What to expect and what to apply for

[ocheosa]

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@Anonymous wrote:

   Sounds like a plan, would my TU score of 707 be good enough for US bank? I could get the score up I believe in 30 days but most likely only 20-30 points. My Experian is 763 is that good enough for Citi bank? Thanks for the advice on the pulls. Strategy comes into play when you try and go for the best long term plans!

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Hello,

Yes, in your case (limited open accounts) a TU of 707 would be good enough for US Bank. I have known them to like being the first "big boy" account. With your mortgage and car history you should be fine. And for Citibank, you are fine as well. Go for one of the cards that are lenient with history: Platinum Select, Diamond Preferred....you can always product change later.

[ocheosa]

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@Anonymous wrote:

Yes AMEX was one of the closed cards, opened around 1978 closed around 1985. How would I reopen such an old account and what agency do they pull from? Would the score be good enough to reopen account? Thanks for the insight in so many directions.

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Amex pulls EX. By opening an account with AMEX you will instantly regain 30 years history!

I would apply US Bank, Citi then Amex all same day. I will find the number to call for back dating and post. Wait until AMEX posts the original open date on your reports to add your son as an AU. US Bank and Citi you can add him as soon as your accounts open.

You can also open Alliant accounts (EQ). The mortgage will play well with Alliant.

Good luck!

[Anonymous]

   Ocheosa, Sounds like you have the experience on this I am taking notes and thanks for the heads up, I think I will go online now and open a Citi checking to establish identity. With US Bank, I checked and the only office in Miami is for trust accounts only. If I apply online to the web site for the card products will I have to be in within distance of there local banks or not?

   I am gathering as much information as possible to make the correct choices but I now understand knowing which company pulls which report is so important, who knew! At my age I am just trying to establish as large of a credit cushion as possible for "the elder years" haha But I also want to make up for my credit stupidity by putting my kids on as AU's to help establish age and limits which I should have done 25 years ago bit never knew about AU accounts. All wisdom input is greatly appreciated.

  edit I just reread your post and I wanted to make clear as far as reports go my 500k mortgage is paid off and not reporting, it just fell off. No car loans all my vehicles have no notes attached, hey good excuse to go buy a new Camaro! Would this make a dif. on US Bank application for cc?

Message Edited by keninmiami on 06-03-2009 02:38 PM

Message Edited by keninmiami on 06-03-2009 02:39 PM

Message Edited by keninmiami on 06-03-2009 02:40 PM

[ocheosa]

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@Anonymous wrote:

   Ocheosa, Sounds like you have the experience on this I am taking notes and thanks for the heads up, I think I will go online now and open a Citi checking to establish identity. With US Bank, I checked and the only office in Miami is for trust accounts only. If I apply online to the web site for the card products will I have to be in within distance of there local banks or not? US Bank can be done online. Why don't you call Citi to open up the checking account? Take advantage of the phone call and see if they will approve you for a cc with the same inquiry. Can't hurt to try.

   I am gathering as much information as possible to make the correct choices but I now understand knowing which company pulls which report is so important, who knew! At my age I am just trying to establish as large of a credit cushion as possible for "the elder years" haha But I also want to make up for my credit stupidity by putting my kids on as AU's to help establish age and limits which I should have done 25 years ago bit never knew about AU accounts. All wisdom input is greatly appreciated. This is wonderful, I am glad so man parents are beginning to do this for their kids! You truly need good credit to live these days. Employment, Housing.....

  edit I just reread your post and I wanted to make clear as far as reports go my 500k mortgage is paid off and not reporting, it just fell off. No car loans all my vehicles have no notes attached, hey good excuse to go buy a new Camaro! Would this make a dif. on US Bank application for cc? Not sure if the mortgage falling off will make a difference on the iniital application. But if the application is denied, you can call and speak to a loan officer for consideration, at this point is where you would discuss your assets.

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BTW - I am no credit guru....I've just experienced a lot over the past years and this forum has been a godsend. My father paid everything with cash. I created a credit file for him over the course of 2yrs. It was a lot of fun. We started with an HSBC then another rebuilder card in 3 mos. Waited another 6mos then Chase, AMEX, Discover.....  By the beginning of the 2nd year he had 7-8 accounts. Worked like a charm. Granted the credit climate is much different now, but I think you will be fine opening only a few strong cards.

There are two forum links below that discuss AMEX re-aging. I am sure there are more,,,you can just do a search. By what I've read it seems new accounts may automatically re-age. If not, you can call the number on the back of your card 1-800-327-2177 and ask to speak to someone in the card replacement department. Let them know you would like to have the new account reflect your original membership date (1978). Then contact the credit bureau department (with credit report in hand) to have them update the information on their next reporting date. Good luck!!

american express credit reporting:
800-874-2717

Fax
801-945-2884

you need a full copy of your ex report

https://www.experian.com/consumer/cac/InvalidateSession.do?code=DISPUTE

Links:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=89253&view=by_date_ascending&page=1

 

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=123194&view=by_date_ascending&page=1

[Anonymous]

Thanks

   ocheosa , I am and was a cash guy so it is hard to change ways but have to as I prepare for old age aka the "golden years" haha I am going to take that advice. I pay the monthly fees to check reports anytime I want with all 3 so I can print an updated report for AMEX if they need it when I try and reage. Now I have to think of the order in which to apply as I know from this forum that inquiries can make or break the deal. I just got in and wish I had read this earlier, as I just opened a citi checking online and transferred to open the account and I hit a key that after the account was approved stated there was a technical error so when I called I was told no information yet and when I do apply for a card it most likely would be an additional pull. Oh well not I need to season the pot as I think what txjohn stated is correct no one wants to give you a higher limit then you have already or at least close to it. The last thing I want to establish is a bunch of low limit cards that will take to much time to increase.

  Listening and learning. Next week I am meeting with a credit lawyer to try and get my daughters file moving forward. She has 3 paid in full before due dates with Sallie Mae showing 5 years ago as three months late so the computer shows it as derogatory and I have tried everything to remove them. The lawyer stated that this is not done intentionally they just do not understand how to correct it.

Message Edited by keninmiami on 06-03-2009 09:22 PM

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

austintex,

Good questions.  You should only pay interest on the outstanding balance owed.  I would take the time to visit a local credit union or bank, explain your situation, and seek their assistance.  It is perfectly acceptable to tell them your objective is to establish credit.  I would assume they've helped others in your situation.  In fact,its in their best interest to help people establish good credit habits, thus creating a potential long-term, profitable relationship.

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Yes, and they'll be earning interest on it anyway.  Okay, so If I pay off 80% of it right off the bat, then I will only pay 3% interest on the remaining 20% of the loan?  That doesn't seem right to me.

Message Edited by austintex on 06-02-2009 08:31 PM

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hey austintex -

1.  If you pay of 80% of the loan balance, your installments will not change.  You will still need to make the original payment amount each month.  Only your balance is affected, not the payment.

2.  If you pay off 80% of the balance, then yes, you only pay interest on the balance portion.  However, the rate is not usually 2 or 3%, it is 2 or 3% above the savings yield rate.  So, if savings is paying 2.5% and the loan rate is 3% above yield, then your loan rate is 5.5%, buy your effective rate is only 3% as the first 2.5% will be made up from the savings return yield (5.5% loan rate minus 2.5% savings rate).  You will pay the 5.5% and earn 2.5%.  The difference between the two rate is the effective or net cost out of pocket.

However, if you follow my advice and deposit all of the loan proceeds back into savings (other than what you pay toward the loan) you will be earning more in savings interest than you will pay in loan interest.

[Anonymous]

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@Anonymous wrote:

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1.  If you pay of 80% of the loan balance, your installments will not change.  You will still need to make the original payment amount each month.  Only your balance is affected, not the payment.

2.  If you pay off 80% of the balance, then yes, you only pay interest on the balance portion.  However, the rate is not usually 2 or 3%, it is 2 or 3% above the savings yield rate.  So, if savings is paying 2.5% and the loan rate is 3% above yield, then your loan rate is 5.5%, buy your effective rate is only 3% as the first 2.5% will be made up from the savings return yield (5.5% loan rate minus 2.5% savings rate).  You will pay the 5.5% and earn 2.5%.  The difference between the two rate is the effective or net cost out of pocket.

However, if you follow my advice and deposit all of the loan proceeds back into savings (other than what you pay toward the loan) you will be earning more in savings interest than you will pay in loan interest.

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Oh, I see. Thanks!

The reason I didn't understand was because I was plugging in interest rates from my bank, which are so low that they wouldnt work for this scenario (.05% on savings).  I guess I need to look for a bank with good interest rates...my local CU's are low just like my bank.

[Anonymous]

If you qualify to join Alliant Credit Union they have a really good savings account interest rate. I believe it's something like 2.47 right now. They also have a very good interest rate on their checking accounts.

Message Edited by VEEnVEGAS on 06-08-2009 06:13 PM

[Anonymous]

Thanks for the great suggestion, V - Just signed up today!  I didn't realize how much $ I was losing out on keeping my savings at wells fargo with a .15% interest rate.  Think I'm going to keep the majority of my savings at Alliant now - unfortunately, they have no branches here, so I'll have to do everything online.

[Anonymous]

Good for you Austin! Did you take a look at their checking account while you were on the Alliant site?

It really has not been hard to access my Alliant accounts or to transfer money over into it.

 There are also over 80,000 surcharge free ATMs across the country that you can use for deposits or withdrawals.

Click the link below to find the ones near you!

http://www.alliantcreditunion.org/about/atms/