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Hi, This is my first post; thank you everyone in advance for any help, and apologies if anything here seems like a silly question. I recently paid off all my credit cards and I want to get my score as high as possible - I would really appreciate any help or guidance on how I can further improve my score; I'm hoping to get it past 750 eventually!
Stats
Late 20's (no idea if that is a factor), salary of 85k, Pay Rent @ 2k per month, lived in the USA for four years in July (now a greencard holder - maybe my very low CL's were due to me not being a permanent resident when I first joined).
February
February Scores - Balance $1750 total - 100 % utilization
March - Paid off All of the Above to Zero Balance
March Scores - Zero Balance 3% utilization
Background
For the past three years, I've made the mistake of my cards being maxed out, and only paying the minimum each month; I won't be doing that any more! It took me some time to understand the American Credit system - I'm an immigrant but America is now my home! That's also the reason I started with such low limits.
I requested my full Transunion report and realised they had been negatively reporting me for having my balance so close to the limit (I was doing the same with Chase though it didn't show up as a negative account in there - maybe because there has never been any late payments with Chase?). Also, a "serious deliquency" shows on my Fico and I think that is just Capital One reporting me negatively - I've checked the report and there is nothing showing as outstanding, unpaid or disputed.
NB - I really regret the late payments of such small amounts and they were accidental; I've written goodwill letters to Capital One and CreditOne but don't have high hopes of getting these reversed....
Current Situation
No balances on any of the cards, I'm using my Freedom up to about $1500 this month and paying it in full, which I plan to do ongoing.
Advice?
What should I do next to improve my score?
Thanks so much everyone!
Welcome to the forum.
do you have a "installment account", such as a car loan, personal loan, or mortgage? having one of these will give you a few points.
Other than that the biggest thing is time. If you do not have one, get an installment loan, and then wait until your inquiries fall off. You should see score increases over time as your accounts age.
If you need a specific score by a specific time, there might be a few more proactive things you can do. But I'll leave that for others.
Good luck.
Thanks Kree - I don't have an installment loan at this stage; though one of the reasons for wanting to get my score into the 750+ range would be to get a better rate on a mortgage.
With your income you should be able to get a share secured loan without causing any sort of financial hardship. This will meet your installment needs with minimal interest due. You can then pay it down to under 8.9% when you are ready to apply for a mortgage maximizing your score.
@Anonymouswrote:Thanks Kree - I don't have an installment loan at this stage; though one of the reasons for wanting to get my score into the 750+ range would be to get a better rate on a mortgage.
Hi timefoechange2018,
A Discover IT card is something I would suggest to you as another good cc & allowing your current cards to age and be used responsibly, no carrying balances and keeping Uti low, that should help raise your score over time. I am not of the mind set to get loans just for credit score increases, that is my opinion but all profiles are different and if you have a thin and young profile, it may be worth it for you to search that option out. I have a long and thick credit history so I would not add that for myself.
FYI, my LO said that the interest rate that would apply to me at my current scores (4.75%) is actually a pretty good rate. Increasing my score above XXX would change that by .25%- .5%, which is negligible to me. I'm not sure I would be too concerned about your score bracket come mortgage time, and would be more focused on down payment, emergency fund and purchasing within (or a bit less) than your means.
Time will help things along. All the best to you.