Hello all,
I've been browsing this forum for a few weeks and have learned a lot. I decided to join and hope some of you kind people will guide me in the right direction.
I've recently started building my credit profile. I'm 23 (almost 24), and started working about 6 months ago. I only have a $3k sudent loan that is in deferrment. I plan on starting grad school this fall, so I'll accumulate some debt then. Right now I have the advantage of living with a family member, so I don't have rent as an expense. I am trying to save up as much as possible so that I can buy a house in the next two years. I signed up for CCT this morning (Had CK before, read on this forum it's inaccurate, so decided to try CCT). My EX is 624, EU 632 and TU 580 
. A few months ago, I stupidly thought I needed a bunch of cards to show that I have credit history, and that negatively impacted my TU I guess . My last few apps were for store cards back in March-April (JCP, Macy's, Walmart, Target). I frequent these places, and like the discounts, but can never avail them because I don't have the store card. I decided to apply for Macy's again yesterday (stupid, I know) and got denied again. I was actually susprised because CK was showing my score in the 630's and I thought that would help me get approved but nope. I know it's silly to be so bummed about a Macy's card, but I end up there so often to buy gifts, and keep thinkning of all the money I could be saving. Sometimes I go with a friend who kindly make transactions for me on her card for the discounts and I pay her back, but I feel really awkward doing that. And it also makes me feel down that if I can't get a lousy store card now, who knows if I'll ever be able to build a decent history. I saw CCT today, back in March Macy's accessed my Ex which is now 624, but this time they accessed TU, and I guess 580 is horrible for a Macy's card. I did call them about it yesterday, and they said I needed a score of at least 630 to get a card. They didn't say which one, but it will take a long while to get to a TU 630. Out of all reports, my TU is the one that's hit with ALL the inqiries ( I have 8 overall; 3 of those are from 2014 when I was trying to get a private student loan, and I guess should fall off soon, but I have the others as pretty recent, so I guess that's what caused the hit). I have no collections, no missed payments. The only negative on my account is, I was an authorized user on my mom's Chase Amazon two years ago (500 limit). I never used that card, she overcharged it and stopped paying it, and now it's been closed and says "charged off as bad debt". The total amount on it is $757 and it was closed about a year and a half ago. Will this ever get off my credit report? My sister was also an authorized user on the same account, and it has been removed from her report recently. She is 19.
The student loan is from last year only. Current cards I have are Capital One MC ($300), Cap One Quicksilver (500), Cap One Journey (500), a MC from my bank for $1000, and Kohl's ($300). I pay them all off in full when I use them. Before I was paying them off as soon as I swiped (I was using them just to keep the cards active), but then I thought I should wait till the statement closes and pay it off so it shows that I pay it on time? Like I said, I'm a newbie at this stuff so any and all advice is appreciated. I use one card (Cap One Journey) for all my bills, and pay it off each month. Never even used the MC from my bank, and I think I should a little so they don't close it (Is it true if I don't use my cards regularly they will be closed? If so, how often do I need to make a transaction to keep them active?)
I don't want to get into the habit of accumulating debt or living out of my means, so I don't want cards to provide a lifestyle I can't afford right now. I don't want to keep applying for cards I don't have a chance of getting. I think my EU and EX are somewhat okay, but if everyone will pull TU then I won't get anywhere.
I have a car, but I bought a used one that I saved up for and paid in full, so not an expense. Does an auto insurance bill help my credit report? I basically just need them to build a history. Right now the biggest negative factor on my reports is length of credit history (5 months on average, besides that charged off acocunt of my mom's). What cards should I start with, how often should I apply, should I be requesting CLI, what should I do to maintain a decent score? Also, can I consolidate all the Cap One cards? If I hopefully am able to save up enough to put a down payment on a house within the next two years, what should I be doing to help me reach that goal and getting a mortgage? If I am being unrelatisc, please also tell me that, lol.
Thank you to anyone will be replying.
@Anonymous wrote:Hello all,
I've been browsing this forum for a few weeks and have learned a lot. I decided to join and hope some of you kind people will guide me in the right direction.
I've recently started building my credit profile. I'm 23 (almost 24), and started working about 6 months ago. I only have a $3k sudent loan that is in deferrment. I plan on starting grad school this fall, so I'll accumulate some debt then. Right now I have the advantage of living with a family member, so I don't have rent as an expense. I am trying to save up as much as possible so that I can buy a house in the next two years. I signed up for CCT this morning (Had CK before, read on this forum it's inaccurate, so decided to try CCT). My EX is 624, EU 632 and TU 580
The student loan is from last year only. Current cards I have are Capital One MC ($300), Cap One Quicksilver (500), Cap One Journey (500), a MC from my bank for $1000, and Kohl's ($300). I pay them all off in full when I use them. Before I was paying them off as soon as I swiped (I was using them just to keep the cards active), but then I thought I should wait till the statement closes and pay it off so it shows that I pay it on time? Like I said, I'm a newbie at this stuff so any and all advice is appreciated. I use one card (Cap One Journey) for all my bills, and pay it off each month. Never even used the MC from my bank, and I think I should a little so they don't close it (Is it true if I don't use my cards regularly they will be closed? If so, how often do I need to make a transaction to keep them active?)
I don't want to get into the habit of accumulating debt or living out of my means, so I don't want cards to provide a lifestyle I can't afford right now. I don't want to keep applying for cards I don't have a chance of getting. I think my EU and EX are somewhat okay, but if everyone will pull TU then I won't get anywhere.
I have a car, but I bought a used one that I saved up for and paid in full, so not an expense. Does an auto insurance bill help my credit report? I basically just need them to build a history. Right now the biggest negative factor on my reports is length of credit history (5 months on average, besides that charged off acocunt of my mom's). What cards should I start with, how often should I apply, should I be requesting CLI, what should I do to maintain a decent score? Also, can I consolidate all the Cap One cards? If I hopefully am able to save up enough to put a down payment on a house within the next two years, what should I be doing to help me reach that goal and getting a mortgage? If I am being unrelatisc, please also tell me that, lol.
Thank you to anyone will be replying.
1. You should stop applying. Period.
2. You should not obsess yourself with buying a house and incurring a mortgage. Don't give yourself a deadline on that. You have to do it when the time is right, if at all.
It's a huge financial burden.
3. You should use your existing cards very sparingly, and pay them down to zero. It's ok to pay them off before the statement cuts.
4. You should challenge the authorized user negative, and do what you can to get it off your reports.
Welcome!!! See my thoughts below:
@Anonymous wrote:I decided to apply for Macy's again yesterday (stupid, I know) and got denied again. I was actually susprised because CK was showing my score in the 630's and I thought that would help me get approved but nope. Don't go by what CK tells you score wise, or for chances of approval! The only negative on my account is, I was an authorized user on my mom's Chase Amazon two years ago (500 limit). I never used that card, she overcharged it and stopped paying it, and now it's been closed and says "charged off as bad debt". The total amount on it is $757 and it was closed about a year and a half ago. Will this ever get off my credit report? It will be removed 7.5 years from that date of deliquency. I would try to pay this, or even bettter, try a pay for deletion.
Current cards I have are Capital One MC ($300), Cap One Quicksilver (500), Cap One Journey (500), a MC from my bank for $1000, and Kohl's ($300). I pay them all off in full when I use them. Before I was paying them off as soon as I swiped (I was using them just to keep the cards active), but then I thought I should wait till the statement closes and pay it off so it shows that I pay it on time? Only let 1 card report a balance under 10% of your total overall credit between all of your cards. Let the others report a zero balance. This is for max scoring. Paying all down to zero and letting them report like that can casuse a score drop. I use one card (Cap One Journey) for all my bills, and pay it off each month. Never even used the MC from my bank, and I think I should a little so they don't close it (Is it true if I don't use my cards regularly they will be closed? Yes, it can happen. If so, how often do I need to make a transaction to keep them active?)Even if you buy something small every couple of months, do so to avoid this possible problemIf
I don't want to get into the habit of accumulating debt or living out of my means (very important and smart way to handle your credit), so I don't want cards to provide a lifestyle I can't afford right now. I don't want to keep applying for cards I don't have a chance of getting. Stop apping for cards right now. You're being declined and getting dinged for it on your scores, as well as allowing the lenders to consider you more of a risk with too many inquiries I think my EU and EX are somewhat okay, but if everyone will pull TU then I won't get anywhere.
I have a car, but I bought a used one that I saved up for and paid in full, so not an expense. Does an auto insurance bill help my credit report? Maybe only in the rare case that it reports monthly I basically just need them to build a history. Right now the biggest negative factor on my reports is length of credit history (5 months on average, besides that charged off acocunt of my mom's)Only counts for a smaller percentage of your score, but you should not ignore it. What cards should I start with, how often should I apply, should I be requesting CLI, what should I do to maintain a decent score?See my answers above on not applying right now, and how to let your current cards report. Also, can I consolidate all the Cap One cards? I believe they are just rolling out this process, and it hasn't been easy for everyone to get done at the moment. You can try though. If I hopefully am able to save up enough to put a down payment on a house within the next two years, what should I be doing to help me reach that goal and getting a mortgage? All of the above in the answers I've given you, as well as other good advice replied to you on this thread. And keep reading the threads in these forums in the meantime! Knowledge is power and there is plenty you'll learn here!!!!
If I am being unrelatisc, please also tell me that, lol.
@RM21 wrote:
Welcome!!! See my thoughts below:@Anonymous wrote:I decided to apply for Macy's again yesterday (stupid, I know) and got denied again. I was actually susprised because CK was showing my score in the 630's and I thought that would help me get approved but nope. Don't go by what CK tells you score wise, or for chances of approval! The only negative on my account is, I was an authorized user on my mom's Chase Amazon two years ago (500 limit). I never used that card, she overcharged it and stopped paying it, and now it's been closed and says "charged off as bad debt". The total amount on it is $757 and it was closed about a year and a half ago. Will this ever get off my credit report? It will be removed 7.5 years from that date of deliquency. I would try to pay this, or even bettter, try a pay for deletion.
Current cards I have are Capital One MC ($300), Cap One Quicksilver (500), Cap One Journey (500), a MC from my bank for $1000, and Kohl's ($300). I pay them all off in full when I use them. Before I was paying them off as soon as I swiped (I was using them just to keep the cards active), but then I thought I should wait till the statement closes and pay it off so it shows that I pay it on time? Only let 1 card report a balance under 10% of your total overall credit between all of your cards. Let the others report a zero balance. This is for max scoring. Paying all down to zero and letting them report like that can casuse a score drop. I use one card (Cap One Journey) for all my bills, and pay it off each month. Never even used the MC from my bank, and I think I should a little so they don't close it (Is it true if I don't use my cards regularly they will be closed? Yes, it can happen. If so, how often do I need to make a transaction to keep them active?)Even if you buy something small every couple of months, do so to avoid this possible problemIf
I don't want to get into the habit of accumulating debt or living out of my means (very important and smart way to handle your credit), so I don't want cards to provide a lifestyle I can't afford right now. I don't want to keep applying for cards I don't have a chance of getting. Stop apping for cards right now. You're being declined and getting dinged for it on your scores, as well as allowing the lenders to consider you more of a risk with too many inquiries I think my EU and EX are somewhat okay, but if everyone will pull TU then I won't get anywhere.
I have a car, but I bought a used one that I saved up for and paid in full, so not an expense. Does an auto insurance bill help my credit report? Maybe only in the rare case that it reports monthly I basically just need them to build a history. Right now the biggest negative factor on my reports is length of credit history (5 months on average, besides that charged off acocunt of my mom's)Only counts for a smaller percentage of your score, but you should not ignore it. What cards should I start with, how often should I apply, should I be requesting CLI, what should I do to maintain a decent score?See my answers above on not applying right now, and how to let your current cards report. Also, can I consolidate all the Cap One cards? I believe they are just rolling out this process, and it hasn't been easy for everyone to get done at the moment. You can try though. If I hopefully am able to save up enough to put a down payment on a house within the next two years, what should I be doing to help me reach that goal and getting a mortgage? All of the above in the answers I've given you, as well as other good advice replied to you on this thread. And keep reading the threads in these forums in the meantime! Knowledge is power and there is plenty you'll learn here!!!!
Great advice by RM21 right there; the only thing I would differ with is regarding that Chase card you were an AU on, go get a copy of all your credit reports for free, if you haven't done so in the past year (annualcreditreport.com). This will not only let you view a recent copy of your reports to save for later, but you can dispute that AU account on each bureau (EQ, EX, and TU). Since it was NOT your account, you are not responsible for the debt and the resulting negative reporting. I had to do this with an AU account my mom had from Lord & Taylor that she added me onto when I was a teenager, but she warned me ahead of time that it was being run up and she was not able to pay it.
Like the other posters said, stop applying, take care of the accounts you have. There is no need to rush, at this point I'd rather see your scores soar into the 700s and let inquiries fade away before you apply for any new accounts that you'll find beneficial. I'm sure once that negative Chase account comes off your scores will rise dramatically. Unless you have high utilization on your current cards, I think that's the only thing that's REALLY holding your scores that low.
Congrats though on getting your credit profile started 
I'm 24 currently and if you check my siggy, you can see my accounts and scores below. My mom's (and unfortunately my father's as a result of my mother) credit is awful. They're actually about to file for BK for like the third time because my mother has a spending addiction and my brother and I will be done with grad school over the next year, which means those maxed out Parent PLUS student loans she decided to take out for my brother and I during our undergrad (that we honestly didn't need the FULL amount for, so what happened to the extra money? In her pocket...) will require payments soon that can't be BK'd away. Although I appreciate everything my parents did for my brother and I growing up, as an adult I regret them doing so because it in part resulted in the overspending. As a result, I vowed to never get myself into the same trouble, to build my credit early on at 18, and watch my accounts like a hawk. I am carrying balances as a result of some 0% offers, but nothing that I can't pay off right away.
If you need any additional help or advice, feel free to PM me, or feel free to post any additional questions or concerns for all of the wonderful myFico community to help answer for you