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Valued Member
doctor2be
Posts: 39
Registered: ‎06-30-2009

help in getting low interest credit card

TU 781 and eq 804-------recently paid a collection for verizon and can't seem to get them off my report.  I was wondering  even with my high scores what can I apply for without being rejected.  Also I only have a secured card b/c I was afraid fo the inquiry hit and 3 student loans with a total of3500 but no longer a student,. Credit history of 14 years.  I also saw that my score can jump b/c it wil be my first real credit card in ages----b/c the secured card did not get a inquiry.  I have had no inquiries in years------please help-----------do you think my score wll increase or decrease and should I apply for my first real credit card if I am thinking of getting a mortgage in 2-3 months???????
Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008

Re: help in getting low interest credit card


doctor2be wrote:
TU 781 and eq 804-------recently paid a collection for verizon and can't seem to get them off my report.  I was wondering  even with my high scores what can I apply for without being rejected.  Also I only have a secured card b/c I was afraid fo the inquiry hit and 3 student loans with a total of3500 but no longer a student,. Credit history of 14 years.  I also saw that my score can jump b/c it wil be my first real credit card in ages----b/c the secured card did not get a inquiry.  I have had no inquiries in years------please help-----------do you think my score wll increase or decrease and should I apply for my first real credit card if I am thinking of getting a mortgage in 2-3 months???????

You have high scores with a collection account reporting.  FICO 08 must have kicked in!  How old is the collection account?  Since you plan to mortgage shop soon you may want to wait before applying for new credit.   With that being said, I think you can qualify for a prime card.  

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: help in getting low interest credit card


doctor2be wrote:
TU 781 and eq 804-------recently paid a collection for verizon and can't seem to get them off my report.  I was wondering  even with my high scores what can I apply for without being rejected.  Also I only have a secured card b/c I was afraid fo the inquiry hit and 3 student loans with a total of3500 but no longer a student,. Credit history of 14 years.  I also saw that my score can jump b/c it wil be my first real credit card in ages----b/c the secured card did not get a inquiry.  I have had no inquiries in years------please help-----------do you think my score wll increase or decrease and should I apply for my first real credit card if I am thinking of getting a mortgage in 2-3 months???????

No.

 

If you insist on getting a CC now then you may want to postpose the mortgage until six months after app'ing. This may not be quite so important for you as it might be for many others since you have such a thin credit file. Since your file is thin much of the same advice is going to apply as was given here:

 

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&message.id=167915&query.id=26605...

 

FICO High Achiever level scores are not necessarily indicative of app'ing results when derived from a thin CBR.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: help in getting low interest credit card


DI wrote:

doctor2be wrote:
TU 781 and eq 804-------recently paid a collection for verizon and can't seem to get them off my report.  I was wondering  even with my high scores what can I apply for without being rejected.  Also I only have a secured card b/c I was afraid fo the inquiry hit and 3 student loans with a total of3500 but no longer a student,. Credit history of 14 years.  I also saw that my score can jump b/c it wil be my first real credit card in ages----b/c the secured card did not get a inquiry.  I have had no inquiries in years------please help-----------do you think my score wll increase or decrease and should I apply for my first real credit card if I am thinking of getting a mortgage in 2-3 months???????

You have high scores with a collection account reporting.  FICO 08 must have kicked in!  How old is the collection account?  Since you plan to mortgage shop soon you may want to wait before applying for new credit.   With that being said, I think you can qualify for a prime card.  


A consumer cannot obtain a FICO08 score anywhere.

Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: help in getting low interest credit card

[ Edited ]

doctor2be wrote:
TU 781 and eq 804-------recently paid a collection for verizon and can't seem to get them off my report.  I was wondering  even with my high scores what can I apply for without being rejected.  Also I only have a secured card b/c I was afraid fo the inquiry hit and 3 student loans with a total of3500 but no longer a student,. Credit history of 14 years.  I also saw that my score can jump b/c it wil be my first real credit card in ages----b/c the secured card did not get a inquiry.  I have had no inquiries in years------please help-----------do you think my score wll increase or decrease and should I apply for my first real credit card if I am thinking of getting a mortgage in 2-3 months???????

1. How old is the collection?
2. Your scores are from here, right? i.e., FICO scores, not "credit" scores?
3. Are you currently working with a lender for a mortgage?

Normally, the advice is not to get a CC within 6 months of a mortgage, but you might need more open revolving credit reporting. Do you already have a lender picked out? --and if so, do they also offer CC's?

I would say that your score would definitely increase, since you only have one open revolving account. YMMV, though.

If the collection isn't recent, you might be OK. I would seriously recommend checking out local credit unions. Print out a newly-pulled FICO EQ report, show it to the loan officers, tell them it's a Beacon 5.0 (it is), and ask if they would be likely to approve a CC based on what they see on the report. Of course, if you decide to app for real, they'll have to pull the real thing, but you should be able to get an informed guess this way.

At some point, you'll need to close your eyes and jump. Just research the possibilities, check out threads here regarding different lender's attitudes toward collections, and make the most informed decision you can. If you are already working with a lender, and this person seems knowledgeable, ask him/her if an additional card this close to mortgage apping would help or hurt.



eta: and yes, FICO 08 is not available to consumers at this point. myFICO is still giving Beacon 5.0 (EQ) and FICO Risk Score Classic aka EMPIRICA 98 (TU.) Not that many lenders are using it yet, in fact. These things take absolutely forever to percolate through the lending market and gain acceptance.
Message Edited by haulingthescoreup on 10-02-2009 03:57 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Member
doctor2be
Posts: 39
Registered: ‎06-30-2009

Re: help in getting low interest credit card

my collection is from 2005 and it states on the report paid after collection and its due to be on my report till 2012-----I have sent a GW letter to Verizon ---we will see.  I haven't spoken to a lender.  Since my secured card is from a credit union maybe I can show them my recent credit report---my score with eq is 801-----I got these from myfico-------so they are good scores----my report does have a chart with new credit being good---so maybe a credit card will help but there is that mortgage thing. 
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: help in getting low interest credit card

You just might get lucky with Citi.

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