Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
CreditBuilder26

1 Contribution
0 People Helped
Advice for responsible credit builder?
Hi there! First time posting, new CK user. Looking for some sound advice to raise my credit score long term. Here are some details on my journey thus far:

Recent 26 year-old college graduate. Took out $5,250 in federal subsidized student loan debt over 4 years (3.86% interest). I have paid my regular monthly payment since the end of the 6-month deferment period, with a current balance of $5,000. With my new job, I should be able to pay off the entire amount by October 2015. Perfect payment history, automatic withdrawal.

Opened my first credit card through my bank in November 2013. Original credit limit $800. Received automatic CLI in August 2014 to $1050. I keep my credit utilization ratio to max 8%, and my bill is paid in full either when I hit 8% during the month, or automatically at the end of the billing cycle.

Signed up for CK this week, told me I had 761 credit score. Thought I might want to get a new card to open up another line of credit, and increase my ability to accumulate rewards points while staying under my 8% utilization ratio. I put myself back on the credit card pre-approved list, and will hopefully start getting offers via mail in a few weeks. I only want to apply for a card that I am pre-approved for, hopefully Capital One Quicksilver Cash Rewards Card, or similar.

In the meantime, I requested a CLI on my one credit card. After a hard inquiry, received CLI to $3,000. CK score dropped to 749 TransUnion/761 Equifax.

Now the question: If you were in my shoes, how would you proceed to build credit long term? I do not need an auto loan or mortgage any time soon. What can I do now to increase my score for when I do want a large loan?

Any advice would be great! Thank you for helping me out on this journey.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.