I just got a free credit report. It says that my score is lower than 85% of the general public.
I’ve never missed a payment, and I’ve always paid far more than the minimum/paid off the entire balance. And I’ve never been late. Ever. I’m employed. My two credit cards are totally paid off. There’s no sort of unusual activity on my report. I don’t have any loans for anything–I rent and my car was a gift from my parents (it was my mom’s old car). I’m only 21, and I just turned that last week. I am a college graduate (BA). The credit company says that the main things hurting me are lack of “retail accounts” and lack of a long history.
I’m getting married in October, and I’d like to have somewhat decent credit. How can I up my credit score? And I mean in some way other than “wait to get older.” I’d like to be able to buy a house sometime in the future, and I’d like to have good credit.
In my own experience, you’re doing ok. Keep paying off your cards on time. You are still young and probably haven’t had your cards too long. Patience will work wonders.
My fiance didn’t get his first credit card until he was 26 and just out of college. He paid it in full every month. He only had 2 small student loans and they were also paid on time every month. Despite this, he needed his mother to co-sign so he could get a $3000 car. Once he got the car loan, his rating skyrocketed. When he was 28, he got approved for a mortgage without a co-signer. At 30, he was approved for a $15000 home equity loan in less than 5 minutes. The same year, he was approved for a $20000 credit line from a certain home improvement company - also in under 5 minutes. He didn’t even want the credit line. He was just curious. I don’t think he could get rejected if he tried.
All it took was a car loan for a crappy car.
If you don’t want to buy a new car, think of getting a credit card to a department store. Use it a little every month and then pay it off. For some reason, my best friend had a better credit rating than me. We used our cards pretty much the same amount. She had 2 department store cards and I had a Visa and a Mastercard. I don’t know if that was the reason but it still seemed odd to me.
By the way, you sound very mature for your age. You’re doing fine. Just keep being responsible.
Congratulations on the engagement.
By the way, I forgot to say this. Keep monitoring your credit report. I get mine every year on my birthday. I splurge and spend the $45 for all 3 credit bureaus and my credit score from each agency. I consider it my birthday present to myself. It’s a nice present because it gets a little better each year. I’ve found a few little problems and I always know where I stand.