05-11-2012 07:03 PM - edited 05-11-2012 07:05 PM
Hello, my current FICO score is around 650. What is the best way to raise my credit score?
The score is due to two things:
1. Poor payment history for 4 accounts between 2006 and 2008. This is 100% my fault.
2. Lack of established credit.
I currently have an HSBC CC, limit $300, with 2% cash back on all purchases. I use this card as much as I can to earn cash back.
I recently asked for a line increase from HSBC and was denied. I assume this is because the American CC accounts were just purchased by CapitalOne. I pay this card off the same day, or next day, after use.
I also have a secured CC from PNC Bank with a limit of $250. I was thinking about giving PNC $1000 to up my credit limit. Would this make sense? I never use this card because there are no perks.
I just applied for the PenFed cashback card that offers 5% cash back on gas purchases. I was declined due to reasons #1 and #2 above per the custome service representative.
I have paid off a car loan, 2 school loans, and mortage. All accounts were paid 100% on-time. All other household bills are paid 100% on-time. We are not currently carrying any debt and save around 45% of our income so we should be a strong candidate financially.
Is there anything that I can do or should I wait until 2015 when reason #1 drops off the report?
I did type up a letter to mail to PenFed's CEO but I'm not sure if this makes sense or not.
05-11-2012 07:57 PM
Keep paying your cards on-time and wait, or find someone with a long credit history to add you as an authorized user on one of their cards.
The household card will not give CLI if you request it when your balance is $0. I know because I have tried many times. The instant I left a decent balance on there and THEN requested CLI, I got it. Then I paid my balance. I don't think HSBC pays much attention to your use of the card unless you don't make your payments at all. If the statement balances are all $0 and you have $0 current balance, they see it as though "why would we risk giving more credit to someone who doesn't even use the card?"
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