Hello everyone, this is my first post. I would like to refinance our house in about a year and need a strategy to get my credit in a position where I can get the best loan possible. Back in the 1990s I got myself in credit trouble so I swore off credit cards and consumer loans “forever”. For example, I made my last car payment ever in 1994. I pay cash for everything. The only loan that showed up in my history for a long time was my mortgage. My mortgage got behind in 2012, but since 3/2013 I have paid on time. I did buy another house through an FHA loan last year with a credit score of 660.
Knowing I wanted to increase my credit to eventually refinance my mortgage, I did apply for and receive a Chase Freedom card. My FICO score went up about 25 points in 1 month. Currently my scores are 680, 684 and 691. I have just been using the Freedom card for gas to generate some activity. The limit is $ 4,000. I just today applied for a Discover card so I would have more opportunities to make on time payments. Is my strategy sound? The worst aspect of my credit is low % of on time payments because of my mortgage troubles 3 years ago. Any advice would be appreciated.