Reply
Regular Contributor
DrMac210
Posts: 163
Registered: ‎11-03-2007
0

Where do I go from here? (only have 1 cc)

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??

 


Starting Score: EQ 641, TU ???, EX ??? (myfico 6/7/13)
Current Score: EQ 771, TU 783, EX 754 (myfico May 2014)
Goal Score: 800 across the board


Take the myFICO Fitness Challenge
Moderator
09Lexie
Posts: 26,321
Registered: ‎09-13-2012
0

Re: Where do I go from here? (only have 1 cc)

Regular Contributor
DrMac210
Posts: 163
Registered: ‎11-03-2007
0

Re: Where do I go from here? (only have 1 cc)


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. 


Starting Score: EQ 641, TU ???, EX ??? (myfico 6/7/13)
Current Score: EQ 771, TU 783, EX 754 (myfico May 2014)
Goal Score: 800 across the board


Take the myFICO Fitness Challenge
Moderator
09Lexie
Posts: 26,321
Registered: ‎09-13-2012
0

Re: Where do I go from here? (only have 1 cc)

[ Edited ]
Certain lenders will be out of the running while its still unpaid. I would ask for a CLI on your GE card, app for another GE card if your CLI is granted. I might test the waters with Barclays .

Edit: typo
Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: Where do I go from here? (only have 1 cc)

Do you have other loans reporting on your credit report? If so, how many and how old are they? Are the loans still open?

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Community Leader
Senior Contributor
myjourney
Posts: 26,659
Registered: ‎02-07-2013
0

Re: Where do I go from here? (only have 1 cc)


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

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/6/13


Frequent Contributor
LearningMoreAboutCredit
Posts: 472
Registered: ‎11-08-2007
0

Re: Where do I go from here? (only have 1 cc)


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 :smileyhappy:



Any advice given is always YMMV...

Current FICOs: 730+ across the board | Goal: >760 FICO (1 down, 2 to go) | Total CLs: $59.8k/$60k Goal | Utilization: 14% | Last App: 05/01/2014 | INQ: EX: 10, EQ: 14, TU: 8, All Expire 06/2016; No Collections/Charge Offs/BK's | AAoA: 6yrs.
| All Reports Frozen!!! | No Apps til 12/2015 | Homeowner since: 06/28/13 | White Whales: CSP, Discover IT, Sallie Mae WMC
Regular Contributor
DrMac210
Posts: 163
Registered: ‎11-03-2007
0

Re: Where do I go from here? (only have 1 cc)


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.


Starting Score: EQ 641, TU ???, EX ??? (myfico 6/7/13)
Current Score: EQ 771, TU 783, EX 754 (myfico May 2014)
Goal Score: 800 across the board


Take the myFICO Fitness Challenge
Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: Where do I go from here? (only have 1 cc)

Ok - good to know.

It would definitely help you to open up a new positive tradeline right now based on what I can tell about your credit report. Most mortgage lenders look for a few long-term positive tradelines on your credit report regardless of your score. That would likely include secured cards, but you may want to check with your mortgage lender if you have one identified. It looks like you might only have 2 positive tradelines on your report right now, so that may impact your approval chances. I definitely don't think that a new card will hurt you this far out from your mortgage application. Good luck!

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Frequent Contributor
Steelersboy
Posts: 343
Registered: ‎06-25-2013
0

Re: Where do I go from here? (only have 1 cc)

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.

 
If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the best interest. - Benjamin Franklin
FICO Equifax-741, FICO Transunion-729, FICO Experian-740, Walmart FICO-754
Capital One Platinum|Capital One Quicksilver Cash Rewards|Chase Amazon Visa Rewards|BOA Cash Rewards|Walmart Discover|Sallie Mae MC Goal scores- 760+

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}