Credit Scores Stuck - Strategy for Movement?

[Anonymous]

Need help - no real change in scores for 6 months after cleaning up everything so I need to do SOMETHING.  All old credit issues have been cleaned up, currently carrying only small balances month over month and have a few cards reporting to all credit bureaus. Please advise - should I apply for several cards at the same time? Just one card? I'd really like an airlines card.  My income is very strong, and I have nothing currently in collections, and max balance I carry monthly is $500 spread over 4 cards. 3 of those cards were opened 6-12 months ago, and I refinanced my mortgage in May 2016.  I haven't had any inquiries since July when I was rejected for an Amex card.

Equifax 664 / Transunion 652 / Experian 645.   AFU Secured Visa $1500 / AFU Rewards Visa $3000 / Open Sky Secured Visa $500 / Nordstrom $750.  

[iced]

Sounds like time is your big enemy right now. 75% of your cards are less than a year old and your mortgage, from a report perspective, is brand new (and likely near 100% in term sof loan amount/amount owed).

Keep using the cards for a bit and keep paying down the mortgage. Your scores are likely good enough to land one of the many co-branded airlines cards, so grab it if you like, but then just let the accounts age. The scores will take care of themselves.

[newhis]

The only thing you can do is let all cards report $0 except one, that one report low balance.

Then let time grow your score. Good luck.

[Anonymous]

I agree with what's been said already.  All you can do really is wait here.  The last thing I would recommend is applying for any new credit over the course of the next year.  You've opened up a handful of new accounts in the last year so you've got those inquiries, the AAoA reduction and "new accounts" factored into your scoring.  All of these factors in a year will become non-factors scoring wise... but if you continue to app it's going to take longer to see improvement.

Since your income is substantial, you have zero reason to be carrying balances.  Let all of your cards report zero balances except one and on that one let it report a small balance of say $5-$20.  This will give you 1% overall utilization as well as 1% utilization on your one card with a balance reported which will yield you maximum FICO points under the 30% utilization piece of the pie.

One more thing, do you have any negative information on any of your accounts?  I was thinking based on your scores that you may.  When you garden for a solid year, you've got nothing better to do that focus some of your attention on getting any/all negative information removed.  You can contact lenders via snail mail, email or phone and see if/what they are willing to work with you on.  Removing negatives will increase your score dramatically and instantly, where your only other option is to wait and let time do its thing.

[Anonymous]

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@Anonymous wrote:

Need help - no real change in scores for 6 months after cleaning up everything so I need to do SOMETHING.  All old credit issues have been cleaned up, currently carrying only small balances month over month and have a few cards reporting to all credit bureaus. Please advise - should I apply for several cards at the same time? Just one card? I'd really like an airlines card.  My income is very strong, and I have nothing currently in collections, and max balance I carry monthly is $500 spread over 4 cards. 3 of those cards were opened 6-12 months ago, and I refinanced my mortgage in May 2016.  I haven't had any inquiries since July when I was rejected for an Amex card.

Equifax 664 / Transunion 652 / Experian 645.   AFU Secured Visa $1500 / AFU Rewards Visa $3000 / Open Sky Secured Visa $500 / Nordstrom $750.  

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Hi Nutmegger!  And welcome to the forums.

When you get a credit card statement in the mail (or online) it will have an "Amount Owed" at the top.  Do you always pay that amount in full?  If so, you are not carrying a balance at all.  Your card is reporting a balance, but not carrying one.  There's a very important difference between the two -- though it's common for newcomers to use one term when they mean the other..  As you can see, our friend BBS is under the impression that you are not paying your statements in full.  Can you clarify?

If you are not paying your statements in full, he's absolutely right.  You need to get started on doing that soon.

[Anonymous]

I used blue sky credit to help with my clean up and while my contract with them has ended they recommended I maintain a small balance on each card keeping the total utilization under 10%. They told me that any time I pay the full balance on a card and the amount owed is reported to the bureaus at $0, the bureau "can't read" a $0 so maintaining a small balance on each card is preferable. That's what I've been doing -always paying more than the minimum and leaving just a small balance. Others on this forum have been suggesting I pay the entire balance on all cards except for 1.

[Pway]

OP, you have asked the same question in various sub-forums here on the forums.  The only thing is you just change the name of your subject line.  Please do cross post here in the forums.

It will make it easier for you to receive clear and concise answers if asked in one forum versus all over the fico forums.  As well as it is against our TOS.  Please take a look  at our TOS here on the forums.  Here is the link: http://ficoforums.myfico.com/t5/User-Guidelines-General/myFICO-Forums-Terms-of-Service/td-p/4 

[heavyjay]

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@Anonymous wrote:
I used blue sky credit to help with my clean up and while my contract with them has ended they recommended I maintain a small balance on each card keeping the total utilization under 10%. They told me that any time I pay the full balance on a card and the amount owed is reported to the bureaus at $0, the bureau "can't read" a $0 so maintaining a small balance on each card is preferable. That's what I've been doing -always paying more than the minimum and leaving just a small balance. Others on this forum have been suggesting I pay the entire balance on all cards except for 1.

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What Blue Sky doesn't know or didn't tell you is, the number of cards with balances affects your score.

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-of-cards-with-balance-can-effect-FICO-score/td-p/1189059

[Anonymous]

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@Anonymous wrote:
I used blue sky credit to help with my clean up and while my contract with them has ended they recommended I maintain a small balance on each card keeping the total utilization under 10%. They told me that any time I pay the full balance on a card and the amount owed is reported to the bureaus at $0, the bureau "can't read" a $0 so maintaining a small balance on each card is preferable. That's what I've been doing -always paying more than the minimum and leaving just a small balance. Others on this forum have been suggesting I pay the entire balance on all cards except for 1.

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Aggregate (total/overall) utilization is far more important than individual card utilization, and number of cards with balances can also be a factor for some.  Whoever told you maintaining a small balance on all cards is ideal was misinformed and gave you spotty information.  While some people (I am one of them) can report small balances on all of my cards and not receive a penalty over just have 1 report a small balance, FAR MORE people have reported some sort of penalty in doing this.  Look at it this way:

1 card reporting a small balance will always yield you the best possible score [with respect to the utilization sector of scoring].

Multiple cards reporting small balances may also allow you to achieve the best possible score, but you'll never obtain a better score by doing this.  As a best case scenario, your score will be equal; this is why it's advised that you only allow one of however many cards you have to report a small balance with all of the others reporting a zero balance.

[Anonymous]

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@heavyjay wrote:

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What Blue Sky doesn't know or didn't tell you is, the number of cards with balances affects your score.

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I agree that this is usually the case, but not always the case.