OP...I was not the member that had the helpful advise you used, but I feel confidant that the member will be glad he could help. One suggestion, take advantage of the autopay feature for all credit cards at least for the minimum balance, and have overdraft protection for the checking account used to pay it. If you pay it manually, the autopay will not happen, and it is best mainly for when, due to health issues or other unexpected life events, you are unable to pay it. If you can't keep enough funds in the account to handle those payments, you really need to create a budget, and follow it till you can. I also recommend paying the payments before the auto-pay occour, because just relying on the autopay does not create the same sound credit behavior that logging onto the website and paying it does. It is also important to monitor the account for fraudulant activity anyway. Our credit habits are learned behaviors...good or bad...so it is important to establish good behaviors, and repeat them, until they become habitual. This forum is, in my opinion the best source of information available to help someone learn the ins and outs of credit, but do not just take anything at face value from us here, or anywhere. We are just members here and sometimes we can be wrong as well. Welcome to the community, and always know, with proper planning, and self dicipline anybody can have very high credit scores, but it does take time,and I mean years, and requires attention to do so. Very few will ever acheive 800+ scores by accident, so most who have these high scores, have self imposed rules they always follow.
Yeah patiently waiting now.
Question for you guys. So once TU updates I should have roughly a 730 across the board. No late payments. No collections. 4 inquires with Experian and TransUnion and 1 on Equifax. 3 on tu and eq will fall off by October of this year.
I have only the cap1 card with a $500 limit that I have a $0 balance on (just made the $10 payment I owed) and I have the card I’m an AU which is a chase sapphire with a $9500 limit. $87 owed on that.
I want to do this right this time. Should I apply for any credit cards right now? If so which would you guys recommend?
Also should I ask cap1 for a cli?
Chase was opened 5/2014
Cap 1 10/2017
I make roughly $200k a year
Welcome to the myFICO forums!
Ultimately, what a person needs to improve their FICO scores and build credit are three open credit cards (secured or unsecured) in good standing and one open installment loan in good standing such as a car, home, student, personal, share secured, or credit building loan. This combination is what the myFICO score theorists here have determined is what you need for optimal credit building and FICO score. You can have more CCs and more installment loans, however, this will not increase your FICO scores.
Next, (this is only important if you are attempting to purchase a large ticket item like a home or car) is paying in full all of the credit card balances each month, before the posting date, except one. This is called the All Zero Except One (AZEO) method. The one credit card you allow to post a balance needs to be less than 8.9% of the credit limit of the card. So using one card each month to buy lunch, letting it report and then paying in full will maximize FICO scoring. Keeping your utilization of your cards below 28.9% both individually and collectively will prevent you from incurring a FICO scoring penalty.
An installment loan will have its greatest impact on your FICO score when the amount owed is at 8.9% or less of the original amount owed which is usually in the final months before the loan is paid in full. If you don't have an installment loan you can check into Self Lender or a Share Secured Loan at a Credit Union.
Keep in mind, building credit is a marathon, not a sprint. It involves demonstrating to a potential creditor that you can handle credit responsibly. If you have open, active credit accounts that are being paid on time and pay all of your bills on time every time, apply for credit only when you actually need it and use credit cards sparingly maintaining low credit utilization, then you’re going to earn and maintain great credit scores. It would be impossible for you not to do so. This is the fastest way you can build good, solid credit.
An emergency fund is a savings account with money set aside to cover large, unexpected expenses such as an emergency room visit; home-appliance repair or replacement; major car repairs; and the most costly of all, unemployment.
How much should you put aside? The rule of thumb is to have enough cash to cover three to six months of living expenses. If you lose your job you can use this money to pay for necessities while looking for a new one or the cash could supplement your unemployment benefits.
To figure out how much you should have in your emergency fund, add up your monthly bills: rent or mortgage payment; utility payments such as gas, electric, water, garbage; phone, cable and internet; insurance payments such as car, health and home; transportation costs such as car payment, gas, public transit; debt payments such as minimum credit card and all loans except for mortgage; grocery expenses; and other recurring monthly expenses.
Having even $500 saved can get you out of many financial scrapes. Put something away now, and build your fund over time.
How to build up an emergency fund -
- Start a budget and set a monthly savings goal - set up direct deposit to an emergency savings account.
- If there is money left at the end of a pay period, move some into your emergency savings account.
- If there is no money left, cut your expenses. Don't eat out, save leftovers, bring lunch to work, bring coffee from home, spend evenings at home and carpool.
- Get a second job or sell unused belongings to build your emergency savings account.
- Continue to assess your financial situation and adjust accordingly.
Nearly 80 percent of American workers say they’re living paycheck to paycheck, according to a recent survey. Remember that credit is a tool and relying on credit cards for funding emergencies is no different than relying on a gun for when you need cash. Both can be dangerous if not used wisely.