Credit Cards

[uroosa1]

This post is for family friend of mine.

He is 25 with absolutley nothing on his credit report.

After I educated him about the importance on credit he has gone

into overdrive to build his credit. also he will be purchasing a house in a year or two.

Since last month he has now:

US bank Secured - 500cl

Cap 1 Secured     -  200cl

USAA Secured     -  500cl

Wells Fargo Sec -   300cl

BOA  secured      -   300cl

With only 1 inq on his report.

Basicallly all of his account are only 1 month old.

I told him at the 7 month mark. He should apply for a unsecured card.

Also said that maybe a secured installment loan would help him also.

What advice can i give him on his next move?
Will all these accounts hurt or help him since there all the same age?

Some of his cards are joint accnts with his wife is that the same as individual or does joint accounts not help as much?(they are not AU)

Also if he waits 1 year with these accounts, is it possible to move on to prime cards automatically?

[SnackTrader]

The biggest piece of advice is NO APPS within 1 year of mortgage, longer if possible.

[uroosa1]

I'm sure it would be atleast 2 years before he applies for a mortagage.

He just wants to be prepared when time comes even if it 3 years from now i suppose.

I told him it makes a big diffrence payment wise if you get a lower APR

[rootpooty]

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uroosa1 wrote:

With only 1 inq on his report.

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Actually the accounts he opened cost him 7 inquiries total.  You would have to look at each report to see which lender pulled which bureau.

garden for a year

[ccnewcc]

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rootpooty wrote:

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uroosa1 wrote:

With only 1 inq on his report.

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Actually the accounts he opened cost him 7 inquiries total.  You would have to look at each report to see which lender pulled which bureau.

garden for a year

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Agree with the part about looking at each report to find out how many inqs are actually on his report.

But OP did state that some of his cards are joint account.  Not sure how that plays into inqs.

[uroosa1]

He might of just pulled one report and saw one inq.

okay so basically garden for one year and then he can explore other

cards.

Inqs. dont affect your score after one year right? But aren't lenders able to see them for 2 years.

[ccnewcc]

I'm not a fan of getting secured loans at all.  IMO, I see no benefit for helping establish credit by getting a secured loan.

Now if your friend needs a loan for an actual reason like car repairs, medical bills, etc. Then a loan can be beneficial in not only helping out with finances but also building credit.

[Wolf3]

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uroosa1 wrote:

This post is for family friend of mine.

He is 25 with absolutley nothing on his credit report.

After I educated him about the importance on credit he has gone

into overdrive to build his credit. also he will be purchasing a house in a year or two.

Since last month he has now:

US bank Secured - 500cl

Cap 1 Secured     -  200cl

USAA Secured     -  500cl

Wells Fargo Sec -   300cl

BOA  secured      -   300cl

With only 1 inq on his report.

Basicallly all of his account are only 1 month old.

I told him at the 7 month mark. He should apply for a unsecured card.

Also said that maybe a secured installment loan would help him also.

What advice can i give him on his next move?
Will all these accounts hurt or help him since there all the same age?

Some of his cards are joint accnts with his wife is that the same as individual or does joint accounts not help as much?(they are not AU)

Also if he waits 1 year with these accounts, is it possible to move on to prime cards automatically?

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Amazing number of secured cards.   I would have suggested fewer with higher limits.   I suggest that he might want to increase the deposits to better limits if he has the cash.   If he is thinking of mortgage in a few years, I would wait until the mortgage deal is done before applying for anything else.    Presumably some of these will convert to unsecured in the mean time.  

[rootpooty]

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uroosa1 wrote:

This post is for family friend of mine.

US bank Secured - 500cl  More then likely pulled EX if not its on EQ

Cap 1 Secured     -  200cl Pulled All 3

USAA Secured     -  500cl Pulled EQ

Wells Fargo Sec -   300cl Pulled EX

BOA  secured      -   300cl Pulled EX

With only 1 inq on his report.

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[nicholasyud]

He should plan on card he want. what credit approved at, what database they pull, What reward he get in return.

Plan on 1 years then cut it down about 2 3 credit cards. It's should be good enough but garden for 1 year at least.