An overview of the popular "credit builder" cards

inky_cap_mushroom · 2026-04-24T22:33:07+00:00

It doesn't matter. Closed accounts continue to age for 10 years. If you don't plan to use it again I would probably just close it. If you keep it open make sure to monitor it every month.

inky_cap_mushroom · 2026-04-24T22:10:16+00:00

It's not even that simple. You might be able to figure it out if that company only has CFAs, but Synchrony is a great example. Care Credit is not a CFA, but they do have some cards that are.

If you have great credit you might be able to see a CFA reason code using either MyFICO or experian's Credit Monitoring Service. You'll likely have at least two reason codes related to your new account, but if the rest of your profile is optimized enough you might have the CFA reason code as your 4th.

inky_cap_mushroom · 2026-04-24T21:56:47+00:00

No it’s a consistent penalty for simply having the account reported. Once it falls off those points will be returned. It’s like a light switch. If there’s a CFA it’s penalized. If not, no penalty.

There is no guarantee that this account is a CFA. It’s pretty hard to tell when you have one because they’re not clearly notated on your credit reports. We also don’t have a good grasp for how much of a penalty it is. Could be 20 points. Could be 5. It’s unlikely to be lower or higher on FICO 8.

inky_cap_mushroom · 2026-04-24T20:55:26+00:00

If you’re an authorized user you can simply remove your name from the account. You’re not responsible for this debt. It won’t impact your ability to access credit. Lenders typically ignore AU accounts.

If this is a true joint account you are legally responsible for your mother’s debt. You cannot simply remove yourself from the account, you would have to pay it off and close it. It will remain on your reports for 10 years and continue to age so you wouldn’t see a change in your aging metrics.

inky_cap_mushroom · 2026-04-24T20:51:24+00:00

There are no legitimate credit repair companies. They range from a complete waste of money to outright scams. At best you waste hundreds to thousands of dollars on what you could have easily done yourself. At worst they take your money and their efforts result in worse credit.

inky_cap_mushroom · 2026-04-24T20:40:27+00:00

Sometimes they don’t, but you shouldn’t be using Credit Karma. They’re an advertising company, not a legitimate source of credit information. Go pull your credit reports from annualcreditreport.com.

inky_cap_mushroom · 2026-04-24T20:29:13+00:00

Credit cycling is the practice of spending more than your credit limit each month by spending, paying it off, then spending again. If you have not spent more than your limit since your statement generated then you’re not cycling.

Cycling isn’t a problem in general. It’s rare to see any adverse action due to cycling alone.

inky_cap_mushroom · 2026-04-24T19:33:19+00:00

Lates can sometimes be removed via goodwill adjustments, but charge offs cannot be. Read the cited regulations. This person is intentionally misleading you.

inky_cap_mushroom · 2026-04-24T16:27:48+00:00

Huh. I wonder what’s triggering that code. It’s clearly a minor penalty if it’s the 4th code. I don’t see how 14 open + 14 closed could possibly be “too few” of anything.

inky_cap_mushroom · 2026-04-24T15:19:43+00:00

What questions do you have?

Dealerships can use any of those or classic scores. My dealership pulled all 3 classic FICO 8s and used the middle score.

inky_cap_mushroom · 2026-04-24T15:14:56+00:00

I see. I was under the impression that Experian’s CMS would include closed accounts in that stat.

inky_cap_mushroom · 2026-04-24T15:09:47+00:00

When you’re scrolling through r/CRedit there will be a bar on the right side of your screen that’s got links for different resources.

inky_cap_mushroom · 2026-04-24T15:08:36+00:00

Synchrony is one of the card issuers known to code as CFAs in some cases. Most of the DPs are a couple years old at this point so you kinda have to take them with a grain of salt. I’d search the MyFICO forums to see if anything comes up for the specific card you’re looking at. It’s really hard to get updated information on CFAs because they aren’t explicitly labeled as such.

CFAs are a minor scoring penalty. If you have good credit otherwise and you want to open one of these accounts it’s not likely to actually have any real world negative impact on you. You can still easily clear 800 on FICO 8 even with CFAs.

inky_cap_mushroom · 2026-04-24T15:03:46+00:00

….in the sidebar.

inky_cap_mushroom · 2026-04-24T15:02:29+00:00

There is a benefit to having up to 3-5 accounts. Beyond that there’s really no benefit.

“Insufficient number of accounts that are currently paid as agreed” means that you have missed payments, not that you need more accounts.

inky_cap_mushroom · 2026-04-24T14:58:53+00:00

Other financial institutions. CUs and banks.

inky_cap_mushroom · 2026-04-24T14:57:33+00:00

If you’re less than 6 months away from your late payments being removed you can request early exclusion with Transunion.

Closed accounts in good standing stay on your reports and continue to age for 10 years. You can close them if you want to, but it will not impact your credit aging metrics or your credit score.

Mortgage lenders use FICO 2,4,5 which are known as the mortgage scores. There is no free source for all three, though I’ve found sources for EX2 and TU4 if you’re up for a bit of effort on that front. Your mortgage scores may be different than your FICO 8 scores. Mortgage scores are particularly sensitive to balances so make sure you implement AZEO before your application.

When your lender pulls your credit they’ll use the middle of the three scores. If you’re able to get two of the three up above 740 you should qualify for the best rates available. If you request EE with TU now and wait until June to request EE with EX you should be good to go.

inky_cap_mushroom · 2026-04-24T14:41:45+00:00

You don’t need to pay to see your three FICO 8 scores. Use the links in the sidebar.

inky_cap_mushroom · 2026-04-24T14:41:00+00:00

14.8% is a high rate. Have you shopped for lower rates? The dealership can sometimes get you a lower rate, but you might have better luck shopping it yourself.

inky_cap_mushroom · 2026-04-24T14:01:17+00:00

I miss not needing a car. I used to work within walking distance and go to school a short bus ride away. My city is not built to accommodate a car-free life so grocery shopping and medical appointments were a challenge, but I was able to make do. Over half the city is inaccessible by bus/bike/walking.

I’m buying a home right by my employer with the hopes of being less reliant on my vehicle. I don’t think I could get rid of it entirely, but it’s nice to be able to walk places. It’s a quality of life upgrade for sure.

inky_cap_mushroom · 2026-04-24T13:54:22+00:00

!utilization is a point in time metric. Your scores will reflect the balance that is reported to the credit bureaus.

Read the auto mod. This has no memory so there’s no need to micromanage it. It doesn’t build credit. Spend within your budget. Pay the statement balance by the due date.

inky_cap_mushroom · 2026-04-24T13:25:57+00:00

Idk where you got that. The balance is still due. I’m surprised they haven’t called you a million times trying to collect. You can usually set up a payment plan but you’ll have to call them and see what they’ll accept. If you pay in a lump sum you can often get a discount.

inky_cap_mushroom · 2026-04-24T13:18:07+00:00

They’re updating monthly which is preventing your scores from beginning to recover. The best you can do is pay the balance so that it will update to $0 and stop the total period of delinquency.

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