Nfcu secured

[aesl1982]

I’m rebuilding currently, and only credit cards in my report are two AU capital one accounts my wife added me to. I also have a couple installment loans as well that are in good standing. Went to nfcu today and was approved for a secured card started with $200. So it’s a start. They also said it takes a year for graduation now. Question I have is I know to maximize score I need three cards/revolvers. Does this make three now ( two AU and one secured)? Or do I need to open another secured

[K-in-Boston]

Congratulations on your approval.  For FICO scoring purposes, as long as the other AU cards are showing on your reports that counts for 3.  Keep in mind that many lenders will use internal scores in addition to (and at times instead of) FICO scores, and many of those will discard any AU accounts.  But for being able to achieve (for example) the scoring bonus for fewer than 50% of cards reporting a balance you are golden.

[Anonymous]

^^^...as long as only one out of the three cards reports a balance. Since you’re an AU in two of them, you really can’t control the balances on them, so watch the balances they report. If they’re reporting any significant usage, you’d be better off getting your own cards and removing yourself as AU on these.

[aesl1982]

I can control them lol. They are my wife’s cards but I pay the bills on them lol

[aesl1982]

So for best end results like graduation and what not, should I just use this card like my debit card for weekly expenses and just pay it off every Friday?

[AllZero]

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@aesl1982 wrote:
So for best end results like graduation and what not, should I just use this card like my debit card for weekly expenses and just pay it off every Friday?

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Yes, treat it like a debit card. Use, pay, repeat. Pay it down as much as necessary to ensure you have the available credit line for future purchases. For optimal FICO scoring, keep reported statement utilization 8.9% or under.

[Anonymous]

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@K-in-Boston wrote:

But for being able to achieve (for example) the scoring bonus for fewer than 50% of cards reporting a balance you are golden.

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On thin and/or young files there is a significant bonus for having 1 of 2 cards (exactly 50%) report a balance as opposed to both.

It causes a shift down in the list of reasons for 'too many accounts with balances' on many scores.

22 of 28 FICO scores go up at AZEO with 2 cards. Minimum gain, +2pts. Maximum gain, +27pts.

There is also a 5% aggregate utilization threshold on my young/thin scorecard. It's good for an extra 3 points on EX/EQ 8 scores at least.

Of course, there is no need to keep utilization between 0 and 4% all the time, but the extra points are there for people new to credit.