Analysis of my credit

[Anonymous]

I'm new to the forums but have been working on keeping a healthy credit since I began with a small credit card at the age of 18. Here's my current state of finances:

22 years old, 6 credit cards (5 with 0 balance, 1 with ~$2000 with a limit of $5000). My total credit worthiness across all the cards is in the realm of $30,000. I have around $117k in student loan debt. I began with just under $130k, but have paid down to $117k over the last 6 months. No missed payments and have been doubling/quadrupling my average payment each month. I have no other debts, have never been sent to collection and always stay below my max limit on my cards. All three credit reports show no late/missed payments, but there are a few closed credit cards (they are reported as closed with $0 balance--so I am not sure of their effect).

My credit score shows that I have not had a long enough period of revolving credit, which I know is simply because my credit history is still not that old. My score last year was 731, but I am hoping to break the 750 mark by the end of summer. I plan to get my CC balance down to under $1,000 and will keep up with my student loan repayments. Unfortunatley, I will be going back to school in August and my loans will go back into deferment (will also be roughly tripling my total overall debt over the next 4 years). CC debt will remain low and I won't be late on payments. My biggest question is whether or not my number of CC's is damaging my history (aaoa is low, but so is my utilization). Should I close any accounts? I don't plan to get anymore cards (just got a new one a few weeks ago for some added rewards benefit). Any other advice I should take? I read through the FAQ and am following everything that I can, but with my young age, I can't speed along my credit history. Overall, what steps do I need to take to elevate my score, additionally?

Thanks for any advice.

[kjm79]

Other than what you are already doing, time. 

It's great that you are aware of credit at such a young age.  So many of us here wish we could go back in time and understand the world of credit more thouroughly.  Coulda shoulda woulda. 

I think the ONLY piece of advice I could offer is if at all possible, continue to pay as much as you can to your student loans while in deferrment.  The interest alone that accrues could take you back up and over your original $130K amount. 

[RobertEG]

Basic analysis:  For factors you can control your score is Super!

It is hard to get much above the low 700s with a credit history in the four year range.  Length of credit is 15% of score, or approx. 125 pts.  You probably still have around 100+ pts left to be garnered in that arena, and as was said, only time will bring that about.

Util is something you can fine-tweak as needed.  Keeping it low will enable you to do that when the time comes to app for credit.

I think having multiple revolving at your relatively young history is a huge plus.  FICO likes to see proven use of discretionary, revolving credit.  Waiting to secure those cards will necessarily reduce your AAoA when you get them.  Rather than hurting your AAoA at a later time, you already have them, and they are already building age.

The closed cards removed their CL from your util, but their age still counts in your AAoA, so not a big deal if you keep util low on the open accts.

I second the remarks that you are doing the right things.  The old saying "age has its benefits" applies.  You have a waiting harvest in AAoA, but it will be slow.

[Anonymous]

Thanks for the tip. I will do my best to keep making payments on my student loans, but am not sure how much I will actually be able to pay over time.

[Anonymous]

Don't worry too much about installment loan and utilization.  Just make sure you keep within payment terms and no lates.  Not sure if you have an AMEX but might be good idea to get one as backdating is powerful for the future and AAoA.  As for the CC with balance, I hope it is low interest or 0% interest as you should be able to qualify for one and no reason to pay interest with your current situation.