Credit Goal Thoughts: Input Welcome

[Anonymous]

Hello All:

I've been thinking about personal goals for my credit journey, and figured I should indicate my thoughts and note that I am open to input. My current gardening goal is to stay in the Garden until August 2020, but I may wait longer if that would be best. As my goal isn't very tangible, I am looking for other items.

In terms of credit details, I started my credit journey in January 2015 upon being approved for my first credit card with a $300 limit. I do not know what my scores were at the time, but I can best recall my TU score at the time being in the 600 to 640 range. I had 2 medical collections on my report at the time (about 4 years old), which have since dropped off my reports!

Over the past 5 years of finding the My Fico forum, opening various cards as my scores went up, closing cards I felt I no longer needed, and taking things slow over the last couple of years, my scores are EQ: 772 - FICO 8, EX: 760 - FICO 8, TU: *I can only get Vantage 3.0, which is 803*, and my credit looks like the following:

Credit Cards:

Amex Everyday: $11,000, 19.49% APR

Hilton Amex: $10,000, 19.74% APR

Capital One Savor: $10,000, 24.99% APR

Citi Double Cash: $6,500, 20.74% APR

TIAA Bank Rewards: $5,000, 11.5% APR

Chase Freedom: $3,400, 17.24% APR

Other Report Items:

No negatives!

1 student loan paid-off and closed in 2014 - no other student loans

Credit utilization is 0 to 1%

Lack of credit diversity appears as a reason for why my scores may not be higher

Thus, my thoughts for goals are a) keeping all of my current cards and probably not apply for new ones, b) requesting soft pull credit limit increases on the Citi DC, and requesting lower APRs, c) thinking of applying for a line of credit after August (but none of my current banks offer anything other than HELOCs or Pledged Asset Lines, so I may have to look elsewhere). Other types of credit don't seem to be in the picture right now as I have a lower income as a grad student, can only rent, and I am not in the market for a new car.

I know there are probably things I have not thought of, or may need a different perspective on my potential goals. I look forward to others' thoughts!

[simplynoir]

IMO I think you're sitting pretty good where you stand with your credit for the present time. You have a nice mix of category cards though the Everyday kind of sticks out as a sore thumb since it's point earner; Hilton as well but that's a niche card to begin with. I'm assuming DC as daily driver, Savor for food, Freedom when categories apply, and TIAA assuming fits there as well. No need to apply for a loan simply for credit scoring purposes at this time. If you scores needed a boost I can see that being a reason but you're set up to where when it is time to apply for a loan of the auto/mortgage variety you'll be getting the best rates to work with

Congratulations on your journey so far and good luck with school!

[RSX]

Nice work !

if you want to get a LoC, then you need to first find the bank with the features/rate you want.  And then open a checking/saving acct(s) with them 

then start running some money through it

the sooner you start this, the better

i moved banks from Wells to US Bank in Sept and I still haven't got my LoC yet.  They wanted 3 things

1. 90 days of an existing account.  I got both Checking and Saving

2. low Inq in the last 6 months.  I am on track for applying in May

3. a relationship score.   This is both time and activity using the account.  

So the sooner you open that first account, the process will take care of itself before you need it

i really want the LoC so I can close all my Wells Accts. It is the final item needed to fully transition for me.  ( i like having one for emergencies in addition to my savings Acct). 

[Kforce]

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@simplynoir wrote:

IMO I think you're sitting pretty good where you stand with your credit for the present time. You have a nice mix of category cards though the Everyday kind of sticks out as a sore thumb since it's point earner; Hilton as well but that's a niche card to begin with. I'm assuming DC as daily driver, Savor for food, Freedom when categories apply, and TIAA assuming fits there as well. No need to apply for a loan simply for credit scoring purposes at this time. If you scores needed a boost I can see that being a reason but you're set up to where when it is time to apply for a loan of the auto/mortgage variety you'll be getting the best rates to work with

Congratulations on your journey so far and good luck with school!

---

+ 1

[Anonymous]

Congrats on your successful credit journey and good looking scores. Another idea I'll add is possibly asking for lower APR's, especially on your Savor and Double Cash. 

[Revelate]

"Lack of credit diversity" is fluff.

A LOC doesn't really count for credit mix, an open installment loan would, and one playing reindeer games with better (search SSL technique).

Find a lender that'll allow that, or go play with an unsecured line if you're paying 99% of it right back, either work and that'll do more for your scores than anything else would if you're trying to improve your scores.

[Anonymous]

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@simplynoir wrote:

IMO I think you're sitting pretty good where you stand with your credit for the present time. You have a nice mix of category cards though the Everyday kind of sticks out as a sore thumb since it's point earner; Hilton as well but that's a niche card to begin with. I'm assuming DC as daily driver, Savor for food, Freedom when categories apply, and TIAA assuming fits there as well. No need to apply for a loan simply for credit scoring purposes at this time. If you scores needed a boost I can see that being a reason but you're set up to where when it is time to apply for a loan of the auto/mortgage variety you'll be getting the best rates to work with

Congratulations on your journey so far and good luck with school!

---

I'm certainly open to not making changes if my current scores are sufficient. Part of me figured the idea for a LOC was lacking a strong basis, but I figured it was good to run by folks.

You are correct that I am currently focusing more on cash back. My Amex cards are left over from when I had a full-time job a few years ago and made much more than I do today. Nevertheless, I really like Amex, and the points are still valuable to me, so my EveryDay sees some use each month.

[Anonymous]

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@RSX wrote:

Nice work !

if you want to get a LoC, then you need to first find the bank with the features/rate you want.  And then open a checking/saving acct(s) with them 

then start running some money through it

the sooner you start this, the better

i moved banks from Wells to US Bank in Sept and I still haven't got my LoC yet.  They wanted 3 things

1. 90 days of an existing account.  I got both Checking and Saving

2. low Inq in the last 6 months.  I am on track for applying in May

3. a relationship score.   This is both time and activity using the account.  

So the sooner you open that first account, the process will take care of itself before you need it

i really want the LoC so I can close all my Wells Accts. It is the final item needed to fully transition for me.  ( i like having one for emergencies in addition to my savings Acct). 

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I'll certainly make a mental note about this! Certainly makes sense that a bank would like a relationship to get a line of credit.

[Anonymous]

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@Anonymous wrote:

Congrats on your successful credit journey and good looking scores. Another idea I'll add is possibly asking for lower APR's, especially on your Savor and Double Cash. 

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That is something I would really like to do! I'll start pouring over threads about how to ask for APR reductions. I have never done that before.

[Anonymous]

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@Revelate wrote:

"Lack of credit diversity" is fluff.

A LOC doesn't really count for credit mix, an open installment loan would, and one playing reindeer games with better (search SSL technique).

Find a lender that'll allow that, or go play with an unsecured line if you're paying 99% of it right back, either work and that'll do more for your scores than anything else would if you're trying to improve your scores.

---

That is great info! I am glad I got this feedback from everyone about lines of credit before I took any steps.

Right now, as I don't have much of a reason to take on an installment loan, I figure it is best to forgo one until I have a good reason. However, this is information I will return to when that time eventually comes.