I posted in the Mortgage Forum the other day. Since i've been lurking around here for almost a year now (and really learning a lot through you guys), i figured i should go ahead and share my experience as well. Maybe it will be helpful for others as your stories have been helpful for me.
I didn't care much about my credit history about 10 years back. I just thought "Credit history is something that grows over time and as long as you make payments, your score will go up". Fast forward a few years, and i am moving overseas to Europe. Cancelling my US Banking and Credit Card accounts, and giving my car (which had 3 years of payments left) to my mom, since she couldnt get her own car due to bad credit. Go figure, she didn't pay the remaining payments (which there is nobody to blame for but myself. I should have known better), and the car got repo'd.
Fast forward again until early this year. I am facing the possibility of moving back to the US in the next couple of years, and i am realizing that a good credit migth be helpful in the process. Signing up here, starting with Scores in the middle 500s. Got a few ideas on how to fix that, got a Secured Credit Card with SDFCU, used it <9% and PIF regularly, had the repo fall off in August, and am now back up in the mid 700s:
|Datum||EQ Fico 8||TU Fico 8||EX Fico 8|
I was using my SDFCU Visa for the last 6 months, and went through the preapprovals with some of the Major CC Companies, where i kept getting offers with a fixed, but high, APR. Decided to finally pull the trigger and apply for AmEx and Discover.
- Got approved with AmEx for their Amex EveryDay Card with a 14 Month 0% APR (then 19.something) and a $2000 SL
- Got approved with Discover for their DiscoverIT Chrome, with a 21% APR and a $2000 SL
I am not too unhappy with that, considering that i was not credit worthy at all about 9 Months ago. I will use those cards wisely, always PIF, let just one card report a <9% balance and just let it grow. Going for the 3x CLI with Amex and a CLI with Disco in 3 Months, and then i'll just go from there.
My Goal is to be able to get a mortgage next summer, so even though i am going to take a hit fot the Inquiries and the lowered AAoA, there is plenty of Time to get my scores up to a decent level where i should be able to get a decent mortgage next year.
Just wanted to thank you guys for all the help you are providing for me and countless others out there. Maybe i can return a little of that help.
Congrats on raising your scores so high in just a matter of months. Be good to AMEX. Once you have been a member for 3-6 months, you will be able to expand. This is what happened to me. You get more points to your score for having a high amount of credit available. Your drop shouldn't dip too much from the credit inquiries. You'll recover from that first. 6 -12 months. I know that you will be able to move back soon and you'll have a mortgage in no time. But watch what our govt is doing and what the interest rates are. You may want to try a credit union or Quicken Loans to get pre-approved for a mortgage. Or you may just want to rent for awhile first to see where you want to be and then buy. But either way, you will make it back. Congratulations again!
Thanks for the kind words!
Yeah, i don't sweat the dip too much, because it's just temporary and by using the cards wisely, i will recover from it in no time. I used the SDFCU Secured (with a $500 limit) for the last half year or so. Just filled up gas with that card once a month (to stay below 9% util) and PIF after the statement. I will probably go ahead and use the AMEX from now on and pay most of the balance off before it reports, to use their cash rewards. And i definitely will try to get a mortgage with SDFCU or a different CU. They have been good to me the last couple of months, and i feel more confident with them than with a regular bank.