What should I do?

[SunriseEarth]

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@newhis wrote:

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@CoreyGSHS wrote:

Believe it or not, I'm not seeing a HP from them on my credit report from Credit Karma, which is giving me a 734 score. 

However, I did have a checking account with them for a good few months before I applied for the Cash Rewards CC. 

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CK use TU, I bet your HP show on EX

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+1.  CK only shows info from TU.   However, you can use that fact to your advantage and app for cards that pull TU.   Barclay and SyncB pull TU.   Discover often pulls TU (but probably EQ more frequently).  

[CoreyGSHS]

So you are saying for my next card that I am going to app for in 3 months (when I have 6 months reported history) should be an AMEX to get the goal done in a year? I'm really looking into the BCE.  Here is my storyline and next plans: 

Dec 2013 - Citibank application for retail store, but instantly denied (no credit, of course). 

June 2014 - BoA Cash Rewards for Students approved with $700 CL. (Submitted in an app for the BoA Cash Rewards AND Signature.. not sure if BoA counted 2 hard pulls). 

-----------Currently right now have 3 months reported of good utilization and payment history---------

December 2014 - App for AMEX, Chase Freedom, or Discover It. (Really like the thought of having the AMEX.. I'm just worried if they would approve me). 

May 2015 - Put in applications for auto loans on a $27,000 vehicle (with $3-4,000 DP, of course) and attempt to find the best rate. 

I'm 19 with a $21,000 annual salary, but I don't pay any bills. I have calculated the monthly cost of the car and the insurance and I can do it. 

[Boonie]

Check you insurance rates on the Mustang before you buy.   It likely will be considered a "sports car" and have a higher risk rating, thus higher insurance premiums.  I am not sure what you drive now, but it is well worth checking insurance rates before buying a Mustang.  You may be shocked how high it could be at your age.  You may be better off getting a non sports rated vehicle that is cheaper to insure, but thats up to you.  Also, your credit can be a factor in calculating your insurance premium.  You may check into getting a small personal loan of $500 for 6 months from BOA and then pay make timely payments to show you are responsible.  Otherwise, try for a Barclays Rewards or a card from Synchrony Bank to build more credit (they both use TU for approval).  Good Luck to you!

[CoreyGSHS]

Thank you for the advice!  

What bureau does AMEX pull? Do you think given my circumstances they would approve me in 3 months? 

[CreditDunce]

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@CoreyGSHS wrote:

So you are saying for my next card that I am going to app for in 3 months (when I have 6 months reported history) should be an AMEX to get the goal done in a year? I'm really looking into the BCE.  Here is my storyline and next plans: 

Dec 2013 - Citibank application for retail store, but instantly denied (no credit, of course). 

June 2014 - BoA Cash Rewards for Students approved with $700 CL. (Submitted in an app for the BoA Cash Rewards AND Signature.. not sure if BoA counted 2 hard pulls). 

-----------Currently right now have 3 months reported of good utilization and payment history---------

December 2014 - App for AMEX, Chase Freedom, or Discover It. (Really like the thought of having the AMEX.. I'm just worried if they would approve me). 

May 2015 - Put in applications for auto loans on a $27,000 vehicle (with $3-4,000 DP, of course) and attempt to find the best rate. 

I'm 19 with a $21,000 annual salary, but I don't pay any bills. I have calculated the monthly cost of the car and the insurance and I can do it. 

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Personally, I would wait until you have at least 1 year of credit history before applying for an Amex.  Or at the very least go for a charge card or Delta revolver.  But I really think you want to have 2 CC's with at least 1 year of history before app'g for an Amex.  Not that it wouldn't be ideal to get your MSD set to 2014.

Even though you have minimum bills, you may still have problems getting approved by some CCC's.  The law says until you turn 21 they have to verify you have the income to be able to repay the CC.  I have heard that means you need at least 2k of gross monthly income.

You may have better luck with student cards (e.g. Discover IT student).  The Chase Freedom is student friendly, but I am not sure about the income requirements.

I am not your parents, but how much are you going to be able to save each month with the car payment and insurance?  You really should have an emergency fund with 3-6 months of expenses (including unexpected car repairs) plus save 15% gross of your salary in a IRA or ROTH IRA (assuming you don't have a 401k available).  But lenders will lend you more money than you should borrow.  You will certainly find someone to lend you the money.

[SpendWisely]

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@CoreyGSHS wrote:

Thank you for the advice!  

What bureau does AMEX pull? Do you think given my circumstances they would approve me in 3 months? 

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AMEX pulls EX.

[CoreyGSHS]

Do any of you guys know when or if Discover is going to bring back the sign-up bonus where you'd get like $150 if you spent $1,000 in less than 90 days- whole deal? 

[Chris679]

You're not going to want to hear this but I'll say it anyway.  At $21000 per year thats about $1400 per month take home.  The car loan is going to be around $350 a month but at 19 with a Mustang you could easily be looking at $150+ per month in insurance.  This means that you are commiting 35% of your income to transportation expenses for the next 6+ years.  You may not have bills now but do you anticipate living rent free until you are at least 25?  I'm never one to talk someone out of a toy but you would be much better served looking for something at about half that price.  With all that being said I think the biggest issue for a lendor on this loan isn't going to be your credit (should be good enough) but it will be your employment history/income.  They are going to want to see a couple years of history at your current job and it may be a good idea to get in with a local credit union now and start building that relationship in advance.

[Anonymous]

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@Boonie wrote:

Check you insurance rates on the Mustang before you buy.   It likely will be considered a "sports car" and have a higher risk rating, thus higher insurance premiums.  I am not sure what you drive now, but it is well worth checking insurance rates before buying a Mustang.  You may be shocked how high it could be at your age.  You may be better off getting a non sports rated vehicle that is cheaper to insure, but thats up to you.  Also, your credit can be a factor in calculating your insurance premium.  You may check into getting a small personal loan of $500 for 6 months from BOA and then pay make timely payments to show you are responsible.  Otherwise, try for a Barclays Rewards or a card from Synchrony Bank to build more credit (they both use TU for approval).  Good Luck to you!

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I'm not gonna lie, I was wondering why the Mustang also. People don't always consider the full cost of owning a car (e.g., insurance, maintenance, repairs, etc.).

[elim]

my way...

go to local credit union and get a share secured loan for 1 year (no credit pull).

pick up 2 CC's when you can along the way (as early as possible)

in that year, cram every penny you can into that share account. 

try to have 15k in that account when the loan completes (for your down payment).

your credit union will give you a great rate and a CC to boot.

finance the needed 10k and get your car.

you now have property with a positive value if you need to bail and sell at any time.

you will suffer for 1 year but that's what we "toy buyers" do

your priorities/needs may change by then and you may dodge a credit nightmare if an emergency arises.

remember, cars are cheaper in winter

my toys are race boats so it's easier for me. i can split costs engines/hulls/trailers

my latest...

      

best of luck