I have a few questions...first I'll try to give a brief condensed credit history. After about 10 years of not having credit and not checking my report, I applied for and got a cap 1 card with $750 CL at the beginning of this month. I also applied for and got a new car loan at 5.9% with no money down (to my utter amazement) around the same time this month. I decided to check my scores. Got all 3 reports and scores....705 TU, 714 Experian, 682 Equifax. These are FICO, (truecredit gave me about 41 points lower on all three). These scores are BEFORE the Cap 1 card and car loan hit the reports. After years of not having credit..all the bad stuff is gone. I do have one bad mark..a tax lien from the federal gov. for back taxes. I believe they will remove it after it's paid off in July.
I went to my bank..5th/3rd and was talking to someone about what I need to do to get the best rate for a 1st time home buyer. He looked at my report..TU and actually let me see it. He said the tax lien wasn't considered a "major". Which apparently means it's not as bad as other tax liens or something. He said I could apply for one of 5/3rd's mastercards and I was shocked to find out I got instant approval for a professional MC with a $6,000 CL. My car loan and cap 1 card was on this report at this time and my TU score was 664 instead of 705. I don't know if the dip is due to 2 new CC's and a new car loan. My debt/credit ratio was 20% with the first card...now it's down to 0.5% or something crazy with the new card added in.
My credit report has 6 finance company loans, one closed target account and 3 credit union loans on it. All of which are paid off and on time. I know I need a mixture to improve my score. I believe the 2 CC's and a car loan through Honda Finance will help the TU score. Experian has all of the above with an additional Car loan through Honda that I paid off in good standing a few years back.
Questions....
1. It seems I have duplicate reports from a finance company. They are good marks, but should I investigate and have one removed if I can?
2. All the finance loans will be coming off anyway next year. I didn't know they removed good marks, but looking at the Experian report..they are due to be removed next year. That will leave me with 2 Honda finance car loans in good standing, and 2 credit cards with a combine total of $7,250 CL in good standing and a closed Target account in good standing. Will the removal of these good marks (finance co. loans) actually hurt my score or better it?
3. I got 4 hits now, all in the same month. I've got at least 2 years until I buy a house....considering I've got 4 hits this month, when should I wait to apply for another credit card or personal loan to increase my credit score and which would be better as far as a "good mixture of credit" goes? another CC, store card or personal loan? Remember, next year, all the personal loans are off my report. So which type does someone suggest next?
4. My goal is to have at least a FICO score of 750 with all three Credit bureaus by april-August of 2011. Is this reasonably feasible? My D/C ratio will remain below 10% and the 2 CC's will remain paid in full each month with at least a $7250 CL and my $16,000 car loan will actually be paid off next June/July. Any suggestions on helping the score is appreciated. (Paid in full and on time every month is a given and so is activity each month on both credit cards)
btw...this site is great!! I'm glad I found it. thanks.
Message Edited by sean126 on 05-27-2008 07:05 PM
) but it is what it is... a fico game. You shouldn't have a problem reaching 750 by 2011 just pay on time everytime!