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
Open Another Credit Card to Build Score? My situation...
Me: 1 year on CK, love learning from you all! 27 year old looking to build credit in anticipation of mortgage in +/- 10 yrs.

Scores: 730 TransUnion/738 Equifax

Income: $39,000 annual

Current Cards: 2 open cards with $3,000 limit (NBT Bank Student Rewards Card; 2 years 5 months old) and $10,000 (Capital One Quicksilver; 9 months old).

Details: Utilization 1-9% always (I pay it off in full before it hits 10%). 100% payment history on time and in full. 0 derogatory marks. 3 total accounts (2 credit cards, 1 student loan already paid and closed). 2 credit inquiries (1 to get the Quicksilver card, and 1 to get a Credit Limit Increase to $3,000 on student card). AVERAGE AGE CREDIT HISTORY 1 year 7 months.

According to Credit Karma, I should increase my number of accounts and age of credit history. I recognize my age of credit is #1 thing keeping my score low. Is there anything I can do to keep raising my score in addition to just waiting out the years? Would applying for a new card (thinking Discover it to maximize rewards) help? If so, should I wait until my credit inquiries drop off first?

Score simulator says opening a new card would either bring my score down 4 points ($10,000 limit) or raise it 18 points (Less than $10,000 limit) depending on my limit.

Thank you for any and all help!

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1136 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

Three credit cards and one installment loan that are all reported to all three credit bureaus are the basic credit building tools. Yes you do incur short term damage when building a robust credit profile, it is unavoidable and necessary. Remember to worry about your FICO scores, don't get all of your advice here at credit karma. You sound like you are doing well with all of this and are headed in the right direction at a good pace.

Reply by
CreditBuilder26

1 Contribution
0 People Helped

Hi TryingToUnderstand,

Thank you for the advice. I agree, I think I could benefit from one more card - will probably wait until my income goes up a little and my inquiries drop off in a year or so to apply. Since I do not need an installment loan, and it sounds silly to apply for one just to build credit, I might be out of luck on that end until I get a car or a house. Do you know of any secure way to get a free FICO score?

Thanks for your help!

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

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.