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What’s your credit building strategy?

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sznthescore
Established Contributor

What’s your credit building strategy?

Many set out to build up their credit profiles. However, some start out blindly making mistakes and accepting anyone who will give them credit.

 

I was guilty of this a few short years ago. After compiling a strategy over the last couple of months its beginning to make sense and overtime will become beneficial for myself.

 

Time and good credit behavior is essential and your best friend in rebuilding credit. Rome wasn't built in a day. Don't waste your money seeking short-cuts. Only time and good credit behavior is all that's really required.

 

Strategy DP's to keep in mind:

1. Select creditors you can grow with long-term.

2. Layout your starting foundation with at least three revolving accounts and one installment account. If your profile is in the bottom of the barrel, then by all means choose the starter cards that don't require a credit check. (Applied Bank, Opensky, Self or even Unify CU, that's if you can at least obtain membership - these account DO NOT UNSECURE) 

3. Garden for 6-24 months. Gradually seeking and checking for creditors you can grow with. (Checking every 6 months or so while cleaning up credit reports) 

4. Consider long-term benefits 

5. Be very selective with HP's

6. Let your accounts age. Every new account lowers your AAoA.

7. Keep utilization under 30%, ideally under 9% and practice AZEO.

 

The basic have been listed above. I'd like to hear others strategies they're taking or have used to build their credit.

 

 

 

 

REBUILDER CARDS




Goal: FICO 700+
Message 1 of 15
14 REPLIES 14
Rekyrts
Valued Member

Re: What’s your credit building strategy?

Great stuff IMHO. I especially like the points about being selective and patient. When possible, go for accounts that will grow with your profile.

Message 2 of 15
sznthescore
Established Contributor

Re: What’s your credit building strategy?

Thanks @Rekyrts well appreciated.

 

People will get accounts just to have an account. Later down the line, learn that account won't grow or grow as expected. Turning around to apply for more accounts again, effecting their AAoA... which is sort of important next to on-time payments. 

REBUILDER CARDS




Goal: FICO 700+
Message 3 of 15
FireMedic1
Community Leader
Mega Contributor

Re: What’s your credit building strategy?

Ok. I had no cards for 10-12 yrs before BK. Cut them all up. I started out with the 3 cards and had a car loan. As the loan went down below 8.99% I passed 700. Took almost couple yrs. So I went by that 700 mark. I applied for the first card. Here came the hits for new account. Waited to pass 700 again. Next. I used that 700 score to get everything in the begining. In time like 3 yrs I think I was out of BK. The min was 710. Kept going, then it turned to 720, and things got easier. I used a number more than time. Yes it took time to get there. But thats how I did it. But each card I researched for hrs on here reading and reading.

 

My only denial was AMEX. I waited the 5yr 1 month mark. But opened a checking account with NFCU and they didnt like that. Too soon. Waited a year. Then I was approved. When I got my Explorer. I walked in the dealer and showed them my FICO Auto 9 score at 797 on the MyFICO app. You get 1 HP. Had my laptop loaded to freeze the reports if they tried more than 1 with all CRA's loaded. He saw it. LOL! Chase grabbed it. When my first auto loan was PIF. I went with NFCU for the SSL and close it the day after my new ride. For those that keep applying and are in the 600's and keep going. They'll stay in the 600's. I used the 700 club and never dropped below that in the rebuild process. Never to see 600's again. 6 yrs 3 months later. Its right below in the siggy. The siggy is only to show how it was done and what can come if you play the numbers game and rebound.


Message 4 of 15
sznthescore
Established Contributor

Re: What’s your credit building strategy?

Thanks @FireMedic1 for sharing your process. I like how you strategized. Especially liked the part on "....you get one HP", with laptop ready to shut things down. 😂👍🏽 

REBUILDER CARDS




Goal: FICO 700+
Message 5 of 15
FireMedic1
Community Leader
Mega Contributor

Re: What’s your credit building strategy?


@sznthescore wrote:

Thanks @FireMedic1 for sharing your process. I like how you strategized. Especially liked the part on "....you get one HP", with laptop ready to shut things down. 😂👍🏽 


Its true. I wasnt playing. They were wondering why my laptop was on the table top. He looked at the phone. Said my piece and went and sat down. Had my phone as my HP detector. Couldnt snake out of that one. LOL!!!!!!!!!


Message 6 of 15
sznthescore
Established Contributor

Re: What’s your credit building strategy?


@FireMedic1 wrote:

@sznthescore wrote:

Thanks @FireMedic1 for sharing your process. I like how you strategized. Especially liked the part on "....you get one HP", with laptop ready to shut things down. 😂👍🏽 


Its true. I wasnt playing. They were wondering why my laptop was on the table top. He looked at the phone. Said my piece and went and sat down. Had my phone as my HP detector. Couldnt snake out of that one. LOL!!!!!!!!!


Reminds me how I got the Apple Card without a hard pull. Hey, sometimes you have to do what you have to do. I'm definitely going to monitor the score vs. time as you mentioned. I'm in the garden anyway,  just got 2 new cards this month, could lower CC balances some more, and I only have like 2-3 collections remaining, so I'll see how it works out.

 

Side note: QS1 wasnt ideal, Capital One did a switcheroo on me. Pissed me off, but I have a plan & strategy for that. 

REBUILDER CARDS




Goal: FICO 700+
Message 7 of 15
sourpuss29
Frequent Contributor

Re: What’s your credit building strategy?

I decided to begin reestablishing my credit in Aug of 2019 with FICOs in the low 540s, and my main goal at the time was to see how long it would take me to get to 800.

 

When my journey began, I only had one old credit card reporting that I was an AU on; so after lurking the forums on CK, I figured my best course of action to get started would be to get a secured card. I read a ridiculous number of reviews before deciding to go with Discover, and the rest is history.

 

Going from there, my strategy was simple: obtain the types of credit cards that would help me create a profile that I would be proud of. In other words, I aimed for quality over quantity.

 

The road I traveled looked like this:

 

Discover - Aug 2019 (x)

Capital One QS - Sept 2019 (x)

Amex BCE - June 2020

Chase Freedom Flex - Sept 2020

Citi Custom Cash - June 2021

Navy cashRewards - July 2021

 

**(x) denotes closed accounts**

 

Since store cards never held any appeal to me, and due to my basically having a card on each network, my lineup is complete. I've also had personal loans sprinkled here and there to help thicken my files and boost my scores; and even though I made a couple of missteps early on, I'm pleased with my progress overall.

 

I haven't cracked 800 yet...the highest I've reached was 755 to 760, but I'm keeping hope alive! Smiley LOL

Message 8 of 15
sznthescore
Established Contributor

Re: What’s your credit building strategy?

Niceeeee! @sourpuss29 Now thats what I'm talking about. I'm learning and taking notes. 

 


@sourpuss29 wrote:

 

Going from there, my strategy was simple: obtain the types of credit cards that would help me create a profile that I would be proud of. In other words, I aimed for quality over quantity.

 




REBUILDER CARDS




Goal: FICO 700+
Message 9 of 15
sourpuss29
Frequent Contributor

Re: What’s your credit building strategy?


@sznthescore wrote:

Niceeeee! @sourpuss29 Now thats what I'm talking about. I'm learning and taking notes. 

 


@sourpuss29 wrote:

 

Going from there, my strategy was simple: obtain the types of credit cards that would help me create a profile that I would be proud of. In other words, I aimed for quality over quantity.


My approach cannot be understated, and I firmly believe that it MATTERS.

 

The last time I took out a personal loan with DCU, the Loan Officer put me on hold to do the hard pull; and when she came back on the line a few minutes later, she complimented me on doing a good job with my credit in such a relatively short period of time, which made me feel REALLY good. 

 

I wish you much success as well!

Message 10 of 15
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