Subprime to Prime the next step before AF?

[Anonymous]

So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps  $500 - CLI to $750

2. Household $300

3. Discover through HSBC $400

4. Mobil Gas card through Citi went from $300 -CLI to $1200

5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card

2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here?  Keep in mind everything is PIF- on time.  A little advice is needed I suppose.  I can't seem to get to the next level.  I'm not buying a house or car for the next 5 years btw.

[StartingOver10]

So glad you asked this question!  i want to know too!

[LS2982]

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@Anonymous wrote:

So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps  $500 - CLI to $750

2. Household $300

3. Discover through HSBC $400

4. Mobil Gas card through Citi went from $300 -CLI to $1200

5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card

2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here?  Keep in mind everything is PIF- on time.  A little advice is needed I suppose.  I can't seem to get to the next level.  I'm not buying a house or car for the next 5 years btw.

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Which of thesecards have AF??

Do you have any older cards from before 5/11??

Youmay want to consider keeping these cards and gaining history with them. If these are the only cards you have you don't have a year of history on any of these. I would keep them.

[haulingthescoreup]

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@Anonymous wrote:

So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps  $500 - CLI to $750

2. Household $300

3. Discover through HSBC $400

4. Mobil Gas card through Citi went from $300 -CLI to $1200

5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card

2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here?  Keep in mind everything is PIF- on time.  A little advice is needed I suppose.  I can't seem to get to the next level.  I'm not buying a house or car for the next 5 years btw.

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Hi, welcome to the forums!

Smart job PIF'ing. But do you wait until after the statement posts to pay, or do you pay beforehand? If you wait until the statement posts, the balance due is reported to the credit bureaus, and you're scored off of that. If you pay off all but one before each statement posts, and pay off all but $10-20 on that one card, letting the balance report (and THEN pay it off), you can probably scramble up some more points.

Balances on AmEx charge cards like the Gold are ignored for FICO scoring purposes except by the semi-obsolete TU score that you pull here. (The newer TU score excludes them.)

[Anonymous]

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@Anonymous wrote:

So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps  $500 - CLI to $750

2. Household $300

3. Discover through HSBC $400

4. Mobil Gas card through Citi went from $300 -CLI to $1200

5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card

2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here?  Keep in mind everything is PIF- on time.  A little advice is needed I suppose.  I can't seem to get to the next level.  I'm not buying a house or car for the next 5 years btw.

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So you opened 7 new TL's in 2011.........

Did you have any other TL's prior to opening these new accounts?

If you keep every single CC paid to 0 and that's how they are reporting to the CRA's you will lose a few points for that, FICO likes to see a little util of 1-9% (best case scenario)

In order to "Max" your scores you would need to pay each CC to 0 before the statement date, but let one CC report a small balance, best case is 1-9% of it's CL.

I would imagine your scores dove because of the 7 new TL's (killing your AAoA's) and the subsequent inq's, give it about 6/12 months and your scores should start rebounding and then some.

[LS2982]

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@Anonymous wrote:

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@Anonymous wrote:

So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps  $500 - CLI to $750

2. Household $300

3. Discover through HSBC $400

4. Mobil Gas card through Citi went from $300 -CLI to $1200

5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card

2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here?  Keep in mind everything is PIF- on time.  A little advice is needed I suppose.  I can't seem to get to the next level.  I'm not buying a house or car for the next 5 years btw.

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So you opened 7 new TL's in 2011.........

Did you have any other TL's prior to opening these new accounts?

If you keep every single CC paid to 0 and that's how they are reporting to the CRA's you will lose a few points for that, FICO likes to see a little util of 1-9% (best case scenario)

In order to "Max" your scores you would need to pay each CC to 0 before the statement date, but let one CC report a small balance, best case is 1-9% of it's CL.

I would imagine your scores dove because of the 7 new TL's (killing your AAoA's) and the subsequent inq's, give it about 6/12 months and your scores should start rebounding and then some.

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+1

I would keep the new accounts open.

[Anonymous]

I had a truck loan recently but paid that off, thats really it.  

[LS2982]

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@Anonymous wrote:

I had a truck loan recently but paid that off, thats really it.  

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It would be wise to at least pay the AF's for this year and get some good history on your current cards. Try not to app for anything this year (As hard as it can be ) and your FICO's will be very nice!

[Revelate]

You did the smart thing for building credit: get a bunch of tradelines opened ASAP as you did in May/June, that's one mistake so many people make is to not establish enough right from the get go.  You've got a very good start; however, you just need to be patient.  Scores build with time, and if you can afford the AF's, pay them: the reason as everyone so far as mentioned, the important AAoA and a few other things which might get picked up on manual review.   Whenever you take on a new trade line and/or new debt, your FICO score is going to take a hit for sixish months.  

The current FICO model isn't designed for instant gratification (nor should it be) though I know that runs counter to the cultural "progress" we've had here in the States over the last two decades.  Don't sweat the temporary ups and downs, FICO scores can change every day, and it's really not a big deal because unless we're actually applying for credit, or a loan of some sort (or a job / insurance / anything else where a credit check is used) it doesn't really matter.

Keep working your plan to build scores for the 5 year time horizon where you may be pulling the trigger on a car or a mortgage.  You're doing fine, it's just a process that's impossible to rush.

Edit: FWIW, and I know it can be hard, just ignore the posts about "I got approved for this pure sex card!" or "dump that card with the AF, now!"  They're not at the same stage of the process that either you or I are, just keep focusing on what's right for you in this case and don't get distracted by the glitter of the gold-plated people.

[Anonymous]

Don't put the cart before the horse - make sure you get new, better, prime cards before you ditch the subprimes. Just apply every so often until you get a prime card, then you can start to close the subprimes in order of the one you like/use the least every time you get a better a card until you have at least a few primes, when you can ditch the rest of them.