topic Re: First time building Credit score! in Understanding FICO® Scoring

First time building Credit score!

Anonymous — Wed, 03 Jan 2018 16:11:50 GMT

Hello, I am new to this forum. I am 20 years old, female, trying to build my credit score for the first time. I just applied for Secured capital one card and got approved. I have two bank accounts (Checking) one with BOA and the other with Wells Fargo.

Any tips?

Re: First time building Credit score!

arkane — Wed, 03 Jan 2018 16:26:17 GMT

- Use your credit card as if it was a debit card -- only charge to the card what you can pay off in that moment (or at most, before the due date)

- Keep utilization (your reported balance) below 28.9% (or optimally below 8.9%) before the statement cut date; pay down the amount owed during the middle of the billing cycle if necessary to keep util low

- ALWAYS pay in full each month; DO NOT carry a balance or get charged interest!!!

- Do not apply for any new cards until your account has aged for at least 1 year since this is your first (and only) card

- Consider signing up for free monitoring services such as Credit Karma and TrueIdentity after a few months to keep track of your account reporting (ignore the scores if they are Vantage Scores and not FICO)

- Pull your 3 bureau FICO scores after 6 months to see how you're doing credit wise

Currently on a plane that's about to take off so sorry for the somewhat rushed response. I'm sure others will be happy to pitch in and a lot more info.

Re: First time building Credit score!

GFer — Wed, 03 Jan 2018 16:20:58 GMT

Congratulations and welcome to the forums!

Do you have a credit score (FICO) reporting yet, or is this the first of any credit? How long have you had your accounts with the banks?

Asking, because if you have had a relationship with them for awhile, you may be able to get another card or two to help your credit building journey. Now you don't have to have other cards, but it helps in keeping your utilization percentages down. Read all you can about scoring and use of credit. This forum is your gateway to success! Don't hesitate to ask questions, as there are a lot of knowledgeable and helpful folks on here! Good Luck!!

Re: First time building Credit score!

Anonymous — Wed, 03 Jan 2018 16:25:43 GMT

Thank you for the reply. No I don't have a Fico reporting tool yet except 2 that I used to check my score. They were called Credit Sesame and the other was Credit karma. I just signed up there to check my score and they both showed it at 300 score, which I assume is for first timers.

Does checking your credit score all the time effects your score?

also i have been with both banks less than 6 months. I just started a new job

Re: First time building Credit score!

Anonymous — Wed, 03 Jan 2018 16:25:12 GMT

Thank you so much. Are you suggesting I only stick to Capital one card? My credit line there is $200. I believe I can increase them too.

Re: First time building Credit score!

GFer — Wed, 03 Jan 2018 16:27:51 GMT

Some say get one card and let it age before getting another. Each person's situation is different, as are opinions. If you have been with boa for awhile, I would try getting a card with them. They will grow, as will your history with Cap1. Cap1 declined my teen son out of the gate, but he was approved with Discover and American Express. Discover and Amex can grow pretty quickly too. Whether or not you have a score reporting to FICO yet, plays a big factor in this. My son did, because I had had him as an authorized user for several years. Do you have any student loans or maybe an automobile loan reporting, possibly?

Re: First time building Credit score!

radfam — Wed, 03 Jan 2018 16:31:23 GMT

CreditCheckTotal.com is a $1 week-long trial and will show you your actual Fico scores. Credit Karma and Credit Sesame are Vantage Scores, not Fico. You will see them referred here as FAKO scores. Some people on here have seen 100+ point differences in their Fico scores compared to Credit Karma/Credit Sesame. I just checked mine and there is a 30+ variance (with Credit Karma being 30 pts higher than my actual Fico score here on MyFico).

Re: First time building Credit score!

Anonymous — Wed, 03 Jan 2018 16:36:59 GMT

Okay, that is insightful. I will sign up for the trial but as a first timer, what should I expect? I tried signing up for Equifax and TU and they couldnt register me for some reason. I guess they dont register you if you have no credit score.

Re: First time building Credit score!

GFer — Wed, 03 Jan 2018 16:40:27 GMT

@Anonymous wrote:
Thank you so much. Are you suggesting I only stick to Capital one card? My credit line there is $200. I believe I can increase them too.

If this is the ONLY credit you have, waiting seven months (it takes awhile sometimes for scores to show) would benefit you before you apply for anymore. Some people go hog wild right out the gate, and that sets them up for a bunch of low limit cards. Patience with credit is key, as is making ALL of your payments on time. The main reason you want your credit limit higher, is so you don't have to make constantly make multiple payments just to be able to use the card. Your limits only affect your credit score as far as utilization. As mentioned, you typically only want below 9% reporting. In your case, this will be hard, because it's your only card. Not to worry if you are not seeking credit anytime soon! Just don't go over your limit and make your payments on time. At this point in time, you are more concerned with history (good payment habits) and time to build that score.

Re: First time building Credit score!

GFer — Wed, 03 Jan 2018 16:41:51 GMT

@Anonymous wrote:
Okay, that is insightful. I will sign up for the trial but as a first timer, what should I expect? I tried signing up for Equifax and TU and they couldnt register me for some reason. I guess they dont register you if you have no credit score.

Exactly. Do the others just to familiarize yourself and also helps you learn what the bureau's include for your scores.

Re: First time building Credit score!

Anonymous — Wed, 03 Jan 2018 16:44:36 GMT

Ok, thank you. So I was right when I was signing up for TU and Equifax. I thought maybe something was wrong with my SSN. I feel better now knowing it was because i dont have a credit score thats why i was not able to register

Re: First time building Credit score!

Anonymous — Wed, 03 Jan 2018 16:49:57 GMT

So for some reason, I couldnt register for CreditCheckTotal.com. I got the below error. Any idea?

We are currently unable to process your request. If you need further assistance, please email us at support@experiandirect.com or call us at 1-866-506-7894.

Thank you - we appreciate your business!

Re: First time building Credit score!

GFer — Wed, 03 Jan 2018 16:51:41 GMT

Hmmm...I don't use them. Maybe they do require a score. Couldn't hurt to call them?! Maybe someone who used them will chime in!

Re: First time building Credit score!

Anonymous — Wed, 03 Jan 2018 16:53:06 GMT

I think they do require a score. I couldnt sign up for any of the three bureaus.

Re: First time building Credit score!

Anonymous — Wed, 03 Jan 2018 17:52:21 GMT

So the key here (if I understand your first post right) is that you have at most one account and this was only just approved. In order to have a FICO score, you need to have an account that is at least six months old. Credit Check Total gives FICO scores. Thus the error message.

Wait for 7 months. In the meantime, follow the advice you have gotten from the other folks regarding this card. Each month use it for something small that you actually want or need. Allow the purchase to appear on the statement. After the statement prints, pay the statement balance in full.

Do that every month. Around month 3, consider implementing something called the Share Secure Loan Technique. The lender we have been recommending (Alliant) is no longer an option, but we'll likely have a vetted list of alternatives by early March, and we can suggest some to you then.

At month 7 get your scores at CCT. They should be quite good. Once you know what your scores are, you will be able to get a couple more cards. Chase will not be an option at that point, because you need a full year of history with them first.

Re: First time building Credit score!

Gratitude — Tue, 09 Jan 2018 06:43:55 GMT

@Anonymous wrote:
So the key here (if I understand your first post right) is that you have at most one account and this was only just approved. In order to have a FICO score, you need to have an account that is at least six months old. Credit Check Total gives FICO scores. Thus the error message.

Wait for 7 months. In the meantime, follow the advice you have gotten from the other folks regarding this card. Each month use it for something small that you actually want or need. Allow the purchase to appear on the statement. After the statement prints, pay the statement balance in full.

Do that every month. Around month 3, consider implementing something called the Share Secure Loan Technique. The lender we have been recommending (Alliant) is no longer an option, but we'll likely have a vetted list of alternatives by early March, and we can suggest some to you then.

At month 7 get your scores at CCT. They should be quite good. Once you know what your scores are, you will be able to get a couple more cards. Chase will not be an option at that point, because you need a full year of history with them first.

ZeeA,
@Anonymous @Anonymous just offered is gold.. and others have responded with.. awesome.
I'm happy to see you here at your age and chiming in for general support. Continue to search and research within this forum, your mind will be blown and your future will be in total great shape.

I only wish I came across something like this when I was 20yrs old.... Life-changer!

Re: First time building Credit score!

Anonymous — Tue, 09 Jan 2018 11:46:03 GMT

Thank you so much. I will take your advice into account.

Re: First time building Credit score!

Anonymous — Tue, 09 Jan 2018 11:46:46 GMT

I agree. This is such an helpful and great community to be part of!