768 credit score..... Looking for advice to raise it.

[Anonymous]

My score has been 768 for the last 2 years, it has not moved a single point. How can I increase my score?

I have never used credit cards. I have used a few store credit cards for their 0% financing deals (engagement ring, home improvement store), I think most of them have been closed due to inactivity, paid in full on time.  My score shows 2 credit cards, not really sure which ones these are, like I said probably a store account I used paid and has been left inactive.  I Have 2 mortgages, One vehicle financed, One student loan, zero credit card balances.     I've financed and paid off 5 cars. Average account age is only 3 years.  I have never had a late payment on anything. 

The only thing hurting my score is the short average age.

Should I open credit card or 2? not bother doing anything?

My wife is in the same situation but has paid off EVERYTHING shes ever financed, no mortage in her name, just paid off her car, no student loans.  She has no credit cards and no plans to finance anything until we manage to sell our condo (lol yea right, **bleep** this market! )and get into a bigger house. Will her high credit score start tanking due to having no active accounts? 

[RobertEG]

IMHO, I am not surprised that your score is stagnant. 

Your % util of credit is not changing because it primarily scores revolving util, and you are not using revolving credit, so there is nothing you can do to improve on something that is not there.

Your AAoA is low.  Closing old accounts clearly affected that, but that is water over the dam now.You wont get any signifcant increase in FICO score due to AAoA aging for several more years.

If you open a new CC now, it will probably hurt you in the short term.  It will add a new inq. to your CR, and if approved, will further reduce your AAoA.

Your mistake was not maintaning revolving credit over the past few years.  I know it defies logic to think that being credit card debt free is not good, but for FICO scoring, it is not.

[cobaltnv]

Since you do not have an open active credit card your score may actually increase with the addition of one (or two) credit cards. This has been reported many times on here--normally for someone with a very thin file. Your file is not that thin, just lacking credit cards so YMMV. My advise would be to get one credit card that you use every couple of months (for gas, groceries, etc) and pay it off before the statement drops. In 6 months or so you should be in teh high 700's.Of course anything above 760 is said to be just for show as 760+ supposedly get you the best rates.

Good luck 

[smallfry]

You could probably use a credit card but with no revolving history you might get a low credit limit from traditional lenders but who knows? If you have decent income I would try Pentagon Federal Credit Union. At least you won't be Egyptian. They have a cash back card. I would go for that. As for your scores since you already own does it really matter? How many of your installments are actually still on the reports? Sounds like you are still fairly young. If that be the case I would try to add 3 credit cards to your file over a period of a couple years. It will tank your AAofA temporarily but will benefit you in the long run.

[FocusOnFICO]

Smallfry's advice is right on.  You may consider the PenFed card for regular purchases and two cards from the lenders that you've already worked with on your other mortgages, etc.

The AAoAs will suffer, but utilizing the cc payment strategies on this forum, you should be able to improve your score while getting cash/merchandise back.

If you take your score for a ride, you may be surprised at the mileage you can get out of it for new credit.

[Anonymous]

Thanks for the advice!

I've opened a Penfed platinum cash back account, I had no idea how much to ask for so I just went with 10k and was approved.   Should I wait a while before opening a 2nd card?  I'm looking at the Costco true earnings american express, it seems decent and I get some perks with costco on any electronics I buy (extra warranty for "free").

Should I go with that as a 2nd or go with one offered by a bank I use? 

[smallfry]

---

@Anonymous wrote:

Thanks for the advice!

I've opened a Penfed platinum cash back account, I had no idea how much to ask for so I just went with 10k and was approved.   Should I wait a while before opening a 2nd card?  I'm looking at the Costco true earnings american express, it seems decent and I get some perks with costco on any electronics I buy (extra warranty for "free").

Should I go with that as a 2nd or go with one offered by a bank I use? 

---

I would sit tight for a while.

[Anonymous]

Thanks smallfry, sit tight I will.

[cobaltnv]

Sitting tight is certainly good advice. However, if you shop at CostCo a lot and think you are going to eventually get this card now may not be a bad time to do so (I love my costco Amex). I would suggest one calculation first. You mentioned that your AApA was 3 years (Keep in mind that FICO rounds down). Calculate the exact AAoA (i.e. 3y 8months)--be sure to include your new card (congrats by the way). If adding a second new card will not drop you from 3 years to 2 years then I say go for it. If it will drop your AAoA down to 2 then I would wait a few months until you AAoA would stay at 3.

Cheers 

[haulingthescoreup]

FWIW, I app'd PenFed and then 5 other accounts before finally moseying around to app'ing an AmEx Gold Rewards Plus. They never blinked. This was in Feb 2008, though.

My own personal belief is that AmEx is different from other banks in that they like to see lots of usage on other cards when you apply. I think they're thinking that they will get this business away from you.

Alas for AmEx in my case, my big adventure is my 22-mile-each-way commute.