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Valued Member
keninmiami
Posts: 47
Registered: ‎05-29-2009
0

What to expect and what to apply for

After reading on this forum for several months I feel compelled to apply for something!  It seems the grand prize for someone like me would be an Alliant online approval?

  History~ mid 50's old geezer living the good life. Presently paid off mortgage 500k not showing on reports now, all car paid cash for no bills. I canceled all my cards over the years and did not obtain any until I found our how difficult it is to travel now without them! So I have 2 measly cards now 2 years old 500 limit perfect pay, no installment loans. I would like to build some great cards now so if anything unexpected came up in the future (say medical) I would be able to whip put some plastic and put that new kidney on!  So credit gurus, how shall I start this path now? Since I did not know what Au's were until 2 months ago I want to use the new credit to place my kids on as AU's to help build credit history. I wish I knew about that years ago since my kids always told me there friends had credit cars and I said impossible you have to be 18 to sign a legal contract! Boy was I misinformed. What shall I apply for first and in what time frame. I would like to end up this year with 7 new accounts, is that possible? I know with my FICO EQ score now at 806 that it would most likely take a hit when I start applying. Words of wisdom please.

 

 

 

 

 

 

 

 

SCORES 4-6-09
TU 653   EX 577  EQ 616
TU 690   EX 591  EQ 616  4-28
TU 702   EX 603  EQ 625  5-01
TU 702   EX  631 EQ 625  5-08
TU 711   EX  631 EQ 625  5-09
TU 662   EX  673 EQ 625  5-11
TU 666   EX  763 EQ 622  5-13
TU 666   EX  763 EQ 675  5-14
TU 707   EX  763 EQ 633  5-15
TU 707   EX  763 EQ 705  5-21
TU 707   EX  763 EQ 806  5-29   (EQ SCORES ARE TRUE FICO PAID FOR)
When I started this journey 2 months ago I decided to subscribe to all 3 bureaus reporting each around 15 a month so I could daily check in on progress

Frequent Contributor
illtakecreditforthat
Posts: 320
Registered: ‎05-03-2009
0

Re: What to expect and what to apply for

Who are your CCs with?  Are there any other tradelines reporting on your CR?
I want PATIENCE...and I want it NOW
Valued Member
keninmiami
Posts: 47
Registered: ‎05-29-2009
0

Re: What to expect and what to apply for

cap 1 and orchard, also one other closed still reports positive closed  no other accounts open now
Established Contributor
Itsmeagain
Posts: 832
Registered: ‎01-16-2008
0

Re: What to expect and what to apply for

I would definately suggest Alliant.  You can join by being affiliated with your local PTA or by joining the National PTA for a one-time fee of $25.  Then you can immedietely apply online at Alliant and get instant offers unless there are some questions they may have on your report.

 

Your EQ score indicates you would have few problems qualifying for pretty much whatever you want.

 

Be aware though, that Alliant does not use FICO scoring.  They use another scoring model (the name eludes me right now), but in any event, you look like a prime candidate for Alliant.

 

As you might tell, I love Alliant :smileyhappy:

 

Good Luck . . .


Starting Score: TU 737 EQ 721
Current Score: TU 741 EQ 741
Goal Score: TU 765 EQ 760


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Valued Member
keninmiami
Posts: 47
Registered: ‎05-29-2009
0

Re: What to expect and what to apply for

   My EQ has zero derog but now only 2 open and one closed all reporting positive but with the 2 open cards having low limits will this hurt high limit granting and anything else? I kick myself now for closing all my cards 10 years ago and NOT having them on my reports now! I want to put my kids on as AU's to help speed up there jump into the credit world.

 

   Where would I find out how there scoring models work? I have same address and #'s 25 plus years so stability would not enter into equation/

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: What to expect and what to apply for

[ Edited ]

keninmiami wrote:

After reading on this forum for several months I feel compelled to apply for something!  It seems the grand prize for someone like me would be an Alliant online approval?

  History~ mid 50's old geezer living the good life. Presently paid off mortgage 500k not showing on reports now, all car paid cash for no bills. I canceled all my cards over the years and did not obtain any until I found our how difficult it is to travel now without them! So I have 2 measly cards now 2 years old 500 limit perfect pay, no installment loans. I would like to build some great cards now so if anything unexpected came up in the future (say medical) I would be able to whip put some plastic and put that new kidney on!  So credit gurus, how shall I start this path now? Since I did not know what Au's were until 2 months ago I want to use the new credit to place my kids on as AU's to help build credit history. I wish I knew about that years ago since my kids always told me there friends had credit cars and I said impossible you have to be 18 to sign a legal contract! Boy was I misinformed. What shall I apply for first and in what time frame. I would like to end up this year with 7 new accounts, is that possible? I know with my FICO EQ score now at 806 that it would most likely take a hit when I start applying. Words of wisdom please.

 

 

 

 

 

 

 

 

SCORES 4-6-09
TU 653   EX 577  EQ 616
TU 690   EX 591  EQ 616  4-28
TU 702   EX 603  EQ 625  5-01
TU 702   EX  631 EQ 625  5-08
TU 711   EX  631 EQ 625  5-09
TU 662   EX  673 EQ 625  5-11
TU 666   EX  763 EQ 622  5-13
TU 666   EX  763 EQ 675  5-14
TU 707   EX  763 EQ 633  5-15
TU 707   EX  763 EQ 705  5-21
TU 707   EX  763 EQ 806  5-29   (EQ SCORES ARE TRUE FICO PAID FOR)
When I started this journey 2 months ago I decided to subscribe to all 3 bureaus reporting each around 15 a month so I could daily check in on progress


 

With your scores and lack of any real credit history, I do not think Alliant is the best place for you.  They do not offer secured cards and it sounds like you have some cash you could transfer to the institution who will help you build.

 

Therefore, I would go with a credit union (local maybe) who offers secured cards and loans.  I would drop $10 - 15k into a savings account and get a secured card with a $10-15k CL.  I would also suggest doing something similar on a personal loan.  Drop $10k into savings and take a secured loan against it.  When they issue the loan check, drop that back into savings so that you are earning as much interest on savings as the loan is costing you. 

 

Pay a substantial portion of the loan off in the first month (like 80%) then continue to make payments for about 12 months.

 

Make regular use of the secured card.  At 6 months ask the CU about unsecured.  If not at 6, then at 12 when you pay the loan off.

 

The next time you buy an automobile, do not pay cash.  Get an auto loan from your Credit Union for the full price or as much as they will lend against it.  Once the loan is issued, then drop about 80% cash on the loan so that you are paying very little interest.  Make at least 3 payments, but preferably 6, then pay off the loan.

 

You will now have a successful auto loan and personal loan and an active credit card with a substantial CL.  While FICO doesn't care about the CL, other creditors do and most will not issue you a CL much more than what you have all ready been issued.

 

Also, if you have any credit issues on your report, you should be working to clean up while putting the new positive credit on it.

Message Edited by txjohn on 06-02-2009 02:25 PM

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Valued Member
keninmiami
Posts: 47
Registered: ‎05-29-2009
0

Re: What to expect and what to apply for

 

 

    txjohn, thanks for the reply are these score not good enough to get an account there?

 (TU 707   EX  763 EQ 806  5-29 )

 

  That process sounds like it may take one plus years? Yikes I thought the scores were OK and now reports a 10 year history (does not show all my accounts prior) Any more suggestions?  Sounds like you are saying this requires secured accounts?

 

  I am trying to learn as much as I can so I do not apply for the wrong items!

Regular Contributor
FocusOnFICO
Posts: 180
Registered: ‎05-01-2009
0

Re: What to expect and what to apply for

Ken----txjohn's advice is right on.  Additionally, though, I would recommend that you speak to the credit union (local) loan officer.  They are typically very open about what scores they will accept.  If your scores fall into the range they will accept, you will be fine.  tx's advice is well taken--I would do that for sure, but talk to the local cu in person and hopefully they will be as understanding as many have posted in this forum.

Starting Score: TU 766 EQ 788
Current Score: TU 788 EQ 811
Goal Score: TU 800 EQ 800


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Frequent Contributor
illtakecreditforthat
Posts: 320
Registered: ‎05-03-2009
0

Re: What to expect and what to apply for

Although your FICO scores are excellent. new card providers are hesitant to issue CLs that are higher than your highest existing CL.  As per txjohn, establish a secured tradeline with a higher CL, let it ripen for 6 months, and then seek higher CL unsecured cards
I want PATIENCE...and I want it NOW
Established Contributor
medicgrrl
Posts: 703
Registered: ‎03-23-2009
0

Re: What to expect and what to apply for


keninmiami wrote:

 

 

    txjohn, thanks for the reply are these score not good enough to get an account there?

 (TU 707   EX  763 EQ 806  5-29 )

 

  That process sounds like it may take one plus years? Yikes I thought the scores were OK and now reports a 10 year history (does not show all my accounts prior) Any more suggestions?  Sounds like you are saying this requires secured accounts?

 

  I am trying to learn as much as I can so I do not apply for the wrong items!


 

Your oldest tradeline is 10 years and your 2 cc's have been open for 2 years, correct?  How many tradelines are showing (opened or closed) on your reports?
Goal: 700 by end of January!!! 7/20/09 EQ 605
6/03/09 EQ 587
5/15/09 Ex 686 TU 653
5/11/09 EQ 628/ TU 639/ EX 656 (81% util.)
5/9/09 EQ 628/TU ?/ Exp ?
3/23/09 EQ 491/ TU 565/ Ex 627

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