Currently have 4 installment loans. Auto loan, a loan I got to pay for a transmission (almost paid off) and a Self credit builder account and a student loan. All current.
I also have 2 lines of of revolving credit. A Self secured credit card, and a Kik line of credit. Both under 10% UTL.
Im assuming this is not optimal for my credit report and score. Could someone enlighten me on the optimal number we should have of each?
Starting Score: 534
2 to 3 credit cards with low utilization reporting and one open loan.
Thank you. Does the fact that I have 3 current installment loan look bad on my report and does it negatively affect my score? Do you recommend I close the Self credit builder account since I already have a car loan? I'm not sure if I need the account in Order to use the secured credit card I got from them. But I'll look into it.
I've only had the secure credit card 2 months. Making sure use it the right way. I understand that I'll eventually need more. When should I apply for another card without negativity impacting my report and score?
@mademan0890 wrote:Thank you. Does the fact that I have 3 current installment loan look bad on my report and does it negatively affect my score? Do you recommend I close the Self credit builder account since I already have a car loan? I'm not sure if I need the account in Order to use the secured credit card I got from them. But I'll look into it.
I've only had the secure credit card 2 months. Making sure use it the right way. I understand that I'll eventually need more. When should I apply for another card without negativity impacting my report and score?
@mademan0890 Whether it looks bad is subjective to your overall file, in your case, because you seem to have a limited history/thin file, yes. If the loan balances are still high in comparison to the original loan amount they're going to affect your score more negatively. When you get the balances paid down say below 50% you'll start to see more positive effects to your scores. I'd agree to try pay off or close any of the loans you can until you get to a point where you're left with one open loan.
Discover as suggested is a good way to go but with a score below 640, they may only offer you a secure version which is completely fine but I'd recommend you wait a minimum of 6 months before you apply for anything else. Your continued good payment history, reduced loan balances and more time added to your history will benefit your scores and approval odds.
@mademan0890 wrote:Currently have 4 installment loans. Auto loan, a loan I got to pay for a transmission (almost paid off) and a Self credit builder account and a student loan. All current.
I also have 2 lines of of revolving credit. A Self secured credit card, and a Kik line of credit. Both under 10% UTL.
Im assuming this is not optimal for my credit report and score. Could someone enlighten me on the optimal number we should have of each?
agree with above
pay off the credit builder loan, get your personal loan paid off, see what discover/capital one will offer you
get discover or discovered secured and wait 6 months
the score doesn't care that your revolving lines are self and kik, but I imagine future lenders will be biased against that. You want real bank credit cards, discover/cap1 is a good place to start
what does the rest of your file look like? have you paid off any old/bad debt? That's where I would actually start
Yes I have old debt that I'm paying off. I had 2 charge offs. One I paid the balance down to 0 and saw an immediate score bump. I'll be paying the second off this coming week. Hoping for a second bump. I also have 3 collection accounts. One with south west credit systems that I paid the balance down to 0. They refused my pfd so I'm sending a goodwill. Not holding my breathe. Lastly the remaining 2 CAs are with LVNV funding and central portfolio control. I've done my research, I believe both will PFD. Excited to see what my score will be one I remove those 2 CAs and pay that last charge off.
Ok self builder installment loan needs to be close. I understand it's not doing me any good. I've only had it 3-4 months and the self secured credit card 1-2 months. At this point if I call them and inquired about closing it...I'm assuming it shouldnt adversely affect me that much due to the fact that it hasn't aged very much. Then I'll progress to having one installment such as my auto loan. Then slowly work my revolving trade line with some credit cards. Every 6 months or so I'll add some credit cards and use them right
I'm surprise at the amount of people who are telling you to close the Self Biuilder accout. IMO, just let it run it couse, as its already reporting to consumer reports so you might as well benefit from the on-time payments that it will report, and beside you already payed for the service.
Here is a little more info how credit mix is caluclated. https://www.myfico.com/credit-education/credit-scores/credit-mix.
Also, I recall correctly 20 accounts and more reporting is optimal.
