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Seeking for some peer review and a plan of action for 2015

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Anonymous
Not applicable

Seeking for some peer review and a plan of action for 2015

In 2014, I learned how my credit use habits were hurting me and began a plan of action of improve my profile.  My largest problem was not using credit at all, for the most part, except for car loans.  I tend to save and pay for things in cash. And, for 8 years, I'd only carried a $2K Limit Citi AAdvantage card which I'd tend to take to $1500 each month, and then pay at the due date - which did horrors for my utilization.  So, here's where I started and here's what I did:

 

Jun 2014:    Citi AAdvantage with $2K Limit and over 80% util for many years.  Age of Acct is 10 yrs. FICO was 657.

Jul  2014:    Applied for AMEX Jet Blue and got it with $1000 Limit.  FICO climbed to 667.   1 Hard Pull.

                    Applied for $3000 Credit Builder Installment Loan / 12 months / 6% APR          No Hard Pull

Sep 2014:    Applied for AMEX 3x CLI and was awarded it. No Hard Pull!

                     Applied for CITI CLI and was moved from $2000 > $3500   No Hard Pull.

Oct 2014:    FICO is 690 and has not changed. I have only 1 Hard Pull on my report - which is that Amex from Summer of 2014.

 

The CITI has a 10 year age, so I know I must keep this card. I have no BK, a single 90 day late at BOA in 2008 that was Paid in Full, and no collections, or liens.

I know how two Cards and an Installment Loan reporting positive each month.   Ideally, I'd like to be mortgage shopping in Fall of 2015. Only other stuff on my report

are two car loans - all PIF within 1 to 1.5 years after opening.  I'd love to get to FICO 730.  I am now getting mail offers for Chase Sapphire and Discover, and no longer get the mailings from Credit One or Merrick Bank - so I can already tell that I've shifted my perceptions in the eyes of the card issuers in this short time!

 

What would you do next? 

 

 

 

 

Message 1 of 4
3 REPLIES 3
RobertEG
Legendary Contributor

Re: Seeking for some peer review and a plan of action for 2015

What are your current % utilizations on each credit card?

Message 2 of 4
Anonymous
Not applicable

Re: Seeking for some peer review and a plan of action for 2015

Utilization is 20% or less.  I've been PIF before statement close date since figuring this all out in Jul.  I've put quite abit of spend through both the new AMEX and the old CITI card.   $2000 in auto repairs on the AMEX in August.  Another $2000 through the Citi for a business trip - all this PIF before the closing date.

 

Out of interest, I allowed $1000 to float on the AMEX at last months closing - that 30% util on the AMEX, and 2-3% Util on the Citi.  My Experian FICO dropped from 690 to 681.  My TU score has remained 716 since August and hasnt changed. Equifax is reporting 690.  I expect to get the 681 back to 690 when the statement closes this month.

 

Jan 12, 2015 will be the 6 month mark on the new AMEX and new Credit Builder installment loan. I'm hoping I'll see something move then.    Mar 21, 2015 is when I'd be eligible for my next AMEX CLI.   I have only one hard pull on my record.   What do you think I should do next?    Add another card?  CLI?  Both?  I can afford hard pulls, but a new card would reduce my AAoA below 5 years. What to do - and what timeframe?

 

I'm very sure I can keep my util down in the 10% range - my savings, and salary far exceed what my credit limits indicate.  I just want to be in a good FICO range for a mortgage or car loan in the future....

 

 

Message 3 of 4
Anonymous
Not applicable

Re: Seeking for some peer review and a plan of action for 2015

Let one card carry a balance of less than 10% of that cards limit each month. You can pay that carried balance a few days after the statement date to save on any interest. Play around with the amounts a  bit to find your particular sweet spot. Remember UTI has no memory so one month does not affect later months.

You can cycle through different cards every few months to let each one see usage throughout the year.

Message 4 of 4
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