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Obligatory "first-time poster, long-time lurker". :^)
As a student, I feel as if my loans are making it somewhat difficult to build my credit. All but one are federal, and the one that isn't has climbed to a balance almost $1,000 higher than when I first opened the account about two years ago (although I am about to pay it down to around $1,000 below principal.) I've found myself shockingly declined for cards I'd expected to be approved for and a commonly-cited reason is my debt-to-income ratio.
Aside from new student loans every semester, I've only opened one new account in the last 10 months (an auto loan) and had a few hard inquiries hit my report around the same time due to ignorance from the dealership I purchased my car from. Only one (recent) inquiry since then. I also don't normally carry a balance on any of my four credit cards (total limit: $3,050) and my income is currently around $25,000/yr. My credit profile is just over two years old as I started it up the day I turned 18.
I've considered requesting credit line increases for my current cards, however I was declined the last time I tried a year ago and my income has barely changed since then so I'm not the most confident in a positive outcome. Willing to give it another shot though. My scores from all three major bureaus are around 690.
What's the best way for me to go about continuing to build my credit? For the record, I have the Discover it student card.
Welcome @Bryant0
What are the other 3 cards you have? Any baddies? Whats the total in student loans at the moment? Just might be the DTI.
I've got the BoFA BankAmericard Platinum Plus (which graduated from a secured card), Capital One Quicksilver, and a Best Buy card. Used to have a CareCredit card but that account was closed due to inactivity.
Current student loan total is around $29,000 and poised to go up.
This might be the kicker. You didnt mention your income. Would you happen to be a full time student? If no income. That might be the other thing holding you back.
I did – my current income is about $25,000 a year, give or take. I'm a full-time student, but I'm independent so I also work a part-time position to support my livelihood.
Your scores are based mostly on payment history and utilization. Your score of 690 is pretty good for your short credit history.
To build your scores be sure to not owe more then 32% of a credit line, so if you have a credit card with a CL of $1,000, never owe or let report on your closing date more then $320. A higher untiliztion then that will tank your score for sure but if you remain current on everything once your untilization goes down your scores will immediatly go up. Just be sure to never be late on a payment. Thats how I was when I was in college and that was many decades ago. I now have a high FICO score and a lot of available credit due to me being prudent on my accounts. you need to do the same.
Thanks
Mark
Little correction @Anonymous
Known thresholds are 8.9%, 28.9%, 48.9%, 68.9%, and 88.9% (maxed). Once you pass each one reporting on statement date a small drop in scores will happen. Not every threshold will apply to every profile. Though <8.9% generally is the best for scoring purposes. And maxed will tank your scores big time.