@CreditInspired wrote:Hi
Keep in mind that if the car loan is your only installment loan, your score will drop when that is paid off.
So a good mix is 3 bank CCs and 1 installment loan. Keep store cards to 1-2 max.
That may be true at first, but over time it won't matter--at least it hasn't mattered for me. I've had no loans of any kind reporting on my credit reports for double-digit years, and my scores are in the mid-800s.
@Anonymous wrote:History, 5 years ago I started the credit journey. Prior to this everything was done under my ex's name.
Applied for and just got a BoA card, and it showed my credit is now 750 using Experian. Last I checked, it was 589 when I got my car and opened a Chase credit card(5 years ago). Which was a surprise, also why I want to see if I can hit 800.
As of now, I owe about $4.5k on the car (12 payments left). Pay off the credit card monthly (goes up to about $2k before being paid off). Chase has a max of $6.5k and BoA a max of $9.5k.
From what I understand, 3 differing types of credit is best. Do not plan to buy another car for at least 2 years after paying off this one. So that would leave me with only 1 type of credit?
What are my best steps at this point to get over 800. Also have an unpaid bill of about $1k from roughly 6.5 years ago, which I assume will drop off at 7 years (refuse to pay for something I didn't do).
Now that you have excellent credit, it's not really a great idea to focus on increasing the credit scores.
Here's an example: when you pay off the car loan, some of your credit scores will actually drop rather than increase. It's stupid, but it's a fact. And you should not let that deter you from earning a nice clean title on your vehicle.
You don't have to worry about credit mix when you pay it off, though, because it still shows up in your credit reports even after it's closed out, and continues to help your credit mix.
Something you can do to better your scores, without hurting yourself, is to pay off one of your credit cards entirely before, rather than after the statement cuts, and to pay off most of the other one before the statement cuts. Utilization, in all the FICO algorithms, is based on reported balances. So any payments you make after the statement cut don't count for utilization purposes. Even though you're paying them off every month, FICO is seeing you as someone with pretty high utilization.
Another thing to consider is your Credit Age. This is usually the biggest factor in reaching 800+ (By this, I'm also assuming no missed payments, derogs, and other obvious credit factors) I'm 8 years into my credit profile and have just reached over 800 with all 3 scores for the first time. It's possible to reach 800 much quicker with heavy credit seeking and consistent limit increases, but I haven't pushed the envelope as much as some do. Credit age, as it suggests, just takes time.
Just keep doing what you're doing and you will get there. Anything over 750 is outstanding, so don't put too much pressure on yourself.
On Deck: No Plans Currently
@Anonymous wrote:History, 5 years ago I started the credit journey. Prior to this everything was done under my ex's name.
Applied for and just got a BoA card, and it showed my credit is now 750 using Experian. Last I checked, it was 589 when I got my car and opened a Chase credit card(5 years ago). Which was a surprise, also why I want to see if I can hit 800.
As of now, I owe about $4.5k on the car (12 payments left). Pay off the credit card monthly (goes up to about $2k before being paid off). Chase has a max of $6.5k and BoA a max of $9.5k.
From what I understand, 3 differing types of credit is best. Do not plan to buy another car for at least 2 years after paying off this one. So that would leave me with only 1 type of credit?
What are my best steps at this point to get over 800. Also have an unpaid bill of about $1k from roughly 6.5 years ago, which I assume will drop off at 7 years (refuse to pay for something I didn't do).
Seems your score went up from either getting to 3 cards with your loan or you lowered your aggregate util. How many cards no you have? Whats your util %? That was a nice rise in scores.
