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David123

Is NerdWallet right?

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I currently have a secured Card with a line of $1000 and Secured CD for $1,000.  According to Nerd Wallet my score is 629(way over other CRA's)and I need to have more open lines of credit as they call my two open lines "poor".  My question is.... is this BS and if not do I just pay out of my pocket to increase my secured card's limit(the same amount I would qualify for an unsecured card) OR do I go for an unsecured card that has a $500 limit that may be increased over time?  My concern is that if I get a new unsecured card it's going to in turn lower my score with the credit pull and reduced age of collective accounts.  I will need my credit to be at it's highest in 4-6 months so I may move.  Thank you to everyone!

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I don't subscribe to Nerd Wallet.   But do the score they provide have the trademarked FICO symbol?   If not, they are meaningless as a score measurement.

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As noted, if it is not a Fair Isaac model, then it is nothing more than a shiny bauble designed to try and impress the sheeple.  Their suggestions are going to be designed to work solely with their baubles.

 

You do NOT need a bunch of toy cards.  They will take too long to grow, if they grow at all. 

 

Given the reference to the 629 being higher than other, more legitimate scores, it sounds as though you would benefit from focusing on fixing what is broken on the reports and that has been serving to depress the scores.

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I think Nerd Wallet, like Credit Karma, uses the Vantage Score 3.0 model.  These scores are not official FICO scores but they can still be useful.  In my experience, the Vantage scores typically run about 25-30 points lower than my corresponding official FICO scores.  I think this is primarily because the Vantage scoring system deducts more points for recent hard pull inquiries, and it looks back a full two years for hard pulls, whereas with FICO the hard pulls don't count against you as much and FICO only looks back one year for scoring purposes.

 

More importantly, the Vantage scores *track* the same as the FICO scores. So even though it may not be as accurate as your true FICO scores, if your weekly or monthly or quarterly Vantage scores are trending upward then, in all probability, your true FICO scores will be trending in the same direction at about the same rate.  It's a good barometer of whether you are doing the right things to improve your credit scores.

 

In your case I agree with a poster above -- your best line of action is probably to hold off on a new card now and see if you can do anything to remove any negative items from your credit reports. Deletions will have a much bigger impact than new accounts or higher lines of credit.

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Study which actions improve your FICO scores, not which actions will improve skores no one uses to grant credit.

 

For the commonly-used FICO 8, five revolvers is optimum.  More is fine (I have 30+).  

 

If you have a relatively young file I would try to get to five relatively quickly to put the AAoA damage behind you, but don't rush if that means getting garbage cards. 

 

Focus on cards that have long-term potential (secured cards that graduate, or an entry-level Capital One unsecured that you can PC later).

 

Welcome.

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On 4/10/2019 at 12:01 AM, Burdell said:

More importantly, the Vantage scores *track* the same as the FICO scores. So even though it may not be as accurate as your true FICO scores, if your weekly or monthly or quarterly Vantage scores are trending upward then, in all probability, your true FICO scores will be trending in the same direction at about the same rate.  It's a good barometer of whether you are doing the right things to improve your credit scores.

 

 

That should be taken with a big "grain of salt".  As I recently observed, Vantage 3.0 tracks FICO ... until it doesn't! ;)

 

Look, I agree it's helpful to track your Vantage score to the extent that any significant change in value is likely an alert to a significant credit report change.  However, overall, it's a very poor proxy for FICO. 

 

Fortunately, with the right mix of credit cards, it's possible to track FICO 8 from all 3 CRA's.  There's a lovely chart of who provides what score, published in January at Credit Card Insider:

 

https://www.creditcardinsider.com/blog/check-free-fico-score-every-other-free-credit-score/

 

Having a card with BA, Chase, and Citi should do the trick.

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4 hours ago, hdporter said:

 

That should be taken with a big "grain of salt".  As I recently observed, Vantage 3.0 tracks FICO ... until it doesn't! ;)

 

Look, I agree it's helpful to track your Vantage score to the extent that any significant change in value is likely an alert to a significant credit report change.  However, overall, it's a very poor proxy for FICO. 

 

Fortunately, with the right mix of credit cards, it's possible to track FICO 8 from all 3 CRA's.  There's a lovely chart of who provides what score, published in January at Credit Card Insider:

 

https://www.creditcardinsider.com/blog/check-free-fico-score-every-other-free-credit-score/

 

Having a card with BA, Chase, and Citi should do the trick.

Great link thank you!

 

You're right on numerous fronts so thanks for everything. So I looked it up and NW uses Vantage 3.0 Trans for their score.  It's well north of my Exp FICO 9 score of 549 which I just reluctantly "Boosted".  Im going to dive deeper as to the discrepancy after I analyze the differences in the reports, however they have the same number negative accounts.

 

Now back to my original question is NW right given the chart below?  I know the real problems are the DM's which I'm hear to learn about how to deal with, I hired LL for over a year like a moron with minimal results.  However am I in danger of lowering my score due to average age of my accounts by opening a secured discover card that will allow me to graduate to an unsecured card.  Given I need improvement in my score in less than 6 months.

 

One last thing, I've been trying to read the beginner forum threads prior to posting(the acronym post made my head hurt lol) however it's overwhelming and many seem to have dates of over 10 years ago.  If you could provide one link to a relative noob so he doesn't have post every question which is the most valuable thread in your opinion for DM removal?

 

Again thank you all for your support.

1146373571_ScreenShot2019-04-11at3_40_30PM.thumb.png.453636598a13fd08b3c3040a6d7cfd41.png74479532_ScreenShot2019-04-11at3_39_58PM.thumb.png.0d98870db5e84eca41ebab5227b55f4a.png

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Well, I recommend keeping that "dive" (looking at the discrepancies between scores) rather shallow. 

 

I'm inclined to liken different credit scores to the scores by judges at an Olympics competition.  They all are scoring on common factors, but each judge has a different take on what's important.  (And because credit scoring has a more diverse set of factors, the differences can be much sharper.)

 

The less said about Lexington, the better.  You're certainly not the only one to go down that path and return largely empty handed (at least it would seem that they didn't do any harm!).  They have a very tempting come-on.  Groups like this try to get the real word out ...

 

Your credit age is an important consideration, but what you most need to focus on is access to a strong mix of credit that best serves your needs.  In other words, if there's a credit product for which you're likely qualified and that has strong "added value", credit age is a lesser consideration.

 

Discover has a decent secured card product.  However, Discover doesn't have the strongest rep around CB (various reasons).  One modest frustration is that there are still a decent number of retailers/contractors/etc. who don't accept Discover.  Some, here, have had less than satisfactory experience with Discover themselves.

 

I might suggest that you consider a Citi secured card:

https://citicards.citi.com/usc/LPACA/Citi/Cards/Secured/ps_A/index.html

 

Citi has a number of attractive card products are worth pursuing once you establish a satisfactory history with them.  It seems like the typical secured cardholder reports being graduated to an unsecured card within 12-18 months.

 

As far as further remarks on the subject of rebuilding and removal of derogatories, I'll defer to others here.  (My rebuilding experience dates back to 18 years ago;  you need a fresher take ;) )

 

 

 

 

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15 hours ago, hdporter said:

Well, I recommend keeping that "dive" (looking at the discrepancies between scores) rather shallow. 

 

I'm inclined to liken different credit scores to the scores by judges at an Olympics competition.  They all are scoring on common factors, but each judge has a different take on what's important.  (And because credit scoring has a more diverse set of factors, the differences can be much sharper.)

 

The less said about Lexington, the better.  You're certainly not the only one to go down that path and return largely empty handed (at least it would seem that they didn't do any harm!).  They have a very tempting come-on.  Groups like this try to get the real word out ...

 

Your credit age is an important consideration, but what you most need to focus on is access to a strong mix of credit that best serves your needs.  In other words, if there's a credit product for which you're likely qualified and that has strong "added value", credit age is a lesser consideration.

 

Discover has a decent secured card product.  However, Discover doesn't have the strongest rep around CB (various reasons).  One modest frustration is that there are still a decent number of retailers/contractors/etc. who don't accept Discover.  Some, here, have had less than satisfactory experience with Discover themselves.

 

I might suggest that you consider a Citi secured card:

https://citicards.citi.com/usc/LPACA/Citi/Cards/Secured/ps_A/index.html

 

Citi has a number of attractive card products are worth pursuing once you establish a satisfactory history with them.  It seems like the typical secured cardholder reports being graduated to an unsecured card within 12-18 months.

 

As far as further remarks on the subject of rebuilding and removal of derogatories, I'll defer to others here.  (My rebuilding experience dates back to 18 years ago;  you need a fresher take ;) )

 

 

 

 

Thanks for the citi recommendation. It looks like there's no credit pull so I think I'll go for it after my Secured CD hits 6 months next month since I opened it, does that sound like the right strategy?

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