REQUEST FOR GUIDANCE - is this a good strategy to raise my FICO scores??

[Anonymous]

Hello,

I am trying to boost my FICO. I have been able to get all three collection notices on three credit reports removed.

I HAD only one credit card - secured First Premier -- with three late payments (2 30 day, 1 60day) in 2013 and 2014.

My last loan -- car loan -- was paid off with all on time payments in 2010.

THIS IS WHAT I HAVE DONE 

I have added two new secured cards -- Bank One and Discover.

I have joined NFCU.

I now plan to get a SSL and pay down to 8 per cent.

Are these good moves?

Any negatives by taking these actions?

At the moment the average account age is 13 years, 8 months. 

Obviously I am going to take a hit there.

My current FICO scores at TU 640 EX 638 EQ 728

Thanks in advance for any advice.

[Anonymous]

Hello,

I am trying to boost my FICO. I have been able to get all three collection notices on three credit reports removed.

I HAD only one credit card - secured First Premier -- with three late payments (2 30 day, 1 60day) in 2013 and 2014.

My last loan -- car loan -- was paid off with all on time payments in 2010.

THIS IS WHAT I HAVE DONE 

I have added two new secured cards -- Bank One and Discover.

I have joined NFCU.

I now plan to get a SSL and pay down to 8 per cent.

Are these good moves?

Any negatives by taking these actions?

At the moment the average account age is 13 years, 8 months. 

Obviously I am going to take a hit there.

My current FICO scores at TU 640 EX 638 EQ 728

Thanks in advance for any advice.

[Anonymous]

They all sound like great moves to me.  Do you have any particular credit needs in the next few years, or are you purely thinking about gradually improving your score in the long term?

I would keep the First Premier for a while, even though the fees are outrageous.  The reason to my mind is that you want to see if you can get them to remove your late payments.  As long as your account is active you have some leverage with them -- they want you happy so you keep paying their fees.

If it becomes clear after several months that they will never remove your lates, even if you explain that you want to stay with them and this will help you do that, then you should close the account.  The folks in the Rebuilding Forum can guide you as to best strategies for getting derogs removed.

Long term goal should be to add a few more cards while you still have closed accounts with a lot of age on your report.  The time to apply for new cards should be AFTER your SS loan is fully in place and paid down but well before well-aged closed accounts fall off.

[Anonymous]

Thanks CreditGuyInDixie

I really appreciate your guidance.

This is all about raising my FICO score. I actually am at the moment quite comfortable financially.

And have no credit needs.

I have already applied and been approved for two secured cards -- Capital One and Discovery. 

Are you suggesting getting more cards after my NFCU SSL loan goes through.

Would it better for me to have more than three? 

And do you think there is actually a possibility to get First Premier to remove the three late notices from 4 and 5 years ago removed?

I had been led to believe that First Premier virtually never does that.

And finally how long will my well-aged closed account for my car loan stay on my credit report. I was paid off in 2010.

Thanks again so much,

My crash course in FICO and Credit has been very interesting.

[Anonymous]

Closed accounts stay on your reports for ten years after the date they were closed, give or take a month.

I have no idea whether you will succeed in getting your lates removed.  It seems to me that you'd have a greater chance if you were still that card's customer.

And given that you are in this for the long haul, yes I would have a medium range goal of eventually having five cards, ones you can keep open forever with no annual fees.