topic Re: Looking to boost first FICO score in General Credit Topics

Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 03:02:11 GMT

I made a few topics about new credit, but I am looking to build my first FICO score. My Vantagescore is 675, but it is essentially useless. I do not have a FICO score yet. I have 1 capital one quicksilver card with a very low CL. I have been reading that it is advisable to have 3 credit cards. Now, I don't want inquiries to lower my score. But since I already have a Capital One unsecured card, would it be beneficial to get a capital one secured card as well?

Re: Looking to boost first FICO score

Moneyklutz — Wed, 06 Dec 2017 03:42:46 GMT

I'd be patient and let your QS1 reach the 6 month mark before applying for any more credit. Once you establish a FICO score, then add to it by selectively choosing cards that you'll actually use and benefit from. Build your credit base knowing that time and good payment history makes it strong, not just flashy.

Don't view your credit building as a race.

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 03:48:05 GMT

Thank you

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 03:52:06 GMT

How old is your oldest account? Is it under 6 months, meaning you can't get a FICO score yet, or is it greater than 6 months and you simply haven't obtained a FICO score from anywhere yet?

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 04:03:37 GMT

My first credit card is 3 months old. So I don't have a fico score yet. I have the creditwise app with capital one and it says my score is 675. But that's vantagescore. I just want to get my first score as high as I possibly can, but it's hard getting credit cards because nobody uses vantagescore for approval.

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 13:02:52 GMT

Well, I'd be looking @ a secured card if I were you. Try the Secured Visa® Card from First National Bank of Omaha. It has a variable 18.99 APR with no fees @ all.
Put $500 in there and let that rock for 6 months to a year.
I'd even venture to say get a 2nd secured as well. Look into OpenSky or First Progress. I believe FirstProgress & OpenSky don't even conduct a Hard Pull.

They just allow you to apply and set up a secured account.
With that Capital One, you're not going to go anywhere with just that 1 card.
Once you have your secured, make good use out of them, charging wisely and never going over the 50% mark.
Pay in Full, ALL THE TIME.
Even if you need to spend more than 50%, charge under, pay it off and then charge some more...pay that off.

The point of this is to develop good bill paying habits. Once you have it down, it'll be second nature to just pay, pay, pay.

You never want the bank to report that you've used 50% + of your limit to the CRA's. That's just bad and it stays on your record of that particular card.

Re: Looking to boost first FICO score

Gramz — Wed, 06 Dec 2017 09:02:49 GMT

To caveat off everyone, building score is not a sprint. It will take time before your score get as high as possible because there's a lot of factors playing here.

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 12:15:05 GMT

While you are waiting for your FICO score to appear, you can implement the SSL Technique. This link will tell you all you need to know about it -- and you only need to read the first 2-3 posts:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secure-technique/td-p/4506756

Be sure that your CC utilization (as it appears on the reports) is 1-8% before you try implementing the technique.

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 13:29:51 GMT

Read my signature link and you'll be in the 700s after your first year of credit or less than that.

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 13:34:46 GMT

Would you happen to be a student? My first card was a BOA Student credit card with a $900 limit that I was later able to product change (PC) to a cash rewards that now has a $7000 limit. Any student loans?

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 13:56:34 GMT

@Anonymous wrote:
@Anonymous, I'd be looking @ a secured card if I were you. Try the Secured Visa® Card from First National Bank of Omaha. It has a variable 18.99 APR with no fees @ all.

IMO, APR should be the last concern of someone just starting out in the credit world. Why? Simply because they should be focusing on adopting sound credit behavior out of the gate, which involves paying in full every cycle. When one does that, APR is irrelevant. Pointing toward APR (suggesting it's "good" or low) only suggests to someone that it's acceptable to carry a balance, something they shouldn't get in the habit of doing when first starting out.

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 14:10:06 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous, I'd be looking @ a secured card if I were you. Try the Secured Visa® Card from First National Bank of Omaha. It has a variable 18.99 APR with no fees @ all.
Simply because they should be focusing on adopting sound credit behavior out of the gate, which involves paying in full every cycle.

100X this.

I wish someone taught me young that credit works best as a money making tool and not a way to pretend to have more money than you do. Since I learned this, I haven't used credit for any depreciating asset or paid interest and just use credit for building wealth versus losing it.

If you can live on debit cards, you can use credit cards the same way and accumulate wealth versus using debit cards. I can't believe how much money I've left on the table in 20 years, plus how much I paid in interest on depreciating assets. Literally would be millions of dollars now had I used credit wisely for the first 20 years of adulthood.

Now my credit cards are used like debit cards: I charge, I PIF. If I can't afford to PIF today, I don't charge it today.

Re: Looking to boost first FICO score

Kree — Wed, 06 Dec 2017 16:50:56 GMT

@Anonymous wrote:
I made a few topics about new credit, but I am looking to build my first FICO score. My Vantagescore is 675, but it is essentially useless. I do not have a FICO score yet. I have 1 capital one quicksilver card with a very low CL. I have been reading that it is advisable to have 3 credit cards. Now, I don't want inquiries to lower my score. But since I already have a Capital One unsecured card, would it be beneficial to get a capital one secured card as well?

Why? Credit scores are a tool to be used. While a high credit score is a better tool, if you want to save points for the purpose of saving points, it's like digging with your hands so your shovel doesn't get muddy.

Unless you have a specific need for a higher score at a specific time, it shouldn't matter too much what your score is between uses. Especially if the loss of a few points today means a higher score 6 months from now, or a much higher score 2 years from now. Think of it as investment. You can't sell a stock for 100 monies if you didn't first buy it for 10 monies.

Re: Looking to boost first FICO score

Anonymous — Wed, 06 Dec 2017 21:27:11 GMT

@Kree wrote:

Why? Credit scores are a tool to be used. While a high credit score is a better tool, if you want to save points for the purpose of saving points, it's like digging with your hands so your shovel doesn't get muddy.

Great point and well put.

Re: Looking to boost first FICO score

Anonymous — Thu, 07 Dec 2017 04:01:22 GMT

What is a good shared secure loan to apply for? Like with what bank, or company? And it's a secured loan, so I should automatically be qualified right?

Re: Looking to boost first FICO score

Anonymous — Thu, 07 Dec 2017 04:02:20 GMT

My utilization is at 5% right now. Why should it be 1-8% before applying for shared secure loan?

Re: Looking to boost first FICO score

Anonymous — Thu, 07 Dec 2017 04:51:47 GMT

@Anonymous wrote:
What is a good shared secure loan to apply for? Like with what bank, or company? And it's a secured loan, so I should automatically be qualified right?

9 times out of 10 the suggested source is Alliant. That's the suggested one in the SSL technique thread and the most commonly used among forum members here. There are plenty of other options though, I'm sure, such as your local CU or whoever you have a current account with.