Boosting Credit Scores

westcon5 · ‎05-13-2009

First, thank you everyone who has replied to my previous posts. I'm just starting the process of actually building my credit.

I have zero debt and no trade lines on my reports. I recently found out there is a $27 medical collection that I have begun the HIPAA process to get removed. This is from 2005. I do not have any credit cards. I had one in college and closed it. Obviously, looking back, I wish I had kept it because it would be 10 years old now.

What I am looking to do is to boost my score as quickly as possible (like a lot of others on here). All I am shooting for is something over 620 by the end of the year, or preferably sooner.

How does it look if I were to open a secured card immediately? What is the best amount to open it at? (I could do $1,000 or more, or would $500 be sufficient?)

Would opening a credit line through somewhere like Crown Jeweler's add an immediate boost? I went ahead an filed out their application of of course was offered the $2,500 amount, but have not made a purchase yet.

Would being added as an authorized user on a family member's unsecured credit card with a high limit be beneficial? (I would insist on not receiving a card, because I don't want to use it at all. Frankly, that is kind of embarrassing since I am in my early thirties.) I don't know if producing a FICO score by doing any/all of these things will be looked at unfavorably with all of the account showing new, even though they might produce a score high enough to get pre-qualified for a USDA guaranteed mortgage.

As stated above, my goal is to generate a credit score as quickly as possible. I have made it this far by being responsible, although it looks like I have somehow done the reverse of that because I have no score. It is hard sometimes without all this credit at my fingertips, but I have seen how it impacts friends and others that post on here and I am not interested in going into debt other than for a mortgage sooner rather than later.

Again, thank you everyone in advance for any advice. I truly appreciate it and maybe it will benefit others as well!

Message Edited by westcon5 on 05-13-2009 10:05 PM

nothingman02 · ‎05-13-2009

Hi and welcome!

@westcon5 wrote:
First, thank you everyone who has replied to my previous posts. I'm just starting the process of actually building my credit.

I have zero debt and no trade lines on my reports. I recently found out there is a $27 medical collection that I have begun the HIPAA process to get removed. This is from 2005. I do not have any credit cards. I had one in college and closed it. Obviously, looking back, I wish I had kept it because it would be 10 years old now.
It is STILL 10 years. The age still counts whether an OC a/c is open or closed.

What I am looking to do is to boost my score as quickly as possible (like a lot of others on here). All I am shooting for is something over 620 by the end of the year, or preferably sooner.
What are your current scores?

How does it look if I were to open a secured card immediately? What is the best amount to open it at? (I could do $1,000 or more, or would $500 be sufficient?)
A 1000CL would be better in the eyes of lenders. If you plan on keeping a 0 balance, it would not matter whether its 500 or 1000 as your UTL would be 0. Its been figured out that scores are optimum between 1 and 9% UTL.

Would opening a credit line through somewhere like Crown Jeweler's add an immediate boost? I went ahead an filed out their application of of course was offered the $2,500 amount, but have not made a purchase yet.
My opinion would be to stay away from these guys. Just my opinion. Nothing wrong with them. Open that secured card and after 3 months, given your otherwise clean reports, you should land a fairly mid prime CC. You could subsequently apply for a gas or store(that you frequent) card for a mix.

Would being added as an authorized user on a family member's unsecured credit card with a high limit be beneficial? (I would insist on not receiving a card, because I don't want to use it at all. Frankly, that is kind of embarrassing since I am in my early thirties.) I don't know if producing a FICO score by doing any/all of these things will be looked at unfavorably with all of the account showing new, even though they might produce a score high enough to get pre-qualified for a USDA guaranteed mortgage.
A good Au a/c with a clean payment history, low to nil UTL(which potentially stays tht way) and good Age (prefereably longer than your AAoA) would certainly help your scores.

As stated above, my goal is to generate a credit score as quickly as possible. I have made it this far by being responsible, although it looks like I have somehow done the reverse of that because I have no score. It is hard sometimes without all this credit at my fingertips, but I have seen how it impacts friends and others that post on here and I am not interested in going into debt other than for a mortgage sooner rather than later.

Again, thank you everyone in advance for any advice. I truly appreciate it and maybe it will benefit others as well!
Message Edited by westcon5 on 05-13-2009 10:05 PM

westcon5 · ‎05-14-2009

Thank you nothingman02 for the reply.

Sorry I forgot to mention my credit scores. My CR's are showing no open trade lines, thus the CRA's are not able to generate any type of score. The report does show one good account, but none of them say what that account is. It could have been the CC I closed years ago.

I guess for clarification, I am not trying to overcome "bad" credit, but rather "no" credit. I have been told by one LO that USDA doesn't necessarily look at no credit as being bad, although it sure seems that way.

I guess I am lucky that I'm not starting in a terrible position like being greatly in debt, but it is difficult with no credit history. It probably isn't the best time to be starting from scratch.

Thanks again for the information. I really appreciate it!

Anonymous · ‎05-14-2009

Where did you try to purchase your scores? Here? Or did your LO try to get them?

Have you pulled your free annual reports yet to see what is there? See link below if you haven't.

westcon5 · ‎05-14-2009

Well, I have had some issues pulling my own reports. I spent 45 minutes on the phone with TU and they STILL couldn't verify my identity. I was able to get one from Experian by paying for it. By going through www.annualcreditreport.com I am unable to pull any. They say they cannot identify my identity. I have submitted my SS card and DL as they have requested and they said it would take a few days to get it entered in the system and to try back then.

One mortgage broker pulled my reports and sent me a copy. Well, they sent a letter to me showing the results of the pull. Both reports showed "insufficient trade lines to establish credit score."

Anonymous · ‎05-14-2009

There's another credit reporting agency out there that is trying to get some traction. Not sure how widely loan officers are pulling it, but it could be an alternative for you. Seems to me that you pay bills, just not on credit accounts . . . Here is another thread that talked about it . . .

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&message.id=47952&query.id=...