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Question By
chegme

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Advice in improving credit and helping credit score
Hi All! I've been using Credit Karma for about two years now! Here's my situation and I'd like to see if I can get any advice from everyone.
Background:
Currently have two open credit accounts open
-1 unsecured credit card with a 500 limit and a balance of about 200 right now. It was at 500 for a while about a year and a half ago, and have been paying it down ever since. I now do not let it get higher than 200 per month. Been open since 2012.

-1 Auto loan with a balance of approximately 5800. This has never been late since 2012.

I have had a charge off and an old personal loan which went into collections. These have been paid in full.

Credit Karma is showing a "score" of 620. I realize this is an estimate.

At this point, I am 21 and have 14 inquiries currently on my credit history. 12 of the 14 will fall off within three months from right now. Mainly, this is because I was looking at financing a car and the dealership sent my credit to more banks than I was originally told.

My main question is how can I increase my credit worthiness? I belong to a credit union for which I have my unsecured credit card.
Would Capital One's unsecured card be a good option? Fingerhut? Wait until the inquiries fall off?
Thanks everyone!

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Top Contributor
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The balance on your credit card is still too high, $200 of $500 is 40% credit card utilization. It is best to keep your credit card utilization below 30% (though 1%-20% is key) at all times. Try to bring the balance down to $100 if you can. If you're getting ready to apply for another credit card, it would be best to wait for the inquires to fall off. Since you're applying for a capital one card then you can use this link to see what you could be pre-qualified for -- https://findmycard.capitalone.com/PageVersions/LandingPages/LP_QUICK_V01.aspx -- ... if they don't match anything for you, then you may only qualify for their secured credit card.

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