Best strategy to boost my score

[Anonymous]

Hi folks! I want to try and get my score up to 700 (trying to qualify for a good rate on an auto loan). What is the best way to do this? I have 2 baddies falling off in the next 3 months. How much of an increase can I expect from that? Would getting another credit card hurt or help me at this point? I only have the two Cap1 cards.  I also have a mortgage,  I have been current on all my payments since 06/14. 

If getting another credit card will not help, how about increasing the limit on my secured card? How much is sufficient? 

For a complete picture,  Here is my TU credit profile: 

Any advice would be so appreciated!!! Thanks!!!

TU score 638

Available credit - $1150- 0% util

Cap 1 Platinum 0 balance /600 limit opened 07/17 

Cap 1 Secured 0 balance/ 550 limit - authorized user opened 03/17 

36 month loan Harley Davidson- paid off 01/13 never late

60 month loan Toyota - paid off 09/12 but was 30 & 60 days late 12 times 

Date Opened: 02/17/2007 Responsibility: Individual Account Account Type: Installment Account Loan Type: AUTOMOBILE
Balance: $0 Date Updated: 10/19/2012 Payment Received: $1 Last Payment  Made: 10/18/2012 High Balance: $25,903
Pay Status: Current; Paid or  Paying as Agreed Terms: $488 per month,  paid Monthly for 60  months Date Closed: 10/19/2012 >Maximum Delinquency of 60 days in  09/2012 for $164<

BOA Mortgage opened 09- current Not late since 06/14

Date Opened: 02/18/2009 Responsibility: Joint Account Account Type: Mortgage Account Loan Type: FHA REAL ESTATE  MORTGAGE

Date Updated: 08/10/2017 Payment Received: $4,013 Last Payment  Made: 07/21/2017
Pay Status: Current; Paid or  Paying as Agreed Terms: $4,013 per month,  paid Monthly for 360 months >Maximum Delinquency of 60 days in  11/2010 for $7,857 and in 01/2013<

BOFA Credit card- 

Date Opened: 08/29/2007

Responsibility: Individual Account

Account Type: Revolving

 Account Loan Type: CREDIT CARD
Date Updated: 08/16/2017 Last Payment  Made: 06/20/2012 Original Chargeoff: $3,479
Pay Status: >Charged Off< Terms: Paid Monthly Date Closed: 04/06/2010 >Maximum Delinquency of 120 days in  09/2011 and in 06/2012<
High Balance: High balance of $5,120 from 03/2015 to 08/2017 Credit Limit: Credit limit of $4,000 from 03/2015 to 08/2017 Estimated month and year that this item will be removed: 02/2018

Portfolio recovery collection-

Placed for  Collection:
04/22/2016
Responsibility: Individual Account Account Type: Open Account Loan Type: DEBT BUYER
Balance: $658 Date Updated: 08/08/2017 Original Amount: $658 Original Creditor: CITIBANK N A  (Banking) Past Due: >$658<
Pay Status: >In Collection<
Remarks: >PLACED FOR COLLECTION< Estimated month and year that this item will be removed: 04/2018

[Anonymous]

You never want ALL your credit cards reporting $0 balance because you may get dinged for 10-15 FICO points.  So let $5 report on ONE card, and once it reports pay it to $0 to avoid interest, and the next statement let it report a new $5, etc.

Also, you should have 3 credit cards open and reporting positive for a good FICO bump.

The rest of your points are held back by your accounts being too young overall.  Some auto lenders don't use FICO 8 for underwriting, though -- they may use FICO Auto Scores instead, which can be different.  You'd have to buy those scores on MyFico to see where you're at, if your bank/lender uses something other than FICO 8.

[Anonymous]

Excellent. Would it be a good strategy to have my spouse get another card and then add me as an authorized user? That way I get the additional trade line without the inquiry? 

Is there a chance the baddies falling off my CR  will reduce my AAOA and actually hurt my score? 

[HeavenOhio]

OP, if you're able to keep the AU card at zero, it'd be better to post the small positive balance on the card where you're not the AU.

[SouthJamaica]

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@Anonymous wrote:

Hi folks! I want to try and get my score up to 700 (trying to qualify for a good rate on an auto loan). What is the best way to do this? I have 2 baddies falling off in the next 3 months. How much of an increase can I expect from that? Would getting another credit card hurt or help me at this point?

IT WOULD HURT YOU. DON'T APPLY FOR ANY OTHER CREDIT IN THE PERIOD LEADING UP TO THE AUTO LOAN.

I only have the two Cap1 cards.  I also have a mortgage,  I have been current on all my payments since 06/14. 

If getting another credit card will not help, how about increasing the limit on my secured card?

INCREASING THE CREDIT LIMIT WOULD BE GOOD BUT THE MOST IMPORTANT THING FOR YOUR SCORE

RIGHT NOW IS TO MAKE SURE THAT 1 OF YOUR 2 CARDS REPORTS A ZERO STATEMENT BALANCE WHILE THE OTHER POSTS A $50 OR LESS BALANCE BEFORE YOU PAY IT OFF.

How much is sufficient? 

For a complete picture,  Here is my TU credit profile: 

Any advice would be so appreciated!!! Thanks!!!

TU score 638

Available credit - $1150- 0% util

Cap 1 Platinum 0 balance /600 limit opened 07/17 

Cap 1 Secured 0 balance/ 550 limit - authorized user opened 03/17 

36 month loan Harley Davidson- paid off 01/13 never late

60 month loan Toyota - paid off 09/12 but was 30 & 60 days late 12 times 

Date Opened: 02/17/2007 Responsibility: Individual Account Account Type: Installment Account Loan Type: AUTOMOBILE
Balance: $0 Date Updated: 10/19/2012 Payment Received: $1 Last Payment  Made: 10/18/2012 High Balance: $25,903
Pay Status: Current; Paid or  Paying as Agreed Terms: $488 per month,  paid Monthly for 60  months Date Closed: 10/19/2012 >Maximum Delinquency of 60 days in  09/2012 for $164<

BOA Mortgage opened 09- current Not late since 06/14

Date Opened: 02/18/2009 Responsibility: Joint Account Account Type: Mortgage Account Loan Type: FHA REAL ESTATE  MORTGAGE

Date Updated: 08/10/2017 Payment Received: $4,013 Last Payment  Made: 07/21/2017
Pay Status: Current; Paid or  Paying as Agreed Terms: $4,013 per month,  paid Monthly for 360 months >Maximum Delinquency of 60 days in  11/2010 for $7,857 and in 01/2013<

BOFA Credit card- 

Date Opened: 08/29/2007

Responsibility: Individual Account

Account Type: Revolving

 Account Loan Type: CREDIT CARD
Date Updated: 08/16/2017 Last Payment  Made: 06/20/2012 Original Chargeoff: $3,479
Pay Status: >Charged Off< Terms: Paid Monthly Date Closed: 04/06/2010 >Maximum Delinquency of 120 days in  09/2011 and in 06/2012<
High Balance: High balance of $5,120 from 03/2015 to 08/2017 Credit Limit: Credit limit of $4,000 from 03/2015 to 08/2017 Estimated month and year that this item will be removed: 02/2018

Portfolio recovery collection-

Placed for  Collection:
04/22/2016
Responsibility: Individual Account Account Type: Open Account Loan Type: DEBT BUYER
Balance: $658 Date Updated: 08/08/2017 Original Amount: $658 Original Creditor: CITIBANK N A  (Banking) Past Due: >$658<
Pay Status: >In Collection<
Remarks: >PLACED FOR COLLECTION< Estimated month and year that this item will be removed: 04/2018

SINCE YOU HAVE SOME NEGATIVES IT WOULD BE A GOOD IDEA TO FLOOD THE BUREAUS WITH VERIFICATION LETTERS, MAYBE GETTING SOME TO DROP OFF

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[Anonymous]

Thanks SouthJamacia.

Both baddies are dropping off in the next 3 months

Both my cards have a 0 balance. 

The only negatives that will remain will be 4-5 year old late pays

[SouthJamaica]

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@Anonymous wrote:

Thanks SouthJamacia.

Both baddies are dropping off in the next 3 months

Both my cards have a 0 balance. 

The only negatives that will remain will be 4-5 year old late pays

---

People often lose 15-20 points in their FICO 8 by having both cards report at zero, rather than having one card report a small balance before paying it off. So you can pick up points right away in FICO 8 by making that slight adjustment.

[Anonymous]

OP, it's important to understand that your score will not increase significantly until all of your baddies are gone. It's great that you have a couple falling off in 3 months but because you still have a bunch present on your report even if they are older or on closed accounts they are still major delinquencies that will continue to suppress your score until they are all off of your report. IMO, your score will not increase much if at all in three months based on your negative items.

[Anonymous]

Thanks... Well is there anything I can do? I know just hurry up and wait. But in the meantime... increasing my card limit maybe? How about a secured loan or something like that? I am still confused if an additional credit card will help or hurt me at this point? 

[Anonymous]

To recap for everyone:

(1)  Your goal is to get your score up (say in the next four months) so that you can buy a car.

(2)  You currently have all cards reporting a zero balance.

(3)  You have no open loans.

(4)  Although you have some derogs falling of in the next three months, you will still have other derogs just as bad that will be on your reports.

Can you confirm that I have all of that right?

If so, derogs falling off (#4) will not help you in the timeframe you need (#1).  Happily, there are two things you can do:

Fix #2 (exactly one card reporting a small balance, like $15)

Fix # 3 by implementing the Share Secure Loan Technique:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

Read the first two posts in that thread.  The lender we used to recommend for the SSLT is Alliant, and a week ago they ceased to be an option.  We should have some other well vetted alternatives to Alliant by March.  SouthJ (who has been advising you) is testing out one such lender now.