Building my credit

Anonymous · ‎10-24-2017

This might be kind of long so bare with me. I'm new to this just want to know a couple things. Well I don't have much of a credit history. I have a student loan that's 9 years of age that's $4265 just receive a retail card last week that's $750 and waiting on Disover $2000. Now my Ex 752 and not to sure about TU maybe 704 and EQ 704. First wanted to know will my student loan decrease my age of credit and if so how much. And also I have no late payments no collection maybe 3 inquires with me getting the retail card and discover..Also will my credit score decrease by me getting these cards and if so how do I keep my credit utilization down 30%. Thanks for y'all time just a newbie trying to get might life on right track

Anonymous · ‎10-24-2017

Welcome to the forums! My comments in blue below.

@Anonymous wrote:
This might be kind of long so bare with me. I'm new to this just want to know a couple things. Well I don't have much of a credit history. I have a student loan that's 9 years of age that's $4265

Good for you. Before you added the two cards (mentioned below) this was your only account, right? A credit history that is nine years old means you are way ahead of many other people.

just receive a retail card last week that's $750 and waiting on Disover $2000.

Good. Adding two credit credit cards was a smart move. In a few months, once you have learned how to manage them, I would add 1-2 more.

Now my Ex 752 and not to sure about TU maybe 704 and EQ 704.

You should join Credit Karma. You can ignore its scores but it will be a big help in helping you see what is on your reports. It will give you you updated copies of your TU and EQ reports as often as once a week.

First wanted to know will my student loan decrease my age of credit and if so how much.

Your student loan is not not a new account. It is an account you have had for nine years. So it is not the student loan that is decreasing your average age of accounts (AAoA). It is the two new accounts that are doing that. The student loan was 9 years old. The two new accounts are 0 years old. So your average age of accounts is now....

9 + 0 + 0
-------------
3

= 3. Did you see how I got that? And why it is an average age? Another factor that is also important is Age of OLdest Account. Adding the two new cards didn't affect that, since your student loan was your oldest account before and it is your oldest account now.

And also I have no late payments no collection maybe 3 inquires with me getting the retail card and discover..

Sign up for the $1 trial offer at Credit Check Total. It will give you a 3-bureau report. Look carefully at what CCT says to make sure it agrees with you that you have no lates or any other derogs.

Also will my credit score decrease by me getting these cards

It will probably go up, since you had no credit cards of any kind.

and if so how do I keep my credit utilization down 30%.

Start by making a small purchase on each card. Allow it to appear on the statement, and then pay the statement in full. (Since one of your cards is a retail card, only use that (after the initial purchase) if you really want the thing you are buying.)

It is very easy to keep a very low utilization if you keep your balance very low. I.e. if you spend very little on your cards. At first that's what you should do. One small pucrhase each month. Use debit cards for everything else. When you start getting comfortable with how to use them, you can spend more while still keeping utilization very low (there are tricks for that). But at first just start by making one small purchase. You actually want your utilization to be < 8.9% -- not less than 30%.

Thanks for y'all time just a newbie trying to get might life on right track

Anonymous · ‎10-24-2017

Thank You I appreciate the reply back. I will most definitely do the things you said.