New to the U.S., looking at boosting credit score & options

[Anonymous]

Hi everyone

I just moved to the U.S. from Canada in October and wanted to get a headstart on building my credit score right away, so lemme get the numbers out the way for you. These are the cards I currently have:

- Bank of America Secured Credit Card, limit of $500 (with a deposit of $99), current balance is $0

- Credit One Bank Cashback Unsecured Credit Card, limit of $300, current balance is ~$50.00 (From myFICO, ironically, LOL)

- No other debts

- Total annual income of ~$43,000

Although debt-free, my credit score in Canada isn't exactly stellar, so I'm blessed that I get a fresh start in the U.S., so utilizing a bank with Canadian ties such as TD Bank to hitchhike my credit score is out of the question.

I was using Credit Karma initially until I stumbled upon myFICO, and the last update it shows my $500 card at 93% utilized and the $300 card doesn't exist yet, so right now it's showing my score at 562 for TU and 556 for Equifax (both effective April 15th balance), however the card has since been paid off in one fell swoop on time, and utilizing the simulator on Credit Karma says that my score could jump up to around ~700 the moment my balance is paid off (which it now is) and I'm only going to assume the additional $300 card will help. Is this 93% utilization in the past going to haunt me? I mean it was only around ~$460.00 of total debt, dollar-wise, and aside from my payment to myFICO my balances are 100% paid off now, and I've never had a late payment.

Lastly, I'm thinking about getting a new MacBook Pro, and I saw that Apple and Barclaycard have some sort of promotion that offers up to 18 months interest-free (deferred) financing as long as you pay it off in time, and I was just waiting to see prices drop (and credit score go up) before even bother applying, and I was kinda playing it out in my head on what I could do:

- The total purchase price is ~$2K

- Save up $1K, keep it handy in bank account

- Apply for Barclaycard for around $2.5K credit limit

- If approved, purchase $2K MacBook Pro with Barclaycard

- Wait until first statement showing a due date and minimum payment, then immediately dump the $1K I had saved up onto the card, paying off half the debt (so the payment reflects on the credit report)

- Because of the 0% interest promo for 18 months, I could pay a minimum of $60/month for 17 months and not get hit with the deferred interest on the 18th month, but instead I'd prefer to pay around $100 every paycheck (bi-weekly) to pay it off faster and bring my utilization down sooner

- After it's paid off, never use the card again aside from just ensuring it's active once in a while to ensure my available credit stays high (buying gas once every other month, pay it off immediately, etc.)

Do you think this is a good plan? I could just buy the MacBook Pro with cash, but since it's like-cash with no interest, as long as I pay it off within the promo period, I figured I'd kill two birds with one stone; get my MacBook a bit earlier than I planned, and boost my credit for free.

Thanks guys!

[HeavenOhio]

I don't think the high utilization will haunt you. As you said, the dollar amount wasn't very high. It's visible in your report, but it doesn't stick for scoring purposes.

I think you have a good plan for the MacBook Pro. But I'd be concerned about Barclays approving you this early in your credit history. Maybe someone here with direct knowledge will be able to tell you something that's more encouragiing.

[CreditInspired]

IMHO, I doubt with those scores and toy limits you will get a $2.5K approval at this time. Have you thought of becoming a member of a CU. Your chances of a higher CL ~$1K might be possible. Good luck.

[newhis]

I don't know if the Apple/Barclay financing is a credit card or another product.

Thanks to this forum I learned to stay away from store financing, they don't look good in your reports.

If BofA card is older than 6 months, you may try to unsecure it and get a CLI.

The only way I know to boost your scores is to do the SSL technique. You will get a secured loan for 5 years, you pay most of it right away and only owe 8% or so. Thanks to credit mix your score will increase in 20-30 points. As long as you don't have any other open loan. Follow this link and red the first few posts. Good luck.