Building up credit, just turned 23.

Anonymous · ‎12-08-2015

Hi! I'm looking to increase my credit from the low 600's (Experian/592, Equifax/640, TU/642) up to 700 by this time next year. Is that possible? According to CK, my main issue was the high utilization $1500 limit on my Citi Freedom student and they have not increased it during the 2 years despite my tripled income and continued low expenses.

I just got approved for a $500 Chase Amazon rewards card, and $3500 at Capitol One (Quicksilver 1 and Platinum). My plan is to spread out my chargable expenses over all 4 cards, lower the utilization of the citi card from 90-99% down to at max $500, fully pay off the amazon after each purchase and have the remainining $1.000 I have in expenses charged on the 2 capitol 1 cards.

I also have 3 total collections on my cr: 1 medical ($400)- working with the hospital to bill my insurance since I was fully covered, T-Mobile ($400 fully paid off via Diversified Consultants bc T-Mobile wouldn't let me do a payment plan and some mysterious charge for $350 that I have no idea about. I know its a longshot but will be writing to Diversified to see if they might remove the charge, I've contacted the mystery charge for further clarification.

I am also working to save $1,000-1,500 a month and will be using that as collateral for a secured loan that will be placed in a CD account offered by my CU.

Will this be enough? Are there any other measures I should be taking? I'm hoping to study abroad in 3-4 years and will need student loans so looking to brush up my credit and keep it good before then.

Anonymous · ‎12-08-2015

Try to pay down the cards before the statement cuts so they report a lower balance....if possible only let one card report a balance of less than 10%

A secured loan will help you with that part of the credit Mix - and you already have 3 cards reporting. All of that should be good for you.

Make your payments on time to build upo a positive history and keep it up. I think what is hurting you the most is the high util!

Anonymous · ‎12-08-2015

When you say pay the statement before the statement cuts, that means if my period is 12/28-1/27, I would pay as much as possible between 1/20 and 1/25 and try to not charge anything additional until 1/28?

I definitely think it was the high util. Even with the collection accounts on my cr, when I had my Citibank at 10% during the spring. CK was showing scores in the low 700's but alas school happened. When I ran credit karma' s simulator last night after I signed up for the QS1 with a $2500 limit, my score jumped at least 30 points. Since I was hired on FT with OT at my job in Oct., I've been consistently paying my bills as early as possible even if it means kicking in 1/4 evey week.

I also have Federal student loans that aren't due yet but I've been kicking around paying more than just the taxes. Say 50-100 a month if I have it. Would that be wise?

Thank you for all of your advice!

Anonymous · ‎12-08-2015

@Anonymous wrote:
Hi! I'm looking to increase my credit from the low 600's (Experian/592, Equifax/640, TU/642) up to 700 by this time next year. Is that possible? Very possbile. According to CK, my main issue was the high utilization $1500 limit on my Citi Freedom student and they have not increased it during the 2 years despite my tripled income and continued low expenses.

I just got approved for a $500 Chase Amazon rewards card, and $3500 at Capitol One (Quicksilver 1 and Platinum). My plan is to spread out my chargable expenses over all 4 cards, lower the utilization of the citi card from 90-99% down to at max $500, fully pay off the amazon after each purchase and have the remainining $1.000 I have in expenses charged on the 2 capitol 1 cards.

I also have 3 total collections on my cr: 1 medical ($400)- working with the hospital to bill my insurance since I was fully covered, T-Mobile ($400 fully paid off via Diversified Consultants bc T-Mobile wouldn't let me do a payment plan and some mysterious charge for $350 that I have no idea about. I know its a longshot but will be writing to Diversified to see if they might remove the charge, I've contacted the mystery charge for further clarification.

I am also working to save $1,000-1,500 a month and will be using that as collateral for a secured loan that will be placed in a CD account offered by my CU.

Will this be enough? Are there any other measures I should be taking? I'm hoping to study abroad in 3-4 years and will need student loans so looking to brush up my credit and keep it good before then.

You can start writing GW letters and hoping for some good luck that the creditors will do you a solid and take off the debts. 3 CC's with 2 reporting a 0 balance and 1 reporting less than 10% util seems to be the best way to.

Anonymous · ‎12-08-2015

@Anonymous wrote:
@Anonymous wrote:
Hi! I'm looking to increase my credit from the low 600's (Experian/592, Equifax/640, TU/642) up to 700 by this time next year. Is that possible? Very possbile. According to CK, my main issue was the high utilization $1500 limit on my Citi Freedom student and they have not increased it during the 2 years despite my tripled income and continued low expenses.

I just got approved for a $500 Chase Amazon rewards card, and $3500 at Capitol One (Quicksilver 1 and Platinum). My plan is to spread out my chargable expenses over all 4 cards, lower the utilization of the citi card from 90-99% down to at max $500, fully pay off the amazon after each purchase and have the remainining $1.000 I have in expenses charged on the 2 capitol 1 cards.

I also have 3 total collections on my cr: 1 medical ($400)- working with the hospital to bill my insurance since I was fully covered, T-Mobile ($400 fully paid off via Diversified Consultants bc T-Mobile wouldn't let me do a payment plan and some mysterious charge for $350 that I have no idea about. I know its a longshot but will be writing to Diversified to see if they might remove the charge, I've contacted the mystery charge for further clarification.

I am also working to save $1,000-1,500 a month and will be using that as collateral for a secured loan that will be placed in a CD account offered by my CU.

Will this be enough? Are there any other measures I should be taking? I'm hoping to study abroad in 3-4 years and will need student loans so looking to brush up my credit and keep it good before then.

You can start writing GW letters and hoping for some good luck that the creditors will do you a solid and take off the debts. 3 CC's with 2 reporting a 0 balance and 1 reporting less than 10% util seems to be the best way to.

If you have student loans, you don't need a secured personal loan for scoring purposes. Use that money to pay down debt instead.

Anonymous · ‎12-08-2015

I lost 40 points just from having one card report as maxed out