Increase My Credit Score!

[GWestphal]

I've a got a credit score of just shy of 700. I currently have about 15-20% credit usage and have never had a late payment. According to creditkarma, the only thing I'm not doing good at is credit age, with only ~5yrs average length of credit. I've had 22 accounts total (retail cards, bank cards, student loans), but 2 or 3 years ago I closed 5 rinkydink retail cards (all less than $500 limits like Herbergers, Target, Express) I'd had for maybe 3-4 years, because I wasn't using them and was afraid of identity theft. Currently have 5 cards with only 2 carrying a balance, most is on one since it is 0% interest. I have a judgement on my record from when child support was established a year after my child was born, even though I had been providing support the entire year, but since it wasn't through the child support agency I had to repay arrears that I had already paid, which I did immediately, but it stays on your record for 7 yrs (should be gone this summer).

It is possible to reopen a closed account and up my credit score? Or would it count as a new account?

I've also heard that you can be added to your parents credit cards as an authorized user and then their credit age is counted with yours, is that true?

Any other tips or tricks?


UPDATE: Bumped up to 763 now. But what can I do better?


CC Limits:
$3500
$5900
$15500
$5000
Total ~$30k

What does it take to get to 850? Do you have to have a car or home loan?

 

[boomhower]

While technically possible to open an old account most companies won't do it, they will make you apply for a new one. Don't open any new account as that will decrease your AAoA and ding you with an inquiry. Best thing you can do it pay you UT down. For max score you want one card reporting a balance of less than 9% of that cards limit. It will give a higher score than all cards reporting 0. Other than that all you can do it wait. The judgement is old but still hurting. You should get a decent jump when it falls off. In the future never close a card unless it has an annual fee, it helps your UT and age.

Another part of the score is credit types. i.e. having several kinds. Having a mix of credit cards, store cards, installment loans, and mortgages helps the score. Best thing you can do for the time being is just pay down UT and wait for the judgement to fall off. Once you get much above the 750-760 area not much more than time can help you. At that point long payment history and age of accounts is important, i.e. showing good credit over an extended period.

 

[RockinZ28]

Don't think your average account age should impact your score that much. Mine is now only 11 months average, after opening 3 cards in 3 months for free money. Score is still over 720 after that.

Also I have 5 credit cards as my only history, so I'd think your issue is that judgement.

 

[HendrixFan]

Get your utilization under 10% for a nice boost in score. Either pay down debt, or get new cards to push the utilization down. Or both.

Once that is done the only thing you need to do is give it time. See if your parents can put you on one of their oldest cards (assuming they have good credit) as an authorized user and you will get points for that.

My average age of accounts is under 5 years, but my oldest card is 13 years. My score on Creditkarma is 790. I churn new cards every year for signup bonuses (looks like I'll net $1150 this year). I am an authorized user on my mom's credit card so my credit history goes back to when I was thirteen years old, the time she opened that card.

Credit score is all a numbers game, you just need to stack things in your favor.

 

[blackangst1]

Get your utilization under 10% for a nice boost in score. Either pay down debt, or get new cards to push the utilization down. Or both.

Once that is done the only thing you need to do is give it time. See if your parents can put you on one of their oldest cards (assuming they have good credit) as an authorized user and you will get points for that.

My average age of accounts is under 5 years, but my oldest card is 13 years. My score on Creditkarma is 790. I churn new cards every year for signup bonuses (looks like I'll net $1150 this year). I am an authorized user on my mom's credit card so my credit history goes back to when I was thirteen years old, the time she opened that card.

Credit score is all a numbers game, you just need to stack things in your favor.

THIS.

 

[paperfist]

So closing a store credit card isn't a good idea if it's 4 years old or more?

I hear that closing those cards is a good idea and keeping just the major cards, but no one ever mentions that in doing so your old store credit cards are going to hurt your rating.

 

[HendrixFan]

After you close a card it still shows in your report for up to 10 years, though more likely 7. You will get dinged many years down the road for closing a card, but by then your average age should have increased so much that it doesn't matter. If a store card is your oldest card, keep it open unless you are paying an annual fee.

 

[blinblue]

So I am going to be buying me first home sometime soon, and as part of the fun mortgage approval process they pull your credit score and make it available to you. The extent of my credit history is one Chase credit card I opened up way back freshman year of college that I didn't really even know I was signing up for (shady business practices by Chase and me not paying close enough attention to what I was signing). Anyway, never used the credit card, never even activated it. I have never taken out any loan (no student loans, no car loans, nothing). I check my credit report periodically and the only thing ever mentioned is the Chase credit card that I never use.

Anyway, got my credit scores, and they are 765/818 from Equifax, 793/844 from Experian, and 773/839 from TransUnion.

So by doing near absolutely nothing with credit, I have a quite high credit score (I'm not credit score expert, but I'm pretty sure there is little to be gained by going much higher. It certainly wasn't a problem with my mortgage rate, I'm getting prime).

In no way is this supposed to be a brag, I was honestly rather shocked the scores were so high when I've done nothing at all with credit. Anyway, a bit off topic, but I'm sharing anyway.

 

[highland145]

Heh, can't help you. You're not the quality I cater to. 700 fico.....

<----

 

[paperfist]

So I am going to be buying me first home sometime soon, and as part of the fun mortgage approval process they pull your credit score and make it available to you. The extent of my credit history is one Chase credit card I opened up way back freshman year of college that I didn't really even know I was signing up for (shady business practices by Chase and me not paying close enough attention to what I was signing). Anyway, never used the credit card, never even activated it. I have never taken out any loan (no student loans, no car loans, nothing). I check my credit report periodically and the only thing ever mentioned is the Chase credit card that I never use.

Anyway, got my credit scores, and they are 765/818 from Equifax, 793/844 from Experian, and 773/839 from TransUnion.

So by doing near absolutely nothing with credit, I have a quite high credit score (I'm not credit score expert, but I'm pretty sure there is little to be gained by going much higher. It certainly wasn't a problem with my mortgage rate, I'm getting prime).

In no way is this supposed to be a brag, I was honestly rather shocked the scores were so high when I've done nothing at all with credit. Anyway, a bit off topic, but I'm sharing anyway.

That's impressive! I have 10 cards I think, all paid on time with varying degrees of balances on them and I can't get it past 710.

After you close a card it still shows in your report for up to 10 years, though more likely 7. You will get dinged many years down the road for closing a card, but by then your average age should have increased so much that it doesn't matter. If a store card is your oldest card, keep it open unless you are paying an annual fee.

Thanks for the info. My oldest cards are the major ones. I opened some stupid ones like Macy's just for the discount, paid it off and never used it again a year later.

I have one for the 'Bargin Outlet' which is what Grossman's became. It's like a 5 year old card, but I never use it. The thing I don't understand about this one is it's funded by GE Capital, but it's a store card so not sure how that works.

 

[HardcoreRobot]

So I am going to be buying me first home sometime soon, and as part of the fun mortgage approval process they pull your credit score and make it available to you. The extent of my credit history is one Chase credit card I opened up way back freshman year of college that I didn't really even know I was signing up for (shady business practices by Chase and me not paying close enough attention to what I was signing). Anyway, never used the credit card, never even activated it. I have never taken out any loan (no student loans, no car loans, nothing). I check my credit report periodically and the only thing ever mentioned is the Chase credit card that I never use.

Anyway, got my credit scores, and they are 765/818 from Equifax, 793/844 from Experian, and 773/839 from TransUnion.

So by doing near absolutely nothing with credit, I have a quite high credit score (I'm not credit score expert, but I'm pretty sure there is little to be gained by going much higher. It certainly wasn't a problem with my mortgage rate, I'm getting prime).

In no way is this supposed to be a brag, I was honestly rather shocked the scores were so high when I've done nothing at all with credit. Anyway, a bit off topic, but I'm sharing anyway.

no credit history is not the same as good credit history

 

[blinblue]

no credit history is not the same as good credit history

I am well aware of that, which is why I was surprised that my credit score did not reflect that. Since the only loan I ever plan on getting is a mortgage and I'm already approved for that, I'm happy.

 

[DaWhim]

find a credit card with 0% apr on purchase, start carrying a balance and only pay minimum on it until the 0% apr ends

 

[ViviTheMage]

soft credit pulls only last a few weeks, hard ones last a few months...but what's the point of your credit if you don't use it?

props for staying on top of the child support payments.

 

[HendrixFan]

I am well aware of that, which is why I was surprised that my credit score did not reflect that. Since the only loan I ever plan on getting is a mortgage and I'm already approved for that, I'm happy.

If you had student loans then that would explain your scores.

Edit: Just re-read your post and saw that wasn't it. I've never heard of being able to score anywhere near the 700s with no history. Does anything at all show up on the report aside from that one card?

 

[HumblePie]

Credit score is mostly this.

Your income level. Higher your income, the better your score.

Ratio of max total credit versus what is due. Meaning if you've been credited $10,000 and still own $9,000 then your credit score isn't going to look to great. May not be bad, but won't be great. If you have been credited in the past for $10,000 and only owe $500, that shows you pay off credit and your score will reflect it.

No late payments.

No missed payments.


If you can manage that then you'll have a high credit score.

 

[paperfist]

Credit score is mostly this.

Your income level. Higher your income, the better your score.

Ratio of max total credit versus what is due. Meaning if you've been credited $10,000 and still own $9,000 then your credit score isn't going to look to great. May not be bad, but won't be great. If you have been credited in the past for $10,000 and only owe $500, that shows you pay off credit and your score will reflect it.

No late payments.

No missed payments.


If you can manage that then you'll have a high credit score.

Do they actually check your income level? The only place I've seen do this is a bank if you're looking for a big ticket item. So it seems like you can make up any income level you want.

 

[Svnla]

OP, read this and follow this.

Factors that Affect Your Credit Score

Your credit score is essentially based on five things:

1. Payment History

Do you pay your bills on time? If not, how late are you, and how often are you late? <DO NOT be late>

2. Amounts Owed

How much total credit do you have available, and what percentage of it are you using? <10% or less is good, would NOT go over 30%>

3. Length of Credit History

When did you first start using credit, and what is the average age of all your credit and loan accounts? <The longer you have credit = better>

4. New Credit

How much credit have you applied for and taken on recently? <Do NOT apply credit just because you could, be prudent>

5. Types of Credit in Use

Do you have a mix of different types of credit? <Variety = good>


More = http://money.msn.com/credit-rating/15-minute-fixes-for-credit-scores-credit-cards.aspx

 

[blackangst1]

soft credit pulls only last a few weeks, hard ones last a few months...but what's the point of your credit if you don't use it?

props for staying on top of the child support payments.

Thats incorrect. Soft pulls are not visible by anyone except YOU. Your FICO is not affected by soft pulls AT ALL. They AND hard pulls remain on your report for 2 years. Hard pulls affect FICO, but the effect begins to diminish after 12 months.

Credit score is mostly this.

Your income level. Higher your income, the better your score.

Ratio of max total credit versus what is due. Meaning if you've been credited $10,000 and still own $9,000 then your credit score isn't going to look to great. May not be bad, but won't be great. If you have been credited in the past for $10,000 and only owe $500, that shows you pay off credit and your score will reflect it.

No late payments.

No missed payments.


If you can manage that then you'll have a high credit score.

Income level has zero affect on FICOS. You are correct about utilization though. UTI is, if I remember, 35% of your FICO. In between 1 and 10% will give the highest boost.

 

[alkemyst]

What's your highest amount of credit you had actually on the card, what was the pay off time?

Cash flow is the biggest credit increase despite what others post. Take on $5000-6000 in CC debt a month, pay it off the next, your credit score will go through the roof if done regularly.

 

[blackangst1]

What's your highest amount of credit you had actually on the card, what was the pay off time?

Cash flow is the biggest credit increase despite what others post. Take on $5000-6000 in CC debt a month, pay it off the next, your credit score will go through the roof if done regularly.

Thats incorrect. I'll explain in two parts.

First. Taking on 5-6k in credit card debt per month is meaningless in regards to utilization (which is 35% of your FICO). For some, it may not be possible. For others, it could put them at 90% UTI which would cripple their FICO. For others it wouldnt be a dent. It all has to do with available revolving lines. since the OP didnt tell us what his total available credit is, its bad advise.

Second. Your advise to let those charges bill and report (Take on $5000-6000 in CC debt a month, pay it off the next) is also terrible (unless the card being used is not included in FICO utilization for example Amex (caveat: the TU98 scoring model DOES count it), Visa siggy, or similar card which reports no limit. Going back to my first point. Lets say you have $10k in available revolving. You let $5k bill and report. Even if you pay it off the next month, you still would be at 50% UTI. Which is TERRIBLE. The only way to have a balance NOT report is to find out when your statement cycle ends (hint: its NOT when you GET your statement) and PIF before that date.

Which brings me to a third point. If you do charge and PIF before it bills every month, it is the same as not using your card at all for FICO scoring. There is ZERO difference. The only difference is some cards can go inactive after a period of time (usually 12 months) and stop reporting. Which is why wisdom says you should use all of your cards at least once per year. Again, this has nothing to do with FICO but with the card issuer.

In summary, for optimum FICO scoring, your reported balances should be at least 1% but not more than 10% of your available revolving. Feel free to research on the FICO forums if you'd like.

 

[SP33Demon]

In summary, for optimum FICO scoring, your reported balances should be at least 1% but not more than 10% of your available revolving. Feel free to research on the FICO forums if you'd like.

When you say available revolving, do you mean total amount of credit for all your cards combined? For example, if I had charged $500 on a $1000 limit card, but have another card with a $4000 limit (and zero balance) them I'm still ok because I'm @10% utilization?

 

[blackangst1]

When you say available revolving, do you mean total amount of credit for all your cards combined? For example, if I had charged $500 on a $1000 limit card, but have another card with a $4000 limit (and zero balance) them I'm still ok because I'm @10% utilization?

Correct. FICO looks at your total limits and your total balances with a few exceptions I noted above.

HOWEVER. Not to make it more complicated. Once you get above 50% UTI on any one card/account, you will take a small (like, 1-10 point) hit even if you're <10% total.

 

[HumblePie]

The reason I stated your Income level matters to your Credit Score is that it is an indirect factor. Credit score does not seriously increase based upon revolving credit limits. It can seriously decrease from it, but not increase from it. Thus other forms of credit, such as bank loans, contribute more to your credit score. Your bank loans are going to look at your income level as part of the approval process for ANY loan they are going to authorize as well as several other factors that aren't typical FICO factors.

So while your credit score based upon FICO isn't directly related to income, it most certainly is indirectly related.

 

[blackangst1]

The reason I stated your Income level matters to your Credit Score is that it is an indirect factor. Credit score does not seriously increase based upon revolving credit limits. It can seriously decrease from it, but not increase from it. Thus other forms of credit, such as bank loans, contribute more to your credit score. Your bank loans are going to look at your income level as part of the approval process for ANY loan they are going to authorize as well as several other factors that aren't typical FICO factors.

So while your credit score based upon FICO isn't directly related to income, it most certainly is indirectly related.

Certainly higher income will mean more credit products available, and the more credit products (types) all else being equal the higher the score. However, those that are very wealthy also have a higher propensity to have sloppier credit files. Ive personally seem PLENTY of 6 and 7 digit income earners with FICO's below 500. Ive also personally seen alot of 15-50k/year earners with 800's. But its certainly disingenuous to think the higher the income the higher the FICO. Hell. Most people have never seen a credit report, have no idea the differences between a Vantage, a Complete, a FICO, and a Beacon score are much less how theyre figured, and why its important.

Credit score isnt everything though. You could easily have one or two credit cards and one car loan with a FICO in the high 700's or low 800's, vs someone with 20 tradelines and a FICO of 690...who would probably end up being a better risk.