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Message
Credit Score Help
Posted on 2/26/14 at 9:03 pm
Posted on 2/26/14 at 9:03 pm
Alright folks, I know this has been asked before but how in the world do I increase my credit score?!?! This is starting to drive me insane. I'll provide some rough background:
-I make a good bit of money
-I've never defaulted on a single payment
-I don't have any loans
-I've never bought anything without cash (including cars)
My credit rating hovers at 690. I've had my Amex card for one year and will shortly be requesting the biggest credit limit increase they will give me (currently stuck at $2K). I'm trying to get better about using my credit card, but I've always heard the rule about not going over 40% of your limit. This is annoying as frick with the $2K cap so I don't use it as much as I should, but I still put ~$500 a month on it.
I have it set to automatically pay the balance at the end of every month. I'm hoping to get AMEX to bump my credit limit to $10K so I can start putting everything on it each month, but outside of this what else can I do to help my score? At the moment my credit rating positives and negatives are as follows:
+ Your payment history is excellent - You have an excellent payment history on your accounts, which helps your credit score. Paying your bills on time will continue to benefit your credit score
+ You have a good mix of credit accounts - You have a variety of credit accounts, such as installment loans and credit cards, which helps your credit score. It is beneficial to show that you are a responsible borrower across various types of credit accounts
+ You have not applied for credit recently - You don't have recent credit inquiries, which helps your credit score. In general, your score benefits when you are not actively seeking credit
- You've opened credit cards recently - Your credit report shows that you have opened one or more credit cards recently. People who have opened credit cards within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened credit cards. Be sure to apply for and open new credit cards only as needed. It was a year ago, when will this drop off?
- You have too few installment accounts - Your credit report shows that you have a low number of installment accounts in relation to your overall number of accounts. It is a good practice to keep a proportionate number of installment accounts compared to your total credit accounts. They just said I had a good mix in the fvcking positives! What are some good installment accounts yal can recommend to help my score?
- There is insufficient information about mortgage accounts - You either have no mortgage accounts, or there is insufficient information about mortgage accounts, in your credit file. People without mortgage accounts or those who do not have sufficient information about mortgage accounts are considered riskier by lenders. It is important to have various types of credit that are held in good standing in your credit file, including mortgage accounts. People without mortgages are considered financially riskier people? Is this the dumbest thing ever printed? I want to increase my credit score so I can get a low mortgage rate yet you dock my credit score because I DON'T have a mortgage?!?
Does it bother anyone else that there's not more visibility with this system? They have analysts for almost every single financial decision you could possibly make who can be pretty straight-forward and tell you step by step what you need to do to achieve whatever goal you have. Why the f can't someone do this with a credit score? Obviously there's some formula these companies are using to control our lives, why doesn't someone have access to them? Why can't we go to them for advice?
Sorry for the narrative, but this is doing my head in. I save alot of money, I contribute to my 401K and my Roth IRA, I don't like extravagently. I feel like I'm doing most things right financially, but the only thing I can't fix is this damn credit score!
-I make a good bit of money
-I've never defaulted on a single payment
-I don't have any loans
-I've never bought anything without cash (including cars)
My credit rating hovers at 690. I've had my Amex card for one year and will shortly be requesting the biggest credit limit increase they will give me (currently stuck at $2K). I'm trying to get better about using my credit card, but I've always heard the rule about not going over 40% of your limit. This is annoying as frick with the $2K cap so I don't use it as much as I should, but I still put ~$500 a month on it.
I have it set to automatically pay the balance at the end of every month. I'm hoping to get AMEX to bump my credit limit to $10K so I can start putting everything on it each month, but outside of this what else can I do to help my score? At the moment my credit rating positives and negatives are as follows:
+ Your payment history is excellent - You have an excellent payment history on your accounts, which helps your credit score. Paying your bills on time will continue to benefit your credit score
+ You have a good mix of credit accounts - You have a variety of credit accounts, such as installment loans and credit cards, which helps your credit score. It is beneficial to show that you are a responsible borrower across various types of credit accounts
+ You have not applied for credit recently - You don't have recent credit inquiries, which helps your credit score. In general, your score benefits when you are not actively seeking credit
- You've opened credit cards recently - Your credit report shows that you have opened one or more credit cards recently. People who have opened credit cards within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened credit cards. Be sure to apply for and open new credit cards only as needed. It was a year ago, when will this drop off?
- You have too few installment accounts - Your credit report shows that you have a low number of installment accounts in relation to your overall number of accounts. It is a good practice to keep a proportionate number of installment accounts compared to your total credit accounts. They just said I had a good mix in the fvcking positives! What are some good installment accounts yal can recommend to help my score?
- There is insufficient information about mortgage accounts - You either have no mortgage accounts, or there is insufficient information about mortgage accounts, in your credit file. People without mortgage accounts or those who do not have sufficient information about mortgage accounts are considered riskier by lenders. It is important to have various types of credit that are held in good standing in your credit file, including mortgage accounts. People without mortgages are considered financially riskier people? Is this the dumbest thing ever printed? I want to increase my credit score so I can get a low mortgage rate yet you dock my credit score because I DON'T have a mortgage?!?
Does it bother anyone else that there's not more visibility with this system? They have analysts for almost every single financial decision you could possibly make who can be pretty straight-forward and tell you step by step what you need to do to achieve whatever goal you have. Why the f can't someone do this with a credit score? Obviously there's some formula these companies are using to control our lives, why doesn't someone have access to them? Why can't we go to them for advice?
Sorry for the narrative, but this is doing my head in. I save alot of money, I contribute to my 401K and my Roth IRA, I don't like extravagently. I feel like I'm doing most things right financially, but the only thing I can't fix is this damn credit score!
4
Posted on 2/26/14 at 9:15 pm to FootballNostradamus
TL:DR but here's my advice since I just did some credit repair due to fraud. I learned a lot about credit scores.
You need more cards, higher limits, with little or no utilization.
Keep paying everything on time and you'll see an increase. If you have a negative item, keep calling the creditor until they agree to a "pay for delete" or to change negative payment history. They can all do it even if they tell you they can't.
At 690, you are good to apply for 2-3 new cards and get approved. Just don't use them, or use sparingly. Don't apply for the "excellent credit" cards. Take the next level down.
Also, check you're experian score. That's the one AMEX, Chase, etc use to determine if you get a card or not.
ETA: inquiries won't hurt you too bad if you are getting approved. In fact it may not hurt you at all.
ETA2: The 3 Bureaus suck. They are rampant with incompetence.
These are all lessons I learned or info I picked up on along the way.
You need more cards, higher limits, with little or no utilization.
Keep paying everything on time and you'll see an increase. If you have a negative item, keep calling the creditor until they agree to a "pay for delete" or to change negative payment history. They can all do it even if they tell you they can't.
At 690, you are good to apply for 2-3 new cards and get approved. Just don't use them, or use sparingly. Don't apply for the "excellent credit" cards. Take the next level down.
Also, check you're experian score. That's the one AMEX, Chase, etc use to determine if you get a card or not.
ETA: inquiries won't hurt you too bad if you are getting approved. In fact it may not hurt you at all.
ETA2: The 3 Bureaus suck. They are rampant with incompetence.
These are all lessons I learned or info I picked up on along the way.
This post was edited on 2/26/14 at 9:26 pm
Posted on 2/26/14 at 9:25 pm to FootballNostradamus
Bob succinctly stated the below illustration.
I doubt Amex will go from 2k to 10k in one swoop.
I was about where you were a year ago. I had two credit cards (usaa and amex) and maybe 6k in credit limits. The thing is one credit card company is not going to go much higher than any previous line of credit, they like to see you can handle it.
Thankfully, I had USAA who upped me to 6k. I then took a stab at capital one venture card and got approved for 10k automatically. 6 months later I went for Chase Sapphire Prefered (should went with freedom first but whatever), and didn't get instant approval. Probably be a denial, so I called the reconsideration line and talked my way to approval for 5k.
Couple months later I added the Freedom. I then went back and got USAA to up to 12,000. By the end of the year Amex doubled my limit after a request to 4k and I got another amex with 6k. Chase Sapphire request upped me to 10k.
Couple months later I get a Barclay's for 8k and and a Chase united for 12k.
My score had risen through out this process (you don't need the cards I have, I leverage them for travel), but you see the point. It takes time and playing each successful application off the previous one in a controlled manner.
I doubt Amex will go from 2k to 10k in one swoop.
I was about where you were a year ago. I had two credit cards (usaa and amex) and maybe 6k in credit limits. The thing is one credit card company is not going to go much higher than any previous line of credit, they like to see you can handle it.
Thankfully, I had USAA who upped me to 6k. I then took a stab at capital one venture card and got approved for 10k automatically. 6 months later I went for Chase Sapphire Prefered (should went with freedom first but whatever), and didn't get instant approval. Probably be a denial, so I called the reconsideration line and talked my way to approval for 5k.
Couple months later I added the Freedom. I then went back and got USAA to up to 12,000. By the end of the year Amex doubled my limit after a request to 4k and I got another amex with 6k. Chase Sapphire request upped me to 10k.
Couple months later I get a Barclay's for 8k and and a Chase united for 12k.
My score had risen through out this process (you don't need the cards I have, I leverage them for travel), but you see the point. It takes time and playing each successful application off the previous one in a controlled manner.
This post was edited on 2/26/14 at 9:27 pm
Posted on 2/26/14 at 9:27 pm to Teddy Ruxpin
I got 3 new cards in one week after I did damage control.
Amex Platinum
Chase Sapphire Preferred
Citi Prestige
And my credit score went UP!!
Amex Platinum
Chase Sapphire Preferred
Citi Prestige
And my credit score went UP!!
This post was edited on 2/26/14 at 9:29 pm
Posted on 2/26/14 at 9:28 pm to FootballNostradamus
Best thing to boost your score is get a mortgage. It shows stability and will bump you up.
Installment acct is any fixed amount loan. Can be a signature loan at your bank, car payment, student loan etc.
690 will get you quite a few credit cards. But, you will take a ding on score for about 90 days.
I'm assuming your amex is a credit card since you have a limit? Maybe get a Gold or Platinum card (or both) and use all on low amounts. Don't use 40% as a guide...30 should be your ceiling but I use 20.
I did major credit damage years ago (was sub 600 at one point) and now in the mid 7's.
Installment acct is any fixed amount loan. Can be a signature loan at your bank, car payment, student loan etc.
690 will get you quite a few credit cards. But, you will take a ding on score for about 90 days.
I'm assuming your amex is a credit card since you have a limit? Maybe get a Gold or Platinum card (or both) and use all on low amounts. Don't use 40% as a guide...30 should be your ceiling but I use 20.
I did major credit damage years ago (was sub 600 at one point) and now in the mid 7's.
Posted on 2/26/14 at 9:29 pm to Teddy Ruxpin
I think the credit score system is a scam to help lenders achieve higher interests rates....
Case in point
I went yesterday to the bank for a auto loan refinance... They ran my score through Experian 650....
I said WTF I haven't been in the 600s for at least two years
I told them I had ran a transition the day before and it was 740
The lady said they can't run Transunion without manager approval because it cost them money
After enough bitching they got approval to run it.. Boom 740
Why such a big difference between companies and why only run one? If I didn't bitch I would've been stuck with a shitty interest rate
Case in point
I went yesterday to the bank for a auto loan refinance... They ran my score through Experian 650....
I said WTF I haven't been in the 600s for at least two years
I told them I had ran a transition the day before and it was 740
The lady said they can't run Transunion without manager approval because it cost them money
After enough bitching they got approval to run it.. Boom 740
Why such a big difference between companies and why only run one? If I didn't bitch I would've been stuck with a shitty interest rate
This post was edited on 2/26/14 at 9:30 pm
Posted on 2/26/14 at 9:31 pm to Bob Sacamano
quote:
And my credit score went UP!!
Yup, pretty normal when building credit.
quote:
geauxcats10
You can Google why that occurs, and it appears it only cost you an extra few minutes.
This post was edited on 2/26/14 at 9:34 pm
Posted on 2/26/14 at 9:33 pm to geauxcats10
There is something on one report that's not on another.
It's important to check all three and compare.
It's important to check all three and compare.
Posted on 2/26/14 at 9:34 pm to Teddy Ruxpin
quote:
Yup, pretty normal when building credit.
Teddy, I don't think it's that common for where he's at. I'm not meaning score (690 is not bad) but sounds like minimal history. If he went on an app spree he'll appear desperate.
Posted on 2/26/14 at 9:36 pm to Bob Sacamano
quote:
There is something on one report that's not on another. It's important to check all three and compare.
I looked at them... All the same
Posted on 2/26/14 at 9:36 pm to Bob Sacamano
quote:
It's important to check all three and compare
I can't agree more!
Posted on 2/26/14 at 9:36 pm to Teddy Ruxpin
quote:
building credit.
Not really building. Had some serious fraud. Had to close everything and start all over basically.
My advice to everyone is have fraud alerts placed with bureau's. That way nothing gets approved without a security check.
Posted on 2/26/14 at 9:38 pm to geauxcats10
quote:
I looked at them... All the same
Sorry, but that is virtually impossible.
Posted on 2/26/14 at 9:38 pm to Bob Sacamano
But why only Run one? And it just so happened to be the lowest one... All three of then have the same stuff listed
Posted on 2/26/14 at 9:39 pm to htownjeep
quote:
Sorry, but that is virtually impossible
Truth!!
Posted on 2/26/14 at 9:39 pm to htownjeep
I'm naturally conservative. I like how I approached it in my previous post. In a year or so he would be able to pull a 3 app day probably with some ease. But before then, raise limits and get another issuer involved.
I don't know how to say "build credit" without implying starting from scratch. The 3 app deal(resulting in a bigger score) is when you've come from crawling, to walking/running phase. At a certain point after that you probably won't get a credit raise after your 3rd app o Rama
I don't know his income but once he gets some limits over 5k he's gravy if he is making good money. The credit will steam roll from there, at least it did for me.
Less than 10k to 70k credit in a year.
I don't know how to say "build credit" without implying starting from scratch. The 3 app deal(resulting in a bigger score) is when you've come from crawling, to walking/running phase. At a certain point after that you probably won't get a credit raise after your 3rd app o Rama
I don't know his income but once he gets some limits over 5k he's gravy if he is making good money. The credit will steam roll from there, at least it did for me.
Less than 10k to 70k credit in a year.
This post was edited on 2/26/14 at 9:44 pm
Posted on 2/26/14 at 9:45 pm to Teddy Ruxpin
quote:
Thankfully, I had USAA who upped me to 6k. I then took a stab at capital one venture card and got approved for 10k automatically. 6 months later I went for Chase Sapphire Prefered (should went with freedom first but whatever), and didn't get instant approval. Probably be a denial, so I called the reconsideration line and talked my way to approval for 5k.
Couple months later I added the Freedom. I then went back and got USAA to up to 12,000. By the end of the year Amex doubled my limit after a request to 4k and I got another amex with 6k. Chase Sapphire request upped me to 10k.
Couple months later I get a Barclay's for 8k and and a Chase united for 12k.
My score had risen through out this process (you don't need the cards I have, I leverage them for travel), but you see the point. It takes time and playing each successful application off the previous one in a controlled manner.
Too much of a hassle, IMO. Too many people are concerned about credit scores. Credit scores are the result, not the goal.
I have TWO, a whopping TWO credit cards. A PenFed Rewards VISA that I use to get 5 % back on gas purchases - paid off every month and a Discover IT card that I just received this past month. I didn't and won't play those credit card application games. The risk isn't worth the reward.
And for the record, my middle FICO credit score is 802 from Equifax.
This post was edited on 2/26/14 at 9:46 pm
Posted on 2/26/14 at 9:47 pm to Will Cover
The 20 minutes it takes isn't a hassle.
I have this many cards for leveraging travel, which I stated.
I also stated he didn't need all these cards, I was illustrating the point.
And sure it is, I spent $500 for over $3,000 in airfare and didn't hurt my score, nor is an 800 score even necessary, but this is all beside the point.
The game isn't for the irresponsible and I'm not advocating he plays it, but I'm not terrified of credit and either should he.
I have this many cards for leveraging travel, which I stated.
I also stated he didn't need all these cards, I was illustrating the point.
And sure it is, I spent $500 for over $3,000 in airfare and didn't hurt my score, nor is an 800 score even necessary, but this is all beside the point.
The game isn't for the irresponsible and I'm not advocating he plays it, but I'm not terrified of credit and either should he.
This post was edited on 2/26/14 at 9:51 pm
Posted on 2/26/14 at 9:50 pm to Will Cover
I'm in Teddy's camp.
My wife and I travel a lot so for us, it's all about the miles and travel perks.
My wife and I travel a lot so for us, it's all about the miles and travel perks.
Posted on 2/26/14 at 9:52 pm to Bob Sacamano
quote:
If you have a negative item, keep calling the creditor until they agree to a "pay for delete" or to change negative payment history. They can all do it even if they tell you they can't.
How do you do this? I missed my initial payment on my first credit card in college cause I was a dumbass and didn't fillout the form for automatic payment correctly haha.
I just call them and say I'll pay them to take it off? Would love some info on this.
That's possibly the biggest negative I have at the moment is I had that one missed payment so my longest credit card line won't raise me past the initial $500 limit I started with ~5 years ago.
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