Seeking advice on what to do next - Low 600s

[Anonymous]

Hello all, new forum member here - discovered the world of credit cards and responsible management but in a bit of a rut, credit wise. Let me explain my situation first because I'm looking for advice to boost my score up ASIDE FROM paying off my balances. I was looking for opinions on other things I could be doing to move my score along a little faster. 

A bit of background, I am now in my late 20s and I got my first credit card, an AMEX Blue Sky, back in 2013. Have student loans since 2007 so i have a 11 year credit history. Opened up a Chase Freedom Unlimited in 2016 which was closed by chase when I went 60+ days without paying. I paid it off and reapplied for it in 2017 which is currently in good standing but is maxed out thanks to a trip to Europe this year which im paying off. 

Fast foward to this summer, I somehow got a targeted offer for 75,000 amex points with the Amex Platinum which I applied for and got instant approval. I really didnt think about it too much ( I will admit) before seeing if that card made sense for me personally, but after researching it is a card I plan on keeping due to the travel benefits because I fly domestically 2-3 times a year and internationally about the same. Part of that travel is for work and I was using the AMEX Blue Sky for work expenditures (which I get reimbursed for) but I figured the Platinum is an easy keeper since its spend neutral. 

I decided on applying for the CSP because AMEX isnt accepted everywhere internationally, or even in the US, and also to take advantage of the sign-up bonus (50k UR points plus another 5k for an AU - my sister). I got approved for it, but then I applied for the Chase Freedom two to three weeks later I was denied for it. I also tried to apply for the AMEX every day card around the same time and was also denied. 

AFter looking around for similar instances and speaking to Chase and AMEX I didnt really get any satisfactory answers as to why I was denied their lower tier cards. I do not carry a balance on the AMEX Platinum as it is a charge card, and am paying off after years of mismanagement the Amex Blue Sky and Chase FU with a personal loan from my credit union which gave me a fantastic interest rate. The CSP will be paid off in full after i get reimbursed by my employer later on this week, so again - are there any tips or tricks you guys have BESIDES paying off the balances on the Amex Blue Sky and Chase FU to help my score along? I've been looking at other credit cards I could apply for but after applying for the Capital One Savor yesterday and being denied I'm not really sure I could do anything besides just pay off the balances and just...wait. I

Is this what you guys and gals call being in the garden?

[Medic981]

Welcome to the myFICO forums!

Ultimately, what a person needs to improve their FICO scores and build credit are three open credit cards (secured or unsecured) in good standing and one open installment loan in good standing such as a car, home, student, personal, share secured, or credit building loan. This combination is what the myFICO score theorists here have determined is what you need for optimal credit building and FICO score. You can have more CCs and more installment loans, however, this will not increase your FICO scores.

Next, is paying in full all of the credit card balances each month, before the posting date, except one. This is called the All Zero Except One (AZEO) method. The one credit card you allow to post a balance needs to be less than 8.9% of the credit limit of the card. So using one card each month to buy lunch, letting it report and then paying in full will maximize FICO scoring.

The installment loan will have its greatest impact on your FICO score when the amount owed is at its smallest such as a few months before the loan is paid in full. If you don't have an installment loan you can check into SelfLender or a Share Secured Loan at a Credit Union.

Keep in mind, building credit is a marathon and not a sprint. It involves demonstrating to potential creditors that a person can handle credit responsibly. Having open, active accounts that are being paid on time with low credit utilization is the fastest way to build good, solid credit.

So yes, at this point you might need to consider going to the garden. Let your current tradelines age and increase your average age of accounts. No new hard inquiries which mean no new applications. Work on credit line increases that only require soft inquiries. Reduce the balances on your cards. Take care of any derogatories on your credit bureau files. Try to negotiate lower APRs on your credit cards. This is what credit gardening is all about.

[xaximus]

Besides paying off balances, the other thing you should do is go through your credit reports with a fine tooth comb - see what's hurting you i.e. late payments, charge offs, etc. I would then reach out to those specific lenders via goodwill letters to see if they can remove them. Let them know what the situation was. You may have to send multiple letters (and possibly to different places until someone agrees to have the baddies removed).

Once you have that done, a clean profile will help in the short and long run. It won't be easy getting the baddies removed but that would be one sure-fire way to help bring your scores back up.