Credit Questions; just getting started..

[bk2go]

Hi, I'm a young guy who is just starting out. I'm a bit stupid when it comes to the credit report stuff, and I'd like to figure things out. I've never really checked my credit until just recently.

My scores are Ex-640 , Eq-593 , TU-655. Are these good scores for someone with no credit history? What should they be with inexperience?

 The low scores are due to:

1.short account history

2.I was 30 days late for a CC back in January of 08. I'm in the process of trying to get CO to remove that.

3. percent of my CC balance being used- I had a spending limit of $300, and I had charged up $200 on the card. This month I was able to get my spending limit increased to $500, and I have paid it down by $100.

4. Too many inquires.. I have 13 inquiries on my report. This was due to me looking for car loans and trying to get credit cards to build up my score( I'm not even sure if having more than one card will help). I now know it hurts my score. =/

I only have that one CC, which is a Capital One card. The problem is, I'm in dire need of a new car. I can't get financed for a car because of my credit. I keep getting the same rejection letter, "too few accounts, and too short account history".

• What do you suggest I do to build up the strength of my credit?
• Why is the Equifax score so much lower than the other two?
• Are all three scores seen at once, or does someone seeking my report only see one of the 3? 
• How long will these inquires last?
• Employment history- why does it say none? I have worked with one company for 3 years, and I just recently started working at another job 5 months ago. Should I try to get that fixed; will it affect my score or the way lenders view my report?

Sorry. I know that is a lot of questions. I'm just trying to get my stuff in order, so I can get a new car. I'd also love to get my credit good enough to eventually buy my family a house. Thanks

Message Edited by bk2go on 01-17-2009 07:25 PM

[sprint]

How many credit cards do you have? Ideally you will have between 3 and 5 revolving credit cards. (When I hit #3, my score shot up.) This may be hard to achieve with all those inquiries. Some that are easy to get are Kohls and Best Buy. Also, every time you apply for a credit line, it lowers your average age of accounts.

The Equifax score might not be reflecting all that is in your reports. (It's a good possibility that that one may have more of your inquiries than the others.)

A lot of the time, a creditor will only pull one score from one of the bureaus.

Hard inquiries typically stay on your report for 2 years.

If you want, you can write to the bureaus with your employment information requesting that they update it. (I haven't seen dates of employment on my credit reports)

When you get some free time, read up on this board. Type what your looking into a search or just browse. This site is full of all kinds of goodies and golden information. There are also some really good books about scoring and how everything impacts your score, and how to build good credit based on the Fico scoring, and they include "Seven Steps to a 720" and "The Road to 850". See if you might be able to check them out at a local library or get em used on half.com. Your credit is well worth the time and investment.

[RobertEG]

Hi, bk.

The simple fact that you are reading this board is your first big step!

As for the myriad of credit inquiires on your CR, yes, they remain for two years, but only count against credit scoring for one year.

You need to get better credit cards than Crap 1.  With only one CC and no other credit, your credit mix is low.

You can do only one thing about lenght of credit history, and that is to get really old!

As for the late payment, well, that is the kiss of death.  Dont ever, ever, ever have a late.

Keep % util below 20% on your Crap 1.

Employment does not affect your FICO, so dont sweat that trivia.

If you can get the OC to GW away the 30-late, that will be the best improvement that you could get in your current FICO. 

[bk2go]

Thanks all. I will definitely be doing a lot of reading here.

Crap 1, lol. I love it. They're idiots. I got a message back from them saying they would send it to the appropriate department for my request to be completed. ?

I know I need more and better cards, but I've decided to hold off for about a year. I've already been rejected by JCP, Circuit City(good thing lol), Kohls, etc. I haven't applied anywhere since December. I wish I would have known that was a bad thing..

I guess I'll have to get a co-signer for that new car..

[iltph]

You could always open an account with Crown Jewelers (no credit check required and they give you an instant CL of $1,500). Another option would be to apply with Kay Jewelers. It is usually easy to get an account with them and they give high CLs. I just got one for $3,000 and I've been turned down for every bank CC I've ever applied for (even unsecured last year). Another option is to apply for a Macy's Store Card. If approved, they will start you out at $300 or $500 then give you a CLI about every 3 months or so. You need to start sometime and the sooner the better to start building up your account history (AAoA).

[Anonymous]

IMO, if you are going to be applying for a car loan, hold off on app'ing for a CC.

Wait until you get the car loan, wait for that late to age to 2 years or be removed through GW, and some of those inquiries to come off. Then pick out a few cards to app for.