How do I move up the credit card ladder?

[KJinNC]

The reason for the installment loan is triggering "good credit mix" on FICO.

Below is what FICO says about my credit mix. The one installment loan is Self Lender.

But, I agree it's not really necessary. The OP's scores are fine. The main thing to do at this point is make payments and wait.

[coreysw12]

(didn't read all the replies in this thread, so some of this may have already been addressed by others)

While I would never advocate taking out loans or opening new cards that you don't really need, part of the reason your score is stagnant is because you only have 2 accounts, and they're both revolving credit cards. Your scores will grow faster if you have 3 cards and an installment loan reporting.

There are "self lender" installment loans you can get, where the bank "loans" you money (by putting it in a savings account that you can't access until the loan has been paid off). You make monthly payments (plus a small fee) to it, they report it to all 3 bureaus, and at the end of the loan period you get the money back (sometimes plus savings account interest). It's a great way to add an installment loan to your credit reports, without actually having to go out and buy something expensive that depreciates, like a car. It also forces you to put money into "savings", which is always a good thing.

Adding a 3rd credit card would help, too, especially if it always reports $0 balance every month. But don't settle for some junk subprime card, get something you actually want, and if you don't qualify for a card you want right now then wait until you do.

[Anonymous]

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@KJinNC wrote:

The reason for the installment loan is triggering "good credit mix" on FICO.

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Oh, I get that. It makes sense, but for someone 18 years old and 11 months into credit building, it just seems like there are much bigger hills to climb.

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@KJinNC wrote:

But, I agree it's not really necessary. The OP's scores are fine. The main thing to do at this point is make payments and wait.

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It's funny how we all feel like things take forever when we are going forward, but it feels like it took no time at all when we look back. It will happen.

Heck, my credit score was around 803 without a loan not too long ago until I opened a few new cards. Now it is between 750-780 depending which you check. 

[SouthJamaica]

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@jimmy2000 wrote:

Thanks!  I applied and was approved for $500 for a Macy's store card which I assume will just be a good 4th account to add to the mix.

Please don't get any more store cards.

 I also pulled my true FICO scores and now realize that Credit Karma is way off.

Glad we got that straight.

 For now I am just going to sit for a year or two,

Now you're talking. Patience.

and become an authorized user on one of my dad's cards

NOT necessary. Don't.

to help boost a little more.

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[jimmy2000]

I got the Macy's store card because I shop for clothes almost 100% exclusively from there, and the cardmember only sales and the rewards are worth having it.  I plan on this being my only store card, ever.