Established fair credit, now what?

[Anonymous]

Hey all,

I am a second-year university student with monthly expenses of about $200-$400. I began my credit history about ten months ago with BofA Travel Rewards (limit $700). I practiced a few tips I received online such as end each statement with 9% utilization and PIF each month. My score quickly rose and I requested a limit increase on my BofA card to a total of $1000.

About two months ago, I applied for a Banana Republic visa card and was instantly approved with a limit of $1900. Maybe a week later I also applied for an Amex Blue Cash Everyday with a limit of $500. Currently, my fico score according to BofA is 723, to Amex it is 697, and to Synchrony Bank (Banana Republic Card) it is a 723.

Where do I go from here? What strategies should I take to continue raising my credit score? I am unsure as to how much I should spend on each card or if I should close accounts with a $0 balance every so often. Is increasing my credit line a good idea, and if so, how can I do that without impacting my score too much?

Thank you for taking the time to help me out!

Edit 02/08/18: I forgot to mention that though I do not have student loans, I am part of a joint auto loan of $12,275 for 72 months with my father as the primary holder.

[Anonymous]

First congrats on your approvals! 

Now......put on your patient hat. While you have some good cards with good companies, your limits are low. Your on the right track, but this is the marathon track and it can be boring. 

Use your cards, keep your reported spend less than 30%, and pay on time.....wash, rinse and repeat.

Request regular increases per bank and keep going for at least 6 months. This is the smart way.....and the long way. I personally won’t discuss any shortcuts because they can do more harm than good. 

Good luck! 

[Anonymous]

Try to get the limit increases on the BCE. Check the forums for the thread called AMEX 61 Day CLI, and see if the advice would be useful. I tripled my limit on my first request (2k to 6k with no hard pull). Higher overall limits on your cards will help you qualify for more “prestigious” cards with excellent sign up bonuses, perks, CLs, etc (if those aspects of CCs interest you).

[Anonymous]

Don't apply for cards you don't need. Take a break for 7 months. Remember credit agencies report 1 month behind. Stay patient and use it regulary. After that, you can think what do you need to do next. Maybe you're going to travel somewhere, then get Delta or Venture CC. Keep PIF every month next 7 month, then see again where you are. Taking 7-13 months break is the best.

[Anonymous]

Congrats on the good start and as the others said, slow down a bit, grow your current limits for 6-7 months, and keep 'reported' uti at under 9%. Another thing, with 3 cards only let one report a balance and pay the other two before the statement. You can look up AZEO (all zero except one) on the boards to get a better understanding of uti.

[Anonymous]

You are a college student with 3 good cards. I wouldn't recommend anything other than use your card, pay in full each month, except letting a small balance  report on one card each month, and watch your credit limits and score increase over time. You don't need a lot of credit cards while you are a student. By the time you graduate, you should have solid credit profile.

[HeavenOhio]

@Rojas, you've done great work so far. You have three major cards, which positions you nicely. Don't apply for anything new for a while. In six or seven months, consider applying for something, but only if there's a card you really want. In the meantime, hang around the fourm and soak up some knowledge about products that might be useful to you, along with your chances of being approved for those products.

There's no need to close anything. Because you have major cards, you can use them practically everywhere. There should be no problem keeping them active without having to spend money that you wouldn't have spent otherwise.

When the time is right, definitely check in on credit limit increases (CLIs), particularly on your AMEX and Synchrony cards. Check out the first few and last few pages of The Definitive Amex 3X CLI Guide to learn about how AMEX increases work. People here can clue you in on Synchrony CLIs better than I can.

You can request increases on your BoA card too, but because BoA CLI requests entail a hard inquiry, you'll want to be somewhat less aggressive about it. When BoA feels the urge to increase your limit, a link will appear in your account.

While building, keep Chase in mind. They generally require a year of history, and before applying for one of their cards, it's best to garden (not apply for anything) for a few months. Most importantly, for most of their cards, there'll likely be an instant denial if you've acquired five or more cards in the past 24 months. If Chase doesn't concern you, you can build a little more aggressively. If you think you might be interested in their products, build more slowly.

When it's time to apply, keep your utilization in check. 30% and 9% have been mentioned. Below 30% (which is actually 28.9% of your limit or below) is considered responsible borrowing. You should aim to be under this threshold almost all of the time. Below 9% (8.9% or below) optimizes your score. Aim to be under 8.9% when it's time to apply for new credit. Also, as mentioned, when it's time to apply for new credit, aim to have a small positive balance on one card with the others reporting zero. You don't have to pay interest to report the small balance. Holler if you need more tips on how to do that.

[AverageJoesCredit]

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wrote:

You are a college student with 3 good cards. I wouldn't recommend anything other than use your card, pay in full each month, except letting a small balance  report on one card each month, and watch your credit limits and score increase over time. You don't need a lot of credit cards while you are a student. By the time you graduate, you should have solid credit profile.

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THIS+1

Slow and steady will keep away Freddy

[Anonymous]

Awesome work, OP!

The responses here, are why I love this forum! Hang out, join our garden thread and enjoy school!

[Gmood1]

If you don't have a installment loan reporting..get one by going with a shared secured loan. That will raise your scores and build a more well rounded file. Other than that, not much else you need to add right now.