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What is the next best next move for my credit score to improve

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SeattleBorn
New Contributor

What is the next best next move for my credit score to improve

October 2012 I discovered my office manager embezzled from my business and personal accounts and did not pay mortgages and other bills for which I was liable. With no cash to pay liabilities my credit report looked like a war zone with FICO probably in the low 500 range. I used a debit card or paid by cash. I applied a couple of times in 2015 for a unsecured and secured credit cards through my credit union and one bank and was denied. Last August I paid Capital One $2000 and got a secured master card with $2150 limit. Since then I got a increase to $2500. My utilization is below 10% and I pay the bill when it appears in my email. I have paid off legitamate claims and sent the police report to all 3 bureaus. My TU score peaked at 721 and dropped today to 671 while Equifax is at a high of 675 both after tons came off the reports. Experian has been slow to catch up. I have a total of 3 hard inquiries dating back to October 2015 and the other from August 2016 from Capital One that got me the card I have. I have cash to secure $20K-$50k in loans but I know I need to get more credit on the books and need some advice as I resurrect my life while not screwing up my FICO score for refinance. Any advice is appreciated. Thanks!

Message 1 of 14
13 REPLIES 13
Anonymous
Not applicable

Re: What is the next best next move for my credit score to improve

This is an easy one!

 

You want a minimum of 3 credit cards reporting.  Try any of the popular prequalification pages and get yourself to a total of 3 cards.  Popular prequalification sites include Discover, maybe another Capital One card, American Express, US Bank, Bank of America, Chase (if you have a banking relationship already).

 

You want a minimum of one installment loan reporting open.  If you don't have a mortgage, student, auto or personal loan reporting, do the Alliant SSL "hack".

 

After all that is taken care of, your scores will bump up.

Message 2 of 14
Sandman771
Valued Contributor

Re: What is the next best next move for my credit score to improve

The consensus here is to maximize your scoring you need an installment loan and three cards. With the three cards, one needs to be at <9% utilization and the other two at 0. With that said, maybe a share secured loan through your credit union? Also talk to them about a CC since you're scores have rebounded so well. I'm sure there are more learned individuals here that can add more. Good luck! 

Starting Score: EQ497/TU496/EX 499
Currently: EQ 620 TU 654 EX 627
in the garden since 6/16/2021
Message 3 of 14
SeattleBorn
New Contributor

Re: What is the next best next move for my credit score to improve

Thanks! Lots more questions clarification and questions.

What should my timing be on applying for the next 2 credit cards? Should I apply for the cards at the same time? I have prequalify for Discover on my desk now and probably something from Capital One. I suppose I could call Capital One to find out?.What should I expect for credit limits? I have a mortgage with Chase that is not reporting due to some pending legal action I brought against them. I settled with BofA on a Visa card for less then owed as well as Wells Fargo master card that were involved with the embezzlement. These show as closed bakc in 2012-2013 on TU and Equifax. Not sure I want to go to either of those Banks if they have memory. I looked at the Alliant site and that might work. I really don't need a car loan right now but I understand the rational for an intstallment loan. What is missing from my credit report is the commercial property I own that has mortgages with several banks. Never missed a payment on 7 figure loans and they don't report to the 3 credit agencies.

Message 4 of 14
medicgrrl
Valued Contributor

Re: What is the next best next move for my credit score to improve

I would do the Alliant loan, look at Amex to see if you have have prequal. Theirs are usually good if they give you a solid APR. Also check Discover's site to make sure that's not just a marketing tool and is actually a prequal. I would do them both now since you have very few inquiries.


EQ 778 EXP 782 TU 729
Message 5 of 14
SeattleBorn
New Contributor

Re: What is the next best next move for my credit score to improve

Much to report.

Got the Alliance SSL today and look forward to paying down to 8% and changing monthly payment after first month. I also used my preapproved Discover IT invite and was approved for $10k. 

I have the AMEX preapproval on my desk. Should I pull the trigger and apply and if so should I do it now?

 

Its been a good day.

Thanks for all the help.

 

TU 672 EQ 675 EX 685

 

Message 6 of 14
medicgrrl
Valued Contributor

Re: What is the next best next move for my credit score to improve

I would go ahead and do it now so they all age together.


EQ 778 EXP 782 TU 729
Message 7 of 14
SeattleBorn
New Contributor

Re: What is the next best next move for my credit score to improve

Applied for Amex with preapproved rsvp code. Got a message that they wil review and let me know within 14 days. Is this normal?

Message 8 of 14
medicgrrl
Valued Contributor

Re: What is the next best next move for my credit score to improve

I would call tomorrow. It may be a fraud/identity issue. Have you ever had an Amex account?


EQ 778 EXP 782 TU 729
Message 9 of 14
SeattleBorn
New Contributor

Re: What is the next best next move for my credit score to improve

Had Amex 30 years ago with no issues. I did have a fraud alert on my account but it was supposed to be removed. I'll call in the morning. 

Message 10 of 14
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