Established Member
jg33
Posts: 12
Registered: ‎01-20-2009
Advice on improving my score.
[ Edited ]

So I just got a signature loan through my credit union and it is paying off all my credit card debt.  The payoff checks and close out letters went to the creditors.  I have gone from 11 CC's to 2 now. The 2 I have are retail store cards that are private label cards they have zero balances and I wont be spending on them.  I now have just a Installment loan through the credit union.  Im saving like $400 a month since I did this.  I have student loans and a auto loan aside from the  new credit union loan.  My question is now that my revolving accounts will be closed and paid off, will my score go up? Or will I need to use the retail cards once in awhile like $50 here and there and pay it off monthly to show that I am managing revolving debt not just installment loans.   If someone can reply with a plan from where they would go from here.  Im never late on anything. My credit cards were maxed out but now they will be closed with zero balances.  Thanks for the help.

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
Re: Advice on improving my score.

Your score may go up a little but you really need revolving.

 

I would use one of the cards you have and let it report a 9% or less balance and the other 0.  As far as FICO, yes, they are scored the same way.

 

Did you have to close the accounts to get the loan?

Established Member
jg33
Posts: 12
Registered: ‎01-20-2009
Re: Advice on improving my score.

yes I had to close the accounts to get the loan, but only the accounts that had any balances on them.

Established Member
jg33
Posts: 12
Registered: ‎01-20-2009
Re: Advice on improving my score.

*****UPDATE****

 

Half of my cards were closed in the consolidation through the credit union - CAP1 stayed open - My score for TRU is was a 682 and Equifax 666 prior to the consolidation loan.   In less than a week my score has gone from 666 EQ to 721 and My TRU from 682 to 734.       Just to see what would happen I applied for a new card and I got a 3K limit with cap1 and a new discover card (which I always was denied for previosly)  I know I shouldnt have applied but I did it for the credit education purpose, however I will keep the Cap 1 I just wont activate the Discover.  I just wanted to make a UPDATE post since this may have been helpful to somebody that is reading this.  Ill be sure to check back in to this post maybe 6 months from now.   I must say that this credit union totally helped me and I am so greatful.

Valued Contributor
wHiTeSoL
Posts: 1,052
Registered: ‎07-09-2013
Re: Advice on improving my score.

jg33 wrote:

*****UPDATE****

 

Half of my cards were closed in the consolidation through the credit union - CAP1 stayed open - My score for TRU is was a 682 and Equifax 666 prior to the consolidation loan.   In less than a week my score has gone from 666 EQ to 721 and My TRU from 682 to 734.       Just to see what would happen I applied for a new card and I got a 3K limit with cap1 and a new discover card (which I always was denied for previosly)  I know I shouldnt have applied but I did it for the credit education purpose, however I will keep the Cap 1 I just wont activate the Discover.  I just wanted to make a UPDATE post since this may have been helpful to somebody that is reading this.  Ill be sure to check back in to this post maybe 6 months from now.   I must say that this credit union totally helped me and I am so greatful.


To quote another fellow here on the boards " activating a card is just a security feature. Your account is open, you took the HP, you lowered your AAoA already, you might as well make use of it" 


   3/12 $3500     6/12 $1200      10/12 $1500   12/12 $3400    6/13 $12000      7/13 $5000      7/13 $2500       8/13 $2000    8/13 $6000

  | CSP (AU) $12,000 | Amex PRG (AU) | United $6,000 | OCCU $12,000 | Ink Bold | GM $3,200 | DCU $7500 | Luthansa $9000 | SPG $6,000 | Citi AA Executive $11,000 | Ink Plus $5,000                                                                         | EX 2/7 697 | EQ 10/27 721 | TU 12/15 719 |

Regular Contributor
Rikku
Posts: 200
Registered: ‎09-21-2013
Re: Advice on improving my score.

I applied for a Discover card in college and never activated it. The account still appeared on my CR as an open account for 3 or 4 years before they closed it for inactivity. I NEVER activated or used the account. So...don't assume that not activating the account means that it won't appear on your CR.

Established Contributor
GFer
Posts: 983
Registered: ‎04-01-2008
Re: Advice on improving my score.

As stated; revolving account will build your credit much faster.



1/28/14 EQ 817, (6/30/14)EX 821, TU 817 on 6/13/2014

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