topic Re: Next move to improve my FICO? in General Credit Topics

Next move to improve my FICO?

Anonymous — Sat, 08 Jun 2019 05:18:40 GMT

I'm fairly new on here but I'd like to understand how to build a stronger credit score as quickly as possible. Based off of creditscoredcard.com (experian) I'm a 664.

I currently have 2 credit cards
OpenSky : CL $500
$0 balance - opened 1 yr & 3 months ago
Genesis (kay jewelers) : CL $3,000
$2,400 balance - opened 3 months ago

Total of 5 hard inquires but will all be removed this year. I've already paid and got removed a derogatory mark which is a plus , so it is now removed from my credit report !

I really want to improve my score , what's the next suggestion? I planned to apply for the Capital One platinum card. Is that a good option or should I wait to apply for more credit.

Re: Next move to improve my FICO?

thornback — Sat, 08 Jun 2019 07:00:12 GMT

Hi & welcome to the forums!

Your first priority should be reducing that Kay Jewelers balance as quickly as possible because right now, your scores are suffering due to high utilization penalties.

Your aggregate util (total balance / total credit limit) is 68.6%. That's high (ideal for scoring is below 8.9%) and costing you 30+ points. Additionally, your individual utilization is 80% (ideal is less than 28.9%) and costing you even more points.

High util can also keep you from being approved for new credit or, if approved, result in low starting limits because it makes you appear to be a high risk borrower - especially when combined with a thin / limited credit history. It can also result in adverse actions by creditors, such as limit decreases / balance chasing.

I suggest you focus on paying down that debt before seeking any new credit. As you pay down, you'll see your scores increase when you cross known util thresholds below where you currently stand (88.9%, 68.9%, 48.9%, 28.9%, and 8.9%).

And congrats on getting that negative removed.. are your reports now clean / free of all derogatories? If not, what other negatives are reporting?

Re: Next move to improve my FICO?

Anonymous — Sat, 08 Jun 2019 07:35:14 GMT

Good reply above. I agree with not applying for any credit until you get that Kay card paid down to a comfortable utilization level. Around $500 or so would be sufficient, IMO.

How old is your oldest account? What is your average age of accounts? Do you have loans or other accounts on your CR aside from those two CCs? You said you have 5 inquiries, so I'm curious what they came from if you only have 2 CCs.

Re: Next move to improve my FICO?

Anonymous — Sat, 08 Jun 2019 08:08:36 GMT

Okay perfect sounds good thanks for the response very helpful. Saved me from applying then possibly getting denied! It is now clean of all derogatory Marks. Only negatives are my low credit card history is only about 9 months total.. I had 1 card for 1 year and 4 months and the other only 3 months..and the utilization is high due to the Kay's card.. but other than that I have a clean record so far.just unsure what to do next

Re: Next move to improve my FICO?

Anonymous — Sat, 08 Jun 2019 08:12:00 GMT

Yeah definitely helpfully!
My oldest account is opensky (1year and 4 months) every payment on time
Then Kay's card (3 months) payments made on time..
No I have no other loans or accounts other than the 2 CCs..
My hard inquires were back in 2017 for applying for an auto loan but again those should all fall of by September this year

Re: Next move to improve my FICO?

Anonymous — Sat, 08 Jun 2019 11:32:42 GMT

Just keep on keeping on.

Dont miss any payments, pay down the Kay as aggressive as you can without

hurting your savings plans and other financials. (perhaps now is good time to cut out unnecessary spending)

Over time when the utilization lowers, you will see great increases.

And then apply for your needed new card(s)

Just rememeber a new card will help with utilization overall, but will also take small hit

for short time for new account and HP...which you can see fades with time.

Re: Next move to improve my FICO?

CreditInspired — Sat, 08 Jun 2019 12:29:12 GMT

@Anonymous wrote:
I'm fairly new on here but I'd like to understand how to build a stronger credit score as quickly as possible. Based off of creditscoredcard.com (experian) I'm a 664.

I currently have 2 credit cards
OpenSky : CL $500
$0 balance - opened 1 yr & 3 months ago
Genesis (kay jewelers) : CL $3,000
$2,400 balance - opened 3 months ago

Total of 5 hard inquires but will all be removed this year. I've already paid and got removed a derogatory mark which is a plus , so it is now removed from my credit report !

I really want to improve my score , what's the next suggestion? I planned to apply for the Capital One platinum card. Is that a good option or should I wait to apply for more credit.

Hi and welcome to MyFICO

You've gotten terrific advice so far. I just want to say to "start thinking of creating a great profile as a marathon and not a race." You're going to see that phrase quite a bit as you read through the posts on these forums. And it's true. Also, as your accounts age and you start adding additional CCs, I suggest staying away from retail cards and focus more on obtaining bank cards.

GL2U

Re: Next move to improve my FICO?

Anonymous — Sat, 08 Jun 2019 14:35:12 GMT

Agreed with all of the above. I would say though that once you are paid down on the high-use card, when you look for a third card, pass on CapOne and its triple HP. With where you stand now and where you’ll likely end up, look at Amex and Discover. Both are keeper cards with a variety of desirable perks, can grow large as your profile supports, and both have prequal tools to give you a good indication of approval.

As BBS indicated too, look into adding a loan such as Self Lender. You’re incurring a FICO penalty for not having an installment account on your profile, so that will help as well.

Re: Next move to improve my FICO?

Anonymous — Sat, 08 Jun 2019 15:52:36 GMT

@CreditInspired wrote:
You've gotten terrific advice so far. I just want to say to "start thinking of creating a great profile as a marathon and not a race." You're going to see that phrase quite a bit as you read through the posts on these forums. And it's true.

While I agree with the general thesis of that common statement, I would suggest that there are 2 instances where credit can be a race and not a marathon. Those 2 instances would be when a person has just 1 negative item on their CR that they have the potential of getting removed, or they have high utilization that they have the ability to pay down significantly or off quickly. The OP possesses one of these instances, the high utilization. Whether or not he has the ability to pay it down quickly, I'm not sure. Removing a lone negative item or paying down high utilization to an ideal place can often result in FICO score increases of 50, 75, even 100 points. In those situations, I'd liken those increases that can happen in 30-60 days to a race rather than a marathon.

I agree on all the other long process factors that there simply isn't any way around... such as profile thickening and increasing age of accounts factors.

Re: Next move to improve my FICO?

SouthJamaica — Sun, 09 Jun 2019 02:04:31 GMT

@Anonymous wrote:
I'm fairly new on here but I'd like to understand how to build a stronger credit score as quickly as possible. Based off of creditscoredcard.com (experian) I'm a 664.

I currently have 2 credit cards
OpenSky : CL $500
$0 balance - opened 1 yr & 3 months ago
Genesis (kay jewelers) : CL $3,000
$2,400 balance - opened 3 months ago

Total of 5 hard inquires but will all be removed this year. I've already paid and got removed a derogatory mark which is a plus , so it is now removed from my credit report !

I really want to improve my score , what's the next suggestion? I planned to apply for the Capital One platinum card. Is that a good option or should I wait to apply for more credit.

1. Wait until you have the Genesis balance paid down to $300 or so.

2. Then tell us what your FICO scores are, and what kind of credit card you would like to have, and we can give you suggestions.

Re: Next move to improve my FICO?

sarge12 — Sun, 09 Jun 2019 02:27:10 GMT

@Anonymous wrote:
@CreditInspired wrote:
You've gotten terrific advice so far. I just want to say to "start thinking of creating a great profile as a marathon and not a race." You're going to see that phrase quite a bit as you read through the posts on these forums. And it's true.

While I agree with the general thesis of that common statement, I would suggest that there are 2 instances where credit can be a race and not a marathon. Those 2 instances would be when a person has just 1 negative item on their CR that they have the potential of getting removed, or they have high utilization that they have the ability to pay down significantly or off quickly. The OP possesses one of these instances, the high utilization. Whether or not he has the ability to pay it down quickly, I'm not sure. Removing a lone negative item or paying down high utilization to an ideal place can often result in FICO score increases of 50, 75, even 100 points. In those situations, I'd liken those increases that can happen in 30-60 days to a race rather than a marathon.

I agree on all the other long process factors that there simply isn't any way around... such as profile thickening and increasing age of accounts factors.

It is also important to some of us to define our objectives with credit, and work to acheive those objectives. If your objective is to maximise the credit score, the best strategy might not include opening new accounts. If your objective is to maximise the rewards you extract from credit cards, the credit scores can be seen as currency that must be spent to some degree to maximize the SUB's and rewards. For me, it is a combination of both which has led to 3 inqueries followed by a year in the garden to recover points. I do see the points in terms of monetary value that is of little value if not used to redeem them for rewards and SUB's. PS::: The single largest value possible from credit scores is to obtain a low mortgage rate of interest....If you want a favorable mortgage rate do not sacrifice points chasing 200 dollar SUB's that are insignificant when compared to the savings on a 30 year mortgage.

Re: Next move to improve my FICO?

Anonymous — Mon, 10 Jun 2019 01:43:15 GMT

Right. No use in stepping on a dollar just to pick up a quarter.