Personal Finance

Advice needed to increase credit score

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  • Jan 23rd, 2016 12:35 pm
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Sr. Member
May 3, 2010
773 posts
460 upvotes

Advice needed to increase credit score

Hi. My current credit score is ranked as "Good" by equifax (mid 600's score). I wanted to see is there a way to increase my credit score quickly and then be able to sustain it.

Here's what I currently have:

- 1 Infinite Visa card (Have had it for about 5 years, 5000 limit. No balance)
- 1 Infinite Visa card (Have had it for about 1.5 years, 5000 limit. No balance. Barely use it as I am not a fan of aeroplan points system)
- 1 MC Elite (Have had it for about 4 years, 7500 limit. My go-to card for everything - small, big purchase, all go on this. Usually don't carry a big balance, but will carry 2500-3000 for a month from time to time. I do make the minimum payments though).
- 1 MC Platinum (Have had it for 7 years now. 3500 limit. Used for minor expenses ~100/month. No balance carried).
- 1 MC Platinum (My oldest card with the most history. Only 300 limit as I don't use it at all. Figured I will keep it just to retain the credit history).
- 1 MC Elite (My most recent card - Just 10 months old. Signed up when the issuer was offering FYF and good chunk of welcome points. Don't use it much. No balance)

- 2 cell phones through the same carrier.
- 1 Cable and internet account with the same carrier.

- 1 Car loan (original 4 year term on a loan of 28000 at 2.8% interest. 2 years remaining. Amount remaining ~14,500).

- 1 Mortgage of 325k. Paid on time. about 24 yrs to go. No late payments ever. But THIS DOES NOT SHOW ON MY CREDIT REPORT.

I was wondering if there's anything I could do to make my credit score better. Like cancelling some of the cards? if yes, which ones and why?

Also, I can paydown the loan in a lump sum amount right away but I like to keep liquid cash handy for unexpected expenses. Is there going to be a vast improvement in my score?

Please note that I have 3 late payments in the past 18 months (1 on a credit card and 2 on my cable account). I am otherwise very punctual with paying my loans.

Help will be appreciated.
14 replies
Deal Addict
Sep 3, 2014
1513 posts
2127 upvotes
BC
Your mortgage SHOULD show on your credit file.

My advice would be to close down some of your credit cards. Less is sometimes more.

Anyway, why do you need a higher credit score? It doesn't look like you need any extra credit.
Deal Guru
User avatar
Sep 8, 2007
10978 posts
14471 upvotes
Way Out of GTA
Yeah I'd probably try to get down to 2-3 CC. Pick the ones that are the most useful to you. You will likely see your score improve just from cancelling those. I'd do an easy step like that first and see where your score lands in a month or so after cancelling. Then evaluate further options.
Deal Addict
Aug 31, 2014
1505 posts
564 upvotes
YVR, BC
a relative of mine has the same issue;

too many cards and too many inquiries......with too much available credit

so far he is shutting down any credit applications for his lifetime other than a mortgage application and he is going to close half of his newest credit accounts to bring down the credit available.

if some of your c/c's are with the same bank - check with them to see if you can transfer the limits to another card, RBC is good for that. if you are not using 2 cards with credit limits they will transfer those limits to your go to card etc.

keep your 3 oldest, should see some minor increases to credit rating after a few months?
Deal Addict
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Aug 9, 2011
2052 posts
409 upvotes
GTA
Always keep the oldest credit cards for longest age
Deal Addict
User avatar
Mar 31, 2009
1219 posts
884 upvotes
If you got rid of some of the cards that you haven't had as long your average age of account would increase, score might go up. Keep your oldest cards, get rid of the youngest ones. Maybe increase the limits on your oldest ones so that even when you make big purchases your credit utilization stays low no matter what. I like having at least 1 card with a high limit that is never used anywhere close to the limit. For me, it's my CT mastercard with a 16k limit and all I put on it is utilities every month, and always pay in full. Also have over 20k with MBNA, but usually have 0% balance transfers on the go, which increases credit utilization. My score goes up or down fairly 'significantly' as my utilization swings from 1% to 40% when I take my balance transfer.

Your 3 late payments are undoubtedly lowering the score. Late is bad. Pay things on time, this goes away over time.

But seriously, there is probably no reason for you to be concerned about your credit score. The only benefit to having a higher score is likely to make you feel good that you have a high score. Probably will not help you in any other way because your score isn't bad in the first place. You are likely better off continuing your life without worrying about this than you would be by going through the trouble of trying to make your score higher.

You already have your mortgage, and even if you didn't your score is probably high enough anyway for there to be no problem at all.
Deal Addict
User avatar
Jun 15, 2005
2098 posts
1968 upvotes
popbottle wrote: 6 credit cards isn't a whole lot. Keeping them open and allowing them to age while improve things over time automatically.
Agreed. 6 cards at those balance limits won't improve things drastically by closing them.

Keep paying your bills on time and let the hard credit inquiries age with time.
Sr. Member
Nov 28, 2013
502 posts
227 upvotes
Cancel your CCs with annual fees. Seems like your paying them just to prop your score up.
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2992 upvotes
BritsinCanada wrote: Anyway, why do you need a higher credit score? It doesn't look like you need any extra credit.
Because somebody did a great job marketing the notion that one needs to be obsessed with credit scores.
unknownone wrote: Your 3 late payments are undoubtedly lowering the score. Late is bad. Pay things on time, this goes away over time.

But seriously, there is probably no reason for you to be concerned about your credit score. The only benefit to having a higher score is likely to make you feel good that you have a high score. Probably will not help you in any other way because your score isn't bad in the first place. You are likely better off continuing your life without worrying about this than you would be by going through the trouble of trying to make your score higher.

You already have your mortgage, and even if you didn't your score is probably high enough anyway for there to be no problem at all.
+1 to both of these.

OP, live up to your credit obligations by making your payments on time (i.e. stop making your payments late) and your credit score will look after itself. IOW, stop living your life to chase some nebulous number.
Deal Fanatic
User avatar
Sep 9, 2012
6962 posts
6078 upvotes
Oakville, ON
GameChannel wrote: Hi. My current credit score is ranked as "Good" by equifax (mid 600's score). I wanted to see is there a way to increase my credit score quickly and then be able to sustain it.

Here's what I currently have:

- 1 Infinite Visa card (Have had it for about 5 years, 5000 limit. No balance)
- 1 Infinite Visa card (Have had it for about 1.5 years, 5000 limit. No balance. Barely use it as I am not a fan of aeroplan points system)
- 1 MC Elite (Have had it for about 4 years, 7500 limit. My go-to card for everything - small, big purchase, all go on this. Usually don't carry a big balance, but will carry 2500-3000 for a month from time to time. I do make the minimum payments though).
- 1 MC Platinum (Have had it for 7 years now. 3500 limit. Used for minor expenses ~100/month. No balance carried).
- 1 MC Platinum (My oldest card with the most history. Only 300 limit as I don't use it at all. Figured I will keep it just to retain the credit history).
- 1 MC Elite (My most recent card - Just 10 months old. Signed up when the issuer was offering FYF and good chunk of welcome points. Don't use it much. No balance)

- 2 cell phones through the same carrier.
- 1 Cable and internet account with the same carrier.

- 1 Car loan (original 4 year term on a loan of 28000 at 2.8% interest. 2 years remaining. Amount remaining ~14,500).

- 1 Mortgage of 325k. Paid on time. about 24 yrs to go. No late payments ever. But THIS DOES NOT SHOW ON MY CREDIT REPORT.

I was wondering if there's anything I could do to make my credit score better. Like cancelling some of the cards? if yes, which ones and why?

Also, I can paydown the loan in a lump sum amount right away but I like to keep liquid cash handy for unexpected expenses. Is there going to be a vast improvement in my score?

Please note that I have 3 late payments in the past 18 months (1 on a credit card and 2 on my cable account). I am otherwise very punctual with paying my loans.

Help will be appreciated.
Why?

If you specifically need to refinance or get a loan or some other reason, then might be worthwhile to take action.

If it's just ego, no need to do anything expect pay your bills on time.
Sr. Member
May 3, 2010
773 posts
460 upvotes
Thanks for the advice guys. I am not chasing a dream score.

I was just declined for a home depot CC to finance an appliances purchase. They told me my credit raring is not good enough.

Additionally, I will soon be moving into a new house so will be applying for a higher mortgage. Just don't want to take any chances. Figured a higher score may solidify my application.

Will paying off my car loan help?
Banned
Jan 3, 2016
75 posts
11 upvotes
Ottawa, ON
GameChannel wrote: Hi. My current credit score is ranked as "Good" by equifax (mid 600's score). I wanted to see is there a way to increase my credit score quickly and then be able to sustain it.

Here's what I currently have:

- 1 Infinite Visa card (Have had it for about 5 years, 5000 limit. No balance)
- 1 Infinite Visa card (Have had it for about 1.5 years, 5000 limit. No balance. Barely use it as I am not a fan of aeroplan points system)
- 1 MC Elite (Have had it for about 4 years, 7500 limit. My go-to card for everything - small, big purchase, all go on this. Usually don't carry a big balance, but will carry 2500-3000 for a month from time to time. I do make the minimum payments though).
- 1 MC Platinum (Have had it for 7 years now. 3500 limit. Used for minor expenses ~100/month. No balance carried).
- 1 MC Platinum (My oldest card with the most history. Only 300 limit as I don't use it at all. Figured I will keep it just to retain the credit history).
- 1 MC Elite (My most recent card - Just 10 months old. Signed up when the issuer was offering FYF and good chunk of welcome points. Don't use it much. No balance)

- 2 cell phones through the same carrier.
- 1 Cable and internet account with the same carrier.

- 1 Car loan (original 4 year term on a loan of 28000 at 2.8% interest. 2 years remaining. Amount remaining ~14,500).

- 1 Mortgage of 325k. Paid on time. about 24 yrs to go. No late payments ever. But THIS DOES NOT SHOW ON MY CREDIT REPORT.

I was wondering if there's anything I could do to make my credit score better. Like cancelling some of the cards? if yes, which ones and why?

Also, I can paydown the loan in a lump sum amount right away but I like to keep liquid cash handy for unexpected expenses. Is there going to be a vast improvement in my score?

Please note that I have 3 late payments in the past 18 months (1 on a credit card and 2 on my cable account). I am otherwise very punctual with paying my loans.

Help will be appreciated.
From what I can see, the one card you use, regularly carries a balance of close to 50%. When you don't use the other cards regularly, as I understand it, their credit limit is excluded form your utility ratio. Its highly probably that your utility ratio is regularly reporting as high as a result of this.

Redistribute your spending so that no card reports a statement balance of more than 10 to 20%. I think that will give you a 50 point boost.
Sr. Member
May 3, 2010
773 posts
460 upvotes
BritsinCanada wrote: Your mortgage SHOULD show on your credit file.

My advice would be to close down some of your credit cards. Less is sometimes more.

Anyway, why do you need a higher credit score? It doesn't look like you need any extra credit.
Since my mortgage doesn't show, is that a good thing?

Would getting my mortgage to show on the report negatively affect my score?
Deal Fanatic
User avatar
Nov 2, 2013
5697 posts
1522 upvotes
Edmonton, AB
If you're 650+, Don't worry about it. Sufficient income and history are more important.
Accountant (Public Practice)

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