topic Let me know how I'm doing in Rebuilding Your Credit

Let me know how I'm doing

Anonymous — Thu, 03 Jun 2021 20:03:22 GMT

Hi all,

About 6 months ago I decided to start worrying about my credit score. At age 31, I had no credit. I had a few small things in collections from 10 years ago, but nothing crazy. I had no loan or credit card history.

I started out with a $500 secured Discover card and a $200 OpenSky secured card.

Shortly after I thought I was applying for a Credit One secured card. It turns out it was a non secured card for which I was approved for $300.

To further help build credit, my bank gave me a $500 line of credit. Twice now they've automatically transferred $100 to my checking account, and they've automatically made 4 $25 payments to pay off the $100.

Recently I applied for and was approved for a $500 non secured Opportun card.

I use the Discover card the most, and I actually added more money to it. I now have an $800 limit. In a few months I'll qualify to graduate to a non secured card.

I'll put gas in or go out to eat, and then pay off the card. Or pay a utility bill with a card, then immediately pay it off.

I have yet to have even 1 bill due, nor have I paid any interest.

Am I utilizing the cards correctly?

My scores went from nothing to the following in a fairly fast matter of time (in the last 6 months)

Experian: 730

Equifax: 741

Transunion: 748

I have a monthly subscription to Experian. My Discover card shows a FICO score on Transunion of 770, but I know everything varies.

I have been denied for a couple cards. I try not to get crazy but there's been a couple times where I start running too fast.

I want to buy a reasonably priced used car but for now my wife is saying no. The dealership ran my credit and I could have went up to a 24k car.

We're getting things ready so that we can qualify for a home, which is another reason why my wife is saying no to a car, even though we're 6 plus months away from getting to where we need to be. As of now we qualify for $250k but we want to get to 325k.

I'd love to hear what I'm doing right, what I'm doing wrong, what else I could be doing, etc.

I like having credit and I think I'm being responsible with it. I want to get to the point where I have access to tens of thousands of dollars.

Thank you!

Re: Let me know how I'm doing

mycreditscoreisfair — Thu, 03 Jun 2021 20:42:30 GMT

It doesn't sound like there's anything to fix, per say. So the biggest thing you need now is to give it time and let your credit profile age.

It seems you have 3+ cards and a loan. I'm sure someone will come along and recommend AZEO with the cards. Search the forum for that term and you'll find plenty of threads.

Many mortgage lenders may be weary of so many recent apps and new accounts. Garden for a while and let the accounts age. Many say it's best not to apply for new credit within a year of applying for a mortgage.

Re: Let me know how I'm doing

Anonymous — Sat, 05 Jun 2021 23:31:20 GMT

Your credit worthiness is thin. I'd say deposit between 2-4k cash on Open Sky if you can so, your uti% stays low and you look creditworthy. I also wouldn't recommend Credit One. They have a lot of fees and their limits don't go anywhere.

If you need a secured credit card then go get yourself a Capital One secured credit card at least to start building a relationship with them. If you pay on time, they do increase your limit.

Or you can get a secured card that will graduate to unsecured down the road, liki Citi secured. Citi however, isn't very easy to obtain. I'd say Capital One secured would be a safer baby step for you.

Also, what exactly do you mean by collections from 10 years ago? You're not supposed to have any negative items older than 7 years 6 months. If you have anything older, dispute them immediately to be deleted from your history. Unless, you communicated with the collection agency and caused them to reset the 7 year cycle.

Re: Let me know how I'm doing

FireMedic1 — Sun, 06 Jun 2021 13:33:35 GMT

For now you have more than enough credit cards. Only three is really needed to get the ball rolling. More cards doesnt mean highter scores. I noticed you kept repeating paying everything off. Having no cards report a balance dings your score. Have one of you cards report a small amount like your tank of gas. Once it reports. Then pay it off. The wife is right. No new car. A home makes money over time. A new car loses money the second the 4th wheel leaves the parking lot. Save up for your house. That is the biggest investment in life. Then get the car you want. Dont apply for anything else. Get the keys to your house. Good luck!

Re: Let me know how I'm doing

OmarGB9 — Mon, 07 Jun 2021 00:21:50 GMT

@Anonymous wrote:
Your credit worthiness is thin. I'd say deposit between 2-4k cash on Open Sky if you can so, your uti% stays low and you look creditworthy. I also wouldn't recommend Credit One. They have a lot of fees and their limits don't go anywhere.

If you need a secured credit card then go get yourself a Capital One secured credit card at least to start building a relationship with them. If you pay on time, they do increase your limit.

Or you can get a secured card that will graduate to unsecured down the road, liki Citi secured. Citi however, isn't very easy to obtain. I'd say Capital One secured would be a safer baby step for you.

Also, what exactly do you mean by collections from 10 years ago? You're not supposed to have any negative items older than 7 years 6 months. If you have anything older, dispute them immediately to be deleted from your history. Unless, you communicated with the collection agency and caused them to reset the 7 year cycle.

That wouldn't reset the credit exclusion period, only potentially the SOL for being sued. Two completely different things. The derogatory still has to fall off after 7.5 years max whether it was ever paid or not.