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CKB750

Just paid off my cards

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Posted (edited)

I just recently paid off all of my credit cards to a zero balance and my score went up 70 points.My goal is to have reach a 770 + score on all cards so what is the best ways to increase my scores even higher and when should I start to app for at least 3 more cards I want? I need help.Thanks everyone

Edited by CKB750

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Congratulations! Way to go!

 

You will need to provide more information in order to get useful advice on how to raise your scores further.  Your scores depend on a number of factors, including: number and mix of account types, the age of your oldest account and average age of all accounts, how many new accounts you've opened in the last 12 and 24 months, recent hard inquiries, any late payments or other derogatory trade lines still reporting, credit limits and the amount of that credit utilized, etc.

 

What are your current scores and where did you get them (are they true FICO scores, or Vantage scores, etc.)?  It will help to know how far from your goal you are now.

 

For starters, though, keep your credit utilization below 10% if possible now that you've paid off your accounts, and keep paying in full each billing cycle.  Requesting credit line increases on one or more of your existing accounts might be a good strategy to quickly raise your scores, but it might not be enough to get you to your goal.

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Thanks Burdell, so what if should I provide so people know where I stand and give there advice? I got my scores from myfico.com

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You don't have to provide specific details, just info like how many credit card accounts you have, how old is the oldest of these and what is the average age of all of them, how many new accounts have you opened in the last two years, how many hard pull inquiries have you had in the last 12 months, what are your current scores (just FICO 8 is enough).  

 

Do you have any late payments still reporting?  If so, how long ago were these and were there a lot of them? Any charge-offs reporting?  Stuff like that can lower your scores.

 

The scores from MyFICO are true FICO scores, so that's good.

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Posted (edited)

EQ713 (fico8)

TU 734 (fico8)

EX 744 (fico8)

                               Open Accounts

*Student loan balance $20,661

*DCU Auto loan$5,000 loan

*Chase Freedom $2,000 limit (just denied 2 days ago for CLI) $0 balance

*Lowe’s $17,000 limit (Just got $7,000 CLI) $10,000 to $17,000 $0 balance 

*Barclays Apple Rewards $5,000 limit ( CLI from $2500 to $5,000 $0 balance 

*BOFA $2,000 limit $0 balance  ( Asked for a CLI they told me they would get back to me 7-10 days)

*Merrick bank $1,800 limit $0 balance

*First Premier $1500 limit $0 balance. THIS IS THE OLDEST ACCOUNT 10yrs,4 months.  NEWEST ACCOUNT 6 months

Average age 4 yrs 5 months

                           2 Late payments reported

1-30 day late reported August 2016

1-30 day late reported October 2013

        

 

*6 Credit Cards total

*Student loan

*1 Auto loan

No new CC accounts opened in the last 2 years. Just the student loan

 

                                Closed Accounts All with $0 Balances

*Capital One

*Lending club

*Walmart

*Credit union of New Jersey 

 

        

 

 

 

 

Edited by CKB750

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This is helpful.  You're not far from your goal with TU and EX, but you have a way to go with EQ.  Not sure why it's so much lower than the other two -- it must have more hard inquiries less than 1 year old or something similar that is depressing it.

 

So looking at the main factors that can boost your scores:

  1. Credit history -- you're in good shape.  Oldest account 10 years and average age of all accounts is 4.5 years.  That's pretty good.  Make sure to use that First Premier card every 3 or 4 months to keep it active.  You don't want to close your oldest account.
  2. Utilization -- currently zero.  That's really good.  You want to keep it under 30% across all accounts and under 30% for each account.  Under 10% is even better.  Try using your cards sparingly and pay off the balance in full every month. 
  3. Credit mix -- you've got a good mix of credit -- revolving accounts, student loan, car loan.

 

What's likely depressing your scores the most:

  1. The two late payments.  Your payment history is really pretty good, but those two lates are hurting you. The one from 2013 is probably not impacting your score much anymore, but the one from 2016 likely is.  It sucks, but for people like you with otherwise good payment histories, one or two late payments has a bigger impact lowering your scores than someone else with a whole bunch of late payments. A single recent late payment can lower your scores more than 50 points.  SO, try sending a good will letter to the creditor for the 2016 late payment and see if they will delete it.  Explain the circumstances and beg for mercy.  There are some threads here to guide you in writing your good will letter and where to send it.  Results vary according to your situation and the creditor involved.
  2. The new account (your student loan?) is likely hurting you somewhat.  Not much you can do about that except wait 18 months.  When it's over two years old you'll see a nice boost in your scores across the board.  The hard inquiries from this new account can also be depressing your scores, but that impact will start to diminish now that it's been six months, and after another six months the hard pulls won't affect your scores anymore.  I'm not sure how much student loans factor into credit scores -- I have more experience with credit cards, car loans and mortgages, etc. 
  3. What percentage of your car loan is paid off?  When you owe less than 60% of the original loan amount, you can see your scores go up, maybe as much as 25 points or so.  If you've paid off 30% of the original loan amount already, you should see an increase when you hit the 40%  threshold.

Right now the best thing you could do to boost your scores is get one or both of those late payments deleted with good will request letters.  The next best thing would be to pay down your car loan if you can afford to do that and if you still owe more than 60% of the original amount of the loan.

 

Hope this helps.

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Posted (edited)

Actually I can pay the car loan off completely or pay it down to whatever amount. I will find the thread for the good will request letter.

Edited by CKB750

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Posted (edited)
6 hours ago, CKB750 said:

EQ713 (fico8)

TU 734 (fico8)

EX 744 (fico8)

                               Open Accounts

*Student loan balance $20,661

*DCU Auto loan$5,000 loan

*Chase Freedom $2,000 limit (just denied 2 days ago for CLI) $0 balance

*Lowe’s $17,000 limit (Just got $7,000 CLI) $10,000 to $17,000 $0 balance 

*Barclays Apple Rewards $5,000 limit ( CLI from $2500 to $5,000 $0 balance 

*BOFA $2,000 limit $0 balance  ( Asked for a CLI they told me they would get back to me 7-10 days)

*Merrick bank $1,800 limit $0 balance

*First Premier $1500 limit $0 balance. THIS IS THE OLDEST ACCOUNT 10yrs,4 months.  NEWEST ACCOUNT 6 months

Average age 4 yrs 5 months

                           2 Late payments reported

1-30 day late reported August 2016

1-30 day late reported October 2013

        

 

*6 Credit Cards total

*Student loan

*1 Auto loan

No new CC accounts opened in the last 2 years. Just the student loan

 

                                Closed Accounts All with $0 Balances

*Capital One

*Lending club

*Walmart

*Credit union of New Jersey 

 

        

 

 

 

 

If all of your cards are reporting $0 balance, that's hurting you.  It's not clear if the balances you mentioned are the current balances, or if this is actually how they're reporting. 

 

Optimum for FICO  8 scoring is exactly one card reporting a $2 balance, although for most people it's not worth the effort to reach/maintain this...  it's more of a directional goal.

 

Also, getting three new cards is going to hurt your AAoA, which will drop your scores (at least temporarily).  The drop won't be catastrophic, but you are beyond the point where you should open new cards just to have new cards. 

 

Make sure every new card from this point forward does something to help you reach your goals (whatever they are) better than anything you already have -- and better than most/all others in the market.  

 

Bonus/unsolicited feedback:  the Merrick and First PREMIER cards are turds, and you no longer need them.  Even if they don't have fees, I'd close them and not look back.  

Edited by cv91915

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The $2 trick mentioned above will help. You will need to keep it that way for a few months to maximize the benefit. $0 balances across the board is akin to 30% util, which is bad. 

 

But at the end of the day, the 30DLs will continue to keep your scores depressed until they fall off. As you can see here, your scores are pretty much capped at 735 for now.

 

13948834156_dbff2a6ca9_o.jpg

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8 hours ago, Burdell said:

This is helpful.  You're not far from your goal with TU and EX, but you have a way to go with EQ.  Not sure why it's so much lower than the other two -- it must have more hard inquiries less than 1 year old or something similar that is depressing it.

 

So looking at the main factors that can boost your scores:

  1. Credit history -- you're in good shape.  Oldest account 10 years and average age of all accounts is 4.5 years.  That's pretty good.  Make sure to use that First Premier card every 3 or 4 months to keep it active.  You don't want to close your oldest account.
  2. Utilization -- currently zero.  That's really good.  You want to keep it under 30% across all accounts and under 30% for each account.  Under 10% is even better.  Try using your cards sparingly and pay off the balance in full every month. 
  3. Credit mix -- you've got a good mix of credit -- revolving accounts, student loan, car loan.

 

What's likely depressing your scores the most:

  1. The two late payments.  Your payment history is really pretty good, but those two lates are hurting you. The one from 2013 is probably not impacting your score much anymore, but the one from 2016 likely is.  It sucks, but for people like you with otherwise good payment histories, one or two late payments has a bigger impact lowering your scores than someone else with a whole bunch of late payments. A single recent late payment can lower your scores more than 50 points.  SO, try sending a good will letter to the creditor for the 2016 late payment and see if they will delete it.  Explain the circumstances and beg for mercy.  There are some threads here to guide you in writing your good will letter and where to send it.  Results vary according to your situation and the creditor involved.
  2. The new account (your student loan?) is likely hurting you somewhat.  Not much you can do about that except wait 18 months.  When it's over two years old you'll see a nice boost in your scores across the board.  The hard inquiries from this new account can also be depressing your scores, but that impact will start to diminish now that it's been six months, and after another six months the hard pulls won't affect your scores anymore.  I'm not sure how much student loans factor into credit scores -- I have more experience with credit cards, car loans and mortgages, etc. 
  3. What percentage of your car loan is paid off?  When you owe less than 60% of the original loan amount, you can see your scores go up, maybe as much as 25 points or so.  If you've paid off 30% of the original loan amount already, you should see an increase when you hit the 40%  threshold.

Right now the best thing you could do to boost your scores is get one or both of those late payments deleted with good will request letters.  The next best thing would be to pay down your car loan if you can afford to do that and if you still owe more than 60% of the original amount of the loan.

 

Hope this helps.

Hey buddy. Not sure if you've been spending time over at MF, but your advice is kinda terrible. 

 

Keeping the oldest card open is a good general rule of thumb, but not when it's a bottom feeder like FP. 

 

0% util is not good and "under 30%" is also terrible generic advice.

 

Paying off some of the car loan will do very little to help and definitely not a 25 point boost with his profile. He's pretty much maxed out with the 30DLs.

 

I would advise spending a little more time around here reading and studying before dispensing more bad advice for the next OP

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Thanks CV91915, Yeah those cards are not reporting zero balances maybe like $7 or $10 on each..So at this point I shouldn't app for another card? And also I see ypu said that you would close Merrick and first Premier with being my oldest? I would have to sock drawer first Premier 

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Hey Shifter, So your saying even tho FP card is my oldest card I still should close it? What are your suggestions? Thanks 

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52 minutes ago, CKB750 said:

Thanks CV91915, Yeah those cards are not reporting zero balances maybe like $7 or $10 on each..So at this point I shouldn't app for another card? And also I see ypu said that you would close Merrick and first Premier with being my oldest? I would have to sock drawer first Premier 

He’s saying not to open cards just for the sake of opening cards. If there is a card that fits your needs/spending habits then you could get that. For example, if you fly a lot and always fly Delta, get a Delta card for the miles. If you buy a lot of groceries, get a card that gives you the best rewards/cash back on grocery purchases, etc. Just don’t apply for a random card for the sake of adding another card.

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Posted (edited)
2 hours ago, CKB750 said:

Thanks CV91915, Yeah those cards are not reporting zero balances maybe like $7 or $10 on each..So at this point I shouldn't app for another card? And also I see ypu said that you would close Merrick and first Premier with being my oldest? I would have to sock drawer first Premier 

FICO will use the balances that report to calculate utilization.  Most cards report your statement balance, but there is a handful of oddballs that report as of some other date (like the last day of the month).

 

Here is a discussion about the "one card/$2" recommendation:

 

 

Closed cards count toward AAoA, so the Merrick and FP cards will still benefit you for 10 more years until they drop from your reports.  

 

The reason we encourage closing these sucky cards is that they tell a human credit analyst who is reviewing your reports, "This credit report was an absolute disaster within the just past few years.").  These have served their purpose, so I'd let them go.

 

If you are still concerned about account age, consider getting added as an AU to someone's very old, very clean non-Amex.  Last year, even with perfect credit, I had my mother add me to one of her Chase cards that she opened in 1992.  This became my oldest card -- open or closed.

Edited by cv91915

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That makes sense DPB.But im definitely not looking for any cards and the moment 

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Thanks CV91915, but I'm not concerned about the account age that much.But also I don't anyone to add me as a AU on to there account so that's okay with me.I will still get rid of Merrick and first Premier junk cards and see what happens from there.

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If that FP turd is costing you money to maintain, then get rid of it.  Keeping a turd in the punch bowl is still a turd when you have an annual fee that is not capable of being recouped through card benefits.  Age does not go away given that accounts continue to report for up to ten years following the last activity.  It has no meaningful limit and can be replaced with far better cards...same holds true with Merrick. 

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3 hours ago, CKB750 said:

Thanks CV91915, Yeah those cards are not reporting zero balances maybe like $7 or $10 on each

OK, so you don't want balances on all of them. Just one. Let the rest report $0

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3 hours ago, CKB750 said:

Hey Shifter, So your saying even tho FP card is my oldest card I still should close it? What are your suggestions? Thanks 

Probably. Definitely if it has any sort of fees. 

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17 hours ago, shifter said:

Hey buddy. Not sure if you've been spending time over at MF, but your advice is kinda terrible. 

 

Keeping the oldest card open is a good general rule of thumb, but not when it's a bottom feeder like FP. 

 

0% util is not good and "under 30%" is also terrible generic advice.

 

Paying off some of the car loan will do very little to help and definitely not a 25 point boost with his profile. He's pretty much maxed out with the 30DLs.

 

I would advise spending a little more time around here reading and studying before dispensing more bad advice for the next OP

The OP's stated goal is to raise his scores to 770+

My advice was the single best thing he could do to achieve his goal would be to attempt to get his two late payments deleted through good will letters.  

Was I wrong?

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