The issue with those two being my point that need work is that they directly contradict each other. If I get a new card or loan, my average credit age suffers. If I do not get a new card or loan, my amount of types of credit does not improve. I am also aware that asking for too much credit in a short time span plays against me as well.
What would be your advise to break an 800 credit score to someone in my position. Also, if I have children in the future, would you recommend making them authorized users to my cards at 13 to give them a massive jump start on average credit age?
800 is just a personal benchmark that few people achieve and I am wondering what advice there is for someone who feels stuck just outside of their goal.
would you prefer to borrow more and pay the interest so that in the long run you acheve 800 as a personal goal
would you rather take the money you would otherwise spend on that interest and invest / save that money so it grows even more.
if you save and invest, you don't need to borrow, so the credit score isn't of value
maybe time to change your goals?
Though the question was how to raise my credit further via the most efficient route. Whether or not that would be financially wise for me to do would ultimately become my decision. I was merely looking for what the best answer is to raise it so that I could decide for myself.
Whether the answer is an installment, a mortgage, adding a credit card every year or so. All of these may be answers, I am just not sure which ones ultimately will help me achieve my goal. If I am given the possibilities, I can weigh the pros and cons on my own to decide what matters most to me.
My question to you is how many cards do you have?? What is your credit/debt ratio?? Do you have any hard inquiries??
Aged of the credit history is a factor but I believe that your credit/debt ratio is more important. Considering you’re still fairly young you can afford getting a couple more credit cards and build the history. But then that’s also come to the question of how many do you have now?? Having 3-4 is enough. Make sure you have variety ex: visa, MasterCard, American Express.
If you already have a few credit cards then consider increasing your limit.
Have you tried increasing your credit line each year? Keep in mind of your annual income. So don’t ask for too much.
Now for hard inquiries. Do you currently have any? Hard inquiries stay on your record for at least 2 years. So if you have any at the moment, your score won’t increase much till it drop off. Having 2 hard inquiries won’t make too much damage but anything more than that can.
As for your future kid, 18 is just fine to start off at. Adding them as an authorized user will not do anything for their credit since they are using your credit not theirs. Now when your child is 18, you can be a co-owner with them to help get their credit started.
You just need more time. Bottom line. Over the next 2 years or so you will have increased credit limits and have established more experience with credit. Make sure the cards you have are a mix or charge cards, retail cards and credit cards. Do not apply for more new cards so long as you have 5-8 cards already. The length of time of your credit is an average of your oldest and newest card. Opening a new account will hurt your scores. A pro tip is having for example, 3 chase or 3 Citi cards and requesting to consolidate all 3 of those cards to just a single account which should be your oldest card. So if you have 3 chase cards 5k limit on each, consolidate them to 1 card with a $15k limit. Easy 50-100 point increase. You’re young, just give it time.