@Apexcrest123 wrote:Hello everyone, good day to all!
some serious questions here.
i opened 6 accounts in the last six months, i realize that i opened too many in too short of time....started with credit builder with chime, an Au with capital one, a cap one platinum card (300), a synchrony care credit, a credit one visa card (400 limit)and a synchrony amazon store card (500 limit)I realize my mistake was opening the accounts too fast. I get that, ive been reading on here a lot recently but have some questions.
I have been paying in full every month for every account except the AU CAP ONE ACCOUNT, which is being paid but not in full.
My credit report is experian 721 equifax 680 and transunion 680. My goal is to get an unsecured card with rewards and a good credit limit and i know it will take time but heres my questions
1. Will i see a rise in my credit score if i make my pay,ents for 6 months, 1 year, etc, or will it stay the same until i reach the 2 year mark (my credit reports give me an "A" for perfect payment history, is this the best i can get until i reach account opening status of 2-3 years. Am i stuck in the garden for a few years or will my score go up little by little every few months?
2. I heard that with fico, i should keep a very small balance on one of my cards but that the AU card doesnt count for that. How true is that?
3. My credit mix has a "d" rating. Will opening up a credit builder loan like self help since its a non mortgage loan?
im hoping i can qualify for an unsecured card in 6 months to a year, or get some credit increases on my cards, im just trying to figure out how i can improve my score since its so young. Thankyou for reading this!
Welcome to the forum.
1. As time goes by, without your making any new credit applications, your scores will go up gradually.
2. Don't "keep" a balance anywhere. Try to pay all your accounts in full each month. It's good to let one account "report" a balance before you pay it off. (Usually, once the statement cuts, the balance is reported).
3. Yes credit mix improves if you add an installment loan when you don't already have any loan. Isn't the Chime credit builder an installment loan? (Even if it isn't, you shouldn't apply for any new credit.)
@Apexcrest123 wrote:
Do you have any idea how long it will take to see a credit score rise assuming i pay in full and report a small balance each month. Im trying to wrap my head around if this is going to take a year, or if its going to take several.
As has been mentioned above, aging your youngest account to 12 months will boost your score - probably by 20 points. Established on-time payment history is an important ingredient in getting top tier cards.
Consider applying for 1 or 2 higher tier cards (such as AMEX blue cash everyday, Discover card) after your youngest account reaches 12 months. You could apply for an SSL at that time, not now. If you get the cards, then consider closing low limit starter cards if they have annual fees.
The new account(s) will drop your score due to age of youngest falling back below 12 months age. That can't be avoided but should not be a deterrent. Your scores can still reach 760 in 2 years and 800 in 3 years.
Pasted below is a graph of my daughter's credit score vs age starting 6 months after getting her 1st card. Second card issued a month later. Only thing that changed was age - no AU cards, no SSL.
The large dip likely related to an "all zeros" penalty and the spikes AZE1 with card reporting being under 9% utilization. Smaller dips likely relate to AZE2 with sub optimal utilization. Those details were not shared. (Her Fico 8 scores are now 800-815, still with only 2 cards).
Aging impact for clean, 2 card file - no loans or AU cards. The jump to 740s coincides with AoYRA reaching 12 months.
@Apexcrest123 wrote:Ok great, i have no problem waiting out the year to see a boost. I was just unsure if i was going to be stuck at this score for years based upon what i read at credit karma and places like that. If i could get a 20 score bosst id be in the 700 to 740 range and thats fantastic. At that point the american express blue card will be on my radar and so will discover. Id love to have a relationship with them. Thankyou for the encouragement.
I see that goal as being realistic
with the amount of open revolving accounts you have as long as you avoid picking up any new accounts or lates or collections along the way I think by 18-24 months you will far exceed your target.
I have five open accounts and they're all around 24 months old and I'm already in the 770s. (Up from 505)
