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Need credit building advice

JoeLinus
New Member

Need credit building advice

Last month, I looked at my credit score after 8 years of being afraid to. (Long story involving embezzlement from a family member.)

Credit Karma: Trans & Eqi = 680. Experian: 640. I’m on a mission to build my credit! Here is what I’ve done since mid-October:

Credit Cards
Capital One - $300 CL Unsecured
Citibank - $300 CL Secured (Regret doing this since they don’t convert to unsecured and don’t give CLI)
NFCU - $1,500 Secured
Apple - $1000 CL
Chase Freedom - $5,000 (AU)
Capital One - $5,000 (AU)

Loans
Self - $500 ( Already made 2 payments before first due date), 12 month term.
NFCU - $1500, 18 month term. Plan on paying $1,000 before due date and riding out the remaining balance for the full term.

Based on my first updated credit report, history age is 8 months because of being added as AU, 2% utilization, 100% payment. 2 of 4 collections removed. The remaining 2 are settled in full and should come off in the next update.

Apple, NFCU card and personal loans are not on the report. I don’t plan on opening up any credit cards or loans for at least for the next 6 months.

My goal is to apply for a mortgage in 2 years.

My question is - is this too much too fast? Or should I be doing more?

Please share any insight. Thank you.

Message 1 of 5
4 REPLIES 4
dragontears
Valued Contributor

Re: Need credit building advice


@JoeLinus wrote:

Last month, I looked at my credit score after 8 years of being afraid to. (Long story involving embezzlement from a family member.)

Credit Karma: Trans & Eqi = 680. Experian: 640. I’m on a mission to build my credit! Here is what I’ve done since mid-October:

Credit Cards
Capital One - $300 CL Unsecured
Citibank - $300 CL Secured (Regret doing this since they don’t convert to unsecured and don’t give CLI)
NFCU - $1,500 Secured
Apple - $1000 CL
Chase Freedom - $5,000 (AU)
Capital One - $5,000 (AU)

Loans
Self - $500 ( Already made 2 payments before first due date), 12 month term.
NFCU - $1500, 18 month term. Plan on paying $1,000 before due date and riding out the remaining balance for the full term.

Based on my first updated credit report, history age is 8 months because of being added as AU, 2% utilization, 100% payment. 2 of 4 collections removed. The remaining 2 are settled in full and should come off in the next update.

Apple, NFCU card and personal loans are not on the report. I don’t plan on opening up any credit cards or loans for at least for the next 6 months.

My goal is to apply for a mortgage in 2 years.

My question is - is this too much too fast? Or should I be doing more?

Please share any insight. Thank you.


The question "is this too much too fast" is really moot as you can't undo any openings of new accounts. 

You have plenty of credit accounts at this point. DO NOT open more accounts, use what you have responsibly, let everything age and concentrate on building up your downpayment/closing costs savings account and you will be in good shape for a mortgage. 

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 2 of 5
JoeLinus
New Member

Re: Need credit building advice

Thank you! I'm kicking myself for getting the Citi secured. Because its so new, will it cause much damage if I close it after a month?

Message 3 of 5
RSX
Valued Contributor

Re: Need credit building advice

your scores are starting off pretty well considering you havent been following the CRA reports for so long

 

i personally would close out the Self Loan - you only need 1 installment and your NFCU has a longer term - so stick with the NFCU one

 

i would remove myself from the Cap1 AU acct - you dont need it - you have your own Cap1 card now

keep yourself on the Chase AU for now - but you likely wont need it after another year

 

after your scores hit 700+, go for a Citi card if you want one - then close out the Secured one and get your $300 back

 

good luck to you

 

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Dec 29/2020 EX. 729 EQ. 723 TU 746
Sept 9/2021 EX. 734 EQ. 737 TU 746
Inq. EX 5 EQ 2 TU 5 - - CC 4x24, 3x12, 0x6
Amex BCP $32k - Apple GS $19k - BMW/Elan $9k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Boundless $10k - Chase United Club Infinite $26k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $23k - HSBC Gold - $13k - Penfed Gold - $12.5k - USBank Cash+ -$24k - HSBC LOC - $13.5k - PenFed LOC - $20k
Message 4 of 5
HeavenOhio
Community Leader
Senior Contributor

Re: Need credit building advice

Welcome, @JoeLinus. Smiley Happy

 

What you've done is fine, but it's good you stopped when you did.

 

I woudn't worry too much about closing the Citi card, but you're not doing any harm by keeping it open either. If you close, you'd still have three of your own cards.

 

Your current AUs look good to me as long as utilization on these cards isn't an issue. While some lenders ignore AUs, other lenders (like Discover) will positively acknowledge them.

 

Waiting six months is a good idea. NFCU could be a possible exception. There's a good chance that you can open a non-secured card with them after your secured card becomes three months old. Discover would be another card that would seem to be a good fit, but I'd wait for any current accounts to be six months old before applying.

Message 5 of 5
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