topic Re: Help! in Rebuilding Your Credit

Help!

Anonymous — Sat, 14 Jul 2018 23:09:14 GMT

Where to begin?! So at the beginning of this year I began monitoring my credit (I was very reckless when I was younger) and i got my ficos according to CK up to the 660ish? Well of course we tried to apply for a mortgage (one hit to my score) and they suggested we needed to get some ccs to start some credit building so we did now my score is back in the 500s and I'm stressing!!!!! HELPPPPOP

Re: Help!

19eighty5 — Sat, 14 Jul 2018 23:53:22 GMT

We'll need a lot more information to help but you've come to the right place. What are your FICO scores for Equifax, Experian, and TransUnion? Also, do you know what your score was at the time you went for preapproval?

Re: Help!

Anonymous — Sat, 14 Jul 2018 23:35:06 GMT

sorry I'm so new at this! Right now I'm at a 586EQ, 509TU, 585EX at the time my EQ was a 640 and my TU was a 638! (I know still not that great) I am super discouraged I know it has a lot to do with me opening new credit and I'm working on removing stuff from my TU that were already removed from my EQ....I've never had a auto loan, or a student loan...I even attempted to do the soft pull with capital one and I got pre approved for a vehicle but I dont want a car note my vehicle now only has $4000 owed on it

Re: Help!

Anonymous — Sat, 14 Jul 2018 23:37:44 GMT

If I am reading your story correctly....

Your score was 660

You obtained credit cards

Your score is now in the 500s

From the limited info you have given, I would say your cards are maxed and your scores have dropped as a result.

Re: Help!

Anonymous — Sat, 14 Jul 2018 23:40:54 GMT

Yes!!!! No not maxed out but I did open them one after another total of 5 cards! (wish I would have found this site a lot sooner)

Re: Help!

Anonymous — Sat, 14 Jul 2018 23:43:43 GMT

What is your individual utilization on each card and total utilization across all cards? Have you had any late payments?

Re: Help!

Anonymous — Sat, 14 Jul 2018 23:48:48 GMT

No late payments they were just opened within the past month
49%
40% that will report 20% this month
33% that will report 20% when it updates
23%
20% should report 10% when it updates
And 19%

Re: Help!

Anonymous — Sun, 15 Jul 2018 00:01:39 GMT

Well you are certainly taking some penalties for not only individual card UTI, but total UTI as well. You are probably taking a penalty for having balances on all of your accounts as well. This along with some recent inquiries, lack of account age, and lack of an installment loan, are certainly damaging your scores. Having an installment loan would improve your scores. Ideally you want your total UTI across all cards to be 8.9% or lower, but not 0%. Having a individual UTI at 28.9% or below is ok but probably not having that on all your cards. I would recommend working on the UTI, while continue to remove anything negative from your reports which you already doing. You need time to age your accounts.

Re: Help!

Anonymous — Sun, 15 Jul 2018 00:14:35 GMT

So total usage of all of my cc shouldn't be over 8%?

Re: Help!

Anonymous — Sun, 15 Jul 2018 00:36:28 GMT

@Anonymous wrote:
So total usage of all of my cc shouldn't be over 8%?

For optimum FICO scoring, your total combined UTI should be no greater than 8.9% but not 0.

Example:

If your total accumulated credit lines were at 1000, ideally it should report a balance no greater than $89.

Re: Help!

Anonymous — Sun, 15 Jul 2018 00:40:01 GMT

How did I never know this?! I was always under the impression that it shouldn't be greater than 20% on each card!

Re: Help!

Anonymous — Sun, 15 Jul 2018 00:50:54 GMT

@Anonymous wrote:
How did I never know this?! I was always under the impression that it shouldn't be greater than 20% on each card!

Many people when not applying for anything don't care if their scores have dropped a little. When you know that you will be applying for something in the future, many people do the AZEO method to shave as many points as possible(All Zero Except One). The guidelines I mentioned previously still apply. Remember what I said earlier, you CAN have a balance on a card no greater than 28.9% without any major scoring penalties as long as your total aggregate UTI across the board is no greater than 8.9%

Re: Help!

Anonymous — Sun, 15 Jul 2018 01:31:53 GMT

Ok next question one month I did let my very first card (at the time my only card) report 0 dollar balance is that bad?

Re: Help!

Anonymous — Sun, 15 Jul 2018 01:51:11 GMT

It's good. AZEO... All Zero Except One. You have five cards, so 4 reporting a zero balance, and one with a balance of 8.9 or less.

AZEO optimizes your score. It isn't necessary for general use of credit. But when you want your very best score, like for a home loan, do AZEO.

If I'm AZEO, allow all cards to report a zero balance, my score drops 16pts. I get one card to report a small balance, I gain the 16pts bsck.

@Anonymous wrote:
Ok next question one month I did let my very first card (at the time my only card) report 0 dollar balance is that bad?

Re: Help!

Anonymous — Sun, 15 Jul 2018 03:08:13 GMT

It amazes me how much I dont know! I'm so glad i found myfico! As far as the "mix" credit cards & loans how important is that really?

Re: Help!

Anonymous — Sun, 15 Jul 2018 04:46:01 GMT

@Anonymous wrote:
It amazes me how much I dont know! I'm so glad i found myfico! As far as the "mix" credit cards & loans how important is that really?

It makes up 10% of your score. The lack of an installment loan(auto, mortgage, personal) deducts points from your score because you are not actively managing different types of credit. You can still have good credit without an installment loan.

Re: Help!

Anonymous — Sun, 15 Jul 2018 04:52:47 GMT

The other part I’d like to see clarified goes back to your first post. You mentioned scores from Credit Karma, and that you then opened the cards and saw drops in your FICO scores. It’s possible that they actually didn’t fall as CK doesn’t report FICOs. I know when I opened my first few cards my scores improved because I now had active lines of credit to report as tradelines. Unless you quickly ran up the balances, your score probably should’ve increased.

Regardless, the advice above is solid. Since you’re going for a mortgage, go for AZEO, and be sure the card that’s reporting is a major, not a store card.

Re: Help!

Anonymous — Sun, 15 Jul 2018 04:54:31 GMT

Another possibility is that in opening 5 cards so close together, the inquiries on your report are high enough to dent your score some.

Re: Help!

Anonymous — Sun, 15 Jul 2018 11:05:21 GMT

I dont have a major card my credit card but I do have a secured card? If I have the the others at a 0 balance will the also report current?

Re: Help!

Anonymous — Sun, 15 Jul 2018 11:28:50 GMT

By major, I just mean Visa/MC/Discover/AmEx. Whether it’s secured or unsecured, it counts as long as it’s a general-use card that you can use to purchase anywhere, as opposed to something like a Kohl’s store card that’s only good at a specific store. In your case, report zero on all accounts except your secured card - let that be the one with the small reporting balance.