Rebuilding Your Credit

[missmoney-bags]

I was looking at what I could do to improve my score and it said  THE AMOUNT OF NEW CREDIT:  NOT GOOD.  I have two cc's, BOA is 8 yrs old. been paying on time for the last two years.  Cap 1 is 14 months old, pay on time and keep under 100.00 bal. (500 limit).  My car is paid off, dont really want a new one until I have a full time job. So do I really need another cc or maybe try for a furniture store acct.?  whats the best way togo?  I really dont want another piece of debt just to look good on paper.  My ultimate goal is own a house again, after my FC wipes away and I have a feeling saving your pennies for a down payment wont be good enough.

[MarineVietVet]

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missmoney-bags wrote:

I was looking at what I could do to improve my score and it said  THE AMOUNT OF NEW CREDIT:  NOT GOOD.  I have two cc's, BOA is 8 yrs old. been paying on time for the last two years.  Cap 1 is 14 months old, pay on time and keep under 100.00 bal. (500 limit).  My car is paid off, dont really want a new one until I have a full time job. So do I really need another cc or maybe try for a furniture store acct.?  whats the best way togo?  I really dont want another piece of debt just to look good on paper.  My ultimate goal is own a house again, after my FC wipes away and I have a feeling saving your pennies for a down payment wont be good enough.

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I agree with this 100%! Don't go into debt just for a few points.

With your two CC's try this approach: let only one of them report a small (<9% of credit limit) balance each month and them pay in full before the due date. On the other one try to always let it report a zero balance on each statement. That doesn't mean you can't use it just make sure you have it paid down completely a few days before the statement posts.

See if this will cause an increase in your score. That way you have no need for new credit until you decide the time is right.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[missmoney-bags]

Would my student loans count for lines of credit?  As long as they are paid on time?

[MarineVietVet]

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missmoney-bags wrote:

Would my student loans count for lines of credit?  As long as they are paid on time?

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Student loans are considered installment loans not revolving credit. Is that what you're asking? Since revolving credit is generally unsecured the creditors are taking a bigger risk so the scoring for responsible use of revolving credit is much more important than installment credit.

That's why getting CC utilization low and keeping it low is very crucial.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Carbusys]

You do not need more new credit. I think you mis-understood what the credit report meant when it said "The Amount Of New Credit: Not Good." It means you are getting dinged because you have too much new credit and not enough established credit, although you said you have only two ccs and one is fairly new and the other is over eight years old.  Are you sure nothing else is showing on your credit reports?

[Carbusys]

By the way, don't ever apply for new credit unless you really need it.

[fused]

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missmoney-bags wrote:

I was looking at what I could do to improve my score and it said  THE AMOUNT OF NEW CREDIT:  NOT GOOD.  I have two cc's, BOA is 8 yrs old. been paying on time for the last two years.  Cap 1 is 14 months old, pay on time and keep under 100.00 bal. (500 limit).  My car is paid off, dont really want a new one until I have a full time job. So do I really need another cc or maybe try for a furniture store acct.?  whats the best way togo?  I really dont want another piece of debt just to look good on paper.  My ultimate goal is own a house again, after my FC wipes away and I have a feeling saving your pennies for a down payment wont be good enough.

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I'm not trying to be a mean person, but I wouldn't apply for more credit without a full time job.