Great credit history. No loans. No debt. Yet, a crappy credit score. Help!

[FicoMike0]

Important thing, before you take any action, post your plans on here. You have our attention anyway, and we've probably left something out.

New topic  SSL  Sure, you never expect to have another loan in your life. I didn't either. But, I decided I wanted my scores above 800. Why?  No good reason, I just do. The scoring model gives bonus points for having an installment loan, open, balance remaining less than 9% original loan. Normally, you only see that in the last few months of the loan. The ssl boosted my scores 30 - 40 points. I now have a five year loan, $150 balance, no payment due for 50+ months. Total interest < $10. If you want to play this game, search ssl on here, come back and ask, we'll explain.

I sound like a broken record oops don't have those anymore. Anyway, you need your fico8 scores. Credit.com worked for me. I plan to rinse and repeat when I want a consistent set again.

[kasniak]

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@kasniak wrote:

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@FicoMike0 wrote:

so much to cover. Here's a link that tells you which bank pulls what.

https://ficoforums.myfico.com/t5/General-Credit-Topics/The-quot-Which-Banks-Pull-Which-Report-For-Ap...

You're right, with one account you are azeo. You want to control the balance that posts to be less than 9%. You do that by finding out when it posts and paying it down a day or two before. Of course pic before the due date. Special note, never let it post zero ( I know this sounds stupid) or you'll lose about 15 points.

Thanks FICOMike!

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It's not less than 9%.  I didn't know about "that rule".  I just thought as long as I pay it in full when the paper bill arrives in the mail I was good.  Should I ask to raise my credit limit?  I'm not sure if that would result in a hard or soft pull though.  But, since I only have one card, I've been charging everything (including  a couple bills) all on that one card.  Hence, many months are higher than 9%.  But, everything is consistently paid in full and on time.

[FicoMike0]

Yes, ask for a credit limit increase. Also, ask if it's a soft pull, usually it is. Since you likely have none right now it's probably worth a hp, but in principle, I avoid them when possible. You can freeze your reports for free, that allows sps, but not hps. I keep mine frozen, I just did a 2 day thaw on only tu for the us b visa. We can explain all that later, I'm sure you've got enough to chew for now.

[FicoMike0]

Another thing. The higher your credit limit, the less you have to worry about utilization. Some on here see their cl as a goal, like my wanting 800 scores. I'll admit to a little cl envy. My total cl in Jan 23 was $500. Now it's $25000. I don't have to manage my utilization anymore. Still, tomorrow, I plan to ask for an increase of $18000. Why?  It's a challenge, I guess. Now, $50000 looks attractive.

[TheKid2]

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@kasniak wrote:

Hi TheKid2:  If I open another credit card though, won't my FICO score be dinged and go even lower??  But, if I don't open another card, then I will only have one card.  

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Hi @kasniak credit is a long game, think marathon not sprint. Unless you're looking to leverage credit any time soon, where your score will truly matter, there's no need to rush. Even if you wanted to rush, all the scoring models want you to have aged accounts to maximize scores, so it's going to take time.

As you see, it's easy to get overwhelmed with the acronyms. You don't need AUs and you don't need a SSL, many folks here have reported 800+ scores without an open installment loan. Don't get sucked into gimmics like Experian "Boost", it's not used for lending decisions. Don't worry about AZEO now, it's too early in your process.

Ultimately, you're right that hard pulls (inquiries) and new accounts are considered negative from a scoring perspective.  But, you will need to take the short term hit for long term gain. Most of us really enjoy getting new accounts (I got approved!), you may find it's fun. It's like someone telling you that they like you. You don't have to run these new accounts up and carry balances. Just use them and pay them. I'm not saying be frivilous, just expand your credit profile. Do more reading!

[kasniak]

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@FicoMike0 wrote:

Yes, ask for a credit limit increase. Also, ask if it's a soft pull, usually it is. Since you likely have none right now it's probably worth a hp, but in principle, I avoid them when possible. You can freeze your reports for free, that allows sps, but not hps. I keep mine frozen, I just did a 2 day thaw on only tu for the us b visa. We can explain all that later, I'm sure you've got enough to chew for now.

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I called this morning.  They said it would be a hard pull.  I said, "really?".  As a 35 year card holder and a person who pays in full every month?  The lady said, "yes".  Mind you, it's just one customer service rep, and she had to put me on hold as she herself didn't know, but had to go find out.  Also, they are not in the United States.

I thought about calling again and getting a different rep to see what they would say.

[kasniak]

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@FicoMike0 wrote:

Yes, ask for a credit limit increase. Also, ask if it's a soft pull, usually it is. Since you likely have none right now it's probably worth a hp, but in principle, I avoid them when possible. You can freeze your reports for free, that allows sps, but not hps. I keep mine frozen, I just did a 2 day thaw on only tu for the us b visa. We can explain all that later, I'm sure you've got enough to chew for now.

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Also, my husband is thinking about and would like to do a freeze as well, but I don't want to freeze a 660 score.  And, I probably will open anohter credit card to get out of this hole.  So, I'm not sure if a freeze would freeze my 660 and prevent me from opening another card.

[kasniak]

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@FicoMike0 wrote:

Another thing. The higher your credit limit, the less you have to worry about utilization. Some on here see their cl as a goal, like my wanting 800 scores. I'll admit to a little cl envy. My total cl in Jan 23 was $500. Now it's $25000. I don't have to manage my utilization anymore. Still, tomorrow, I plan to ask for an increase of $18000. Why?  It's a challenge, I guess. Now, $50000 looks attractive.

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If I increase it and take on the hard pull, what should I increase the limit to?  And, is it worth the hard pull I was told by the bank it would do?  (it's not a soft pull they said)

[kasniak]

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@TheKid2 wrote:

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@kasniak wrote:

Hi TheKid2:  If I open another credit card though, won't my FICO score be dinged and go even lower??  But, if I don't open another card, then I will only have one card.  

---

Hi @kasniak credit is a long game, think marathon not sprint. Unless you're looking to leverage credit any time soon, where your score will truly matter, there's no need to rush. Even if you wanted to rush, all the scoring models want you to have aged accounts to maximize scores, so it's going to take time.

As you see, it's easy to get overwhelmed with the acronyms. You don't need AUs and you don't need a SSL, many folks here have reported 800+ scores without an open installment loan. Don't get sucked into gimmics like Experian "Boost", it's not used for lending decisions. Don't worry about AZEO now, it's too early in your process.

Ultimately, you're right that hard pulls (inquiries) and new accounts are considered negative from a scoring perspective.  But, you will need to take the short term hit for long term gain. Most of us really enjoy getting new accounts (I got approved!), you may find it's fun. It's like someone telling you that they like you. You don't have to run these new accounts up and carry balances. Just use them and pay them. I'm not saying be frivilous, just expand your credit profile. Do more reading!

Thanks.  I will probably open one new credit card.  Then, I will have two.  I hope that will be good enough.

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[kasniak]

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@TheKid2 wrote:

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@kasniak wrote:

Hi TheKid2:  If I open another credit card though, won't my FICO score be dinged and go even lower??  But, if I don't open another card, then I will only have one card.  

---

Hi @kasniak credit is a long game, think marathon not sprint. Unless you're looking to leverage credit any time soon, where your score will truly matter, there's no need to rush. Even if you wanted to rush, all the scoring models want you to have aged accounts to maximize scores, so it's going to take time.

As you see, it's easy to get overwhelmed with the acronyms. You don't need AUs and you don't need a SSL, many folks here have reported 800+ scores without an open installment loan. Don't get sucked into gimmics like Experian "Boost", it's not used for lending decisions. Don't worry about AZEO now, it's too early in your process.

Ultimately, you're right that hard pulls (inquiries) and new accounts are considered negative from a scoring perspective.  But, you will need to take the short term hit for long term gain. Most of us really enjoy getting new accounts (I got approved!), you may find it's fun. It's like someone telling you that they like you. You don't have to run these new accounts up and carry balances. Just use them and pay them. I'm not saying be frivilous, just expand your credit profile. Do more reading!

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And, how "short term" is the hit for opening a new credit card?