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Some questions..

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FixMyCredit1992
Established Contributor

Some questions..

Call me crazy, but...

 

As of Jan 4 I have 17 INQ's on my CR. Down from 22 in November. 

 

I won't really need serious credit until after I move, which will be at least 6 months from now, by then my INQ's should be 8 or less. I don't need serious credit right now because I'm saving money, not spending it.

 

Anyhow, I applied and was approved for the Merrick Secured Visa and will be sending them $200.

 

I used the credit score simulator from CK and found adding $200 to my WF Secured card only raised the score a few points, whereas adding a new CC with a $200 limit raised it over 20. The CS simulator does take into effect your current tradelines.

 

The reason why I apped for the Merrick card were:

 

1. Free Fico score on each statment. 

2. Chance for a Auto CLI on the 7th statement (as I read on here).

 

Again, call me crazy for apping with so many INQ's, but I don't really need a $5,000 credit card right now, as it would proably entice me into spending instead of saving. 

 

Now, one more benefit is that with another $200 CC, my total CL is $680 combined with the wells fargo card and fingerhut credit account, this means I can spread purchases out (I will need to buy things when it IS time to move), lowering my UTL.

 

Now it's time for questions...

 

1. Credit INQ's stay on your report for 2 years, but don't count after one, but can too many credit INQ's after a year still make it hard to get a manual loan such as a car loan? (don't think I will need a car 2 years from now, but just wondering).

 

2. What CA does Merrick pull the fico score from?

 

3. CK said that my Rating was "B" for collection accounts, even though I have a $1,100 balance on one CA. Do collection account balances affect your score, or just the number of them?

 

4. Would closing the Merrick Card be a good or bad thing after one year, and if I do close it, will it lower my score?

 

 

 

Farm and Fleet $3,000 (AU) Paypal Extras MC $1,500
Barclay's Apple Visa $1,200 QVC Qcard $800
Amazon Store Card $600 Discover $500
Walmart MC $400 Victoria's Secret $350
Credit One $300 Fingerhut $200
TU Fico 626



Message 1 of 20
19 REPLIES 19
longtimelurker
Epic Contributor

Re: Some questions..

General advice is not to over-rely on advice from Credit Karma.  Their simulator isn't said to be very accurate, and certainly ignore their letter grades on stuff.

 

To answer some of your questions:

 

1) In theory, anything on your report is fair game, so a creditor could comment on the number of older inqs.  In reality, probably not.  Inqs are a signal that you are searching for credit, maybe  because you are in trouble, those over a year old should cause less concern.

 

3) Whatever the score impact, on a manual review the amount will of course matter

 

4) Closing doesn't impact AAoA, but can change score if it increases your utilization, because closing the card makes that credit line go away.   So if $200 is a significant part of your CL then, and you have balances reporting, your score could decrease.   If you always PIF before the statement closes, not really an issue.

Message 2 of 20
LearningMoreAboutCredit
Frequent Contributor

Re: Some questions..


@FixMyCredit1992 wrote:

Call me crazy, but...

 

As of Jan 4 I have 17 INQ's on my CR. Down from 22 in November. 

 

I won't really need serious credit until after I move, which will be at least 6 months from now, by then my INQ's should be 8 or less. I don't need serious credit right now because I'm saving money, not spending it.

 

Anyhow, I applied and was approved for the Merrick Secured Visa and will be sending them $200.

 

I used the credit score simulator from CK and found adding $200 to my WF Secured card only raised the score a few points, whereas adding a new CC with a $200 limit raised it over 20. The CS simulator does take into effect your current tradelines.

 

The reason why I apped for the Merrick card were:

 

1. Free Fico score on each statment. 

2. Chance for a Auto CLI on the 7th statement (as I read on here).

 

Again, call me crazy for apping with so many INQ's, but I don't really need a $5,000 credit card right now, as it would proably entice me into spending instead of saving. 

 

Now, one more benefit is that with another $200 CC, my total CL is $680 combined with the wells fargo card and fingerhut credit account, this means I can spread purchases out (I will need to buy things when it IS time to move), lowering my UTL.

 

Now it's time for questions...

 

1. Credit INQ's stay on your report for 2 years, but don't count after one, but can too many credit INQ's after a year still make it hard to get a manual loan such as a car loan? (don't think I will need a car 2 years from now, but just wondering). Yes, it could prevent some successful apps.

 

2. What CA does Merrick pull the fico score from? If you mean CRA, they have a tendency to pull TU.

 

3. CK said that my Rating was "B" for collection accounts, even though I have a $1,100 balance on one CA. Do collection account balances affect your score, or just the number of them? Both...the more recent, the more damaging. 

 

4. Would closing the Merrick Card be a good or bad thing after one year, and if I do close it, will it lower my score? Why close a card after one year? If it doesn't fit your needs now, it won't later.  Thus, wasting a HP for nothing.  Yeah, it will report for an additional 10 years but lowers your overall utilization.  Now, if it has an AF and you want to PC to a card that has no AF that's another story.

 

 

 


My responses in red...

 

Edited to correct statement regarding AAoA v. overall utilization.


Any advice given is always YMMV...

Current FICOs: 740+ across the board | Goal: >760 FICO | Total CLs: $63.3k/$60k Goal | Utilization: 19% | Last App: 05/01/2014 | INQ: EX: 10, EQ: 8, TU: 5, All Expire 06/2016; No Collections/Charge Offs/BK's | AAoA: 7yrs.
| All Reports Frozen!!! | No Apps til 12/2015 | Homeowner since: 06/28/13 | White Whales: Marriott Rewards, Discover IT, Sallie Mae WMC, Sams MC
Message 3 of 20
enharu
Super Contributor

Re: Some questions..

many have advised you against applying for anymore new accounts........

but even if you really wanted to, you really should have checked out bank of america secured card. at least that card will graduate you after 6-12months, as long as the account remains in good standing...

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 4 of 20
FixMyCredit1992
Established Contributor

Re: Some questions..

The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

 

It will be 2 weeks before I have $200 set aside. 

 

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

 

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have  almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

 

 

Farm and Fleet $3,000 (AU) Paypal Extras MC $1,500
Barclay's Apple Visa $1,200 QVC Qcard $800
Amazon Store Card $600 Discover $500
Walmart MC $400 Victoria's Secret $350
Credit One $300 Fingerhut $200
TU Fico 626



Message 5 of 20
LearningMoreAboutCredit
Frequent Contributor

Re: Some questions..


@FixMyCredit1992 wrote:

The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

 

It will be 2 weeks before I have $200 set aside. 

 

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

 

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have  almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

 

 


Just curious...what is wrong with waiting three weeks until they fall off if that is a concern?  The ding from BOA will be there for another two years but only affects score for one.  It won't prevent the others from falling off.


Any advice given is always YMMV...

Current FICOs: 740+ across the board | Goal: >760 FICO | Total CLs: $63.3k/$60k Goal | Utilization: 19% | Last App: 05/01/2014 | INQ: EX: 10, EQ: 8, TU: 5, All Expire 06/2016; No Collections/Charge Offs/BK's | AAoA: 7yrs.
| All Reports Frozen!!! | No Apps til 12/2015 | Homeowner since: 06/28/13 | White Whales: Marriott Rewards, Discover IT, Sallie Mae WMC, Sams MC
Message 6 of 20
enharu
Super Contributor

Re: Some questions..


@FixMyCredit1992 wrote:

The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

 

It will be 2 weeks before I have $200 set aside. 

 

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

 

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have  almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

 

 


2 weeks from today is still going to be january.

the inquiry is still going to age off at the same time.

for experian, inquiries are removed at the end of the month 2 years from now. Example: inquiries gotten in Jan 2014 will disappear in Feb 2016.

 

and even if the inquiry is going to be made in feb, i don't think it's that big of a deal.

 

what you should be caring more about is whether that card is going to help you and the future "prospects" of the card. no point carrying a few "deadbeat" cards.

the bofa card will graduate as long as you do not pay late or go deliquent on them, meaning you will get your deposit back, which i think is an important aspect for secured cards. Who likes having their money stuck in the middle of nowhere perpetually?

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 7 of 20
FixMyCredit1992
Established Contributor

Re: Some questions..

Would it be damaging to app for the BOA card now, or should I reap what I sow and stick with the Merrick one?

 

Thing is, I know I'm approved for the Merrick one, I don't want to waste another INQ knowing I might be declined for them, how good are the approval odds? I know some secured cards still have a min score needed. Capital one is picky too.

 

If you google "Bank of america denied secured credit card", there are quite a few hits.

Farm and Fleet $3,000 (AU) Paypal Extras MC $1,500
Barclay's Apple Visa $1,200 QVC Qcard $800
Amazon Store Card $600 Discover $500
Walmart MC $400 Victoria's Secret $350
Credit One $300 Fingerhut $200
TU Fico 626



Message 8 of 20
LearningMoreAboutCredit
Frequent Contributor

Re: Some questions..


@FixMyCredit1992 wrote:

Would it be damaging to app for the BOA card now, or should I reap what I sow and stick with the Merrick one?

 

Thing is, I know I'm approved for the Merrick one, I don't want to waste another INQ knowing I might be declined for them, how good are the approval odds? I know some secured cards still have a min score needed. Capital one is picky too.

 

If you google "Bank of america denied secured credit card", there are quite a few hits.


Nothing IS certain but death and taxes...the decision is yours to make.  Applying for credit is always a crap shoot.  Good luck on whatever you decide.


Any advice given is always YMMV...

Current FICOs: 740+ across the board | Goal: >760 FICO | Total CLs: $63.3k/$60k Goal | Utilization: 19% | Last App: 05/01/2014 | INQ: EX: 10, EQ: 8, TU: 5, All Expire 06/2016; No Collections/Charge Offs/BK's | AAoA: 7yrs.
| All Reports Frozen!!! | No Apps til 12/2015 | Homeowner since: 06/28/13 | White Whales: Marriott Rewards, Discover IT, Sallie Mae WMC, Sams MC
Message 9 of 20
notfancy
Valued Contributor

Re: Some questions..

Like every one has suggested many times, on multiple threads, you should stop applying for now. Age what you have and treat it carefully. You have more than enough accounts now that you should see significant progress in your credit reports by the time you move. You also could consider using the money you want to invest into more cards, and secured cards and use that money instead to negotiate payments for deletion or settlements on any negative accounts that you have. If you compile all of your posts and threads, you'll see that you're unlikely to get different answers at this point other than what is already mentioned.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 10 of 20
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