@jerryramirez wrote:Hello Everyone:
I have 2 secured credit cards Capital One and Citi Bank 500 and 300 limit. When I begin to rebuild my credit I was at mid 540 but I started to maintain Capitol One at 10 dollars and then opened Citi. I then was added to my wife's Bealls retail card. Auto loan was current. So I was able to increase my score middle score to a 624 but after I brought everthing current it seems everything stalled. I'm only gaining a few points like 15 or less. I was told by a lender to get rid of the retail card so I paid it off and received -26 to -16 points for closing the account. I'm lost on how this works and not sure what to believe. Do I need to open another card under my name? How do I need to start managing the current cards? Please give me some advice.
@jerryramirez When will you be applying for mortgage?
It is recommended not to incur any new inquiries or new accounts for 12 months leading up to a mortgage application.
Are you optimizing your scores by practicing AZEO All Zero Except One card reporting a small balance. e.g. $5-$10?
For the retail card, to clarify, you were the Authorized User and not the primary account holder?
You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.
Welcome. You had 3 cards which is ideal for the FICO rebuild bonus. You closed the retail card and that dropped you to 2 cards. Theres your loss. FICO doesnt like more than 50% of total cards reporting. So thats where the 3 cards come into play. One reports or AZEO (All Zero Except One) and then your at 33+% reporting. The AU card was helping you. But getting back a third card as you as the primary owner will help. Grab an Open Sky secured no HP card to get back to 3 cards in your name and follow AZEO. Do you have any type of installment loan?
@AllZero wrote:
@jerryramirez wrote:Hello Everyone:
I have 2 secured credit cards Capital One and Citi Bank 500 and 300 limit. When I begin to rebuild my credit I was at mid 540 but I started to maintain Capitol One at 10 dollars and then opened Citi. I then was added to my wife's Bealls retail card. Auto loan was current. So I was able to increase my score middle score to a 624 but after I brought everthing current it seems everything stalled. I'm only gaining a few points like 15 or less. I was told by a lender to get rid of the retail card so I paid it off and received -26 to -16 points for closing the account. I'm lost on how this works and not sure what to believe. Do I need to open another card under my name? How do I need to start managing the current cards? Please give me some advice.@jerryramirez When will you be applying for mortgage?
It is recommended not to incur any new inquiries or new accounts for 12 months leading up to a mortgage application.
Are you optimizing your scores by practicing AZEO All Zero Except One card reporting a small balance. e.g. $5-$10?
For the retail card, to clarify, you were the Authorized User and not the primary account holder?
You might want to address any derogatory you have; delinquency, charge off, collection, etc. If they are updating monthly, it'll keep your scores suppressed.
@AllZeroOP went from the helpful 3 cards to 2 after following the idiots advice on closing the third card. That killed the FICO 3 card bonus.
@FireMedic1 wrote:@AllZeroOP went from the helpful 3 cards to 2 after following the idiots advice on closing the third card. That killed the FICO 3 card bonus.
@FireMedic1 I agree with you. I'm trying to figure out the lender's logic for OP to close the retail card.
I recall some lenders don't want AU accounts when pulling the mortgage scores or some are able to omit it on their end for scoring? OP stated middle score so I'm under the presumption they are after a mortgage application.