How do I move up the credit card ladder?

[jimmy2000]

Hi everyone, I have been browsing around as a non-member for awhile but I am very frustrated.

My credit score seems to be stuck around 660 (reported on CK and CreditWise) on both TU and Experian.  How do I move up the credit card ladder and start seeing my score raise?

I'm 18, so my credit history is extremely limited, but I do have 2 cards that I use a lot.

I have a Barclay's Apple Rewards, $700 limit, and a Capital One Journey with a $500 limit (started at 300).  I really have been eyeing the Costco Anywhere Visa, but I now I need a much higher score.  My credit has not improved much at all from when I first started out with these 2 cards, so I'm not sure what I'm doing wrong.  Any advice (besides waiting)?

[Anonymous]

Do not use CreditKarma. You are better off get real scores like through this website but go to the home page or get one from credit bureaus and get your real score and see the credit report to see why and then fix it from there then wait about 2-3 months then go apply like Captial One Secured or Discover Secured and play for 6-8 months, then you will be able to get more cards.

[851]

You'll need to show them you have income - the more stable and verifiable the better.

Then you need to demonstrate you can manage what they give you access to.

When I was your age I took out a small personal loan and literally deposited it into an account only to repay it.  I looked at the interest as the cost of establishing credit.  Max the cards so that your CR shows how much you spent and that you paid it off.  I'd advise always having cash to pay the balance before you do this.

[aircobra]

I'd look into getting another card (maybe Disco or AMEX). Building credit is a marathon, not a sprint. Don't expect jumps in your score so quickly. Definitely get your FICO scores though, Vantage is pretty much useless. You're not doing anything wrong, you're only 18 with a thin profile. Patience is key.

[sarge12]

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@jimmy2000 wrote:

Hi everyone, I have been browsing around as a non-member for awhile but I am very frustrated.

My credit score seems to be stuck around 660 (reported on CK and CreditWise) on both TU and Experian.  How do I move up the credit card ladder and start seeing my score raise?

I'm 18, so my credit history is extremely limited, but I do have 2 cards that I use a lot.

I have a Barclay's Apple Rewards, $700 limit, and a Capital One Journey with a $500 limit (started at 300).  I really have been eyeing the Costco Anywhere Visa, but I now I need a much higher score.  My credit has not improved much at all from when I first started out with these 2 cards, so I'm not sure what I'm doing wrong.  Any advice (besides waiting)?

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The highlighted part is likely the reason, but your Vantage 3.0 score is fairly useless anyway. Also with only 1200 dollars total credit limits, if you allow any balances to speak of to report, it will drag your score down a good bit, but you will get every point back once your utilization is low again. For highest score Utilization should be <9%, and <29% on any single card. With only 1200 in credit limits even 120 dollars reporting will put you over the 9% threshold. You also don't mention any installment loans, and an installment loan on the report will help a lot with your credit mix, but I am not suggesting you get one for just a credit score. There are some ways to get an installment loan and pay all of it off immediately except a small amount. That is done by some who are re-building to show both an installment account and low utilization on the installment loan which compares the original loan amount to the current balance. Check the re-builders portion of this site to get the details. Whatever you do, do not make any payment even 30 days late, because with such a thin file any late payments will be a score killer. In any case it will for sure take time to get a high score. Use the Credit education tab at the top of this page to learn what is, and is not, figured into a credit score. Right now AAoA, AoOA, Credit mix, are all likely affecting your score. Also inqueries and new accounts are as well, but only for about a year. Credit utilization only lowers your score while it is too high, and the history of utilization is not considered.

[CreditMagic7]

For some it's a slow climb. Was for me as well.

Adding a small installment loan a few times over at a local bank and paying it off contributed to that bank issuing a credit card offer from an affiliate of theirs.

It's a real grind and slow lowish progression BUT eventually you land that ONE really nice PRIME CARD that pulls you out of the dullness and into better forward results.

Works different for different people but i almost wonder if a chance at NFCU wouldn't help if even with a secured card. That CU is known to rapid path to better higher approvals once established.

[Anonymous]

You’re 18, you’re going to have very limited success until you turn 21. The good news is that you are setting yourself up very well when you get to 21 and should have the mailbox chock full of offers after that. 

Also get the Experian app and get a free Experian account and you’ll get your real Experian FICO as well as credit monitoring of your Experian report for free. It will blow your mind how inaccurate those other sites are. 

I do second the credit union suggestion. If you have military affiliation in your family, sign up for NFCU ASAP. Otherwise you should check for some local CUs and compare them until you find one that seems to meet your needs. Credit unions can be a huge helping hand and a bit of a shortcut, especially ones that offer credit builder loans and share secured loans. 

[sarge12]

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@Anonymous wrote:

You’re 18, you’re going to have very limited success until you turn 21. The good news is that you are setting yourself up very well when you get to 21 and should have the mailbox chock full of offers after that. 

Also get the Experian app and get a free Experian account and you’ll get your real Experian FICO as well as credit monitoring of your Experian report for free. It will blow your mind how inaccurate those other sites are. 

I do second the credit union suggestion. If you have military affiliation in your family, sign up for NFCU ASAP. Otherwise you should check for some local CUs and compare them until you find one that seems to meet your needs. Credit unions can be a huge helping hand and a bit of a shortcut, especially ones that offer credit builder loans and share secured loans. 

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I am not sure at 18 years old, how new the OP is to credit, but a Fico score takes 6 months of data to even generate a fico score. If he has less than 6 months history experian will not be able to return a fico 08 score.

[Anonymous]

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@sarge12 wrote:

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@Anonymous wrote:

You’re 18, you’re going to have very limited success until you turn 21. The good news is that you are setting yourself up very well when you get to 21 and should have the mailbox chock full of offers after that. 

Also get the Experian app and get a free Experian account and you’ll get your real Experian FICO as well as credit monitoring of your Experian report for free. It will blow your mind how inaccurate those other sites are. 

I do second the credit union suggestion. If you have military affiliation in your family, sign up for NFCU ASAP. Otherwise you should check for some local CUs and compare them until you find one that seems to meet your needs. Credit unions can be a huge helping hand and a bit of a shortcut, especially ones that offer credit builder loans and share secured loans. 

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I am not sure at 18 years old, how new the OP is to credit, but a Fico score takes 6 months of data to even generate a fico score. If he has less than 6 months history experian will not be able to return a fico 08 score.

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True but since OP is tracking score changes with those other tools, if there isn’t a score now, there will be soon enough. 

[AverageJoesCredit]

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