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Hey guys,
Little back story. I have been lurking this site for a few months now and just decided to join. I have been working on my credit since I was 18(I am now 24). I have Citi idenity monitor to pull my scores from all 3 bureos every 30 days along with Wally worlds TU pull everymonth. My question is what should my next move be to keep getting my credit score higher? My Utilation is low, zero negative marks, and perfect payment history.
I am currently in nursing school and only work part time so I am wondeirng if my income is whats holding my scores back only 25k or possibly my AAoA's? I would like to hit 800 or close to it with in 2 years when I plan to get my first mortage(long term goal). Untill than any advice on what my game plan should be? Thank you!
While your income affects your success in attaining credit cards and loans, it's not accounted for in your Fico credit scores.
Your scores are very good by the way. Maintaining your perfect payment history and low utilization will see your scores increase over time.
Are you aware of the American Express CLI process? Raising your credit limit will lower your overall utilization, and will look good to future creditors.
How old is your AmEx relative to your other cards?
Income isn't used to calculate score. CRAs don't collect that information (creditors do). Where income might come into effect is on credit lines. But in turn that affects your score in terms of util, which is a percentage. I.e., someone with low income can have $100 balance on a 1k line for 10% util and someone with higher income can have 1k balance on a 10k limit for the same 10% util. For scoring purposes, these two things are the same.
I'm fairly certain those scores aren't FICO, and thus will weigh certain things differently. If your payment history is perfect and you have low util, then the things possibly keeping your score down are age and inquiries/new credit.
I have had my Amex since 08' they sent me a offer in the mail for 30,000 points and jumped on it at the time not knowing much about credit. I did know about the Amex CLI increase but I always felt like I was better off not bothering them since my income is low at the moment. I honestly don't even know why they offered me the hard back in 08' my income was even lower than
I didn't realize I was paying Citi to give me essentialy "fake" scores, kind of a dissapointing waste of money. Guess I will find a new service with real score like this website. Anyone know if the TranUnions score I get everymonth due to my Walmart CC is a FAKO as well? I am glad to know my income isn't effecting my score though. When you said a variety of credit should I apply for some more cards? I currently have my CC's, 2 auto loans and a student loan. Thank you again for all the help ladies and gentlmen. A plethora of great information on this website.
The score from Walmart is FICO TU08. You can use that to track your progress.
Credit mix is having different types of credit like installment loans and revolving credit, so it looks like you're good to go on that.
That's great news on the AmEx. If you get another AmEx, they will automatically backdate it, so that it will show on your credit report as open since 08.
Your fico score will take a small ding from the inquiry, but will recover quickly from that. Your Average Age of Accounts on the other hand will receive a boost.
With your scores, it'll be a breeze applying for another American Express product. I'd suggest a card with no annual fee such as the Blue Cash Everyday or Blue Sky. Or both, even. Your income isn't terrible, and you could always be a little bit "optimistic" about how much you think you'll earn this year.
If you apply and get one, apply for the other on the same day, and there will only be one hard pull on your Experian report. And suddenly instead of having one 5 year old Amex on your report, you'll have up to 3 (if an amex customer gets declined, it's only a soft pull. It only becomes a hard pull if you're accepted).
In a couple years when you are looking for that mortgage, there will be multiple 7 year old accounts, and that one insignificant hard pull from 2013 will have already fallen off.