Reply
Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: Building Credit in OverDrive!!!!

[ Edited ]

I have never had a loan and have very nice cards (in my opinion), so do not get the secured loan. It's too late now, but I don't think he should have gotten so many secured cards. They tie up money and are useless in my opinion. If he shops at any stores, he could have/can apply for one and may get approved. I got approved with no history and now the limit is much higher than it was, only after two years.

 

If I understand correctly, joint is the same as individual. With a joint account, you are responsible for the charges, unlike an authorised user account.

 

You should probably just wait a whole year to get another card. Six months is the standard, but his file will look nicer if it is one year old, rather than six months.

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Building Credit in OverDrive!!!!

I agree on too many secured cards, I would've gone for 2-3 max with higher limits. and would've put DCU digital credit union in there since you get a 100% free monthly fico 04 scores each month and the bank is amazing to grow with. They offer great mortgage loans and car loans which can save you 1 month of payments each year (by taking payments weekly, since interest is based off daily it saves you a lot) you can also opt for the monthly program as well.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Building Credit in OverDrive!!!!


distantarray wrote:

I agree on too many secured cards, I would've gone for 2-3 max with higher limits. and would've put DCU digital credit union in there since you get a 100% free monthly fico 04 scores each month and the bank is amazing to grow with. They offer great mortgage loans and car loans which can save you 1 month of payments each year (by taking payments weekly, since interest is based off daily it saves you a lot) you can also opt for the monthly program as well.


sidebar:  Distant you have DCU?  Do you think you can share a bit more about your experience with them?  I made a thread for it a bit ago and didn't get a response.  I don't want to muck up this thread with it.

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/DCU-for-Banking-etc/m-p/1710874#M218968

 

 

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Valued Contributor
jamesdwi
Posts: 1,427
Registered: ‎09-16-2011

Re: Building Credit in OverDrive!!!!

within 3 months he will start recieving pre-approvals for cards. At 6 months he should be getting prime pre-approvals, don't try for any AMEX revolvers, probably won't accept you with less than 9-12 months of history. But should be able to get Citi or Chase cards at 6 months. My son started getting pre-approvals after I made him AU on a couple cards of mine that have 1 and 3 year clean historys, Recv'd pre-selected for CapOne unsecured got a $500 CL card,  2 months later got pre-selected for Discover, App'd for and got Discover card with a 750 CL, shredded the pre-selected offer for citibank he had nothing on his report except the two AU cards. 

 

Your friend should be doing fine in a few months with all those tradelines. He will start out with small CL's for a while. As he gets unsecured cards and has passed the 6 months of credit experience he can reduced the number of secured cards and combine the funds to make 2 or 3 higher CL secured cards that may help build CL's long term. With good income he may even get some decent CL's on unsecured once he has 6 months of history. 

 

 

Cards: Chase Southwest 20k & CSP 10k & Amtrak 4.6k, & Freedom 3.3k & Slate 3.3k, FNBO DISC 14.9k Oregon Duck 5k, & AMEX BCP 15k & AMEX Hilton Surpass 7.5k & AMEX Zync NPSL, Sams Club Discover 10k, Paypal Extras MC 6k, CapOne 2.5k, CapOne 750, Amazon 3.9k, Walmart 4.5k, Citi Simplicity 7k, HHonors Gold 1k (moved 5k CL to Simplicity), Discover IT 6.5k and a nice stack of store cards.
Last APP 4/26//2014 no plans for new credit I think I have enough.
Community Leader
Senior Contributor
StartingOver10
Posts: 3,809
Registered: ‎03-06-2010

Re: Building Credit in OverDrive!!!!


SnackTrader wrote:

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


^^^No, this is not accurate. It is advisable, but not required, to not have apps within 6 months to allow your score to recover from the small ding of the inquiry. But really, the underwriter won't think a thing about it unless it is a new tradeline just before applying for your mortgage (month or two). If your underwriter gave you a tough time because you applied for cc's a year prior to applying for the mortgage, they may have seen something else in your file. I have never seen an underwriter turn down a file for new tradelines UNLESS those tradelines impacted DTI.

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011

Re: Building Credit in OverDrive!!!!


StartingOver10 wrote:

SnackTrader wrote:

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


^^^No, this is not accurate. It is advisable, but not required, to not have apps within 6 months to allow your score to recover from the small ding of the inquiry. But really, the underwriter won't think a thing about it unless it is a new tradeline just before applying for your mortgage (month or two). If your underwriter gave you a tough time because you applied for cc's a year prior to applying for the mortgage, they may have seen something else in your file. I have never seen an underwriter turn down a file for new tradelines UNLESS those tradelines impacted DTI.


agreed as long as it's not 1-2 months before a mortgage but it shouldn't matter since all they look at is your scores primarily and i've been in the market for a house over a year, if they give you a hardtime just take your business elsewhere imo. with my credit unions they all said i qualify for A+tier on loans with 720+ so that's not really n issue. only time you should refrain is if your in the borderline of a tier like if your at 722 and 1 app could take you to 719 where you would no longer qualify for the best loans or if your at a 642 etc cause FHA requires a 640 in most cases


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Frequent Contributor
nuggets321
Posts: 344
Registered: ‎03-25-2011

Re: Building Credit in OverDrive!!!!

looks like he is off to a really good start... my 2 cents is taht he stop applying, hes got anough working, now its time to let the account "age" with solid payment histories. Racking up  a bunch of new accounts makes lenders EXTREMELY nervous and can be the basis for countless future rejections... its a marathon not a sprint

TU-717 (MYFICO) EQ- 696(MYFICO) EXP 711(Amex denial letter)
My Wallet : Dicover More 10,000 CL / Amex Zync NPSL / WellsFargoRewards3800 / -CapOne 2000CL / GEMBWalMart 4900CL / Zales 4000CL-Kays 2900--Macys 3000CL /SSFCU 5000CL / CitiBank Plat Select 3000CL / CHASE Freedom 1300CL / Lowes 10,000 CL / BBuyStoreCard 5000CL Sears Store Card (Citi) 3000 / Firestone CFNB 1400 Toyota Financial $35,000 Auto /2200DiscountTire(GECRB) Citi TY Preferred 6500CL / Chase SlatE$4000/BofA2500/ToyotaRewardsVisa$6500

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+