We'll need a lot more information to even begin to try to help you. Current FICO scores, open/closed revolving accounts along with their limits and current balances, APRs, minimum payments, age of accounts, current income available to use towards debts, and any open/closed installment loans as well along with their beginning and current balances.
@Countrygirl1991 wrote:I'd like to have a better credit score to get a loan
👋 Welcome to the forum!
We can discuss the details of your circumstances when you are ready share.
@Countrygirl1991 wrote:I'd like to have a better credit score to get a loan
Be sure to have a clean credit file as much as you can! Then have about 3 credit cards that updates every month with VERY low balance. The longer the history the better the score...
That is the most washed down version of getting your score higher!
Good luck.
@Countrygirl1991 wrote:I'd like to have a better credit score to get a loan
As others have stated, we will need a lot more information (as much as you are willing to share, that is) to better help you.
But, I will give some VERY VERY VERY general suggestions:
1. Go to https://www.anualcreditreport.com and get your three credit reports (one from Experian, one from Equifax, one from Transunion).
2. Due to COVID-19, we have been allowed to get our credit reports every seven days. Yes! That is correct. Weekly. This is valid through December, 2022.
3. Go over each of the three reports and make sure that you see the same accounts (good, bad, otherwise). The one potential difference there might be closed accounts, if any, that might be on one or two but not the others. That is because closed accounts stay on your credit report for some seven to 10 years. And each of the three Credit Reporting Agengies (Experian, Equifax, Transunion) might or might not do something called an Early Exclusion.
4. If there are any negative items, such as a collection or a charge-off or a repossession or whatnot, please ensure that it is accurate.
5. I would URGE you to be very slow to dispute anything. This often leads to far bigger issues. If you have anything that you think might be inaccurate, then please ask here in this forum.
6. Work on having three credit cards. Why three? For the option of implementing AZEO (will explain that later....not sooooo important right now). And, because three revolvers (a "geek-speak" term for Credit Cards) help to build what is called a thick file (vs. a thin file....which is where you have only one or two credit cards).
7. Do your best to keep the reported balance as low as possible on all of your credit cards. BUT.....please do not have all of your credit cards report a $0 balance. This will result in a loss of points.
8. What does "reported balance" and "have your cards report a balance" mean? Credit Cards have what is called a Billing Statement Closing Date. Whatever the balance is on that date is what the Financial Institution (aka, credit card company) will report to the three CRAs. This "Billing Statement Closing Date" will (very likely) be different for each credit card. It depends on when you get each.
9. Keep the reported balance under 10% of the credit limit on each card. So, if you have a credit card that has a credit limit of $1,000 then make sure that the reported balance is $100 or less. Do this as often as possible.
10. Make sure that you make all of the credit card payments on or before the Due Date (which is **NOT** the same thing as the Billing Statement Closing Date). The Due Date is typically some 21 to 25 days after the Billing Statement Closing Date.
11. Keep in mind that 65% of your FICO Score is Payment History (35%) and Utilization (30%). So, really really important.
This is - generally speaking - a good foundation. You may need to come up with your own numbers, but the above is a pretty solid beginning!
