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General Credit Questions to Increase FICO score

Member

General Credit Questions to Increase FICO score

Hello,
 
I'm new to the forum and have a few questions in order to increase my credit score.
 
Myfico median score is 620
 
1. I have an auto loan in good standing which will be paid off this month.  Will this increase my score?
2. My husband has a score of >700 and will him adding me as an AU increase my score?
3. I have 2 Capital one credit cards in good standing.  Will adding another credit card hurt my score or increase it? 
 
Thank you!
Message 1 of 5
4 REPLIES
Valued Contributor

Re: General Credit Questions to Increase FICO score



improvement wrote:
Hello,
I'm new to the forum and have a few questions in order to increase my credit score.
Myfico median score is 620
1. I have an auto loan in good standing which will be paid off this month. Will this increase my score?
2. My husband has a score of >700 and will him adding me as an AU increase my score?
3. I have 2 Capital one credit cards in good standing. Will adding another credit card hurt my score or increase it?
Thank you!





1. Paradoxically, paying off the loan may actually decrease your score a bit. For some reason, FICO likes to see you have an open installment account. In the long run, however, the loan will improve your credit history and score.

2. Answer unclear. AUs are going away anyway, so any benefit would be transitory anyway.

3. In theory, adding another CC gives you a slight dip in score when the account is added, but helps your credit score over time. What percent of your credit limit are you using?
- - - -
in a credit-scoring postnuclear Stone Age...
Message 2 of 5
Member

Re: General Credit Questions to Increase FICO score

Hi,
 
One of the CC is at 69% utilization and the other at 50%.
 
 
Message 3 of 5
Valued Contributor

Re: General Credit Questions to Increase FICO score

Paying them down below 10% will likely give you some benefit...around 10 to 25 points or so.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 4 of 5
Moderator Emeritus

Re: General Credit Questions to Increase FICO score



improvement wrote:
Hi,
One of the CC is at 69% utilization and the other at 50%.





Get the UTL down to Under 30% and under 10% if you can.

You will see an significant score increase.

Add a Card if it does not reduce you avg age of accounts more than 11 months.
Message 5 of 5