What else can we do to improve limited credit?

[vertekal]

My g/f has never really used credit in her life, so we decided to start working on it. She has the following FICO scores:

EQ: 641

TU: 609

EX: 611

She has 1 collection (medical) on EX for $4900, and one collection (medical) on TU for $560. Those are the only baddies.

On the plus side, she has the following:

EQ: Revolving furnature store account, $1000 limit, $850 in use, opened around 5/2013. No lates.

TU: 2 car loans (around $18,000 and $12,000), opened 9/2013, no lates

EX: 2 car loans (around $18,000 and $12,000), opened 9/2013, no lates

She recently applied for a Capital One Platinum and was approved for $3000, and a QS1 and was approved for $300. Denied for Discover, and no offers from any of these prequalified links: http://www.doctorofcredit.com/view-personalized-credit-card-offers/  

Is she good with the 2 cards, or should she apply for more? And if so, which ones?

[Anonymous]

3 bank cards are usually recommended. You might see about getting a secured card from a CU like SDFCU, NASAFCU, DCU, etc.

However, 2 cards will certainly be adequate. Depending on how recently she opened them, she should be seeing good score growth as long as she keeps a pefect payment history. Make sure she does regular CLI requests on the Cap One cards and keeps them paid down. Let one card only report a small balance of <10% of its limit.

Use them as much as is feasable and pay them down in full online at the cap one site as soon as charges post. I pay mine down several times each month.

[vertekal]

She was just approved the other day .. the cards should be arriving in the next day or two. I plan to pay them in full each month, minus 10% so a small balance reports. 

How soon and how often should she request a CLI? 

Do both cards need to be used each month for best results? 

[gdale6]

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@vertekal wrote:

She was just approved the other day .. the cards should be arriving in the next day or two. I plan to pay them in full each month, minus 10% so a small balance reports.  If there is a new balance appearing on the statement you want to be sure to PIF on or before the due date so interest charges are avoided, once you have done this then you would just pay the account prior to the statement cut date to what ever percentage you are going to let report. 1-9% of a cards CL is what you let report.

How soon and how often should she request a CLI? Every 6 months

Do both cards need to be used each month for best results?  Cap-1 likes usage so yes use both

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[Anonymous]

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@vertekal wrote:

She was just approved the other day .. the cards should be arriving in the next day or two. I plan to pay them in full each month, minus 10% so a small balance reports. 

How soon and how often should she request a CLI? 

Do both cards need to be used each month for best results? 

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Cap one will often give the first CLI after four months, after that every six months. BUT it does not hurt to request an increase every month. If they deny for score reasons you will get to see what your EQ FICO 04 score is on the denial notice.

[Anonymous]

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@Anonymous wrote:

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@vertekal wrote:

She was just approved the other day .. the cards should be arriving in the next day or two. I plan to pay them in full each month, minus 10% so a small balance reports. 

How soon and how often should she request a CLI? 

Do both cards need to be used each month for best results? 

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Cap one will often give the first CLI after four months, after that every six months. BUT it does not hurt to request an increase every month. If they deny for score reasons you will get to see what your EQ FICO 04 score is on the denial notice.

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Norman, I didn't realize it was EQ 04. I haven't gotten one with score as reason, though.