How to build a good credit history

Anonymous · ‎06-02-2020

First post guys, hope all is well! 48years old and have not financed anything for over 15 years due to past history (which was soso) and tax problems. Had tax liens (state and Fed) all over my report. State and Fed are happy now (still paing them monthly) but the liens dropped off my reports about 1.5 years ago. Wife added me to her discover as a "user" which started showing on my report. I also applied for a Capitol One Platinum which I recieved and initially had a 1k limit i believe. After either 4 or 6 months (either Oct or Dec of 19) i got an increas to 4k (balance is 1400) which is what it is at now. Basically that is all that is on my credit reports. My scores are listed below. Question is this, how do I build it? Just start applying everywhere for Credit cards or what? I see some of yall have LOTS of cards. If so which ones? Whats my best route?

thanks ahead of time for the advice!

FICO Score 8

Equifax - 695

Transunion - 688

Experian - 683

Mjhall85 · ‎06-02-2020

To optimize fico scores its best to have 3 revolvers and 1 installment loan such as car,student loans or a credit builder type loan. Personally I wouldn't just go applying all over the place. You can try discovery card prequal and see what they have to offer if you want. What cards you get comes down to what you spend on so you can reap benefits. Do you just want to build credit to have it established or is there a goal that you want to accomplish ?

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693

Anonymous · ‎06-02-2020

@Mjhall85 wrote:
. Do you just want to build credit to have it established or is there a goal that you want to accomplish ?

Id like to buy a house within the next couple of years. Im sure we can in my wifes name, but I would like mine on it also of course. Also, just a fact of having a good credit rating. I want to know (or have a good feeling anyway) when i apply for credit, that I will get it. Right now, i have no idea.

Mjhall85 · ‎06-02-2020

I am no expert on credit but I'd look at some of the prequalify sites and get yourself to 3 cards to start.I am sure others will chime in and give some good input. You have no installment loans ? student loans ? If you don't have any installment loans there is some options out there that are pretty cheap monthly to make sure you get the boost you can get. Your mortgage scores will be a bit different than your fico8,

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693

Anonymous · ‎06-02-2020

@Anonymous wrote:
First post guys, hope all is well! 48years old and have not financed anything for over 15 years due to past history (which was soso) and tax problems. Had tax liens (state and Fed) all over my report. State and Fed are happy now (still paing them monthly) but the liens dropped off my reports about 1.5 years ago. Wife added me to her discover as a "user" which started showing on my report. I also applied for a Capitol One Platinum which I recieved and initially had a 1k limit i believe. After either 4 or 6 months (either Oct or Dec of 19) i got an increas to 4k (balance is 1400) which is what it is at now. Basically that is all that is on my credit reports. My scores are listed below. Question is this, how do I build it? Just start applying everywhere for Credit cards or what? I see some of yall have LOTS of cards. If so which ones? Whats my best route?

thanks ahead of time for the advice!

FICO Score 8
Equifax - 695
Transunion - 688
Experian - 683

You have 1 card in your name, so you just need 2 more for AZEO technique (you can search the threads for this in more detail.

I wouldn't app for a bunhc of CCs all at once. Some people here have strong credit profiles and have gotten many cards over a period of time.

If you start apping too much, you may get toy limits or denials with rejection reasons such as "too many recent inquires" or "too many new accounts", etc.

Too many new accounts also lowers your AAoA (average age of accounts).

Like others mentioned above, it may help you to try for pre-approvals first before just cold apping. Also look into the SSL in the threads for the installment loan to get max credit mix points. Especially if you can somehow get into NFCU, that would be ideal for that. There are also other options. You don't have to get a bunch of credit all at once. You can spread it out a bit.

As far as the AU account you just got on your CRs, does it have low utilization and good payment history (vased on what you stated, it probably has a good payment history, but just to be sure)? That also may help or hurt you depending on that.

Time is your friend. Once you get some accounts under your belt, just garden them and let the positive history build.

Others will chime in to help guide you along the way to maximize your credit profile before a mortgage. Also remember to not to app for any new credit within a year of getting a mortgage.

Good luck!

FireMedic1 · ‎06-02-2020

@Anonymous wrote:
First post guys, hope all is well! 48years old and have not financed anything for over 15 years due to past history (which was soso) and tax problems. Had tax liens (state and Fed) all over my report. State and Fed are happy now (still paing them monthly) but the liens dropped off my reports about 1.5 years ago. Wife added me to her discover as a "user" which started showing on my report. I also applied for a Capitol One Platinum which I recieved and initially had a 1k limit i believe. After either 4 or 6 months (either Oct or Dec of 19) i got an increas to 4k (balance is 1400) which is what it is at now. Basically that is all that is on my credit reports. My scores are listed below. Question is this, how do I build it? Just start applying everywhere for Credit cards or what? I see some of yall have LOTS of cards. If so which ones? Whats my best route?

thanks ahead of time for the advice!

FICO Score 8
Equifax - 695
Transunion - 688
Experian - 683

You can ugrade that Plat to a Quicksilver and get some cash back for using the card. Like the other poster said. Give Disco a knock on the door. If approved then wait 4-6 months and go for your third card. Any installments in your profile?

https://verified.capitalone.com/sic-ui/#/esignin?Product=Card&Action=ProductUpgrade

Anonymous · ‎06-02-2020

As far as the AU account you just got on your CRs, does it have low utilization and good payment history (vased on what you stated, it probably has a good payment history, but just to be sure)? That also may help or hurt you depending on that.

Payment history is great but utilization is high. 14k balance on 20500 limit.

Anonymous · ‎06-02-2020

@FireMedic1 wrote:
You can ugrade that Plat to a Quicksilver and get some cash back for using the card. Like the other poster said. Give Disco a knock on the door. If approved then wait 4-6 months and go for your third card. Any installments in your profile?
https://verified.capitalone.com/sic-ui/#/esignin?Product=Card&Action=ProductUpgrade

THX FireMedic! I did just upgrade to the QS card. At least now I will get some cash back.

Anonymous · ‎06-02-2020

@Mjhall85 wrote:
I am no expert on credit but I'd look at some of the prequalify sites and get yourself to 3 cards to start.I am sure others will chime in and give some good input. You have no installment loans ? student loans ? If you don't have any installment loans there is some options out there that are pretty cheap monthly to make sure you get the boost you can get. Your mortgage scores will be a bit different than your fico8,

Correct, no installment loans at all as of right now. I am buying a new (new to me) vehicle next week. I know we can get it in her name alone but once again I want my name on it. I am assuming we will be able to put me on it now due to no negatives at all on my report outside of limited credit. I almost feel like Im 18 again starting my credit file for the first time, lol. But this time I have some experience at it! Once I secure that, I may then reach out to Disco or whomever like someone else had mentioned.