@Anonymous wrote:
I emigrated from Canada to the US approximately 15 months ago (received my SSN at that time) and am trying to build my credit. Currently, I have 2 credit cards, an authorized user on 1 credit card, a car lease which was co-signed by my husband, and no other loans/mortagages.
Credit Cards:
Amex Preferred Blue Cash
Credit limit: $15,000
Usage: I always pay in full, and my statement balances are usually between $1500-3000. Age of credit card is 1 week, but I had an Amex Everyday Blue Cash card for 5 years prior (same #). No late payments.
Barclay Visa
Credit limit: $2,800
Usage: I purchased a MacBook with this card. Since Apple had a 12 mth interest-free offer, I signed up for the card and having been paying down $100/mth to avoid the interest charges. There is currently a $700 balance. Age of credit card is 5 months.
Chase Sapphire Preferred Visa - Authorized User
Credit limit: $23,000
Usage: Balances are usually between $1500-2500, always paid in full. One or two payments were late because my husband forgot, but then they were subsequently paid in full before the end of the next billing cycle. Age of credit card is 13 months.
Car Lease - Co-signer
Monthly payment: $303/mth
Usage: Age of car is 2 months. No late payments.
Credit Score - ?
When I leased my car, they told me my credit score was ~650. When I try to check via myFico or request my free report, it either can't verify me (I have to send in more info), or it says they can't find any information connected to me (again, I probably have to send in more info). And no 'baddies'.
So as you can see, all my accounts are pretty young since my immgration to the US was fairly recent. Today I learned from this forum that I should pre-pay my credit card balances to lower the reported amounts to <9% of the credit limit, and then continue to pay them in full.
What else can I do to increase my credit score? Should I get a personal loan from the bank just for some diversity? Should I apply for another credit card? Or is it not worth lowering the average of my accounts, which are already so young? I'm not ready to buy property and will not be going to any more school to take out a student loan.
Thank you in advance!
Welcome to the forum
Your off to a great start and have all the tools in place to increase scores.
You're correct no need to lower AAoA by applying for more cards this is one factor that will help increase scores in the coming months.
I have highlighted the other point and I see you have already absorbed the importance it can play in building scores
.
The general rule is as followed
Pay all cards off before statement cut date except one
On the one card let a balance report 9% or less of your total credit limits
Over the course of the next 3-4 months play with the reporting number to see were you get the best scoring .......Example 2% 3% 5% 7%
Something else I should mention any late payment on your husbands cards will affect your scores in a negative way so I have to be honest and tell you. You may want to be removed from that account if it was beyond the 30 day period late ..other wise it won't show and he will just have a late payment ...but remember what shows on his reports shows on yours
Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
