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I currently only have one credit card, the PayPal Smart Connect, that I have had for 6+ years
When I initially received the card, I had a credit line of $600. Unfortunately, at that time, I thought it was best to run up the card and make minimum monthly payments to show the ability to handle credit.
I then had a Capital 1 judgement hit me six months later and Paypal did a CLD to $400+, which is where the limit has been for the last 5 years.
I came across this site last month and have paid down my utilization to 26% currently, and will have it down to less than 9% by next week.
I am looking at getting my first ever mortgage next summer and am wondering if I need additional credit lines.
My current myFico scores are 661 EQ and 696 TU.
With that background, where do I go from here??
1) Should I ask GE for a GLI?
2) Apply for different unsecured credit cards?
3) Go for a secure card from local CU?
4) Do Nothing??
@09Lexie wrote:
What's the status of the judgment?
Currently unpaid.
I could pay it off, but have seen conflicting information about whether to wait to pay it off until mortgage closing.
@DrMac210 wrote:I currently only have one credit card, the PayPal Smart Connect, that I have had for 6+ years
When I initially received the card, I had a credit line of $600. Unfortunately, at that time, I thought it was best to run up the card and make minimum monthly payments to show the ability to handle credit.
I then had a Capital 1 judgement hit me six months later and Paypal did a CLD to $400+, which is where the limit has been for the last 5 years.
I came across this site last month and have paid down my utilization to 26% currently, and will have it down to less than 9% by next week.
I am looking at getting my first ever mortgage next summer and am wondering if I need additional credit lines.
My current myFico scores are 661 EQ and 696 TU.
With that background, where do I go from here??
1) Should I ask GE for a GLI?
2) Apply for different unsecured credit cards?
3) Go for a secure card from local CU?
4) Do Nothing??
Until you can make your CR more attractive I would start with options 1 & 3 to build positive history while working on your CR...IMHO
@DrMac210 wrote:I currently only have one credit card, the PayPal Smart Connect, that I have had for 6+ years
When I initially received the card, I had a credit line of $600. Unfortunately, at that time, I thought it was best to run up the card and make minimum monthly payments to show the ability to handle credit.
I then had a Capital 1 judgement hit me six months later and Paypal did a CLD to $400+, which is where the limit has been for the last 5 years.
I came across this site last month and have paid down my utilization to 26% currently, and will have it down to less than 9% by next week.
I am looking at getting my first ever mortgage next summer and am wondering if I need additional credit lines.
My current myFico scores are 661 EQ and 696 TU.
With that background, where do I go from here??
1) Should I ask GE for a GLI?
2) Apply for different unsecured credit cards?
3) Go for a secure card from local CU?
4) Do Nothing??
Considering that you are seeking a mortgage next year, you should concentrate on getting a CLI on your GE card which is typically a soft pull on TU...IME but YMMV. Also, look to get the secured card with your local CU and ask if they unsecure after a certain time period (12 - 18 mos.) To get the best bang for the buck, you may also want to ask your CU if they provide secured loans as well. If so, you could for instance, take $1000 and get a secured loan for that amount. Once you receive the loan proceeds ($1000), take that and ask for a secured cc for the same amount. Using this method, you now have two active tradelines for the price of one which age together. If you are successful in obtaining both tradelines, that will put you at 3 TLs which should be enough to generate a good score...remember to PIF on one card and let the other report less than 10% UTI to your CR then PIF to avoid interest.
You will need to address any unpaid collections you may have as lenders will want you to pay those off before you are approved for your mortgage. Typically, they like to see tradelines that are at least two years old. However, a great mid-score, low DTI (preferably closer to 28% than 33% for most lenders), and good income sometimes prevail. Good luck and Godspeed
@SnackTrader wrote:
Do you have other loans reporting on your credit report? If so, how many and how old are they? Are the loans still open?
I do also have student loans from Sallie Mae on my report that go back 20 years. There are 10+ Sallie Mae accounts that were separate before they were consolidated in 2007.
On the EQ and EX CR's they list EACH of these 10+ loans with 90/120 day lates 2x each. TU lists these same accounts as all either "pays as agreed" or "no data". All of the lates will fall off in Jan 2014.
The consolidated SM loan from 2007 has always been paid as agreed.
snack,
i wont be apping for a mortgage until next summer too, could i go on and app for like four more cards this yr in your opinion? No judgments, no collections, no carried cc balances, always pay on time.