Hello, Thank You, and Advice Please

[Anonymous]

Good morning. First, I'd like to thank everyone for all of the help you've given me so far. I've been reading everything and decided I'm at a point that I'd like to keep learning and participate.

Before I had a daughter, I was a Small Business Banker for a large regional retail bank, so the idea of most credit basics are not foreign to me...but good credit is!

I messed up several credit cards in college and could never rebound. I'm 35 now and tired of relying on my husband's good credit. We own a home that is mortgaged in his name only.

After going for what seems like forever with no credit of my own, I finally got my head out of the sand and pulled my credit reports using annualcreditreport. There were 3 medical collections. I got 2 deleted through the CRAs as they were actually paid by my insurance company, but not until they had been sent to collections. The last one was actually mine. It was for $110 and was owned by IT Systems. I arranged a PFD and if I'm to trust them, it'll be removed in 30 days.

Within the past month, I've opened a secured Amex with my bank, USAA ($250) and a Children's Place store card through Comenity ($250).

Basically, after the IT Systems is deleted, I have brand new credit. At this point I don't even have a FICO score. I understand that will take about 6 months.

I'm looking for big picture advice. Next May, we will be moving from FL to Wisconsin because my husband's company is offering a deal that's too good to pass up. After renting for a year or so, if really like to be on the next mortgage.

I'd also eventually like to have credit cards with decent limits. Not to spend like crazy, but for rewards.

Thank you again. You all are awesome.

[DollyLama]

Hi and welcome to myfico! forums

     My husband was in the same boat, I almost was there myself. He had no FICO score, only thing on his reports was a loan that had been paid off about 8 years ago. I put him as an AU on 2 of my credit cards, 1 card that was carrying a zero balance, and the other that I had a balance. I waited till it hit his reports, as the payment history was reported to his now. Then I went on Capital One Find My Offer, and he was approved for the Quicksilver One $1k unsecured, this is my next step for him that is often mentioned on the boards for the credit mix (10% of score, revolving and installment) the Shared Secure Loan through Alliant. http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu... . Once this one starts to report and CLI in 6 mos, I will probably try him for a Discover IT- they like thin files. Until I can get him 3 decent cards, then I will remove him as AU off my cards. I will make sure only 1 of his cards will only let a balance hit at statement cut with small utilization. Rest will be PIF before statement cuts. Hopefully your AMEX will graduate to unsecured and offer CLI, and the comenity one may also do a soft pull on your other card in 6 mos-12 mos for a CLI increase also. Since you thinking a year or more in the future, you will be in good standing for the mortgage. 

[Anonymous]

My advice, as a current Wisconsin resident to you, is to make sure you have a warm winter coat  

As far as credit advice ... use what you have now, make sure hubby's credit remains in good standing. That's important. Wisconsin is a community property state, so getting a mortgage, dealing with debt, anything like that, is complex. If you're both in good credit standing, it's much easier. 

You have a perfect plan for renting first, then buying .... just keep your credit moving upwards and you'll be fine  

[Anonymous]

Thank you both!

Yes, I know it's a little crazy for a FL native to be moving to Wisconsin. The furthest north I've ever lived is Tallahassee when I was in college.

I've thought about adding myself to my husband's cards as an AU, but I'm not sure that's a good idea. He travels at least once a month for work and uses his own cards for flights, hotel, car, food. Then as soon as he gets back and submits his expenses, his company direct deposits all of it back into our checking account. So I worry about the UTL % during that week and a half or so. If that's when the statement cuts, that might be bad for me. Am I right?

How long should I wait to perhaps apply for a third CC? My USAA card will never graduate. But I'm trying to build a credit relationship with them, especially for the mortgage.

@jjking54, we would be moving to Janesville. Is that close to you? Any insight?

Thanks!

[Anonymous]

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@Anonymous wrote:
Thank you both!

Yes, I know it's a little crazy for a FL native to be moving to Wisconsin. The furthest north I've ever lived is Tallahassee when I was in college.

I've thought about adding myself to my husband's cards as an AU, but I'm not sure that's a good idea. He travels at least once a month for work and uses his own cards for flights, hotel, car, food. Then as soon as he gets back and submits his expenses, his company direct deposits all of it back into our checking account. So I worry about the UTL % during that week and a half or so. If that's when the statement cuts, that might be bad for me. Am I right?

How long should I wait to perhaps apply for a third CC? My USAA card will never graduate. But I'm trying to build a credit relationship with them, especially for the mortgage.

@Anonymous, we would be moving to Janesville. Is that close to you? Any insight?

Thanks!

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At this point, his high momentary Util wouldn't have a lasting negative affect on your score. Credit scores have no memory, so once his util is paid back down after travel, the scores go back up. My job is the same, we have to pay for travel and they reimburse us. It's another reason I was so adament on fixing my credit. It's one thing to float those expenses on credit before you're reimbursed, it's another to have to use a debit card and wait several weeks for that money to come back to you. 

AU may help you, it also may not ... AU is kind of a mixed bag. If I were you I wouldn't bother doing the AU thing at this point. Use the cards you have properly and you'll see yourself get established. When it comes closer to mortgage time, it might make sense to have you as an AU then, but by then it might not be needed either. 

Janesville ... yes, actually, we're about 20 minutes away from Janesville. We're west of Janesville, in a small town of around 3,000 people, it's a beautiful area of rolling hills, dairy farms, wooded areas, it's just gorgeous. My wife is from this area originally. We were living in Green Bay but moved back here in January of this year. I grew up in Illinois but I've come to love Wisconsin and will never move back to Illinois at this point. 

[Anonymous]

I know this is not a race, and that it took me YEARS to have earned the lousy score I now have.

But it's nice to actually see progress. I'm excited to see better scores with just about a month of work. I know they are quite fake, but CreditKarma and USAA's monitor through EXP have my scores at 668-680, up from the 570s. I tried signing up for CCT, but it gave me an error and said there was a technical error. I waited on hold to speak with someone, but having a 3 year old with me makes long calls rather tough.

I guess the best thing I can do is wait and give my two cards some payment history. I really thought I needed a third card because that's what I've read so much here.

How will I know when I have enough clean history with enough time on my file to start applying for prime bank cards, like the Chase Freedom or Discover IT? I've read that the Freedom and IT allow smaller CLs. I'm not asking for top tier...just prime cards that will grow with me. 6 months? A year? I don't want to get ahead of myself and waste INQs for no reason.

[Anonymous]

I would wait until you have honest to goodness FICO scores and then let those scores dictate when and what you apply for. 

If you have a clean report, and a couple of small tradelines reporting, your scores may be better than you expect. 

That said, when the time comes, I'd look at Cap One, though Cap One is a little flaky right now. Not sure what's going on with them. 

Discover might work for you as well, and possible AMEX. Like I said, let the time pass and the score grow and then come back with the specifics and I'm sure you'll get great information and guideance here.