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My Credit Score: Seeking some advice

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Anonymous
Not applicable

My Credit Score: Seeking some advice

Hi All, New to the forum but I'll be around for a while.

Seems like a wealth of information is hanging around. My main goal is to learn about how to best manage my credit score so that I'll be able to be approved for a low interest mortgage on a home in two or three years.

I'm 18 years old (19 in December). My current FICO score from Equifax is 676.

Here's what I have:
3 Savings Accounts
2 Checking Accounts
-Visa $4,000.00 Limit $0.00 Balance
-Visa $2,000.00 Limit $800.00 Balance, will be all paid off in the next 2 months
-Visa $1,200.00 Limit $0.00 Balance
-Visa $700.00 Limit $0.00 Balance (My first credit card. Acquired 12/06)

I'm looking to find out several things. Firstly, I would prefer to cancel the two with the lowest limits to have less to worry about, and primarily use the top two. Is this advisable? Also, is my credit score good for where I am at? In addition, where is a good place to check my FICO on a monthly basis? All advice would definitely be welcome. Thanks for your time.

Message Edited by HuntingGuy on 10-24-2007 07:35 PM

Message Edited by HuntingGuy on 10-24-2007 07:53 PM

Message Edited by HuntingGuy on 10-25-2007 07:07 AM
Message 1 of 5
4 REPLIES 4
smallfry
Senior Contributor

Re: My Credit Score: Seeking some advice

Keep all the cards and make sure you use them enough to keep them all open. Once you close on the house you can close the low limit cards and get higher limit cards if you want. Some people think low limit cards are a hindrance to getting high limits in the future. However if you were to keep all these open you could have some serious history on your side. Low 800's are within your reach within 10 years if you never pay these late and don't do anything else. I would just keep them all.
Message 2 of 5
haulingthescoreup
Moderator Emerita

Re: My Credit Score: Seeking some advice

Even more to the point, your scores should be great for a mortgage in several years. Your EQ score and overall financial picture are crazy good for someone your age!

Just keep working what you've got, including the lower limit cards, as long as there are no fees. Think about something you could do with those two twice a year, and write it on a calendar (gas for your trip to the beach in the summer, Christmas shopping in winter.) Let each report at the magic 1-9% (not 0%, not 10%), and then park it again. As you are so young, you should really hang on to all four cards, especially since the $700 card is your oldest, and still less than a year old. If you do nothing else, never be late with a payment.

If you have bought your FICO EQ and/or TU scores, play with the simulator and see what it favors. The numbers aren't guarantees, but they're a guide. Don't just do the best scenario, play with the others down below. "Pay down your credit cards over 24 months" appears to mean be smart and behave yourself for the next 2 years. I wouldn't torture your accounts with slow repays.

I'll leave the best-deal-on-monthly-FICO-pulls for someone else. I'd bought so many that I could support a credit scholarship fund! Smiley Very Happy
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 3 of 5
Anonymous
Not applicable

Re: My Credit Score: Seeking some advice

Thanks for the advice!

haulingthescoreup- Hey, at least it's for a good cause! ;-)

I just subscribed to ScoreWatch. Looks like a great tool.
Message 4 of 5
haulingthescoreup
Moderator Emerita

Re: My Credit Score: Seeking some advice

A lot of us got confused when we first subscribed. You only get 2 free reports. After that, whip out the CC. It's discounted if you get a score alert, plus you should always Google for discount codes for any purchase. Welcome to our craziness! Smiley Tongue
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 5 of 5
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