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Building Credit in OverDrive!!!!

Valued Contributor

Re: Building Credit in OverDrive!!!!

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.

Message 11 of 17
Established Contributor

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
Message 12 of 17
Valued Contributor

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 706, TU FICO 701, EX FICO 706 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $36,700
  • Inquiries (12 Months): EQ 2 TU 1 EX 1 | Most Recent: 1/21/2014
Chase Freedom $9500
DCU Visa $10000
Capital One QS $2000
AMEX BCE $3000
Lowe's CC $8500
WalMart CC $3100
BOA Platinum $600
AMEX Gold NPSL
Message 13 of 17
Valued Contributor

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 & CSR 10k & CSP 10k & Freedom 6.6k & Amtrak/Freedom 4.6k, FNBO DISC 25.1k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 10k, Paypal Extras MC 7.5k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5.9k, Walmart 10k, Citi Simplicity 9k, Discover IT 16k and a nice stack of store cards.
Last APP/HP 5/15/2017 Marcus Loan. 30k
Message 14 of 17
Moderator

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.

Message 15 of 17
Established Contributor

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
Message 16 of 17
Frequent Contributor

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-721 (MortgagePull) EQ- 697(MortgagePull ) EXP 693(MortgagePull) FWEB 24,2015
My Wallet : Dicover More 35,500 CL -Amex Zync NPSL -WellsFargoRewards4800 - -CapOne 3000CL -GEMBWalMart 5000CL - Zales 4000CL-Kays 2900--Macys 5000CL /SSFCU 5000CL / CitiBank Diamond Pref 15000CL - CHASE Freedom 13500CL -Lowes 10,000 CL - BBuyStoreCard 10,000CL Sears Store Card (Citi) 3000 - Firestone CFNB 1400 Toyota Financial $35,000 Auto -2200DiscountTire(GECRB) Citi TY Preferred 8100CL - Chase Slate$4000-BofA15000-ToyotaRewardsVisa$10,700 -BofA$8500 AMEX BCE 9,500
Message 17 of 17