College student trying to make above 720

[Anonymous]

Hi there, I'm 19 and I have had only 1 credit card (limit of $700) for 6 months. So far and my EX score is 679. I just made a bill pay yesterday to pay off the whole $354 outstanding balance (I know, I forgot to use no more than 25% utilization ). I will be moving into my new apartment and signing up for electricity next week. Will this affect my credit score? Do you think I will have to pay a deposit? But if i do sign up for electricity and pay my bills on time, would this be great to reach that 740 score? Or should I consider in opening up another credit card to show creditors I can manage multiple account? Thank you very much.

Message Edited by Chopbrocoli on 05-12-2007 01:02 AM

[Anonymous]

Don't worry about utlization so much on a short term basis - if you have the means to pay in full (and you always should) when you receive the bill, you're fine. Especially given your low limit.

Electricity shouldn't have any impact on your credit history, unless you don't pay for it. Whether or not you'll need to do something like a deposit depends on the company - this quesiton is much better answered by that company rather than a forum like this one.

For those kinds of scores yes you will want to get more cards (whether or not now is another question which largely depends on what you can get with just one six month age mark card - although at this point you should be already asking for cli's on that), and more importantly longer tradeline age and larger limits. But those will come with time. Another alternative you may consider doing if you want quicker results is asking your parents to add you as an authorized user on one of their older cards (although of course assuming they manage it well with regards to paying it on time, not having it maxed out, etc).

Message Edited by okrogius on 05-12-2007 04:42 AM

[Anonymous]

At 19 you reay don't need more than one credit card right now. Are u employed? Do u have any student loans? Car loans?

[Anonymous]

At 19 you reay don't need more than one credit card right now. Are u employed? Do u have any student loans? Car loans?

[Tuscani]

Yea, don't worry... and carrying a 1-9% is better than PIF.

[Anonymous]

"Yea, don't worry... and carrying a 1-9% is better than PIF."

From the perspective of your own finances (which is the reason you should think about things like fico) - in general revolving balances means finance charges which is bad for your wallet.

From the fico perspective, showing balances on more than one card will ding your score (albeit small). Furthermore, you don't need to carry a balance to have one reported for scoring purposes. If you pay in full you'll still be fully active as far as your report/fico is concerned. Carrying a balance, any amount, is just a waste money.

[Anonymous]

Hi there, I'm currently employed but no student loans or car loans at this time. I just got off the phone with wells fargo and they said they can only raise my limit for customers that have had their card for a year. They also mentioned was that if I keep a low balance rather than paying off the entire outstanding balance, it will actually increase my fico score. Is this true?

[Anonymous]

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@Anonymous wrote:

At 19 you reay don't need more than one credit card right now. Are u employed? Do u have any student loans? Car loans?

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Having (but barely using!) more than one credit card would be good for the OP. You want to establish tradelines early. That way, by the time you graduate, you'll already be on your way to building an extensive credit history. I would get three credit cards if I were you (but stagger them by about three months each--that way FICO doesn't think you're going on a credit binge).

There is some disagreement as to whether it's best to carry a small balance or PIF. I think it's hair-splitting: what we do all agree on is to keep utilization below 10%, pay at least the minimum payment on time every time, and don't sockdrawer (i.e. PIF and not use for months and months) your cards. Use them at least once every other month or so, even if it's just to buy a cheeseburger at the McDonalds down the street.

[Anonymous]

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@Anonymous wrote:
Hi there, I'm currently employed but no student loans or car loans at this time. I just got off the phone with wells fargo and they said they can only raise my limit for customers that have had their card for a year. They also mentioned was that if I keep a low balance rather than paying off the entire outstanding balance, it will actually increase my fico score. Is this true?

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It might.

However, there is no advantage to carrying a large balance. Don't believe the canard that using your card a lot and carrying big balances endears you to the CC companies or improves your credit rating (for FICO, the opposite is true: high balances hurt you).

Myself, I believe carrying a small balance probably helps a little. And when I say "small" I'm talking $30 or less. My overall utilization now is around 7%. The interest charges on the $50 or so I'm revolving now are negligible.

If I were you, I'd get another CC (keep the Wells Fargo card though). Banks are notoriously conservative with CLIs, but keep your balances low and pay on time and they will happen.

[MM1234]

About needing a Deposit for utilities I dont think you will. I had a Score of less than 600 way back and I got a Business Phone line, Gas and Elec without a deposit. But make sure you pay on time or they can report that. I dont think they report if you pay on time like CCards but I think they can report if you dont pay.

Your not far from 700 so if you get another CCard it may ding a few points now but you can make that up over a few months of good payments Im thinking.

Since you dont have any student loans or car loan, try to do without any other loans if you can. I think you should hit the 700 or your mark in the near future.

About your Wells Fargo comment I think it will help you to keep a small balance cuz they will keep reporting. If you pay it off they may stop so showing activity is good for you as it adds to your history....well this is my thinking. Im sure others can shed some good light.