Reply
Valued Member
wim
Posts: 33
Registered: ‎05-11-2012

Hello - Need Help Establishing Credit or do I wait until 2015?

[ Edited ]

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.

 


Thank you,

wim

_________________________________
PNC Secured $2,500 | Discover More $1,200 | US Bank Normal $500 | HSBC 2% Cash Back $300

Transunion 658 | CreditKarma 657 | CreditSesame 673
Community Leader
Valued Contributor
DaveSignal
Posts: 2,044
Registered: ‎07-29-2011

Re: Hello - Need Help Establishing Credit or do I wait until 2015?

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?"

EX:694 TU:745 EQ:701
Barclays Arrival $6.5k - BoA Travel Rewards $15k - SDFCU EMV $15k - NFCU goRewards $20k - CSP $5k - Amex ED $19.5k

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+