Where can I further build my credit?

[Anonymous]

Hi guys, first post here. Lately I have been very aggressive in rebuilding my credit score, as I was not worried about it in the past. Current Experian score is 628. Overall credit usage is 46% but that will drop tomorrow down to 19%. Long story short, I use to recklessly use Paypal Credit with the 6 months promo and then never pay it off fully in time. The current usage of it is 97% but I have paid that down to 41% a few days ago and it normally reports to the bureaus tomorrow. I plan on bringing that number down to 0% for next month. In addition to the Paypal Credit line, I have 3 other credit cards, all with 3 balances but I use each of them every month. The last card that was added will be 2 years old in September.

When I use the Experian score simulator, my score should hit 663 tomorrow (but for some reason I noticed the simulator always overprojects my score by 5 points so 658 is my guess?) and after I pay off Paypal entire, it is projected to sit at 673. That is still too low for me as I want to get the United Explorer card. I have banked with Chase for years and study abroad so I fly with United often enough (3-4 round trips from Europe a year) so the card has a lot of benefits for me. I am iffy that a 668 or 673 score would suffice to get the card.

What I didn't know at the time was that loans at Affirm have a really bad effect on your credit score. I took out a lot of them over the past few years and had 5 active balances coming into this year. It was down to 3 by the last time they reported, but I have fully paid those off now too after I read about their negative effect. The total of the 3 accounts comes to $470 owed. Can I even expect an increase from paying it down, or am I doomed from having had them in the first place?

The real big killer is a missed payment by 90 days on my student loans. It's an account managed by my mother. They offered COVID relief during the timeline of that missed payment, but apparently you had to request it first, which she didn't. The missed payment hits 6 months in September. I'm assuming I'll see a bit of a bump then, maybe 10 points? It is seperated into two different accounts for whatever reason (both the same lender) so it results in two 90 day late payments. Do I get lucky and see two seperate bumps of 90 day late payments being 6 months old? 

I also have an inquiry that falls off in September, but I feel as if that is minimal. Additionally two inquiries made in March (panicked because of the COVID uncertainty but didn't get accepted anyways..) will be 6 months old in September. 

Overall, I'm not sure what else I can do to raise the score. Seems like waiting is my only choice but I'd really like to have the card before I leave again in October (no foreign fees is a big plus). Should I apply for another credit card to raise my credit limit? I was thinking of buying a new Macbook and could apply for the Apple Card at the same time, while paying off the card immediately. However, when I run the score simulator on Experian, it doesn't change anything at all. Any other suggestions on what I could do?

Thanks guys!

[gdale6]

Moving this to the main cc forum for better exposure

[Anonymous]

Thanks!

Update: Score indeed bumped up to 663 so it didn't overproject by 5 points this time. Still need to add more for the United Explorer I feel like

[HeavenOhio]

Welcome, @Anonymous.

It's unusual that the simulator projected your score that accurately. You should think of a simulator as more of a toy than a tool.

Your Affirm loans are "consumer finance" loans. They'll continue to have a negative effect on your score, even after they're paid. But it's a minor effect rather than a "really bad" one.

Try to beg and plead to have the late removed. Because it happened during the COVID timeframe, your chances might be better than they would have been otherwise. If your initial request is denied, keep requesting.

Your inquiries aren't a big deal. You'll gain a few points as they become a year old.

As far as acquiring a new card, your new accounts and inquiries situations are fine. The problem is going to be the late payment. General advice is to let a late age until it's a year old.

[Remedios]

Chase is not stuck on scores only.

They will also look at your utilization,  recency of opened accounts, payment history, length of credit history etc in order to generate internal score which then be used to make a decission. 

I dont think the score is going to be in your way as much as that very recent late. To a lender that indicates financial distress,  and right now, that's a very touchy subject when it comes to approvals. 

You should try and see if you can get a goodwill removal as @HeavenOhio  suggested, or if that's not possible, you will probably need to wait until more time passes between derog and application. 

[Anonymous]

First off, thanks for the replies!

My dispute just closed last night and nothing changed other than them marking June as paid off, so I resubmitted one just now, but this time over the phone to make sure there are no confusions. 

I am waiting to see if Chase puts up the card under "my offers". So far there are none, but I am also coming from a 560 credit score from mid May (usage was near full and all I ever bothered with is minimum payments). It clicked with me that I need to take my credit seriously. Even though I have paid off all my cards on time for as long as I have had cards, it's obviously not the only factor! Hopefully by mid September I will be able to apply and get accepted

[HeavenOhio]

There's a difference between a dispute and goodwill. A dispute contends that the lender is wrong and you are right. Goodwill admits fault and asks for forgiveness.

[Anonymous]

Ah okay so I should contact Navient directly? Never spoke to them but I guess it's worth a shot!

[Anonymous]

Sorry I am new here so please take my recommendations with a grain of salt. Chase has a prequal site that you can use to see if you are pre-approved for the United Explorer. I would suggest getting your utilization down to less than 9% on one card and 0 on all other revolving accounts. 

Definitely work on that late as a recent late looks really bad to a potential lender especially a strict one like Chase. Reach out to Navient by phone first. If you make no headway there you can try email. If you still don't get a response, use good old fashion snail mail. Keep trying and while you work on good willing, work on your utilization. 

Just keep trying and know that time is your best friend. It really is in your best interest to get that late off as they can depress your scores for a decent while. 

Good luck!

[Anonymous]

Yeah I'll be monitoring that Chase page.

Called Navient and was told there was nothing she could do. Apparently the COVID relief started in March. Ugh. So frustrating but it is what it is.