Best way to bump up my score

[Anonymous]

So starting the 1st of next year me and my husband are going to start the house buying process

Only problem is trying to raise my credit score.

I just recently had 2 collections we paid off and have been cleared from my report, that raised me from a 616 to a 694. Now my problem is getting it higher.

I have no current loans ( I do have differed student loans due to being in college) or credit cards.

What can I do to raise me score more? Would getting a credit card and making sure it gets paid off every month help? Or would that do more to lower my score in this short time frame?

In the negative factors it says short credit history (duh I'm only 23) and little or no revolving credit

[Anonymous]

Welcome to the forums.

You definitely need a credit card or 2 to help your score.

You will lose a few points for the inquiries but should gain points when they report to your CR.

If you get one card, never let it report a 0 balance, always at 9% or below.  If you have 1, 2 or 3, let all but one report a 0 balance and the other at 9% or below.  YMMV.

Credit limits are not important as far as score goes because they are not scored by FICO.  It is how you manage them.

It is not a good idea to get new credit within 6 months of applying for a mortgage.  If you apply for CC now, then let them age with on time payments for 6 months to a year.  Not only will your score go up, they will have aged enough not to interfere with the process.

[Anonymous]

Does it make a difference on store credit card vs regular? We figured we might as well get a card to a store that we are spending money at anyway.

[Anonymous]

No, not really.  FICO scores them the same.

[Anonymous]

So I've been doing this whole thing wrong bcuz I've been making sure I pay my card down to 0 %. But you're saying I should let one of the two cards have a 0 % and the other about 9% and that should raise my score?

[Anonymous]

That is correct. If you have two credit cards then you should pay one to a zero balance before the statement date and leave a small balance of less than 9% on the other before the statement date. On the one with a balance you can then pay it to zero after the statement reports to avoid paying interest on the balance.

The suggestion of 9% is simply the highest number that seems to provide optimum FICO scoring. Some forum members have found that 6% or 3% works best for them. In essence you need to try various percentages over a period of months and monitor your score for best results. And of course discount any other changes in your reports. It is really just a game to see how high can you tweak the number.

No matter what high utilization will definitely lower your score and multiple accounts with a balance and over 1/2 of accounts with a balance will also lower scores. If you are not applying for new credit in the near future or if your score is above the acceptable limit for whatever credit you are seeking then it is not a major concern.

[takeshi74]

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@Anonymous wrote:
So I've been doing this whole thing wrong bcuz I've been making sure I pay my card down to 0 %. But you're saying I should let one of the two cards have a 0 % and the other about 9% and that should raise my score?

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Also keep in mind that when you make a payment matters.  The statement balance is what's reported.  If you want to drop reported utilization you need to pay down before the statement cuts.  If you are only paying on or before the due date then the statement balance has already been reported.