James And Ro…, Renter in Aiken, SC

How can I safely increase my credit?

Asked by James And Robin L, Aiken, SC Tue Jun 4, 2013

As I (Robin) mentioned in another question, I supposedly have a credit score in the high 670s, but that is only according to CreditKarma.com. How can I get my credit into the 700s?

I am twenty-five years old. I have never had a credit card. I am financing a car, but only because I used gift money from a grandparent (college graduation present) to pay almost half of the cost up-front. Since I purchased it, twelve months ago, not a single payment has been missed. I have never financed any other cars or loans. I really don't want to get involved with credit cards, but I am scared that I have no chance of ever owning a house.

(Husband has poor credit due to a couple of past situations with family members in need.)

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3
Christina Hayes’ answer
Robin, I have free information for boosting credit scores on my blog here on Trulia.


Best of Luck & Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
http://www.everlastingcredit.com
https://www.facebook.com/EverlastingCR?ref=hl
0 votes Thank Flag Link Tue Jun 11, 2013
0 votes Thank Flag Link Wed Jul 31, 2013
This is a great question Robin...

You've already taken the first step towards improving your credit by focusing on it. Keep in mind, that if you apply jointly with your husband for a loan, the lender will take the lowest of your scores and underwrite using that figure...

Your credit score is factored using a complicated algorithm that a Math Major would have problems deciphering... the easiest way to improve is to follow a few rules:

Have a checking account. Have a savings account. Have an installment type loan (your car), Obtain a credit card (revolving debt product), pay your bills on-time, pay more than the minimum, and keep your credit accounts open for at least 3 years before closing them.

The "Credit Score Calculator" likes to see a few things on your file:
You have credit products - best to have at least 1 of each to show you know how to use them wisely.
You make your payments on-time, and pay more than the monthly minimum
You NEVER use/roll over more than 35% of your available balance on your Credit Card accounts.

It DOES NOT like things like: Late payments, defaults, charge-offs, payday loans, pawn loans, etc...

Since you have a great payment history on the installment loan side (car loan), I would suggest opening a couple credit cards, and using them wisely. Don't go applying for 10 cards and rack up balances, go get a few and use them properly, never using/rolling over more than 35% of your available balance. You could also get a "Secured Credit Card" which is a credit account backed by a savings account you open at a bank.

I hope this helps a bit!
0 votes Thank Flag Link Tue Jun 4, 2013
Thank you for your response. I have two checking accounts, one of which I have had since high school (seven years ago). I am going to attempt to get a secured credit card from the same bank.
Flag Tue Jun 4, 2013
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