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New Member
drshabazz
Posts: 9
Registered: ‎02-29-2008

Any secured cards with no credit inquiry?

[ Edited ]
Hi everyone - I'm new here. I've really enjoyed a lot of the information I'm reading.

A quick bit about me - filed BK in 2005. Somehow got a $2000 limit Cap One card in 2006 that up until now is the only new card I've been approved of since my BK (applied for a few others since that time but not approved... I was carrying a large balance at the time however I payed it off entirely last month). I have a $400 JCPenny charge card that wasn't included in the BK and just started using it again (was dormant since 2003) My Equifax is at 665 (just jumped from 637 after having payed that balance off). Total $2400 limit, $2400 available credit at the moment. No other debts, loans, or mortgages - good job and income now.

I'm looking to buy a house in the next 6-18 months so I'm really concerned about credit inquiries and anything that could potentially hurt my score. I'm not all that far from 680, which is the next goal for me. Are there any secured cards that report to credit agencies that won't show up on my credit inquiries list? I bank with BofA and talked to them about their secured card and they said they do indeed do a credit check. Is this the norm? I have about $1000 to put to a secured card at the moment. I read on another forum something about one bank not doing a credit check and then also something about an Orchard Bank doing one check to see if you qualify for an unsecured card and if you don't automatically bumping you to a secured card. That might be more interesting to me if that is true since there might be a chance I'd get approved for something now that my balances have been payed off.

Any help in this matter would be greatly appreciated. Also - ScoreWatch just reported my Equifax score jumping - is it likely that my new score has already hit TransUnion and Experian's records or do they all update on their own schedules? I was wondering if I should wait a few weeks or something lest someone check my credit and see the old score with the old balances I was carrying.

Thanks!

Message Edited by drshabazz on 02-29-2008 09:38 AM
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007

Re: Any secured cards with no credit inquiry?



drshabazz wrote:
Hi everyone - I'm new here. I've really enjoyed a lot of the information I'm reading.

A quick bit about me - filed BK in 2005. Somehow got a $2000 limit Cap One card in 2006 that up until now is the only new card I've been approved of since my BK (applied for a few others since that time but not approved... I was carrying a large balance at the time however I payed it off entirely last month). I have a $400 JCPenny charge card that wasn't included in the BK and just started using it again (was dormant since 2003) My Equifax is at 665 (just jumped from 637 after having payed that balance off). Total $2400 limit, $2400 available credit at the moment. No other debts, loans, or mortgages - good job and income now.

I'm looking to buy a house in the next 6-18 months so I'm really concerned about credit inquiries and anything that could potentially hurt my score. I'm not all that far from 680, which is the next goal for me. Are there any secured cards that report to credit agencies that won't show up on my credit inquiries list? I bank with BofA and talked to them about their secured card and they said they do indeed do a credit check. Is this the norm? I have about $1000 to put to a secured card at the moment. I read on another forum something about one bank not doing a credit check and then also something about an Orchard Bank doing one check to see if you qualify for an unsecured card and if you don't automatically bumping you to a secured card. That might be more interesting to me if that is true since there might be a chance I'd get approved for something now that my balances have been payed off.

Any help in this matter would be greatly appreciated. Also - ScoreWatch just reported my Equifax score jumping - is it likely that my new score has already hit TransUnion and Experian's records or do they all update on their own schedules? I was wondering if I should wait a few weeks or something lest someone check my credit and see the old score with the old balances I was carrying.

Thanks!


Welcome!
 
Any time you apply for credit, you can expect a hard inquiry, even with secured cards.  The only exception I am aware of is Crown Jewelers, who will give credit to anyone with income with no credit check.  That is really only useful for people who need a positive tradeline and can't get approved anywhere else.
 
I'm not sure why you are concerned with inquiries, though.  A new account showing up on your reports 6 months before a mortgage will raise a bigger red flag than an inquiry would.  In this case, the problem isn't so much with applying for credit as it is with actually getting new credit shortly before mortgage shopping.
 
How many inquiries and new accounts do you currently have?  ("New" is defined as less than 12 months old.)
 
Yes, the CRAs all update on their own schedules.  Just because one has updated doesn't mean the other two have.  In my experience, EX is usually the first to update, followed by TU, and then eventually EQ.  This is definitely a YMMV thing, though.
 
Before you apply for any new credit, it's a good idea to know which report the creditor will pull and also what that report looks like on the day you apply.  There is no reason to waste an inquiry by apping early when you know your revolving utilization will be better any day now once the CRAs have all updated.
 
Hope this helps.
 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
New Member
drshabazz
Posts: 9
Registered: ‎02-29-2008

Re: Any secured cards with no credit inquiry?

Thanks a lot for the reply.

One credit report is currently showing that I have 3 inquiries, while 2 reports are showing 2 inquiries in the last 12 months.

Good point that I should be more concerned with a new account rather than an inquiry. I'm still new at all this so I didn't even think about that.

I guess this is a situation where I'm trying to figure out what the best way to achieve my goal is. My goal is clear - to be able to qualify for a home loan within the near future with a good interest rate. And the way I feel I need to achieve this goal is to do whatever I can to increase my fico scores. One way that I see that I can do that is to open another account, hopefully with a decent limit, and pay that on time regularly to help continue to build my score. At the same time, in doing that, I could jeopardize my ability to get that very loan because of the fact I'll have a new account at that point. At what point will a lender stop seeing that as a new account that might factor into me getting a loan or not? After 12 months? After 18 months? Longer?

Is one credit card and one department store card with a total credit limit of $2400 enough to reasonably raise my scores over the next 6-12 months if I do everything right? Or should I strongly consider opening up a new account or more to help get my a higher score faster? Any thoughts or suggestions from the pros on this forum would be appreciated!

Thanks again.
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007

Re: Any secured cards with no credit inquiry?

[ Edited ]


drshabazz wrote:

One credit report is currently showing that I have 3 inquiries, while 2 reports are showing 2 inquiries in the last 12 months.


Nothing wrong with 2-3 inquiries on each one, IMO.  I don't think you have anything to worry about here.
 


drshabazz wrote:

I guess this is a situation where I'm trying to figure out what the best way to achieve my goal is. My goal is clear - to be able to qualify for a home loan within the near future with a good interest rate. And the way I feel I need to achieve this goal is to do whatever I can to increase my fico scores. One way that I see that I can do that is to open another account, hopefully with a decent limit, and pay that on time regularly to help continue to build my score. At the same time, in doing that, I could jeopardize my ability to get that very loan because of the fact I'll have a new account at that point. At what point will a lender stop seeing that as a new account that might factor into me getting a loan or not? After 12 months? After 18 months? Longer?


FICO calls an account new for 12 months.  Mortgage lenders generally don't like to see any new accounts in at least the last six months, preferably up to a year.
 


drshabazz wrote:
Is one credit card and one department store card with a total credit limit of $2400 enough to reasonably raise my scores over the next 6-12 months if I do everything right? Or should I strongly consider opening up a new account or more to help get my a higher score faster? Any thoughts or suggestions from the pros on this forum would be appreciated!


Yes, you can raise your scores with only two revolving accounts, if, as you said, you do everything right.
 
Opening a new account will not help you get "a higher score faster."  FICO scoring is a marathon, not a sprint.  New accounts can help you over the long term as they age and become positive tradelines with good, solid payment histories.  Over the short term, though, having too many new accounts just makes it look like you're desperate for credit.  A new account is not a short-term fix.
 
Edited to add:  A new account can be a short-term fix if you have no positive tradelines at all.  But that's not the case here.
 
You may have posted this, but if you did, I missed it:  Have you pulled your reports from MyFICO and checked your scores?  It's a good idea to find out where you're coming from before you can decide how to get where you want to go.
 
Regarding those two cards you mentioned:  What are their individual credit limits, balances, and how old is each of them?
 
 


Message Edited by cheddar on 02-29-2008 10:34 AM
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
New Member
drshabazz
Posts: 9
Registered: ‎02-29-2008

Re: Any secured cards with no credit inquiry?

[ Edited ]
Thanks again-

On the 2 accounts I have open:

1) Capital One card with $2000 limit and $0 balance (just payed it off entirely!)
2) JC Penny department store card w/ $400 limit / $75 balance (just started using this card again after it being dormant since 2003)

That makes my total available credit at $2400 and I'm utilizing only $75 (in my first post I said $0 balance - forgot that I just recently made $75 purchase to get that JC Penny card active again).

And yes I have pulled my scores from MyFico, and I currently have the ScoreWatch.

Thanks.

Edit: Sorry, forgot the add how old they were. Cap One card was opened in 4/2006 and JCPenny card was opened in 11/2002 but again I just started actively using it again.

Message Edited by drshabazz on 02-29-2008 10:50 AM
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007

Re: Any secured cards with no credit inquiry?

[ Edited ]


drshabazz wrote:
Thanks again-

On the 2 accounts I have open:

1) Capital One card with $2000 limit and $0 balance (just payed it off entirely!)
2) JC Penny department store card w/ $400 limit / $75 balance (just started using this card again after it being dormant since 2003)

That makes my total available credit at $2400 and I'm utilizing only $75 (in my first post I said $0 balance - forgot that I just recently made $75 purchase to get that JC Penny card active again).

And yes I have pulled my scores from MyFico, and I currently have the ScoreWatch.

Thanks.

Edit: Sorry, forgot the add how old they were. Cap One card was opened in 4/2006 and JCPenny card was opened in 11/2002 but again I just started actively using it again.

Message Edited by drshabazz on 02-29-2008 10:50 AM

Looks like you're doing everything right.  Both of your cards are at least two years old (or nearly there anyway).  Revolving utilization is only 3%.  Only one of your cards has a balance.  This is good news, but when you're trying to improve your score quickly it's sort of a mixed blessing because there's nothing that jumps out that you can fix right away and get an immediate score boost.
 
If it were me:  You said you wanted to get a mortgage in 6-18 months.  If it's more like 6 months, I'd say just sit tight, and make sure to keep your utilization low and never be late.  If, on the other hand, it's more like 18 months, then it might not be a bad idea to open a new card, establishing another positive tradeline while letting some more of your baddies age off of your reports in the meantime.
 
Sorry I can't help more, but that's about all I got!
 


Message Edited by cheddar on 02-29-2008 11:04 AM
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
New Member
drshabazz
Posts: 9
Registered: ‎02-29-2008

Re: Any secured cards with no credit inquiry?

No no, you've helped me a ton - thank you!

It really just comes down to exactly what you said - trying to figure out exactly when my target is for buying a house and doing things accordingly.
Super Contributor
concorduser
Posts: 6,025
Registered: ‎09-18-2007

Re: Any secured cards with no credit inquiry?

You can try New Millineum Bank. They would approve you for a secured card with out inq.

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