credit card karma
Credit Karma Answers: What to do with my first credit card?
Why won’t my credit score go up?
My credit score is 623. I have some collections items on my credit report from about six years ago. In the past three years, I’ve worked pretty hard to build my credit score – no late payments, no collections, and paid down about 80% of my debt. I currently have one open credit card that I pay in full every month – it has been open for a year and that is the only “hard” inquiry on my report from the last three years. I am also listed as an authorized user on one of my husband’s credit cards that has been open with no late payments for four years. We currently owe less than 10% of the limit. I monitor my credit monthly on Credit Karma.com and my credit score has actually dropped by about 20 points! I check my report annually and there don’t seem to be any erroneous items on the report… Why won’t my score go up?
Hi… here is what I’d suggest you do:
1-Dispute the old collection items on your credit report. It is very common to see them get deleted when they are that old because the lenders usually won’t even bother going back into archives to find the info. When they don’t verify the debt, the CRA will delete it.
2-You mention you are an authorized user on your husbands card.. and you say it is in good standing and owes less than 10% of available balance so I would NOT get off of this card. Period. If you can get on as a joint owner, that is great but you do not want to lose this positive account.
3-You are doing everything right. You are keeping balances low but your big problem is you do not have enough accounts building. So-get another credit account. With a 623 score you will be able to get a card that is not secured. You can go to whogavemecredit.com and put in your state and score and you will see what others are qualifying for. I will tell you that a walmart/sams card you should get approved for with no problem but you’ll find others.
4-For the best score you really should have 2-3 credit cards (all balances low), and 2 installment loans.. so something like a car or mortgage or even a personal loan. The fact that you don’t have those is really hurting you. You may want to consider putting $1000 in a bank account, getting a personal loan and then just make payments back from that $1000.
Keep my name.. if you file a dispute and add another line of credit, you will see your score go up by at least 50 pts 6-9 months after opening your new account. If you can add an installment loan.. after 6 months.. you’ll be in an even better position.
You are doing things right.. you just do not have enough positive credit being added monthly. Get the negative off (dispute them all now) and open a new account or 2. Your score will drop briefly with the new inquiry and new account but again.. after 6 months it will recover and spring higher.
Been there and done that!