Understanding FICO® Scoring

[Sparky2211]

Hey Everyone, i am trying to do my best on building my credit right now while i am in school. I have no loans out for college and i am paying out of pocket so i don't have the advantage of that helping me out in the near future. (Credit wise). Currently i have a Wells Fargo Visa (5k limit) and a Wells Fargo Financial credit card (2k limit) to help me build up my credit. Right now i have scores of TU 671/ Equifax 660/ Experian 660. I am only 19 years old, so i am not expecting much better for my age, but what else would you recommend me doing to keep my credit on the rise? i always have a 10% balance on my credit cards and never much more than that.

thanks for the input!

Ryan

[Brammy]

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Sparky2211 wrote:

Hey Everyone, i am trying to do my best on building my credit right now while i am in school. I have no loans out for college and i am paying out of pocket so i don't have the advantage of that helping me out in the near future. (Credit wise). Currently i have a Wells Fargo Visa (5k limit) and a Wells Fargo Financial credit card (2k limit) to help me build up my credit. Right now i have scores of TU 671/ Equifax 660/ Experian 660. I am only 19 years old, so i am not expecting much better for my age, but what else would you recommend me doing to keep my credit on the rise? i always have a 10% balance on my credit cards and never much more than that.

thanks for the input!

Ryan

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The only thing I can say Ryan is that I wish I had been as smart as you are at such a young age

I would never reccommend a young person take on more debt such as a car loan though installments would help.  At 19 just give it time and  think you'll be in a better postion.  Yoou could always look into taking a small subsidized student loan.  That reports as an installment and you could put the money back into it while you're still in school.  That and homes are the only good debt I can think of.

[Sparky2211]

thank you very much! right now my goal is to have a decent credit score and hopefully get it higher and higher. I am just lacking the history. someday i will have it though. I would like to get a car loan, but i don't think any companies would give it to me because lack of credit.

[tileguy]

Hey Sparky,

   At 19 you got the world by the balls. Forget the car loan. No debt is the best thing. Keep the car you have or buy a good used one for cash. Take out a small installment loan and never miss a payment. Put the money in an account and forget about it. All any of of really need is 720, right? Buy a house accelerate the payments and before you know it you own it outright. Pay your tax and its yours forever. That's the American dream for me. You can do it Sparky just be patient and creative and over time those scores will keep rising. Good luck! 

[Sparky2211]

thanks, right now i am trying to save money for a townhome/house. Right now i make well over what a normal 19yr old would be making. My goal is to keep my credit high and keep my career on track and someday i will be satisfied with everything i have. Right now i own two car, a winter and a summer car. I would like to sell my winter vehicle and get something that might be a little more reliable for driving so far to work. The summer car doesn't really come out of the garage much, so i need something that i don't have to worry about breaking down. I was thinking about getting a installment just to help with the building if credit, but i never got around to it. As of right now i am real pleased with my score! Can't wait to see what the future with holds! thanks everyone!

Ryan

[Sparky2211]

I did a check today and all of my scores are about 10-20 points lower than before. I checked for the reason and it was because my credit card balance was up at the time they pulled it. just shows that the higher you balance is, the lower the score may be! Yike, now all my cards are paid to a 10% or lower balance.

[Tuscani]

Skip the card loan. As suggested, try a small student or personal loan through your bank. The installment TL will help your mix of credit.

[gtech]

you don't need to get any loans, use the credit you have. Use both cards, not a lot gas once a mo. is enough, don't spend more than 10% of the cards limit, pay off the cards if you can, every 3 mo. call up the card co and ask if they will lower your APR and or rase your limit. I'm 22 and my fico numbers are around 800.

[masdeocho]

I think you're doing great.  Just keep your credit nose clean by paying all bills on time and keeping the util down.  It's pointless to get an installment loan or any other debt just for the sake of improving your credit.  What you lack is length of credit history, and you can get that only by aging gracefully.

[Tuscani]

I would still do a small personal loan. An installment loan will help you as it adds a good mix of credit. This is especially true on a file as thin as yours.

Message Edited by Tuscani on 04-23-2007 01:36 PM