TRYING TO RAISE CREDIT SCORE ......

[oderra2013]

Hi guys I really need some good advice on improving my fico score I'm hoping to get a home loan within a year .... All I have in my name is an auto loan through whitney bank which will be paid off in November 2013 and I also have a credit card through capital one that I paid on time and more than the minumun each month . Should I get something else in my name like a secure credit card or a loan against a cd at my bank ? Or just continue paying on my auto loan and that 1 credit card on time each month ?

[llecs]

Welcome!

You mentioned you were paying the minimum? Would that mean there's a larger balance that's being carried month-to-month? Get in the practice now of paying it off monthly. For best results, assuming you only have one CC, get that to report a balance of under 9% of the CL. If you are looking to micromanage your score, try getting it to report 1%, 3%, 5%, etc. That level varies by person.

IMO, skip the loan. You already have one.

I would consider another CC. If you could delay the mortgage by 6-12 months, I'd aim for a second CC, or even a secured CC to limit your exposure to inquiries if you get denied for one or more.

[oderra2013]

Thanks A Million For The Advice That What You Said Sounds Like A Better Plan For Me Hopefully I'll See A Good Increase In My Score Before Long . THANKS. .....

[dddewdrop]

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IMO, skip the loan. You already have one.

I would consider another CC. If you could delay the mortgage by 6-12 months, I'd aim for a second CC, or even a secured CC to limit your exposure to inquiries if you get denied for one or more.

Ya I agree with what he said. Instalment loans count for far less in in FICO scoring models then credit cards. If you are carrying a balance on your card, the best way to increase your FICO score rapidly would be to just pay that balance down. People around here like to use 9% util as a number to stay under before someone is going to pull your score. So if your card has a $500 limit, your statement when it comes should be for less than 45 dollars... The negative effects of applying for and starting out with a new card should be largely gone within a year: the "cost" of an inquiry would be totally gone. Inquiries stay on your report for 2 years so a human being reviewing your file would see them for that long but the effect of them on your score is largely gone within 6 months depending on how many you have and the cost of the ding to your Average age of Account would of course vary depending on your specific situation. AAoA or average age of accounts is a component of FICO score that by definition takes time to build. 

  Some mortage companies like to see a few active tradelines. Some say 4 or more. In my case I held off getting a few credit cards for a while because I just didn't trust myself to no charge up a bunch of stuff on them and go into debt. I guess my point is everyone has their own situation and you know yours better than any of us do but all things being equal, to build your credit medium to long term you should have 2 or 3 more credit cards in my opinion. That doesn't mean you have to use them or go into debt or take risks. It just means that having a few more active tradelines that you are being responsibly with looks better to a lender and would put your fico score on solid ground. Good luck..