Stagnant Score--- HELP needed

[Anonymous]

3 years ago, I has a lot of debt (student loan, 1 collection) and I paid it all off in 2013. After that, I was able to get a secured card from my credit union and after a year its now 4000 unsecured. However, my dilemma is my scores are not moving at all. Utilization is at maximum of 11% and my wife added me as authorized user on some of her cards. Should I take a personal loan or car loan just to stabilize my score? I am getting frustrated that from 670 (I was 480 3 years ago), it goes up and down but nothing too drastic.

[taxi818]

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@Anonymous wrote:

3 years ago, I has a lot of debt (student loan, 1 collection) and I paid it all off in 2013. After that, I was able to get a secured card from my credit union and after a year its now 4000 unsecured. However, my dilemma is my scores are not moving at all. Utilization is at maximum of 11% and my wife added me as authorized user on some of her cards. Should I take a personal loan or car loan just to stabilize my score? I am getting frustrated that from 670 (I was 480 3 years ago), it goes up and down but nothing too drastic.

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No such thing as stagnant score. you need to look at the things that give you the most points. if you want it to go up month after month as you make your payments. Utilization is the only way. instead of thinking at 11 percent. the only way to max out points in that catagorie is. 1 credit card with a balance. i mean 1 only. and the total should be between 1-9 percent. the other cards zero balance. and your score will go up. its just that simple. all payments on time. and your balances going down monthly. if the total balances. and this is example only.

is 1000. dollars. then next month. total. 900. following month. 800. and keep it down the ladder. and you will score you scores rising very easily. remember. the fico method.

payments. 35 percent of score.

Utilization. 30 percent of score.

new credit 10 percent.

length of credit history. 15 percent.

types of credit used. 10 percent.

biggest is payment and utilization. 65 percent. i know they say under 30. percent. but under 10 percent in util for absolute best results.

edit for the record. my scores. were at 580 in december 2013. so mostly a 100 point increase in a little over a year. doing the exact method i told you. i still have a negative on report. a paid 5 year old collect. that i just paid last june. so i lost 60 points across board after i paid that. so sad. i did not know about pfd at the time. but now they have no reason to remove since they got paid.

[Anonymous]

Thank you so much. Im a newbie here soryy!

[Anonymous]

Do you have only this single credit card? If so, you need to add a couple more to the mix. 

[Anonymous]

I have 4 other cards as authorized user and its on my report as well. Should i apply for more?

[Anonymous]

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@Anonymous wrote:

I have 4 other cards as authorized user and its on my report as well. Should i apply for more?

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Not sure. The general recommendation is to have three revolvers, but I don't know if those need to be individual or if AU cards would suffice. Somebody who knows will likely be along to clarify.

[NRB525]

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@Anonymous wrote:

I have 4 other cards as authorized user and its on my report as well. Should i apply for more?

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Are you using the cards you do have? What are each of the credit limits you have available and how much utilization do you have on each card? What is the statement balance on each card the last time each statement printed?

You probably should app for another card, best for two. You may be able to get a no AF AMEX like the Blue Cash or Every Day. The advantage to those AMEX cards is, no AF first off, and even if you get a $1k starter limit, you can use the card to show AMEX good payment history, and apply for a 3X CLI after 61 days, then again 6 months later, so in 8 or 9 months you would have a $9k CL. One of the ways to boost your score is to get a few more cards with CL to show you can handle credit, and at the same time keep the overall utilization at a reasonable level.

The AU cards, what are the payment histories on those? Are those positive, or are there any derogatories on any of the AU cards? If any derogatories on even one of those AU cards, get yourself removed from that card, it is not helping you. Only pristine, good credit history cards should be your AU cards.

[jamie123]

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@Anonymous wrote:

I have 4 other cards as authorized user and its on my report as well. Should i apply for more?

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Yes, you need to get more credit cards in your name only. When it comes right down to it for large loans like auto loans or mortgages many lenders will discount all those AU accounts. Both you and your wife should have your own separate credit except for auto loans and mortgages.

You eventually want to end up with 5 to 8 quality credit cards that you can keep open for life. Credit cards are the foundation of a rock solid credit score. It is easy to keep a credit card open for 20 years but it is difficult to have any other credit with that kind of age. Not many people live in the same house for 20 years to even have a 20 year old mortgage.

You should get 1 or 2 credit cards every year until you have 5 to 8 cards. I would suggest only getting credit cards from the so called prime banks which are:

AMEX

Bank of America

Chase

CitiBank

Discover

Wells Fargo

You would be a good candidate to apply for a Chase Freedom and BoA Rewards cards right now. Wait until these cards are 1 year old and get another 2 cards. I would then suggest an AMEX card and a Discover IT card.

Once you have enough of your own cards that you feel comfortable I would suggest that you close your AU cards.

[NRB525]

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@jamie123 wrote:

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@Anonymous wrote:

I have 4 other cards as authorized user and its on my report as well. Should i apply for more?

---

Yes, you need to get more credit cards in your name only. When it comes right down to it for large loans like auto loans or mortgages many lenders will discount all those AU accounts. Both you and your wife should have your own separate credit except for auto loans and mortgages.

You eventually want to end up with 5 to 8 quality credit cards that you can keep open for life. Credit cards are the foundation of a rock solid credit score. It is easy to keep a credit card open for 20 years but it is difficult to have any other credit with that kind of age. Not many people live in the same house for 20 years to even have a 20 year old mortgage.

You should get 1 or 2 credit cards every year until you have 5 to 8 cards. I would suggest only getting credit cards from the so called prime banks which are:

AMEX

Bank of America

Chase

CitiBank

Discover

Wells Fargo

You would be a good candidate to apply for a Chase Freedom and BoA Rewards cards right now. Wait until these cards are 1 year old and get another 2 cards. I would then suggest an AMEX card and a Discover IT card.

Once you have enough of your own cards that you feel comfortable I would suggest that you close your AU cards.

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Mostly correct, a bit incomplete.

While all the banks listed do indeed offer quality credit cards, there are other legitimate banks to look into as well:

-Capital One (even though you have to app for higher quality cards, they do have good card terms structures)

-Barclays (several legitimate high quality cards)

-Your local Credit Union - Nothing like a local, low cost lending source to get reduced fee banking as well

-Federal Credit Unions like PenFed, Navy Federal, and many many others. You have to check membership requirements, but PenFed, for example, has affiliate memberships that will get you in the door.

-US Bank if they are in your service area.

[jamie123]

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@NRB525 wrote:

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@jamie123 wrote:

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@Anonymous wrote:

I have 4 other cards as authorized user and its on my report as well. Should i apply for more?

---

Yes, you need to get more credit cards in your name only. When it comes right down to it for large loans like auto loans or mortgages many lenders will discount all those AU accounts. Both you and your wife should have your own separate credit except for auto loans and mortgages.

You eventually want to end up with 5 to 8 quality credit cards that you can keep open for life. Credit cards are the foundation of a rock solid credit score. It is easy to keep a credit card open for 20 years but it is difficult to have any other credit with that kind of age. Not many people live in the same house for 20 years to even have a 20 year old mortgage.

You should get 1 or 2 credit cards every year until you have 5 to 8 cards. I would suggest only getting credit cards from the so called prime banks which are:

AMEX

Bank of America

Chase

CitiBank

Discover

Wells Fargo

You would be a good candidate to apply for a Chase Freedom and BoA Rewards cards right now. Wait until these cards are 1 year old and get another 2 cards. I would then suggest an AMEX card and a Discover IT card.

Once you have enough of your own cards that you feel comfortable I would suggest that you close your AU cards.

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Mostly correct, a bit incomplete.

While all the banks listed do indeed offer quality credit cards, there are other legitimate banks to look into as well:

-Capital One (even though you have to app for higher quality cards, they do have good card terms structures)

-Barclays (several legitimate high quality cards)

-Your local Credit Union - Nothing like a local, low cost lending source to get reduced fee banking as well

-Federal Credit Unions like PenFed, Navy Federal, and many many others. You have to check membership requirements, but PenFed, for example, has affiliate memberships that will get you in the door.

-US Bank if they are in your service area.

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I agree with you. That's why I said "so called prime banks." He already has a CU card. He needs cards with national exposure now.