@anik28 wrote:
Hello all,
I am new to MyFico and looking for credit advice. In my early 20's I was very uneducated about how credit worked. I got myself into a financial mess and have spent the last 6-7 years slowly crawling out of the hole. I have a few credit cards but they are all very low limits - some I've had for a couple of years but none of them will give me a CLI. I really need advice on how to move my score up and get credit lines with much higher limits. I am much more educated on how credit works now, but cannot seem to get my score to budge. Any advice is welcomed as improving my credit has been a painfully slow process.
Income:
75K / year. Single and rent an apartment.
Current FICOScore 8:
- Experian 586
- Equifax 551
- TransUnion 609
Open Accounts:
Student Loans - 10,000$ Balance. Paid on time.
Capital One Quicksilver - 500$ Limit. Paid almost in full each month. Opened Nov 2018
Credit One Bank - 300$ Limit. 120$ Balance. Opened May 2019
Indigio (I want to get rid of these subprime accounts) - 300$ Limit. Opened Dec 2019. 150$ Balance.
US Bank Secured Card (Just opened this one) - $300 Limit.
Nordstrom Card - 1,500$ Limit. Opened Dec 2019. 1,400$ Balance (Paying this one day and not using)
Closed Accounts:
Autoloan Repo: Opened June 2014 (This is very close to falling off my credit, but I know its hurting me bad)
Discover Secured Card: Opened June 2016. Paid in Full (they closed this account because I was maxed out and only making the minimums each month. They refuse to approve me for another card)
Medical Bill: Opened 2017 (720$ for an ambulance ride that I couldn't pay)
Citi Secured Card: Opened June 2016 (Similar to Discover, they closed the account due to a returned payment history)
Inquires:
I have about 50 on each report, I know this is terrible. I am trying my best to stop applying - If I know I can fix some of these negative items soon I will be more cautious about applying for anything unless I know I'm really qualified.
Credit Goals:
- 675 to 700 Score
- Citi DoubleCash, Chase Saphire, AMEX Delta, Home Loan to buy a Condo
I'm aware I have a lot of work to do, but my score was in the 400's just a short year and a half ago so I know it's possible to pull myself out of the dark hole. Any help / advice on how to grow my limits and score would be much appreciated. I have confidence in myself to do this where I didn't have 5 years ago.
Much thanks!
I agree with you 100%!
You need to stop apping. The sheer number of inq along with not good scores screams credit seeking.
Most of the cards you have are super recent. You need to let them age and treat them well.
For a few quick points boost in your scores, you should implement AZEO. All zero except one. Pay all those CCs down to $0, but one. And that one just have a few bucks on report (5-20 bucks), but make sure that it is 8.9% utilization of your CL or less.
Those CCs probably have terrible interest rates, so you should just focus on being a "transactor" and not a "revolver". Only buy what you would pay for from your debit card. Treat them as debit cards and not like money you don't have.
You can control what reports to the CBs. You can use your csrds all you want (as a transactor - purchases you would have made anyway with cash/debit) just make sure to pay *before* the statement cut date. This is not usually the same as your due date. That is also how to make AZEO work while still using your cards.
While tending to your new accounts, no apping. While those inq fall off, by that time the repo will have dropped off. It seems like a lot of positives in your future, if you just don't app. You will be in a probably much better place to app at that time.
If you pull your CRs from annual credit report for free (no scores included) you will find out exactly when to expect thise baddies to fall off. Then when you get to 6 months prior to that, you can start looking into EE for TU and EX.
Remember to avoid apping for anything for the whole year before apping for a mortgage.
A bunch of new accounts also affects your AAoA, so it also affects your scores. So add them sparingly. Since you recently got the accounts you no longer want, you already took the hit to your AAoA, so I wouldn't close them while rebuilding.
Good luck!
If you have any other questions feel free to ask!
There are lots of great people here that will chime in with their suggestions.
