The grass IS greener!

[Anonymous]

I am 32 years old and started taking my credit seriously about a year ago(I know, I know). When j first signed up on myfico my scores were in the 530s. After reading numerous articles on the forum I have managed to have seven collections removed from my credit reports albeit two. Also in the meantime I have successfully been approved for a capital one secured card $200 limit(increased to $500 limit for paying on time), a capital one QS $1,5k limit and a discover one with a $3k(after pleading with my mom to co sign for me). I have kept my util % below 30% on all of my cards and paid every bill on time. Since last year my scores have increased to TU 650, EQ 660 and EX 750. I am interested in buying a home within the next two years and would like some pointers on how to get my scores around an average of 750. My aaoa is very low, around five months. I applied for all three credit cards within the last nine months and as of now do not have any intentions of applying for anymore. Any pointers would be greatly appreciated

[Anonymous]

Sorry one more question. Would increasing the aaoa by becoming an authorized user on a 30 year old acct increase my score significantly or just slightly? My parents have been very supportive of my efforts and are impressed with how far I have come in such short time and offered to add me to one of their accts. I don't want to waste their time tho

[Anonymous]

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@Anonymous wrote:
I am 32 years old and started taking my credit seriously about a year ago(I know, I know). When j first signed up on myfico my scores were in the 530s. After reading numerous articles on the forum I have managed to have seven collections removed from my credit reports albeit two. Also in the meantime I have successfully been approved for a capital one secured card $200 limit(increased to $500 limit for paying on time), a capital one QS $1,5k limit and a discover one with a $3k(after pleading with my mom to co sign for me). I have kept my util % below 30% on all of my cards and paid every bill on time. Since last year my scores have increased to TU 650, EQ 660 and EX 750. I am interested in buying a home within the next two years and would like some pointers on how to get my scores around an average of 750. My aaoa is very low, around five months. I applied for all three credit cards within the last nine months and as of now do not have any intentions of applying for anymore. Any pointers would be greatly appreciated

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I would suggest closing the secured Cap One card an openeing another unsecured Cap One account in it place. No sense in keeping those funds tied up when you have clearly "graduated".

You might gain a few more points with a share secured loan from a CU (SDFCU has great option here) if you have no installment credit lines open - Auto or Student loans.

[Anonymous]

thabks Normanfh! My only reason for not closing the secured card is that I have read on the forums that closing credit cards is not the best idea because it lowers your aaoa, although it has only been open since January so I guess that would not hurt that bad. Also I would receive another hard inquiry on my credit report. I currently only put around $20 a month on that card and then pay it off right away

[Anonymous]

I do have two student loans but they are closed. They went into default status and after I was able to save $11k last year and pay them all off they agreed to remove the derogatory marks from them. They are both closed but still showing on my credit reports

[Anonymous]

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@Anonymous wrote:
thabks Normanfh! My only reason for not closing the secured card is that I have read on the forums that closing credit cards is not the best idea because it lowers your aaoa, although it has only been open since January so I guess that would not hurt that bad. Also I would receive another hard inquiry on my credit report. I currently only put around $20 a month on that card and then pay it off right away

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Thats a myth. It will continue to add to your AAoA for ten years after closure. If you open a replacement account at the same time as you close the secured account, your AAoA will barely notice the difference ten years from now. Secured accounts are meant to be temporary.

Hard inquiries only effect scores for twelve months. They are the least of our worries. They are at worst, a very temporary bump in the road, often not even noticeable.