Citi Approved! - Help my overall credit strategy.

[Anonymous]

I recently applied for a Citi Dividend Plat Select MC, I had to send in a utility bill but I just called and found out I was approved via their automated system ( I don't know the CL yet). I would like advice on what to do next.

My goal: Have a 760 middle score in 2 years for mortgage purposes

I am 25 and have a thin/short credit file because I never applied for credit until after college.

Current TL:

1) 8500k Merrill + (FIA/BOA) ~4 years old (11% util now - 21% at time of score below)

2) Unknown Limit Citi Dividend

3)14.5k  60 month auto loan that I am ahead on, with 9200 outstanding 10 months into the loan

Scores: 3/23/08 - Post Inq from Citi but not after a new line has opened

EQ 710 ( 3 of 6 inq coming off this month)

TU 739

EX 742

I don't mind taking a small dip in the next year but I want to boost my scores as high as possible in the 2 year out timeframe.

1) I always PIF but one 1 of the 2 CC I will pay balance down to 0 and try to alternate so both appear active.

and

2) Have the overall util in the 1-9% range. I have thus far been in the 9-25% range....averaging maybe 13%.

I won't apply for another CC in the next two years, two will serve me plenty well, but should I add a store card to boost my credit mix score? (I know its not potentially a huge amount but every bit helps near 760). Would lowering my already low average length of account hurt much more than boosting the credit mix would help? As long as all lines are over a year old at the time of my mortgage app would having a low average age hurt me terribly if I am in a bucket for that type of consumer?

TIA!

Message Edited by debtisgood on 04-06-2008 01:07 PM

Message Edited by debtisgood on 04-06-2008 02:21 PM

[haulingthescoreup]

I would say that you will be at 760 in one year, not two, easily.

You are pretty much in a keep on, keepin' on mode. You don't even need to worry about util, unless you are two months or less out from applying. But it's a good habit to get in to only have one card reporting a tiny balance, and then paying it off before the due date, with the other 2 PIF'd.

One more card might help, or might not. I like the idea of three cards, since you have a car loan. That way, the car loan will report, plus one CC, which should make the scores happy. The most score damage is done within the first 3-6 months of getting a new card, and after 12 months, it doesn't report as new any more.

You have Citi and a BOA/FIA card, so you might look at either a Chase card or an AmEx. Either will grow with you, and AmEx should give you high scores right out of the gate. If you do get an AmEx, be sure to pay it off monthly, even if it's one of their credit cards (the Blues, etc.) The Blue might be your best bet, although if you expect to travel a lot, check out Blue Sky. Blue Cash isn't worth it, unless you run a gi-normous amount of cast through it. (We're talking $6500 in the first 6-7 months just to get an average of around 3% on it, and then you have to start all over again the next year.)

Keep the util under control, and as Sylviatob says, never ever be late. You're in great shape, and I'm deeply envious!

[Anonymous]

Super congrats d.i.g. ! WTG!

That is a prime card, and will grow with you. Keep it pristine, pay on time every time, never go over the limit, and your scores will be where you want them in no time.

[Anonymous]

Thank you both for your responses.

I will probably pick up another CC (probably AMEX) a few years after my mortgage, but I have no need for more credit right now.

My only question is really, do you think it would add 5-10 points to have a Store Card like Best Buy (store only) reporting. I would probably do this in 6 months when it looks like I am not trying to load up on a bunch of new TL.

Thanks for all the input.

[haulingthescoreup]

I've always been skeptical about store cards, but I've read enough posts by those who got one and then saw their scores climb that I guess there's something to it.

The Best Buy is a good store card to have--it usually has higher limits than other store cards. Make sure they don't stick you with the MC.

Sorry I missed your question first time through! Too much basketball on TV.

[Anonymous]

IMO a store card compliments your bank cards in a cc portfolio. Whether it boosts your scores is an area of debate. Maybe!

I know getting several store cards before Christmas didn't hurt me any. In fact it may have helped somehow.

I got a BB store card in November, for Christmas shopping, and it came in really handy. I love it, and use it frequently.

[Anonymous]

i don't think the store cards help your score or mix.  one more prime cc will help you more.  the interest rates are ridiculous on store cards also.  maybe consider a credit union card as they have great rates.