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yay4liz
Posts: 5
Registered: ‎12-05-2007
0

Credit History....length of credit

I have recently become addicted to my fico score and fixing my credit. I first discovered I had bad credit about a year ago when my husband and I need to buy a car. While applying for a loan I learned I had a very short credit history, I had only 2 items on my report neither postive. My only response to the loan officer then was, what is this credit you speak of and where can I buy some. I now know it is not that kind of party. I have worked hard to build a report in the past year, I bought a credit book and opened the credit building accounts advised; a personal loan, an auto loan, and a revolving credit card account. In reviewing my report I am frustrated with a few negative factors. I am faulted on my report for actively seeking credit and opening new accounts in the past year, thought if I hadn't opened said accounts I would have the worlds shortest credit report. I am also faulted for having a short credit history, oldest account being opened 7 years ago and no account open for longer then 2 years. I am 28 years old, do they reaaly expect me to have a longer history, or do they take my age into account when calcuating length of history. When viewing my scores it says that most holders of excellent credit have length of history that I could not possible obtain since you can not quialfy for credit until the age of 18. Am I faulted by FICO for my age? Also even though FICO advises againist opening new accounts I noticed an increase in my scores since obtaining a Credit Card. Since first checking my score in August my EQ jumped 16 points and my TU jumped 30 points. I have payed all my bills on time and have a very low debt to credit ratio. (3%). I want to refiance my car in this year and have also applied for a new credit card with a better rate then my current card. Will these actions lower my score enough to out weight the beneifits of lower inrest payments? please help I am quite confused about the changing rules of the credit game. P.S. why are my scores different between EQ and TU....haven't chack EX yet
Moderator Emeritus
ByrdMan
Posts: 7,975
Registered: ‎12-19-2007
0

Re: Credit History....length of credit

Hi Liz, I am assuming that you have read the "stickied" threads, as you have been around for a coupla months.

The negative notations you receive sometimes seem to be working against what you are trying to do. Of course, you have to seek credit to get the credit, so you can't fret about that one. You should get another revolving card and keep that balance reporting $0 (you can use it, just PIF before statement drops). You will see a score increase when it starts to report.

Of course, you can't do anything about when your dad got that gleam in his eye toward your mother. Your age will definitely affect the age of your credit report. That's life and nothing you can do about it (other than becoming an AU on your grandmother's 40 y.o. Sears card).

Your scores will vary between the three CRAs because the FICO algorithm that they all use is slightly different. So, even if all of the items on your credit reports were reported exactly the same, you would see a difference in score on all three. If your scores happen to be the same, I would consider that more of a coincidence than anything else.

Hope this helps.
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