topic Re: Short History Credit Scores in Understanding FICO® Scoring

Short History Credit Scores

Anonymous — Sun, 22 May 2016 00:26:22 GMT

Hi all, new to the game, on April 11th I had no credit, and nothing on my credit report but a school loan paid off 9 years ago.

On that day, I got an unsecured $500 visa from my CU, a $200 secured from capital one. A week later I got a 4k secured loan from my credit union, and quickly paid it down to $750. May 1, got approved for a $1500 discover. So now in the garden and waiting to eventually apply for a mortgage.

Before getting in the hand,i had no credit score, but quickly got one thanks to that old school loan showing up.

So, current FICO Score 8, EQ 687, TU 662 EX 685

Was wondering who else out there is mostly a newbie like me? With such a short history, really curious how fast things can change. The Capital One isn't showing up yet on my reports and the personal loan is still showing full balance.

So, any newbie stories?

Re: Short History Credit Scores

Anonymous — Sun, 22 May 2016 01:26:37 GMT

Typos thanks to phone..

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Before getting in the hand,i had no credit score, but quickly got one thanks to that old school loan showing up.

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That line should have read, Before getting in the game, I had no credit score, but quickly got one thanks to that old school loan showing up.

Re: Short History Credit Scores

Revelate — Sun, 22 May 2016 04:41:32 GMT

If you sit on your hands can hit 760 on a FICO 8 score in a year, you might do better than that with the old school loan hanging out.

FICO 8, and also EX 98 which is part of the mortgage trifecta, you'll want to pay that loan down to $350ish for maximum score benefit. Good starter kit!

Re: Short History Credit Scores

RonM21 — Mon, 23 May 2016 04:05:38 GMT

Depending on what you do, it can change fairly quickly. I've seen peoplw.with new credit get to 700+ in like a half hear.

Re: Short History Credit Scores

Anonymous — Mon, 23 May 2016 21:56:50 GMT

Thank you for the input!

I just paid it down to $350. They ususally report balances at the end of the month, so I expect to see a nice boost!

Already had a boost this morning as my Discovers started reporting with 1% balance. This is fun!

Re: Short History Credit Scores

Anonymous — Tue, 24 May 2016 14:49:43 GMT

My Equifax AAofA is 4 months and my score is 712 right now.

Re: Short History Credit Scores

Anonymous — Tue, 24 May 2016 20:51:17 GMT

Sweet!

I'm hoping that when my installment loan reports at less than 9% at the end of the month that I'll break 700.

Re: Short History Credit Scores

Anonymous — Tue, 24 May 2016 21:30:50 GMT

ctaylor3143, can I ask what your credit profile looks like? What types of accounts? Oldest?

Re: Short History Credit Scores

EmmaGolden — Wed, 25 May 2016 03:38:16 GMT

My scores & AAoA are in my siggy. I started with a Fingerhut account $400 in Dec 2014. Blank slate before except I started a baddie (paid judgement) on EX that had nothing to do with credit. Never used it(Fingerhut) & applied for my 1st card in Dec 2015. All dates & starting limits are in my siggy if you place cursor over cards.

I'm only answering to give you some good advice, that I missed. Your score is no better at this point than someone with an established file with a score of 640,

My scores in Jan 2016 were comparable to yours & I applied for cards with Barclay, Chase & Citi not realizing the little value of my score with a thin file. They all will not even consider you with less than a year of established credit. I also applied for cards that I really didn't need & have since closed them.I have closed all 3 Comenity cards( 2 Visa & a store), WM store & Stash. I've tried 3x's for Discover, should have realized they didn't want me & I was only adding inquiries; in the end that was the last denial I got, too many inquiries

I am quite lucky I didn't do more damage to my scores but I'm sure they would be higher if I didn't have as many inquiries on my cr's. Sit on the cards you have & age them. Show responsible use & read the threads on this forum. I was lucky I found MY Fico in Feb 2016 & learned quickly, reading everything.

Slowly build, I got caught up with the glitz of the siggy's here. If I could do it over ( which I can't) I would have gone slower, not apped with a thin file. Amex took me 2 tries. I have EQ 13 TU 11 EX 9 inquiries, not a lot compared to some but double what i should have & have to wait a year before they fall off. So. glad I realized that I really do not want or need any more credit at this point.

Earliest score I have: FICO: 1/17/16 TU: 688 EQ: 679 Exp: 591, pd judgement has been removed from EX.

Good luck in your journey, read & ask before apping. You'll get some good advice.

Edited to correct: I have EQ 13 TU 11 EX 9 inquiries, not a lot compared to some but double what i should have & have to wait a year before they fall off.( should have said until they matter less)

Re: Short History Credit Scores

Grafton88 — Wed, 25 May 2016 14:48:47 GMT

Congrats on your credit building success. Going the secured route is a great way to start. Paying down your loan balances will show some improvement to your score soon.

Let me share my rebuild story.

March 2015 no credit score. Got secured CC from NFCU. June 2015 got secured loan from NFCU.

October 2015 finally was able to generate a score. FICO 8 scores 640 to 650.

December 2015. Scores 670 to 680. Paid off loan. Got 3 CC I had wanted.

January 2016 scores fall to 640 range. AAoA falls to 2 months. Got new secured loan.

February 2016 got EE from TU. Score jumps to 715.

May 2016 got EE from EX. Paid down loan to under 9% balance remaining. EX score jumps to 775. TU score jumps to 759. EQ score is 712 with a Public Record. AAoA is 7 months. Oldest account is 14 months.

If your credit report is clean you are going to see some nice jumps in your score. Cleaning up my report showed the best improvements. Keeping balance down will also show good results. I would caution you to keep a close eye on any new apps. You don't need a lot of CCs. Thinks of the ones you will need when you buy that house. The only CC I will apply for this year is Lowes. I want to take advantage of their 0% financing.

You are doing all the right things. You have a good understanding of what it takes to get a great score and maintain it. Best of luck.