Where do I go from here?

[Anonymous]

Hello everyone,

I’ve been on a serious credit journey this past year and a half trying to repair my credit by myself through careful research on helpful sites just as this. I messed up my credit years ago and my credit scores were in the very low 500’s. I’m now seeing improvement, and I’m proud of myself for doing it on my own and not paying for credit card help! J

But… I’m finding myself stuck. I don’t know where to go from here to help improve my credit score. I’ve listed my credit scores below and my credit cards (that I’ve been able to get) below.

My questions:

• My newest card(s) I’ve applied for were last month, September. Should I open more credit now so my age of inquiries are grouped together at the same time instead of being spread apart? I don’t even know if I’ll be approved for anything more. When I applied for the Cap One credit cards, I also applied for Barclay’s Mastercard but was denied.
• Or should I be ok with the credit cards I have now? I heard the term “garden”. Should I be doing that at the moment? Will that help me increase my score?
• Any other tips on how to increase my score?

Credit Cards as of today

Home Depot CL: $500/ Utilization: 0%

BofA Secured opened May 2014/ CL: $400/ 10% utilization

My credit union CC opened May 2014/ CL: $500/ 0% utilization

Cap One Quicksilver opened Sept. 2014/ CL:$500 / 3% utilization

Cap One Platinum opened Sept. 2014/ CL $1000/ 20% utilization

Credit Scores as of today:

Experian: 673  

Equifax: 603 (proud of this! Started at 478 last January, 2014!)

Credit Karma: 604 < but my Cap One cards haven’t been shown on the report yet

I appreciate anyone who can help and thank you for your advice through the forums!

[Anonymous]

At this point, it looks to me like account age is your only issue. Only cure for that is time. It generally takes 24 months for a 'thin file' like you have to mature. Do you have any installment credit like auto loans? I'm assuming there are no derogs on your reports?

125 points in less than a year is very impressive.

[Anonymous]

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@Anonymous wrote:

At this point, it looks to me like account age is your only issue. Only cure for that is time. It generally takes 24 months for a 'thin file' like you have to mature. Do you have any installment credit like auto loans? I'm assuming there are no derogs on your reports?

125 points in less than a year is very impressive.

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Thanks! I did have accounts that fell off my credit report because they hit that old age. I also took care of my student loan and brought it up to good standing.

Right now, I have 2 derogs showing up only on my Transunion. They're supposed to fall off next year.

I also have a student loan account from the US Dept. of Education which is now in good standing since January but it was up to 180 days past due last year. It being 180 past due still shows up. I've tried contacting the US Dept of Education with good will letters asking them to remove the past due since I've been in good standing this year, but they said they can't.

Those credit cards I just listed above are my only credit card so I know my AA ofA is hurtiing my score since my oldest account is only a few months old.

I don't know if I should open up more credit cards right now and just let them all age together. Or is that good enough?

I also heard about secured installment loans. Does that really help my credit score?

I'd really like to buy a home within the next 2 years so I'm trying my best to make that possible. I'd feel really bad if  my fiance and I couldn't get a home and it's my fault.

[Anonymous]

You probably have enough accounts. 3-5 accounts is usually sufficient for revolving credit.  A secured loan can help. It might cause a small dip at first but will help once its getting paid down.

Time is going to be your best friend now I think. Just like fine wine, things need to age....

[Duke84]

If I were in your position, I probably would stay with what I have. If you're house hunting, you will need to build your file to show responsible use, and that will require time.

Instead of getting new credit, ask for a CLI. This will lower the utilization even more and as long as you have your loans paid, you shouldn't have much of a problem increasing your score to get your home.

[Anonymous]

Thanks!

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@Anonymous wrote:

You probably have enough accounts. 3-5 accounts is usually sufficient for revolving credit.  A secured loan can help. It might cause a small dip at first but will help once its getting paid down.

Time is going to be your best friend now I think. Just like fine wine, things need to age....

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[Anonymous]

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@Duke84 wrote:
If I were in your position, I probably would stay with what I have. If you're house hunting, you will need to build your file to show responsible use, and that will require time.

Instead of getting new credit, ask for a CLI. This will lower the utilization even more and as long as you have your loans paid, you shouldn't have much of a problem increasing your score to get your home.

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Yes, I plan on asking for a CLI once my cards have aged. I also plan to try and graduate my BofA secured and my credit union card (which is secured) to an unsecured card hopefully after a  year I've had them. I'll hold off on applying for new cards.

So I guess I'll dump the secured installment loan idea as well? If it doesn't help much, then I won't even bother.

It's good to know that I'm at this stage right now where I can just be responsible with my usage and wait. It's been a journey, I tell ya! The stress was unbelievable! If you're reading my post and you're feeling down, just know it does get better. There's no place to go but up!

[Duke84]

Before you push aside the secured loan, look at your situation. Credit is built by showing you can handle various types of credit. Yes, you have an auto loan, but is that the only one? Do you have student loans? If you don't have student loans and only have the auto loan, getting the secured private loan isn't a bad idea.

[Anonymous]

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@Duke84 wrote:

Before you push aside the secured loan, look at your situation. Credit is built by showing you can handle various types of credit. Yes, you have an auto loan, but is that the only one? Do you have student loans? If you don't have student loans and only have the auto loan, getting the secured private loan isn't a bad idea.

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I actually don't have an auto loan. I only have 1 school loan the above credit cards.

Does that mean a secured installment loan would be a better idea? Does it matter the amount I open up?

[Duke84]

Then you should get the secured loan from your local CU. Get what you can afford to repay. Then, try to build a history.