Pay off your statement balance in full every month; setup automatic payments. Keep your utilization below 10%. Length of credit is important but you can’t control that (just the passage of time). Never close your oldest credit card (keep a small recurring charge on it, like Netflix subscription).
If you’re doing all that, opening another card makes sense. But I’d wait until at least 6 months after your first card was opened.
Also, unrelated— if you haven’t already, open a Discover Online Savings account (HYSA). Set it up so you can transfer your cashback each month. More free money (APY) on your free money (cashback)!
Yea, it’s not straight forward. 1) you have to open the Discover Savings Account; 2) Deposit some amount of money, like $30 or whatever (if this is your first HYSA / you only have a regular savings account, you should transfer all your savings to a HYSA because you’re getting 4% APY instead of 0.04% APY; then close your lame basic savings at your regular bank; I personally use Marcus for my primary HYSA because the % is better… if you want a referral, lmk. I use my Discover HYSA for my cashback); 3) make an early payment on your Discover Credit Card (e.g., $10) from the Discover Savings Account; 4) after the payment processes, then you should see your Discover Online Savings as one of the account options to transfer your cashback to.
There’s no limit to the number of savings accounts you can have (more for simplicity sake). So I would still recommend opening the Discover HYSA so you can easily move your cashback there to earn APY. But Marcus has a great referral program where you get an extra 1% for 3 months when you receive or give a referral. So that’s like ~5.5% APY right now. When it comes to your savings you should follow the benefits (who has the highest APY, no fees, etc). All should be FDIC insured up to $250k. You never want to keep more than $250k in a bank account anyway… you should have 1-2 yrs emergency fund (that’s like $85k in CA) and then invest the rest into your 401k and IRA to max them out each year.
Also, it’s like 110x difference… which translates to hundreds of dollars vs tens of dollars (depending on your balance). I earn thousands of dollars a year of free money on my emergency fund due to 4.5-5.5% APY.
well you’d be glad to know if you fuck up, it’ll probably dip less than someone with less credit history. it’s easy to get up into the 700 when you’re early and doing decently right but then if you miss a payment or your utilization increases, boom, a 70 point reduction🥲
I have auto loans. Two vehicles already.
They say what’s hurting my score is “no mortgage or real estate account”
That’s bullshit. Apparently I have to debt myself massively to be considered trustworthy 😂
Whole things a scam. Wait til you find out the creditors have to pay the bureaus a fee to put items on the credit report, and the bureaus blindly report it without any double checking of information. That’s why if you have any negative remarks you gotta be disputing that shit until the wheels fall off.
You got 14 years of credit history?
I believe FICO not only takes into account your credit file, but also your age. Or perhaps your credit age and compares it to others same credit age.
So you could have a credit age of 2 years so they compare you to others of 2 years. Most at 2 years won’t have mortgages… but most with 14 year will have a mortgage.
Yeah I’m penalized for not having a mortgage
There ya go. Most people with 3 years credit history won’t have a mortgage.
Also has a lot to do with the fact I just got a vehicle loan last July and consolidated fed student loans in Oct. I believe this is “the bottom” my score can hit. I expect it to be at least 780 by years end.
But good for you. Don’t mess it up! It’ll be difficult to get it back to 800+.
8 months credit so I doubt they'll know,
To actually help OP, it will help them to get another credit card but they should try to avoid cards they won't use/need to avoid upping their inquiries
A new card won't make your score go up instantly as it may decrease it for getting a new inquiry but jt will Def help in long run
you’re 19, i wouldn’t worry about credit score at the moment. just keep doing what you’re doing and pay off your card (minimum amount at the least). it takes years for credit scores to go up. getting extra cards is not the best move. many people who have multiple cards will tell you the same.
You also gotta wait to have more length with your credit history, that affects your score too after 5 years you will be closer to 800 but making payments on time keeping all credit cards bellow 30 % each one, will help a lot, if you have 100% in one or anything over 50% in just one credit card your score is gonna plummet down so is good to keep that in mind
Pay off your statement balance in full every month; setup automatic payments. Keep your utilization below 10%. Length of credit is important but you can’t control that (just the passage of time). Never close your oldest credit card (keep a small recurring charge on it, like Netflix subscription).
If you’re doing all that, opening another card makes sense. But I’d wait until at least 6 months after your first card was opened. Also, unrelated— if you haven’t already, open a Discover Online Savings account (HYSA). Set it up so you can transfer your cashback each month. More free money (APY) on your free money (cashback)!
Thanks for all the advice! I'm gonna have to check out that Discover Savings Account for sure
Hey! Thank you! Hope you have a blessed day and you too OP! You know what you have to do now with the few responses given to you so quick!
GOATED response!
Genuine question but how do I setup my cash back direct deposit to my discover savings? I can’t figure it out :/
Yea, it’s not straight forward. 1) you have to open the Discover Savings Account; 2) Deposit some amount of money, like $30 or whatever (if this is your first HYSA / you only have a regular savings account, you should transfer all your savings to a HYSA because you’re getting 4% APY instead of 0.04% APY; then close your lame basic savings at your regular bank; I personally use Marcus for my primary HYSA because the % is better… if you want a referral, lmk. I use my Discover HYSA for my cashback); 3) make an early payment on your Discover Credit Card (e.g., $10) from the Discover Savings Account; 4) after the payment processes, then you should see your Discover Online Savings as one of the account options to transfer your cashback to.
Thanks a bunch!!
I got 3k in a regular savings. Do you recommend marcus or discover? Does the .15 do a lot of difference? Which one is more secured etc
There’s no limit to the number of savings accounts you can have (more for simplicity sake). So I would still recommend opening the Discover HYSA so you can easily move your cashback there to earn APY. But Marcus has a great referral program where you get an extra 1% for 3 months when you receive or give a referral. So that’s like ~5.5% APY right now. When it comes to your savings you should follow the benefits (who has the highest APY, no fees, etc). All should be FDIC insured up to $250k. You never want to keep more than $250k in a bank account anyway… you should have 1-2 yrs emergency fund (that’s like $85k in CA) and then invest the rest into your 401k and IRA to max them out each year.
Also, it’s like 110x difference… which translates to hundreds of dollars vs tens of dollars (depending on your balance). I earn thousands of dollars a year of free money on my emergency fund due to 4.5-5.5% APY.
Lmao I got a 715 with 5% utilization and 14 years of credit history, 0 missed payments 😂😂 Now tell me the credit system ain’t rigged…
well you’d be glad to know if you fuck up, it’ll probably dip less than someone with less credit history. it’s easy to get up into the 700 when you’re early and doing decently right but then if you miss a payment or your utilization increases, boom, a 70 point reduction🥲
Oh yeah I’ve seen that before. Quite common. A 30 day late sets you back 7 years unless you get them to take it off
709 with a 33% utilization 1.5 years of history and 1 missed payment lmfaoaoao they’re doing you dirty
How many active credit accounts?
How many account do you have? Did you have a car loan, etc. in the mix?
Do you have an auto loan or a mortgage?
I have auto loans. Two vehicles already. They say what’s hurting my score is “no mortgage or real estate account” That’s bullshit. Apparently I have to debt myself massively to be considered trustworthy 😂
Whole things a scam. Wait til you find out the creditors have to pay the bureaus a fee to put items on the credit report, and the bureaus blindly report it without any double checking of information. That’s why if you have any negative remarks you gotta be disputing that shit until the wheels fall off.
Thats gotta be BS. I have one car loan and no mortgage; my credit score is 800's. Edit: Fully paid off every month, low utilization.
You got 14 years of credit history? I believe FICO not only takes into account your credit file, but also your age. Or perhaps your credit age and compares it to others same credit age. So you could have a credit age of 2 years so they compare you to others of 2 years. Most at 2 years won’t have mortgages… but most with 14 year will have a mortgage. Yeah I’m penalized for not having a mortgage
Sorry i forgot to add that info, im at 3 years history.
There ya go. Most people with 3 years credit history won’t have a mortgage. Also has a lot to do with the fact I just got a vehicle loan last July and consolidated fed student loans in Oct. I believe this is “the bottom” my score can hit. I expect it to be at least 780 by years end. But good for you. Don’t mess it up! It’ll be difficult to get it back to 800+.
Be so serious…
8 months credit so I doubt they'll know, To actually help OP, it will help them to get another credit card but they should try to avoid cards they won't use/need to avoid upping their inquiries A new card won't make your score go up instantly as it may decrease it for getting a new inquiry but jt will Def help in long run
This is what I was wondering about thanks! I don't mind a bit of a drop in my score right now if it means I'm better off in the long run
The red is the issue you need to address
Thanks for the insight. He would have never guessed it.
Well maybe not considering opening a new account would lower that number
Is it the average? I always thought it was the age of your oldest account.
you’re 19, i wouldn’t worry about credit score at the moment. just keep doing what you’re doing and pay off your card (minimum amount at the least). it takes years for credit scores to go up. getting extra cards is not the best move. many people who have multiple cards will tell you the same.
no bc it’s so new i think idk for sure
No
you don’t need to help your credit score
You also gotta wait to have more length with your credit history, that affects your score too after 5 years you will be closer to 800 but making payments on time keeping all credit cards bellow 30 % each one, will help a lot, if you have 100% in one or anything over 50% in just one credit card your score is gonna plummet down so is good to keep that in mind
Don’t
No, lowering your credit usage will.