I recently started rebuiliding my credit after 11 years of inactivity. All my bad information---Chapter 7 discharge (2006) and Federal Tax Liens--have dropped off and do not appear on any report.
I got FICO 8 scores of 696-EQ, 720-TU and 717 EX with a Capital One (7 mos.--500 limit) and Credit One (4 mos). I recently applied for and got a Discover Card with a $ 1000 limit. All payments have been timely and my credit utilization is being reported as 4 %. I have been approved for a 15 year home equity loan on a home I inherited based on those FICO scores at a 3.875% rate. At the present time I have 0 debt and 150K in annual income.
I want to apply for an auto loan with a local credit union, but plan to wait until after the home equity loan closes. I just learned that my EQ score decreased to 683 and my TU score to 718, I assume because of the new account and the mortgage inquiry. The mortgage payment will be made through auto-debit on a Schwab investment account and will always be timely. I have no need for credit cards and have used those I have only to establish a FICO score in order to get the home equity loan which I have apparently accomplished. I anticipate the usage will remain under 10%, I want the auto loan simply to have one on my history and to avoid a large cash outlay.
I suspect my scores are going to go down with the large outlays, but I anticipate that a perfect payment history and no new credit during the next three years will take care of the initial drop. Any comments or opinions would be appreciated.
