arteg

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I just moved to the states about a year and a half ago, I was here as a visitor & then started work in research 6 months ago. Now I'm starting residency in July. I got my 1st credit card through my fiancee's credit line about 3 months ago, before that I had only debit cards; so I don't have much credit history in the country, my credit score is around 670. we are planning to buy a house, but because of my credit situation & the fact that my fiancee doesn't work at the moment (she's studying for her masters), we can't get a good mortgage deal; the rates we are offered are around 7-7.5% with down payment needed. so I thought may be we can wait for another year during which I can work on my credit to improve it, also my fiancee might be able to work part-time during this year. are there any specific things we can do to improve our credit situation & get better mortgage offers next year? Our target is to get a 5 y ARM with least down payment & closing costs possible & also with an affordable monthly payment.

I appreciate your input guys,
Thanks.
 

tlew12778

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If you have no late payments, then your score (which is not that low btw) is probably due to the short history length. Your history length, if you are an authorized user on your fiancee's account, will be based on when she opened that account. If it's one of her newer accounts, then your history is short. If she adds you to her oldest card, your credit history will lengthen.

Other than that, you should keep in mind that you do not want to have more than 50% of YOUR credit line in debt. So if your credit line is $10k, don't carry more than $5k on that card. If you have multiple cards, the 50% rule applies to your total credit line of all cards put together.

If there is nothing glaring on your report, there is not much you can do to raise your score othan than wait.
 
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arteg

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tlew12778 said:
If you have no late payments, then your score (which is not that low btw) is probably due to the short history length. Your history length, if you are an authorized user on your fiancee's account, will be based on when she opened that account. If it's one of her newer accounts, then your history is short. If she adds you to her oldest card, your credit history will lengthen.

Other than that, you should keep in mind that you do not want to have more than 50% of YOUR credit line in debt. So if your credit line is $10k, don't carry more than $5k on that card. If you have multiple cards, the 50% rule applies to your total credit line of all cards put together.

If there is nothing glaring on your report, there is not much you can do to raise your score othan than wait.

Thanks for the reply. my credit card limit is $2000, so this means I should keep the limit of using the card during any given month to less than $1000, then pay the bill on time & so on, is that what you mean? I'm sorry I'm still so naive in all this credit thing. Would it help if she applies for 2 more card for me from her credit lines so that I can have at least 3 credit lines running? Also there is a weired thing, my fiancee's credit score is lower than mine! 665 vs. 670! how's that possible? she has several years of credit, 3 lines & I even got the credit through her! does this mean there r other factors involved in the process besides the credit score?
 
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arteg

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Would you please provide your input on this subject... I appreciate your help guys.

arteg
 

tlew12778

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Actually, if you have established your credit, and it seems you have, you can start applying for your own account(s). I wouldn't really apply for that many though. Like one would be good. You don't want too many hard inquiries on your credit report. Eventually you will start getting pre-approved apps in the mail.

Yes, if your limit is only $2k, you should not charge more than $1k.

Her score can be lower than yours if she has any negative marks on her report (like on cards you are not an authorized user on). The whole credit score calculation is a big mystery and no one can tell you precisely how it's done. But aside from payment history, your score also includes employment history, residential history, history length, etc. Also, your credit score changes with each agency. I've seen as much as 150 pt differences btwn agencies on the same person's score reports. But usually a difference that large is due to an error that can be fixed (or a negative mark that has not been reported to an agency). A 5 pt difference btwn yours and her is NOTHING really.

Anyway I wouldn't worry about it really. Your score isn't really low.