Tips to strengthen credit score.

[Radio Flyer1647545514]

I thought we had a sticky I was going to post in but can't find it. I'm looking to knock my credit score up as much as I can here in the next few months and I think I have a few things I can do to accomplish this but want some insight. I'm planning on having my credit checked to buy a house and want to stay in the excellent credit score after the check.

 

I just checked my Fico and I'm sitting at 804 as of this moment.

 

I don't have any store cards like a best buy card or macy's card or anything. I think having one of these could help my score so I have different types of credit open.

 

I don't have any loans out, I don't owe any money on any of my cards either and I have never had to pay interest on any of them ever.

 

I probably have around 50-65k of revolving credit split between 9 cards, maybe a few more. One of my cards is almost 8 years old but has my lowest limit of only 1,000. I've been told to keep this card since it's my first one and keeping my average length of credit history higher.

 

I have 2 or 3 other cards I've had for 6-7 years, they're all low limit cards and neither of them I use, I just kept them to keep my length of credit open average up. I might have 5,000 total credit between these 3 cards.

 

After these low limit cards I have 3 cards with Citi and 3 cards with Chase. These 6 cards make up 80ish percent of my available revolving credit, split almost evenly between these banks. Two of these cards carry an annual fee, one of which I will cancel or move the balance once I use my reward points. Should I combine my limit with Chase to 1 card instead of 3 and my limit of the 3 Citi Cards to 1?

 

Would carrying some type of small balance help boost my score, say a $10 balance?

[Exodus]

I never ever carry a balance on any of my cards. Pay off 100% each month. Not sure if that's good or not.

[zeitgeist57]

804 is a very good FICO score. Keep in mind that your score will also be based off of debt-to-income...so making more money while keeping revolving and amortizing debt to a minimum helps as well.

 

Why do you have so many credit cards? I think your ideas are spot on: unless the benefits are great, close down some of those open accounts and just request a higher limit from the Chase card and the Citi card.

 

Moreover, what do each of these cards do? Both of those banks are VISA/MasterCard issuers. I can see having an AmEx card and a bank-issued VISA/MC card...but not sure why you need multiple banks unless some of them are for small business needs...

[Radio Flyer1647545514]

I used them all at one point for the bonus sign up. I already have an AMEX card. I bank with Huntington, the card they had in 07 they sold to BOA. This is the card I've had the longest. Their current card benefits are not very enticing.

[o0n8]

next few months

 

I don't have any store cards like a best buy card or macy's card or anything. I think having one of these could help my score so I have different types of credit open.

 

Bad idea. Having the inquiry to open the credit will take down your score instantly and take months to go back up. And you already have credit cards so they're not worth it. The less inquires before you apply for the home loan the better.

 

and +1 for Clay's post

[Radio Flyer1647545514]

I know an inquiry short term will lower my score but in the long run how much more will it allow it to grow by adding diversity? I'm looking for options to allow it to grow higher in the long run. Keeping it high/stagnant has never been a problem.

[o0n8]

I guess I'm confused by your statement of building it up in the next few months in the first post and your last post of worrying more about the long term. Credit Cards aren't stocks, you don't need to diversify how you can have potential debt.

 

With that said, I just don't see store credit cards as a good financial option. They generally have higher rates and only store specific perks. I would do what you posted towards the end and what Clay said about consolidating the number of cards and raising the limit on the ones you keep.

[Radio Flyer1647545514]

I know diversity is factored in. I don't care about percentage rates, I don't carry balances. If I were to open another type of card for a boost (if it would boost) I would do it the same day I got my score ran for pre approval of a home loan to lessen the ding to my score. If that means I fall to a 760 or 770 but can be back up to 815-820 in 5 to 6 months I'll do it.

 

I'm just asking questions on options that could possibly bring it up. I know even cancelling cards will drop my score some.

 

My two biggest factors effecting my score always say, diversity of credit and length of time accounts have been open.

[Coaster]

Not sure I would do anything. Is going from an 805 to an 815 really going to make a difference in rates?

[o0n8]

I know diversity is factored in. I don't care about percentage rates, I don't carry balances. If I were to open another type of card for a boost (if it would boost) I would do it the same day I got my score ran for pre approval of a home loan to lessen the ding to my score. If that means I fall to a 760 or 770 but can be back up to 815-820 in 5 to 6 months I'll do it.

 

I'm just asking questions on options that could possibly bring it up. I know even cancelling cards will drop my score some.

 

My two biggest factors effecting my score always say, diversity of credit and length of time accounts have been open.

 

I believe the diversity of credit is the type of credit (revolving, installment & open accounts), not the quantity of the same kind of credit. Someone please correct me if I'm wrong.

 

804 is great so you're definitely doing it right. 800+ is considered Excellent so Coaster has a point. There's no FICO level above Excellent.

[coltboostin]

Tips to strengthen credit score.

 

 

I just checked my Fico and I'm sitting at 804 as of this moment.

 

LOL

 

On the mortgage side of things I can tell you there is zero benefit to your interest rate pricing from 740 up.

[zeitgeist57]

Adding new credit inquiries or lines will NOT help you in the next few months; it can only hurt you.

 

Close out some of those cards. Have you taken a proper look at your credit report from a service like LifeLock? They will usually have a half-dozen bullet items that will tell you what else you can do to improve your credit score.

[jeffro]

Damn son, i thought my 780 was good.

[Radio Flyer1647545514]

Adding new credit inquiries or lines will NOT help you in the next few months; it can only hurt you.

 

Close out some of those cards. Have you taken a proper look at your credit report from a service like LifeLock? They will usually have a half-dozen bullet items that will tell you what else you can do to improve your credit score.

 

I have not checked, that's something I'll look into. Thank you.

[ShowHBK]

I never ever carry a balance on any of my cards. Pay off 100% each month. Not sure if that's good or not.

 

I honestly don't know how they calculate it because I have one credit card and always pay off the balance each month and my score has actually gone down some months. I always pay my bills on time and have 0 balance at the end of the month and once my score dropped by 21 points and then the next month it went up by 37 O_o

[gillbot]

Adding new credit inquiries or lines will NOT help you in the next few months; it can only hurt you.

 

Close out some of those cards. Have you taken a proper look at your credit report from a service like LifeLock? They will usually have a half-dozen bullet items that will tell you what else you can do to improve your credit score.

 

Why close? I have ~12 cards open but rarely use them. I was advised to just leave them sit, not to close them.

[90G60]

Be careful with Lifelock. I had looked into them a few months back and read some disturbing reviews. I think they are also involved in a class action lawsuit regarding business practices.

 

Just do a little research before you give them your SSN.

[Turbs3000]

Tips to strengthen credit score.

 

 

 

LOL

 

On the mortgage side of things I can tell you there is zero benefit to your interest rate pricing from 740 up.

This is probably one of the more important posts. You aren't gaining anything by picking up 15 points. Their really isn't much of a point in you opening or closing anything. If the mortgage company really wanted changed you could change it, they can force the agency's to post the change and then rerun your report. If you really don't carry any debt one your report hen your debt to incomes are going to be what they are and that's about it.

[Radio Flyer1647545514]

Why close? I have ~12 cards open but rarely use them. I was advised to just leave them sit, not to close them.

 

 

He's telling me to move limits of 3 cards to one and close the other two.

[gillbot]

He's telling me to move limits of 3 cards to one and close the other two.

 

I was advised NOT to close, but to remove debt. We did and our score jumped. Having open lines with a 0 balance shows restraint.

[mrs.cos]

Personally, i'd close anything that had a fee attached to it

 

We have two cards. Thats it, and now two car loans, but even prior to that, scores were similar to yours.

 

Longevity, and Use i think are probably the best ways to handle it. many cards just opens you up to ways to have your identity stolen, imho.

[SRTurbo04]

I was always told to not close cards as well, but a few years back i closed 6 cards as i didnt want the temptation. Low and behold with in 3 months my score jumped up almost 80 points to its peak of 826. :fuckyeah: I say close the ones that have a annual fee. Plenty of cards out there that give good benefits that dont cost you to have the card.

 

Maybe ive missed it, but why are you trying to get your score higher? Buying a House, getting a car, Stroking your ego?

[Berto]

Having a score of over 800 anything you do could raise it or in some weird way may end up lowering it.

 

Whats the point?

[Turbs3000]

I was always told to not close cards as well, but a few years back i closed 6 cards as i didnt want the temptation. Low and behold with in 3 months my score jumped up almost 80 points to its peak of 826. :fuckyeah: I say close the ones that have a annual fee. Plenty of cards out there that give good benefits that dont cost you to have the card.

 

Maybe ive missed it, but why are you trying to get your score higher? Buying a House, getting a car, Stroking your ego?

House

[gillbot]

I was always told to not close cards as well, but a few years back i closed 6 cards as i didnt want the temptation. Low and behold with in 3 months my score jumped up almost 80 points to its peak of 826. :fuckyeah: I say close the ones that have a annual fee. Plenty of cards out there that give good benefits that dont cost you to have the card.

 

Maybe ive missed it, but why are you trying to get your score higher? Buying a House, getting a car, Stroking your ego?

 

I agree, if there are fees or anything, close them. If it doesn't hurt, leave them open but unused. I'm not about to get into a score pissing match but mine was over 800 also, jumped when we just consolidated debt and reduced it as opposed to closing accounts. I was advised that the open to used ratio was more important than anything so we leave accounts open to keep that ratio high.