S/o credit cards…..how to raise my credit score

[Ottakee]

I checked today and my score is 759.   How can I raise it?

I am debt free….no mortgage, no car loans.  My credit card bill is paid in full each month.  My utilities are on auto pay and never paid late.

I have a max rewards visa from the credit union and a Kohls card and that is it.

Any ways to raise my credit score without carrying debt?

I could get another credit card but mine has good cash back and other benefits so I might not use any other card much….unless I got a travel card for an airline but even then it wouldn’t be used much.

[Arcadia]

Do you use your Kohl’s card every month? My husband has a Target card but we rarely get stuff from Target nowadays so my husband pays our Xfinity internet monthly bill with that card. I have a Mastercard that I don’t use so I charge my $3 iCloud monthly fee to that card. 

[popmom]

Ask for a credit limit increase on your existing cards. That helps with the "credit utilization" piece of the credit score. There's no harm in applying for another card though since you are responsible. Both accomplish the same thing. 

[Ottakee]

11 minutes ago, Arcadia said:

Do you use your Kohl’s card every month? My husband has a Target card but we rarely get stuff from Target nowadays so my husband pays our Xfinity internet monthly bill with that card. I have a Mastercard that I don’t use so I charge my $3 iCloud monthly fee to that card. 

I rarely use the kohls card….like 1-2 transactions a year maybe.  It is an OLD card that I think can only be used in the store.

Edited July 13 by Ottakee

[Arcadia]

11 minutes ago, Ottakee said:

I rarely use the kohls card….like 1-2 transactions a year maybe.  It is an OLD card that I think can only be used in the store.

Check if it has a Mastercard or Visa logo or Capital One. Apparently the Kohl’s cards are being converted to Capital One credit cards https://www.reddit.com/r/CreditCards/comments/1d49rdc/kohls_charge_card_moving_to_capital_one/

I agree with @popmom suggestion on asking for an increase in credit limit. Our former mortgage officer told us to try for less than 1/3 utilization.  I find the credit limit for my Costco card crazy but it makes sense if I am supposed to typically use less than 1/3 of my credit limit every month. 

 

[popmom]

759 is a good score. Is there a particular reason you want to raise it? 

[Ottakee]

9 hours ago, popmom said:

759 is a good score. Is there a particular reason you want to raise it? 

Just that I heard that over 800 is best.

 

[Toocrazy!!]

I have a Chase card that estimates mine every month and the 1/3 thing does make a big difference. I have an old home loc on there so my total utilization is like 2-3%, but if I’m ever over 1/3 utilization on my credit card, my score drops. 
So asking for a limit increase I think would help. I’ve also read to pay off the card before the statement date so there’s no utilization when they report it. 
 

You do have a good score already though! 

Edited July 13 by Toocrazy!!

[regentrude]

You need to use a amall portion of your credit limit, even if you pay off monthly.  Ask for increase in credit limit. 30% of the rating is from credit utilization.

Open a second card and use it a bit. Recently opened accounts counts for 10%.

Ratings want to see mix of credit. Counts for 10%. Having a car loan is good. Is the mortgage still on the report, or was it too long ago.

Rest of rating comes from length of history and payment history, nothing you can do about those.

[Arcadia]

4 hours ago, Ottakee said:

Just that I heard that over 800 is best.

My husband started out with a credit score of around 720s. The only thing that was affected was our first mortgage in 2006. We would get a slightly better rate if my husband’s score was in the 790s and up. It did not affect our car loan which was financed one month after our mortgage. 
We refinanced with the same bank so I don’t know if credit scores play a part then since they already have our payment history for mortgage and home equity loan for more than three years at that point. 

Edited July 13 by Arcadia
typo

[popmom]

5 hours ago, Toocrazy!! said:

I have a Chase card that estimates mine every month and the 1/3 thing does make a big difference. I have an old home loc on there so my total utilization is like 2-3%, but if I’m ever over 1/3 utilization on my credit card, my score drops. 
So asking for a limit increase I think would help. I’ve also read to pay off the card before the statement date so there’s no utilization when they report it. 
 

You do have a good score already though! 

Yes to this.

I actually pay on my credit card once or twice a week on average. 

[Corraleno]

17 hours ago, Ottakee said:

I could get another credit card but mine has good cash back and other benefits so I might not use any other card much….unless I got a travel card for an airline but even then it wouldn’t be used much.

It's fine not to use it much, the credit limit is what matters, as they basically add up the total credit available to you and then look at how much of that total you are charging every month. If you just have one card and put everything on it, you are likely using a larger % of your total credit than is ideal.

I have a lot of cards, some of which I use a lot (Costco, Amazon, and Southwest Visas) and some of which I hardly ever use (2 Amex cards that I generally only use when traveling, and Macy's, Nordstrom, and Williams Sonoma cards that I only use in those stores). The limits on some of those are very high, so my credit utilization rate is very low even though I put absolutely everything on cards (with autopay so I never carry a balance). So my credit rating is well over 800 even without a mortgage or car payment.

In addition to asking for a limit increase on your existing card, I would look into gradually adding some other cards, even if you don't think you'll use them much. You can also just put one utility bill or other small recurring payment on a card to keep it active, without giving up much in the way of points on the card you currently prefer. For example, my NY Times subscription goes on my Amex card, which I generally don't use for anything else, but it's my oldest card and has the highest limit, so I don't want to close it.  

If you're an Amazon Prime member, consider their Prime Visa card, which gives back 5% on Amazon and Whole Foods purchases, and just use it for those. Or chose a card with points that can be used with different airlines, and sign up during a period when they are offering big points bonuses as an incentive.

The reason I suggest adding cards gradually is that new cards may drop your score a little bit in the short term, due to the credit inquiry plus a new card will slightly lower the average age of your cards. Also, many of the branded cards (like Amazon & Southwest) as well as several of the top travel cards, are from Chase, and Chase has a "5/24 rule," which means they will not approve new cards if someone has applied for 5 or more cards within the previous 24 months.

Edited July 13 by Corraleno

[Bootsie]

6 hours ago, Ottakee said:

Just that I heard that over 800 is best.

 

While a credit score of 800+ is considered "exceptional", having a credit score of 800 does not mean someone is more financially secure than someone with a credit score of 750.  Many people with a credit score in the "very good" range will not eperience a singificant impact by boosting their credit score into the exceptional--800 range.  Once you have a good credit score, the significant difference you see from boosting your credit score is a lower mortgage rate.  So, if you aren't looking at getting a mortgage, or refinancing an existing home, there probably isn't much benefit to boosting your score.  Even with mortgages, the credit score range for the best mortgage rates usually is 760+--with no consistent significant benefit from being in the 800+ range,

[elegantlion]

I started using Credit Karma after my divorce. As I've rebuilt my credit, Credit Karma allows me to see how certain factors affect my credit rating - like utilization, length of credit, percentage used. 

My mom added me as a user on one of her long-held credit cards and my credit rating jumped considerably due to how long that account had been opened. (Ex was financially abusive and our credit was tanked for many reasons). Now, credit cards are paid off monthly, so my utilization is usually between 0-4% of available credit. My only other debt are student loans (which are not technically in repayment since I'm still in school, but I'm paying on them on a regular basis). 

With that and just being financially responsible, my score is now over 810. It took a few years for it to creep up over 750. I think there is a jump after you get 48 months of on time payments.