Hello, all,
I’ve been reading on this site for a few months, and I have to say I am so grateful for the wealth of knowledge shared here! You all have made a safe haven for those looking to improve their financial well-being.
I’m a newborn newbie to credit learning, much to my chagrin. I’m hoping I can get some feedback or improvement on my action plan for rebuilding credit and get a good rate on a mortgage in about 2-3 years. Pulled my 3 reports in Dec 2018. Currently, my TU Fico 8 is 663 and EX is 662, no idea on EQ (didn’t want to pay for scores quite yet).
The good:
I was an authorized user on my ex’s card in good standing $13K+ limit. It is closed and due to fall off my report in 2022, so I’d like to bulk up my file with good info in anticipation of that event. It’s a 27-year-old-card (started when he was a teenager!). Currently, I have no lates on my one active card and utilization of 8-11%. 0 inquiries (all soft pull).
The bad:
I have an anemically thin file, just one active credit card opened 4/2018, a Discover secured. It graduated last year and now stands at $2,200. No car loan, student loans are long gone, and I’ve just pretty much paid cash or debit, and never thought about credit. My ex never put me on the mortgage.
The ugly:
I have one old collection. It was $224, from my former cell phone. I had switched from AT&T to Verizon, and then moved right after. Thought it was paid completely when I switched, but apparently not. Grrr, stupid me! I didn’t know about it until I pulled my reports in December 2018. Paid in full in late January, and is now reporting as paid.
The collection does not appear on EQ, and my reports from December state it is due to fall off from EX in June 2019 (3 months), and from TU in Aug 2019 (6 months). No idea why they’re different.
The plan:
1. Early Exemption for the now paid baddie, just requested today (thanks to myFico threads!) No idea how long that might take, since I disputed online. Shoulda called.
2. App for new cards if the baddie falls off in the next 30 days. In April, I will be 12 months on my Discover. I want to get cards that will throw a bone back, and ones with no annual fee in case they get mothballed years from now. I’m hoping to get Chase Freedom Unlimited, Citi Double Cash, and AMEX Blue Cash Everyday. With these, I’ll get all three FICO scores. I pre-qualled online for all of these already, but think I should wait for the EE and 12 months on Discover. I will wait for travel cards, or those with annual fees. Given my thin file, should I do the one-every-3-months, or a spree?
3. Apply for a DCU credit builder loan. Since apparently there’s no more Alliant pay-in-advance-style loans, I had planned on doing a savings-secured loan for say $1000 for 10 years, then immediately pay it off to 50% or so. Then, it is still 5 years long but the utilization is already halfway down and the payment amounts won’t affect my DTI.
My goals:
- Get cards in anticipation of my oldie but goodie to fall in 2022.
- Mortgage in 2-3 years. Prices are high here (California), so I need the best score I can get to avoid as much interest as possible. Hoping to hit 800s but I’ll take 760.
- Might need a new car in the next 2-3 years as well, after the mortgage if I can help it.
I have a good income, but business-related legal fees to pay off, $30K. I should pay that off by the end of the year. This isn’t reported anywhere, to my detriment - I’ve been super diligent about it. Would be nice to get some credit for it.
I'm impatiently patient, trying to advance quickly but safely. Thanks in advance for your thoughts!
