This is kind of two fold as it will help your credit mix which is 10% of your score, thicken your file and help in the future protect your AAoA. In the short term it would lower your score but as your not really looking to get an auto loan or mortgage soon it doesn't really matter. You could get these loans secured without a credit check even from some CUs. There's even a type of installment loan called a Savings Secured (I think) where basically your building a savings account with monthly payments then at the end you get the money you paid. I personally would go big here and get two for 2-5 years term or get a couple for 8-12 month terms then once there done rinse and repeat.

Since you don't need credit which is great you should research possible cards that could benefit you now and have your credit work for you. Some cards have some nice signup bonuses.

Good job so far building your files!

[Kraner]

markrexh - thanks for the in depth response.

So if I do decide on an amex it is alright to use it just a few months out of the year?

I started my credit with the installment loan on a $1000 Certificate of Deposit. I have enough cash on hand do it again, but haven't pulled the trigger because the $1.33 I 'made' by letting it sit there for two years really wasn't worth it.

[gdale6]

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@Kraner wrote:

markrexh - thanks for the in depth response.

So if I do decide on an amex it is alright to use it just a few months out of the year?

I started my credit with the installment loan on a $1000 Certificate of Deposit. I have enough cash on hand do it again, but haven't pulled the trigger because the $1.33 I 'made' by letting it sit there for two years really wasn't worth it.

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You would want to use any credit card at least once every 90 days to make sure it stays active and having the bulk of your use over a few months of the year isnt a problem that I can see.

[Kraner]

Well, I made the decision to go with the Amex Everyday Card and got approved for a $3000 CL. I'm going to go for that $1000 to get 10,000 points in the first 3 months and just keep it around for the future AAoA benefit.

[lincar66]

Don't forget your 3x CLI 

[Anonymous]

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@Kraner wrote:

Well, I made the decision to go with the Amex Everyday Card and got approved for a $3000 CL. I'm going to go for that $1000 to get 10,000 points in the first 3 months and just keep it around for the future AAoA benefit.

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+1 for amex. I was wondering what your APR for chase is?

Also Like someoen said do your 3x credit limit increase.

I'm surprised no one mentioned Sallie Mae card ? They have 5% on amazon
and other stuff. Sallie Mae is Barclays which would hit your TU whereas Amex
hit your Experian (So you are spreading HP's across)

+1 to Gdale! I didnt know this! :

"You would want to use any credit card at least once every 90 days to make sure it stays active and having the bulk of your use over a few months of the year isnt a problem that I can see."

[lincar66]

Now that you say it he could add 3 accounts and only take a HP on each bureau and be set for a long time to come any strict eq pullers??????

[Anonymous]

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@lincar66 wrote:

Now that you say it he could add 3 accounts and only take a HP on each bureau and be set for a long time to come any strict eq pullers??????

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that is exactly right and to my knowledge I am the *only* one that I have ever seen bring up this very easily doable 
matrix.

This is what I did.

PenFed - EQ (be careful they pull at membership apply, not at CC app)

Barclays  TU. NO (it needs to be clean)
Amex - EX