What does it take to reach the 800 club?

[veracious]

Why do some people reach the 800 Club sooner than others?

If credit gardening is the answer, what portfolio should I establish beforehand ?

The constant process of  new credit applications,manuvering of balances,etc.,etc.,

is a lot of work. Can anyone who has their scores in this range please explain

how this threshold was achieved?    It seems like I'm stuck in the high 700's

and I'm wondering if I should apply for more credit, or just continue to garden.

What is the best route?

Thanks in advance.

[Anonymous]

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@veracious wrote:

Why do some people reach the 800 Club sooner than others?

If credit gardening is the answer, what portfolio should I establish beforehand ?

The constant process of  new credit applications,manuvering of balances,etc.,etc.,

is a lot of work. Can anyone who has their scores in this range please explain

how this threshold was achieved?    It seems like I'm stuck in the high 700's

and I'm wondering if I should apply for more credit, or just continue to garden.

What is the best route?

Thanks in advance.

---

I personally do not think it is about applying for more credit. It is finding the right mix of how to use your cards and how to let them report.

For example the rule here is to let only one card report 9% or less, but in my experiences it is best for me to let only one card report 3% or less. Every one has a different credit profile so YMMV. What works for me may not be the same of what works for you. You have to try different things from month to month to see what is best for you.

BTW my lowest score as of Friday Feb. 11th, 2011 was 798 with Experian (lender pulled through friend), while my highest was 812 with Equifax and 809 with TransUnion. My Experian report has 2 INQ's on it while the others are INQ free.

I also only have 5 CC's and 1 installment loan reporting. 

[veracious]

Thanks, JM-AM

So obviously, you have a high AAoA.

 I could never juggle usage on 5 credit cards, simply because I don't spend / earn enough.

For the reasons stated above I suppose  simple gardening (would)? do the trick. Or am I

missing something?

[Anonymous]

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@veracious wrote:

Thanks, JM-AM

So obviously, you have a high AAoA.

 I could never juggle usage on 5 credit cards, simply because I don't spend / earn enough.

For the reasons stated above I suppose  simple gardening (would)? do the trick. Or am I

missing something?

---

No my AAoA isn't very old. It is sitting at just over 5 years now. 

To be honest my scores hit the 800 mark and I only had 3 CC's at the time. You do not have to use your cards in high amounts. Small purchases to keep them active and PIF before the statements hit. Just leave a very minimal balance on one card to report on the statement and then PIF after statement hits. I personally only leave between $8-$50 to report on one CC monthly. The rest I PIF before the statement hits.

Yes gardening will work just show small bits of activity.

You will get there. Patience is a big thing when comes to credit scores.

[veracious]

Thanks,  JM-AM

Your answer sounds like the right path.  In my case, I have only 1 CC and an auto loan that's

about to be paid off. My AAoA is the same as yours, but my established history is only 12 years.

Should I try to get another card before or after I pay off my auto loan?

Thanks

[Anonymous]

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@veracious wrote:

Thanks,  JM-AM

Your answer sounds like the right path.  In my case, I have only 1 CC and an auto loan that's

about to be paid off. My AAoA is the same as yours, but my established history is only 12 years.

Should I try to get another card before or after I pay off my auto loan?

Thanks

---

For best scoring opportunities I believe you need a mix of at least 3 accounts reporting. This may be why your scores have been stagnant to not reach the 800 club IMO.

Once your Auto Loan is paid off then it will ding you for not having an installment loan so possibly even lose points in your score. 

IMO I would apply now for additional credit, possibly even apply for 2 additional cards (but that is a choice you have to make). It will cause your AAoA to drop and the INQ will also ding your scores, but these will be temporary until the cards are established about 6 months - 1 year and your scores should rebound and possibly be higher then they are presently. Obviously YMMV depending on how you use the new credit and pay it off.

[MarineVietVet]

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@Anonymous wrote:

For best scoring opportunities I believe you need a mix of at least 3 accounts reporting. This may be why your scores have been stagnant to not reach the 800 club IMO.

Once your Auto Loan is paid off then it will ding you for not having an installment loan so possibly even lose points in your score. 

IMO I would apply now for additional credit, possibly even apply for 2 additional cards (but that is a choice you have to make). It will cause your AAoA to drop and the INQ will also ding your scores, but these will be temporary until the cards are established about 6 months - 1 year and your scores should rebound and possibly be higher then they are presently. Obviously YMMV depending on how you use the new credit and pay it off.

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Perhaps a tiny bit but it's certainly not much because closed accounts are still included in the mix. To clarify:

While both closed and open accounts are included in the mix, this doesn't mean that a closed auto loan or mortgage will always be as beneficial tp your score as an open one.  So, for example, you're typically going to be better off having some closed auto loan or mortgage than none. But having at least one open is better.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[veracious]

Again, thanks JM-AM.

 I guess I'll have to build my credit history with age and gardening.

Personally;   I don't see any advantage to getting new CC's I'm not likely to use.

I wish I had known more about credit when I was younger, my first  installment account

was for a 1967 auto,   Not sure if that would have  counted;  plus I've closed many ,

many, accounts  and a mortgage  that aren't listed on my reports. So, since I'm not looking

for new credit,     gardening is my only choice.

[Anonymous]

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@veracious wrote:

Again, thanks JM-AM.

 I guess I'll have to build my credit history with age and gardening.

Personally;   I don't see any advantage to getting new CC's I'm not likely to use.

I wish I had known more about credit when I was younger, my first  installment account

was for a 1967 auto,   Not sure if that would have  counted;  plus I've closed many ,

many, accounts  and a mortgage  that aren't listed on my reports. So, since I'm not looking

for new credit,     gardening is my only choice.

---

There is nothing wrong with gardening. With your scores being in the high 700's you aren't losing anything really compared to the 800 club. You are probably still entitled to the best rates possible. The only thing missing is you cant say you are in the 800 club "yet" which really IMO isn't a big deal. 

Keep up the great work you have been doing.

[MarineVietVet]

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@veracious wrote:

Again, thanks JM-AM.

 I guess I'll have to build my credit history with age and gardening.

Personally;   I don't see any advantage to getting new CC's I'm not likely to use.

I wish I had known more about credit when I was younger, my first  installment account

was for a 1967 auto,   Not sure if that would have  counted;  plus I've closed many ,

many, accounts  and a mortgage  that aren't listed on my reports. So, since I'm not looking

for new credit,     gardening is my only choice.

---

Don't beat yourself up too bad over this.  I dare say we've all done the same thing. I know I have closed many accounts not knowing any better.

But remember that installment loans are automatically closed when they are paid off and then generally report for another 10 years after closing. In some very rare cases a closed account will stay on your reports past that 10 years. So that 1967 car loan would probably have been gone long ago no matter what you did.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".