Thank you all for being so helpful! Because of your sound advice, my scores have improved almost 40 points since June 19th of this year!
Currently, I have an installment loan for my car through a local bank. This is a 60 month loan that will be paid off in August 2016. The interest is very low, about 2%. I’m really worried that my scores are going to drop when the loan closes next year, but I might have an opportunity to extend the loan through December 2016. This is solely to keep a good mix of credit as I build my score in order to purchase a home. Should I jump on this opportunity if it comes through? Or should I take out another type of loan closer to the time the installment loan will be paid off? My current situation:
Scores are EQ 631, TU 614, EX 628, and climbing pretty rapidly, though not high enough for approvals on most things just yet.
I am keeping my util under 10% and making on-time payments.
I currently have Discover It ($ 1800, just opened), Cap One QS ($ 750, open since 2013) and Cap One Secure ($ 200, open since Feb 2015). Cap One will not approve me for a CLI on the QS just yet. Maybe in 6 months.
I’ll be gardening until Feb 2016, which is when all baddies fall from my report, leaving only 3 late pays on the C1 QS card (1 from 2013 and 2 from 2014).
I have under 10 inquiries.
I recently applied for Barclay Reward, Amazon store card and BofA Americard and was denied for all (yes, I called for recon-they want to see the baddies fall off my report before approval). BofA approved me a for a secure card offer, but I’m worried about having too many new accounts so I may hold off.
I have a 20 year credit history thanks to a card my parents opened for me when I was a kiddo, and I’ve made on-time payments other than the late pays mentioned above and the very old baddies (there are 5) again due to drop by Feb 2016.