Question,
My girlfriend got a credit card ($1,000 limit) in 10/04, that was closed within less than 2 years (by her parents) after she had two 30-day late and one 60-day late payment. I assume her parents paid it off and closed it, because she's sitting on a $0.00 due balance. I also assumed she thought it was just like another Debit card (I did the same thing my Freshman year of college), and didn't know she had to pay it off after taking use of it.
Fast track to June 2010. We want to establish her credit, but she was rejected by both Wells Fargo and Bank of America. All three credit agencies state, 'FILE NOT SCORED - INSUFFIENCT OR UNKNOWN ACCOUNT HISTORY.'
Starting from scratch, I'm recommending her getting a Secured Credit Card, but at the same time, I am suggesting she asks her mother to add her to their Chase (and preferably NOT AMEX credit card account) as an authorized user (AU), in order to more quickly start building her credit. This would yield two different trade-lines listed on her report, and should combined increase her credit score more quickly than ONLY a Secured Credit Card by itself, isn't that right?
Please give me some advice on how to proceed with her establishing her credit once and for all? Secured vs Authorized User?
I recently graduated college with a high credit card debt, and found myself at a 642 mid-score in June, stemming from HIGH balances. Since, I have paid down (to $100.00 out of $1700.00 limit) on this one credit card, and JUST qualified for a Blue Cash AMEX card with a $1,000.00 limit. I won't be re-pulling my credit until August/September to find where I am at again, because I've turned into a Credit-Awareness FREAK over the summer, paying down credit cards bi-weekly. Currently sitting on the following cards;
Wells Fargo - Owe $120 on a $1,700.00 limit (opened 08/07)
AMEX - (waiting to receive it in the mail, $1,000.00 limit) (opened 07/10)
Wal-Mart - Owe $60 on a $575.00 limit (opened 07/09)
Kohls - $(4.65) - accidentally paid twice due to their awful online payment center - $300.00 limit (opened 12/08)
Express - (waiting to receive in the mail, $350.00 limit) (opened 04/08)
It appeared HIGH balances were what affected my scores the most, because I've paid down Kohls, Walmart AND Wells Fargo to less than 15% since I got my full-time job in June. Realistically, how much do you guys think I have jumped (from 642 on June 3) to now (after qualifying for AMEX on July 16)? I'm curious prior to actually checking in another 6-8 weeks.
Glad to be a member of this forum to learn all there is to know!
Thanks!
