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Where to go next?

jesseh
Frequent Contributor

Where to go next?

Hi all

 

Need some advice.

I've only had credit for two years, and my scores have been around 750 consistently, being limited by short aaoa and lack of installment loans. (which I don't need now)

 

So I'm wondering, what should I do next, do have the best credit possible in years from now?

 

Should I get as many cards as I can now, to have a strong number of cards to get my aaoa high in a few years? Anything else I can do?

 

Thanks all!

 

 

Cards: BCE 24k 5/'17 | CF 12k 10/'15 | IHG 12k 10/'15 | HH 6k 6/'18 | DS It 6k 3/'15 | TR 5k 11/'15
Scores: 760-770 | Inquiries: 0-1 | Utilization: 0-10% | AAoA: 3yrs | Bank: Ally | CU's: Navy & Pentagon
Message 1 of 7
6 REPLIES 6
RonM21
Valued Contributor

Re: Where to go next?

Your AAoA will actually fall by getting new cards right now. I certainly would not recommend just going and applying for "as many" cards in hopes of boosting your scores.

In hopes of raising your scores I would start with looking at your utilization on the cards you have. You only want to let 1 card report each month under 9% of your total credit between all of your cards. Let the others report a zero balance.

Then, you mentioned not having any installment loans, and while I'm not for getting one "just because," not having one is losing you points due to the lack of credit mix in that category. You can look into getting a small secured loan. Search the threads on this topic for more info.

Last, you didn't mention it, but do you have any negatives reporting?

                

Total CL: $304.1kUTL: 3%AAoA: 6.8yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k |DISC-40.6k | PENFED-38.4k | AMEX-37k | NFCU-37k | LOWES-35k | ALLIANT-25k | BARCLAYS-15k | CITI-11.7k | CHASE-10k

Message 2 of 7
jesseh
Frequent Contributor

Re: Where to go next?

Nope, don't have any negatives. My report is literally just the cards in my sig.

 

I don't care about my score on the short term that much, so taking some hits now if that improves my score in the long term is fine with me

 

Sometimes i let no or multiple cards report a balance, which makes the score go under 750, but if I only let one card report the next month it's back at 760 or so again. As util of only the current month is considered in fico that shouldn't matter in the long term anyway.

 

I think I'll get a secured loan then with a cu. Smallest amount and shortest term possible should be enough right?

and do you recommend to apply for cards as I can take the hits?

 

Cards: BCE 24k 5/'17 | CF 12k 10/'15 | IHG 12k 10/'15 | HH 6k 6/'18 | DS It 6k 3/'15 | TR 5k 11/'15
Scores: 760-770 | Inquiries: 0-1 | Utilization: 0-10% | AAoA: 3yrs | Bank: Ally | CU's: Navy & Pentagon
Message 3 of 7
Irish80
Moderator Emeritus

Re: Where to go next?


@jesseh wrote:

Nope, don't have any negatives. My report is literally just the cards in my sig.

 

I don't care about my score on the short term that much, so taking some hits now if that improves my score in the long term is fine with me

 

Sometimes i let no or multiple cards report a balance, which makes the score go under 750, but if I only let one card report the next month it's back at 760 or so again. As util of only the current month is considered in fico that shouldn't matter in the long term anyway.

 

I think I'll get a secured loan then with a cu. Smallest amount and shortest term possible should be enough right?

and do you recommend to apply for cards as I can take the hits?

 


Why do you need more cards?  Is there ones that yo are specifically looking for?  Adding more won't help your credit score.b Why do you think you need a secured installment loan?  Applying for any type of credit product just to try to crease your score isn't always the best approach.  You already have a very good score if that a Fico score.  Time is your ally.  As you make more on time payments and your existing a accounts age your score will go even higher.

Message 4 of 7
disdreamin
Established Contributor

Re: Where to go next?

I've got to agree with others who have said to let time do the work for you. From what I can see, you've got a good number of credit cards (I think I only have 4-5 unitl last year) so unless you've got a purpose in opening a new card, I would pass on doing that. It will hurt your AAoA in the short term, and it looks like you've already got at least three long-term keepers in your wallet. That ought to be enough to shore up your AAoA down the road if you choose to add different cards at a later date.

Message 5 of 7
evelynsophia543
New Contributor

Re: Where to go next?

 Applying make sense if you're looking rewards you don't already have, or planning on a very big purchase (could get bonus cash), or rebuilding credit, etc. Would other cards do something for you that you current ones don't? You already have a good collection - there's not much more for your score that 8 or 10 can do versus your 6, if you're not seeking higher limits/lower utilization.


 

I think I'll get a secured loan then with a cu. Smallest amount and shortest term possible should be enough right?

 


The big positive impact of installments is that they are over a long term, like 5 yr auto or 15 yr mortgage, so lenders see that you can sustain those type of payments over a long period. Getting a small *unneeded loan over, say 1 year, wouldn't really help. You'll take the score hit from getting it, then a hit when you close it, and the duration of account would be very short (this is part of the age of accounts factor). Credit mix is such a small percentage of the score - why not leave it for when you actually take out a loan you need in the future?

 

It is a good idea to research credit cards, see if there's one or some that fits your current spending best, and if there is, you could definitely apply for them now to let them grow and age with the ones you have Smiley Happy

 

My history is like yours, with some different cards - I feel the urge to do *something* to improve my scores, especially as I read about card apps and score strategies on this forum. But I've realized the best option for me now is to wait, keep paying on time and have low utilization. When I travel more, I will find a travel rewards card that suits me. If my spending increases substantially, I'll see if other rewards cards are better.

 

It's nice to find a fellow credit sapling! Many members seem to have long histories and/or thick files.

Disc It 10300 | Double Cash 8600 | Freedom 4500 | IHG 15000
TU 08: 1.2018 - 794
EX 08: 797
EQ 08: 789
Util 2% | Oldest TL 4 yrs
Message 6 of 7
Grafton88
Established Contributor

Re: Where to go next?


@jesseh wrote:

Nope, don't have any negatives. My report is literally just the cards in my sig.

 

I don't care about my score on the short term that much, so taking some hits now if that improves my score in the long term is fine with me

 

Sometimes i let no or multiple cards report a balance, which makes the score go under 750, but if I only let one card report the next month it's back at 760 or so again. As util of only the current month is considered in fico that shouldn't matter in the long term anyway.

 

I think I'll get a secured loan then with a cu. Smallest amount and shortest term possible should be enough right?

and do you recommend to apply for cards as I can take the hits?

 


A small secured loan can help your credit mix.  You can do a small amount but a short term isn't the best way to do it.

 

I got my secured loan from my CU in January.  They took the money from my share savings account for collateral.  They lent me the same amount and immediately deposited it in my checking account.  The loan term is for one year.  I paid down the balance to less than 9% in 2 months.  I didn't set up auto-pay.  I now pay them $5 per month.

 

Once I paid down the loan to under 9% I got the message on my reports that I have made substantial installment loan repayment.  It gave me a 15-20 point increase.

 

Once the loan is paid off I expect to lose that benefit but I will have another installment loan by that time.

 

As to getting more cards; I am a firm believer is only getting the cards that will be a benefit to your personal financial makeup.

 

I enjoy spending time in the garden.  My INQs age off and my AAoA rises.  That doesn't mean I will stay there forever.  I plan to join the PenFed family in October.  Next year I want to buy a house.  After I get the house I will app for a Lowes card.  I like the low and slow approach.

Message 7 of 7
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