Hi, I'm 23 years old. I've had a BOA Visa for the last 2.5 years and a Chase MC for 1.5 years. These are the only forms of credit I've ever had. I've never taken out a loan or financed a large purchase. My credit score is 744, and has not changed in nearly a year. I'm curious as to why this might be. When I first got the VISA, my score rose very quickly. In the last year, it has flatlined. The balances on these cards have always been less than 30% and I always pay them off in full every month. So, nothing has really changed. I'm in a position now where I'm making decent money and saving a large amount as I plan to start investing in real estate sometime within the next few years. I want to make sure I get the best rate possible on a loan. I thought I was doing everything right, but what has to change to get my credit score over the hump? Your help would be greatly appreciated. Thanks
The lack of history like department stores,car loans,etc. thats whats holding it back.At 744 thats a pretty good score.
Length of history and the lack of other credit besides credit cards will definitely hold you back. If you want to get up into the high 700s or 800s, you'll need to show that you can responsibly manage more than just credit cards.
1st. Get some perspective. 1. you're 23 yrs old. You've only been in the credit world for 5 years and have a long life ahead of you. 2. a credit score of 744 is very good by anyone's measure. 3. Better yet, you're successfully managing your debt (the biggest accomplishment of all, IMO). 2nd. Why the preoccupation with your score? That number and a decent income will qualify you for whatever you need to buy (O.K., you may need to wait before buying the Gulfstream, but is that really such a problem?) You are more than a number and the credit score is not something that should rule your life. If you are planning to invest in real estate by getting an installment loan then you might want to get some installment credit on your report. Now is a great time to buy a car. They WILL deal and you can get a great car at a great price. Even if you could pay cash, get a 2-3 yr loan so you'll get some installment trade lines. If you look for a deal that pays 0% interest (or thereabouts) then you can get this entry on your credit report without paying any interest. In a couple of years when you're in a position to qualify for a mortgage, you'll do just fine.
What everyone else says - you need a mix of credit (and some more age) which will only come with time. Be prepared, as you start adding to the mix, expect your score to take one step back, and after some time, take two steps forward. But, 744 is a great score
I agree, too. And if you're buying real estate for investment, expect the rules to be a lot different than if you're getting a mortgage for the home you live in. You'll pay higher rates and may have to take a shorter term. But that's because it's investment property and not your primary home.
