The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: NoLongerCollegeRaven on October 24, 2017, 04:28:52 AM
-
Hey Mustachians!
I have a question about credit scores, more specifically how it is calculated.
From Credit.com, my score is 699. (Only a 14mo history so I think it's good enough?)
What annoys me is that it reports my Credit Mix as being C- as I only have credit cards. I'm still in the phase of building credit so I'm kind of worries I'll have to literally put myself in debt myself to get a good credit score?
Thanks,
Raven
PS: I'm interested in a better credit score only because it would help me get better miles/points to spend at hotels while traveling to and fro for school (I'm an international student) and breaks.
-
Pay your bills on time and have a 2-3 year credit history, you'll be fine. The 699 is entirely driven by your length of credit record.
You want to have 1-2 no-fee credit cards that you keep (and keep active) for a long period of time. That'll drive a positive number for longest credit file.
Get to a 730+ and you really have nothing to worry about.
-
If your parents have cards that have been open longer and arent amex cards they could add you as an AU but not give you the card and you'd see an instant boost in credit assuming they have always paid them on time.
your lack of income if you're a student will likely be what costs you the most in getting new cards not really the credit score.
-
Thanks for the advice!
Unfortunately (Fortunately?) my parents don't believe in credit cards.
I currently have an AMEX (Delta Skymiles) and DiscoverIt as well as an Amazon Prime Storecard.
I'm planning to ditch the AMEX before the end of the second year (when the fee kicks in) while my Discover has no fee.
Should I try and get another nofee card before ditching my AMEX?
-
You can also apply for a line of credit to have more types of debt on your record. Just don't use it, and it can also serve as a useful emergency fund if it has 0 or low interest (which is possible for students).
-
I currently have an AMEX (Delta Skymiles) and DiscoverIt as well as an Amazon Prime Storecard.
I'm planning to ditch the AMEX before the end of the second year (when the fee kicks in) while my Discover has no fee.
Should I try and get another nofee card before ditching my AMEX?
Why don't you just convert the Delta AMEX into the AMEX Blue Cash? To be honest, if converting voids any sign-up $$ then I personally would cancel (as score would rebound after several months) and get a new but if you can convert to a no annual fee card that has a sign-up bonus, that's a win-win. You get to keep your credit history increasing and make some money.