HELP ME PLEASE !! i'm new to all this :)

[Anonymous]

hello everybody .

i've been to the local library for books , but only found books on getting out of debt and rebuilding credit .

i've took a lot from them , but i'm really looking for EXPERT advice on my situation rather than planning on my own only to find out i've been doing it wrong !!!

i am a U.K. citizen that lives in california with a green card . i am a U.S resident .

whilst filing for immigration last year , i opened bank of america checking and savings accounts .

and once i received my social security number i opened a credit account with a secured limit of $500 ($100 deposit)

at the time , i read on the internet that i should be using half my available credit each month , and also paying in full ...

so i have been doing that for just over a year now .

a couple of weeks ago i applied for a "free" credit report .

that showed my score at 676 and that i had a "tick" for each month

(apart from last month as i messed-up the online banking and paid the card twice , so it shows as no balance)

now , it seems the original info i got of the internet was wrong !!!

my credit report says i should only be spending 30% of my available balance (i have been spending 50)

i have just opened a second secured card with wells fargo with a $300 limit ($300 deposit)

i am now in the process of doing the math to make sure i'm at 30% on both cards .

i have a storage bill , an auto insurance bill , and a karate bill that needs paying each month so i just have to work out which one to put on which card .

the only other outgoing i have is my monthly rent (homestead suites) , but my available balances wont cover that so i have been using a debit card attached to my checking account .

all things considering , i think i have done ok going from no credit history to 600+ in a year , but what else can i do to dramatically improve my credit ??

the library books suggested a gas card so i looked online at the 76 application , but didn't complete it as it was asking for employment details .

i also asked bank of america what the criterior was for "converting" my secured card , but didn't take it any farther as they mentioned employment details too !!

at this point i didnt look any farther into getting a store card as i was scared with my employment predicament i would do more harm than good !!

i am not working at present , but hope to get my first job in america in the next couple of weeks .

[RobertEG]

I would never consider it preferable to use 30% of your available credit each month, or to maintain a % util of 30%

Use the card at some level at least once every couple of months, and then either PIF or at least maintain % util under 10%.

Many lower CL and secured cards will rely simply on FICO score, but as the requested CL goes up, or a non-secured card is sought, it is common for them to ask for additional information. 

You have short credit history, which is probably also putting you under more scrutiny.  I would first build at least a year of history of your existing card, and gain employment before seeking higher or more CCs

[Anonymous]

thanks for the advice robert .

the latest news is ...

i have been working the last three weeks , and i am getting my wage direct deposited into my boa account .

i spoke to them today about changing my card from secured to non-secured and should have a reply within 7 days .

apparently they cannot automatically switch after a year like they used to because of federal laws , but the guy looked at my account and i have been ok for 17 months so he didnt see a problem .

as i now have disposable income , i was thinking of depositing another 300 on my secured wells fargo card to up my limit to 600 .

i only use the card to pay auto insurance at 80 pcm , so this will lower my percentage used ??

do you think this is a good plan or is there a better option ??

according to my research , the next step should be a gas card , but i could really do with a newer car with better mpg now that i am working .

in the last 3 days i have been declined at desert schools c.u. and wells fargo .

desert schools because i have no history of paying an auto loan (i paid cash for my car)

wells fargo because i only have 17 months credit history (they want 3 years)

my thoughts are that i should try elsewhere to get finance whilst my credit is taking hits .

 if anybody has any thoughts or suggestions on if i'm doing the right thing or where i should try next , i will appreciate hearing them . 

[llecs]

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@Anonymous wrote:

as i now have disposable income , i was thinking of depositing another 300 on my secured wells fargo card to up my limit to 600 .

i only use the card to pay auto insurance at 80 pcm , so this will lower my percentage used ??

do you think this is a good plan or is there a better option ??

according to my research , the next step should be a gas card , but i could really do with a newer car with better mpg now that i am working .

in the last 3 days i have been declined at desert schools c.u. and wells fargo .

desert schools because i have no history of paying an auto loan (i paid cash for my car)

wells fargo because i only have 17 months credit history (they want 3 years)

my thoughts are that i should try elsewhere to get finance whilst my credit is taking hits .

 if anybody has any thoughts or suggestions on if i'm doing the right thing or where i should try next , i will appreciate hearing them . 

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You don't need to increase your CL in order to get a high score. Your goal should be to get your balances under 10% of the CL and you can time your payments so that your statement will reflect a low balance and that low balance will be the one that reports. So, taking the $300 CL as an example, use as much as you want of the CL, but make sure a payment clears with WF a day or two before the statement is set to cut and it will be that statement balance that reports to your CRs. If you have the one other CC, BofA, then your scores can easily hit the upper 700s with just those, provided your balances are in check.

IMO, while a third CC may help your mix a little, you can easily hit into the 800s without a gas card.

If you don't want to pay cash for the car, then visit other lenders (aim for CUs) and ask them up front what the requirements are for getting a car loan. This way you avoid the credit pulls. You may want to even bring in a copy of your recent CRs for review.

[Anonymous]

thanks for the advice .

my thought about it following roberts advice and what i read in the library are if my limit is 300 and insurance is 80pcm if i mis-time it i look bad ?

so if i up my limit , even if i mistime a payment it doesnt look like i'm using too much credit ??

paid in full each month , and at the moment i'm $1.00 in front .

i asked lots of questions before applying , and both wells and desert didnt see a problem .... until i got declined !!!

i have a high disposable income ,and  676 on exp , no missed payments etc . but both times it was my short history that let me down .

i'm currently researching online , but not finding many answers .

is lending tree a good place to go ?? i cannot find any info about short credit histories or requirements .

[RobertEG]

The very first place I would turn to is your local credit union.  Get a checking and savings account opened with them, and then, before you apply for a CC, call them and ask them about CC options.  It is not like applying online or through a major bank.  They will have a real person you can talk to.  Walking into their office could mean the difference.

[MarineVietVet]

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@RobertEG wrote:

The very first place I would turn to is your local credit union.  Get a checking and savings account opened with them, and then, before you apply for a CC, call them and ask them about CC options.  It is not like applying online or through a major bank.  They will have a real person you can talk to.  Walking into their office could mean the difference.

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+1 This is one of the things I like about my local CU.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[Anonymous]

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@MarineVietVet wrote:

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@RobertEG wrote:

The very first place I would turn to is your local credit union.  Get a checking and savings account opened with them, and then, before you apply for a CC, call them and ask them about CC options.  It is not like applying online or through a major bank.  They will have a real person you can talk to.  Walking into their office could mean the difference.

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+1 This is one of the things I like about my local CU.

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I like this advice as well!!  My credit union has always given me the best rates and has always approve my car loans.

By the way - Original Poster, my husband got his secured card at Wells Fargo in July of this year after moving from the UK.  They told him to come back in 6 months after he had been employed and they would convert it.

I don't know if this is good or applies to your situation at all, but I added him as an authorized user to my account within the last couple of weeks and he is already receiving offers from Capital One.    I think he will end up with a much higher score than me very soon.

[Anonymous]

now this is getting confusing !!!

are you now suggesting i get another credit card , preferably from a credit union ??

i also just subscribed to fico watch , but its only giving me the equifax fico score (665)

did i order the wrong product , or is equifax the only one i need to watch ?

my free credit report earlier this year only showed experian , and the auto-loan guy that got me declined at wellsfargo said my experian score was 676 , so i'm pressuming experian is the one i should be watching ??

[llecs]

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@Anonymous wrote:

now this is getting confusing !!!

are you now suggesting i get another credit card , preferably from a credit union ??

i also just subscribed to fico watch , but its only giving me the equifax fico score (665)

did i order the wrong product , or is equifax the only one i need to watch ?

my free credit report earlier this year only showed experian , and the auto-loan guy that got me declined at wellsfargo said my experian score was 676 , so i'm pressuming experian is the one i should be watching ??

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You don't need another card. You certainly can hit in the high 700s/maybe low 800s with 2 CCs. If you were to get a 3rd, you may see a slight increase over time and if you did get one, then aim for a CU. Not necessary though.

Did you mean ScoreWatch? SW is great. Both DW and I use it. It monitors EQ only, but does provide a FICO score and all future EQ reports are $5 off. Be sure to get into the habit and change your EQ FICO target score in your settings EVERYTIME you have a score change. Make sure your target score exactly equals your current score. That way, if your score goes up or down, you get alerted, but change it everytime to continue getting score alerts.

IMO, you need to watch all 3 reports AND you need to watch both your FICO scores.

If you want to stick with Wells Fargo, and if they pulled EX, then they'll likely pull EX again in the future. If you are loyal to them, then keep a closer eye on EX. BTW, you can't get your EX FICO from anywhere other than from your lender (or from a CU in PA called PSECU). You cannot get it from anywhere else.