Hello myFICOers,
I want to apply for a credit card with my employee credit union (I already have savings with them). They pull TU, which is my "dirtiest" report. However, the remaining baddies that I have will fall off within the next year, so I figure I'll wait it out. After the work that I'd put into my credit repair journey (removing 1 judgement & my most recent collection), as well as having some other baddies age off, my TU FICO was 696 (as of 2/7). The cut-off for the top tier APR is a 700, so I figured I'd "tweak" my score by reporting a zero balance. I thought I read that EQ likes a small (less than 9%) balance, but that TU likes a zero balance.
So I paid off my balances & let them report. I saw the zero balances report via CCT & pulled my score again...684. I assume if I let a small balance report again (I was reporting 3% utilization the last time I pulled a 696) it should go back up. Is there anything else I should do?
Just to give you an idea of what my report looks like, I have two collections reporting (1 medical), with fall-off dates of 7/2010 & 1/2011. I have a student loan that reported lates (90 days as of 3/2005), but have been in good standing since that time (I'm actually paid ahead now). I have 3 CCs that were all opened in 2007: Capital One @ $500 (limit hasn't budged in over two years), Best Buy MC @ $650 (I get a little auto-luv every six months), & a Lane Bryant store card @ $250 (not concerned about the limit, which also hasn't budged). All three of these cards are in good standing & I have never been late on any of them. I'm also listed as an AU on my mother's Chase card, which has been open since 1998 (Providian -> WaMu -> Chase). She doesn't use it a lot (either low balance or no balance reports), no lates. I have no inquiries (they all fell off).
Also, I hope to purchase a home either towards the end of this year or next year, so I also don't want to do anything that may be frowned upon by the underwriter. I wanted to obtain another (read: better) CC because my Best Buy MC has a $79 AF. Granted, I've already earned $65 in BB gift certificates by using the card since I last paid the AF in November, so it kind of pays for itself. I tried calling customer service & the backdoor number as well as escalating my call to level 2 to get the AF waived a few months ago, but they wouldn't budge.
Is this the best way to go about things? Are there any other cards I should try for (note that I've had COs from Discover, BofA, & Citibank)? Or should I just wait it out before going for another card?
Your advice, as always, is greatly appreciated! 
@RobertEG wrote:As I see it, the primary drain on your score now are the two collections. Until they are gone, punching over 700 will be hard.
1/2011 looks like the date that you should clearly break 700.
There are pluses and minuses for appling for a new CC now. It is preferable to a mortgage lendor to not see recent apps for new credit, so doing it now would be far preferable than doing it around the time you are also applying for a big-ticket mortgage loan. And it would, if granted, add further CL, and thus reduce overall % util. And any inquiry made now in order to secure the new CC will drop from FICO scoring in a year.
On the minus side, if they tell you that they are looking for a 700+ score to get the card, and you are not there yet, it may result only in the negative addition of a new inquiry to your CR, with no positive gain. A 700 score isn't the cutoff for getting the CU card, it is the cutoff for getting the best APR. That being said, all the rates available for this card are better than that of my Best Buy MC. Of course, upon further reflection, since I usually PIF my CCs, the rate is sort of a moot point, correct? Thanks for clearing that up for me!
A new CC, if granted, will lower your AAoA. What is the expected CL on the new card? Will that offset the drop due to reduced AAoA and a new inquiry? Not certain, but going by the experience of others, the limit may start at $1000. I think that having a card that will grow with me would be worth the hit. My utilization usually sits around 3% (well under 9% even excluding the AU account), so utilization isn't my concern. It would be nice to go on vacation (as I plan to later this spring) & be able to rent a car & cover other expenses without maxing out a card, or trying to juggle balances. The FICO score simulator showed it could cause a 10 point difference in either direction by opening a new credit account. Of course, we all know that the simulator's results should be taken with a grain of salt.
Also, I would comment that it appears you are trying to build your credit score primarily to secure a mortgage loan. Mortgage lendors dont look only at FICO score. They look at overall income and debt. These are not even factors in FICO scoring. The points outside of FICO scoring I don't feel AS worried about. At the current rate I'm saving at, I should have over $25K to put down on a house by the time I'm ready to look next year (not including my emergency fund, of course). I've been gainfully employed for over 3 years at my current employer (a local government agency) with a good salary. As I mentioned I don't revolve or carry a lot of debt on my CCs & my student loan has been current for about 5 years. Paying the collections now would ding my savings. I would prefer to settle with them after they fall off my CR.
I would also proffer that your score is apparently inflated by your AU status on the account of another, and does not represent your individual credit history. A mortgage lendor may discount your raw FICO score as not being fully representative of your credit history. And the mortgage lendor will almost assuredly requ8ire satisfaction of the outstanding coillection balances before they agree to stand in line behind other creditors.
My mother has been having a rough time financially over the past few years. That being the case, I have been helping her in making ends meet (including paying towards/paying off the very card that I am an AU on as well as others). I wasn't an AU at the time, nor did I even think about it (hey, its for Mom, after all
Again, I appreciate all the advice & insight. I just wanted opinions on what the best step to take would be. Thanks!