How to reach 750?

[cowboyguy]

Please direct me to the thread if this question has already been asked.

Its been 10 months since I started building credit. So far I have 4 CCs & I use them & PIF every month. My utilization is around 1% & EQ FICO score is 696.

My question is how long will it take me to reach 750 if I keep on using my CCs & keep my utilization around 1%?

Secondly, is there a faster way to reach this score?

[vanillabean]

You are presently suffering from inquiries and new credit from all four cards. Also, your history is less than a year. So time is a main factor. When did you open the second, third and fourth card?

[cowboyguy]

Second Account was opened right after a month. Third & fourth were opened just 2 weeks ago.

[Repo-ed]

At least 9 months, but probably closer to 12.

[cowboyguy]

Thanks Repo-ed. This answers my first question

Now is therea  faster way to reach that score (even 9 months is good for me)? Should I take out an auto loan to get a mix of credit?

[bettercreditguy1]

Some things can not be forced or hurried. If you get an installment loan, now you have another new account which will hold your score back for about a year, plus with everything else you have attempted, your new ccs in such a short time, red flags are going to start waving. The alogrithm for Fico factors all of that stuff into your score.

[cowboyguy]

So an installment loan holds the score back for 1 year? Is that true? I read somewhere that credit utilization for installment loans is not the same as CCs. Rather, very small weightage is given to installment loans while determining utilization ratio.

Nevertheless, what you are saying makes sense that the score holds back due to HP and then the utilization factor (for some time) but I'd like to know "for how much time". Is one year a general concensus?

[llecs]

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@cowboyguy wrote:

So an installment loan holds the score back for 1 year? Is that true? I read somewhere that credit utilization for installment loans is not the same as CCs. Rather, very small weightage is given to installment loans while determining utilization ratio.

Nevertheless, what you are saying makes sense that the score holds back due to HP and then the utilization factor (for some time) but I'd like to know "for how much time". Is one year a general concensus?

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YMMV on any damage, but it would be due to the impact to AAoA, if any, and impact due to the new credit ding, as opposed to util (e.g. adding a half-million mortgage won't make your scores tank for years before the balance creeps down).

[cowboyguy]

IIecs,

According to your post, in the short term, the impact of getting an installment loan seems to be the same as getting a new CC, correct?

[llecs]

Take out outside factors like impact to mix, AAoA, scoring bucket, etc., and the impact due to the new account ding is equal whether a CC, car loan, mortgage or otherwise. Now that new ding can be offset obviously. For example, someone with high util might see a gain if their new CC helped util. Or maybe someone with no CCs sees a gain after adding one for the first time...etc.