Please, Tear My Situation Apart - Need Your Honest Opinon!

[fused]

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John060675 wrote:

Forum,

Thank you for your help.  As most of you know, I have been asking a lot and learning a lot for the past 2.5 months.  I thank you.  I wanted to give my current situation, and basically lay open my whole profile for your advice.  Please, tear this report apart.  No criticism will be taken bad.  Be brutally honest.

Please keep in mind that I would like to buy a house in the Spring of 2009, so I have a little over a year to get this done.

10/23/07 scores:

TU:  687 (Honda baddie still showing - will be removed shortly per Honda, and Cap 1 charge off from 2003 - still GW'ing them)

EX:  668 (Same as above w/ Honda to be removed shortly and Cap 1 charge off from 2003)

EQ:  790 (was 805 yesterday, but AMEX account showed up for first time to drop score)

Accounts (average age of all accounts 4 years - some old accounts still showing)

AMEX Blue Cash           $2,000 CL (opened 9/07)

WF Secured:                 $1,000 CL (opened 5/07) - will convert to unsecured after 1st anniversary

Hooters:                         $1,500 CL (opened 9/07)

US Airways (Juniper):    $   500 CL (opened 9/07)

WaMu:                            $    750 CL (opened 9/07)

Cap 1:                             $1,000 CL (opened 5/07) - Only one with AF ($29)

Chase Freedom:            $5,000 CL (pending, but should be opened)

PenFed Cash CC:         $5,000 CL (approved today)

Honda Car Account:  20 months of payments left.  Can pay off early with no problem.

Utilization Rate:  4% (highest it will ever be, mistimed statement date for AMEX), will always be 1% or less in future

Inquiries:  Tu - 7, EQ:  0, EX:  10

Questions:

1.  What should I do to maximize scores in your opinion?

2.  Should I open up a Discover CC to complete the big 4 (AMEX, MC, Visa, Discover)?

3.  Should I pay off my car early or should I open another installment loan for a better mix?

4.  Any CC's I should cancel? (WaMu, US Airways, etc.)

5.  Should I open a department store CC, since I do not have one in the mix?

Any other ideas would be appreciated.

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I say work on CLIs without hard inqs! Your credit file has a short history and time will become your friend. Low util and Never paying late is all you need to worry about.

[Anonymous]

John, you have some really nice cards, with perhaps the exception of Juniper(you know my feelings on them. we've talked about that). And the Juniper is the boat anchor, with an aniemic cl. If you're going to get rid of that one, that's the one I'd choose.

You have enough cc's, except maybe a store card. IMO, let them age, with pristine pay history, and cli's will follow. If you're like me, you need higher limits on the cards you have, not more cards.

Your scores are quite nice. I'm kind of envious. That show that you are being responsible, and taking control of your credit life. Your hard work has paid off. Good for you.

[John060675]

Thank you for your advice!  I need to think of exactly what to do.  I think you all are right about Juniper.  I just am not sure about the Discover CC and the store CC.  To apply for them, or not to apply for them, that is the question.

Thank you all.  I am eternally in debt to each one of you!

[haulingthescoreup]

No, no, remember? You're not in debt to anyone! You can be in credit to us, how's that?

[Anonymous]

Your Honda Car account if it has less than 10 months left will not be factored into DTI for the mortgage.

Juniper is questionable in my mind - crappy limit considering your other cards.

Work on CLIs  If any store card a HomeDepot (for that new house using the 0% for 6 months that they offer a lot).  Home Depot is issued by Citi.  Six months and they will probably offer you a Citi MC.

Min of 8 months history for a mortgage - preferable is 2 years (clean).

Message Edited by Lady_Scarlet on 10-24-2007 07:55 AM

[scramblingin2007]

Hi John, your scores and cl's look perfect, I wouldn't change or apply for anything, just let everything age and the baddies & inqs fall off and looks like you'll see a big score jump! Congrads on those great scores!

[Anonymous]

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John060675 wrote:

I would like to buy a house in the Spring of 2009

...

10/23/07 scores:

TU:  687

EX:  668

EQ:  790

...

1.  What should I do to maximize scores in your opinion?

2.  Should I open up a Discover CC to complete the big 4 (AMEX, MC, Visa, Discover)?

3.  Should I pay off my car early or should I open another installment loan for a better mix?

4.  Any CC's I should cancel? (WaMu, US Airways, etc.)

5.  Should I open a department store CC, since I do not have one in the mix?

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Were I you, I would not wait for 2009. Depends upon where you are, but it's a buyer's market right now. DW and I just closed on our home a month ago. My FICOs were about 50 points (or more) below yours, we put $0 down, seller paid closing costs, we got all but about $20 of our earnest money back at closing, and we just inked a loan to get our siding replaced. We have LP, yuck, and it looks like a sponge a couple of places. We're going with vinyl that looks oh so sweet and nothing like the vinyl siding I knew as a kid. Skip the Hardie and cedar, IMHO. Go vinyl. Vinyl endorsement concluded.

1) Cap 1 are Satan's minions, but keep trying to GW them. Hit up all your CCCs for a CLI.

You can do it online, but I'd give AMEX a call and talk to someone personally. Tell 'em you're looking to buy a house "soon", and you'd like to see about getting a CLI now because you know that will help you out on the loan approval--also tell them you know you'll incur some expenses initially and you wanted to be prepared in case a stove or furnace or something goes bad. They might ask you about financing the home through AMEX. Act interested and happy, even though AMEX likely will offer you terms that you can easily beat talking to a mortgage broker.

There's a hooker-John relationship with OCs, and the consumer is the hooker. You're getting money for performing an act. Make the John feel good, and they might be more generous with the greenbacks, or credit in this case.

2) Discover helps, but anymore they are very reserved and conservative. Not like the Discover of old where they'd give a CC to anyone with a pulse. You likely would qualify and could probably get a couple of thousand in CL.

3) If the Honda car loan is the one with the baddie, keep the loan open and keep making payments on time, at least for now. So long as the loan remains open, they are making money off you so they might be more inclined to be generous with their updated CRA reporting. The installment debt also tends to help by showing you can manage an installment loan. If you PIF the car loan early, the lender might think uh-oh this guy is one of those deadbeats you pays debts early and avoids some of the finance charges and thereby shortchanges me on my profits from the interest.

4) Cancel no CCs. Keep them all open and current. If you like, for easier managing of the payments, call 'em up and ask them to change the payment due dates. You could make them all due on the same day, or perhaps spread 'em out over 2 days in the month--like the 10th and the 25th. Little easier to manage more CCs.

5) A store CC can be very helpful, and the Home Depot Consumer CC is a good one. No interest, no payments for 6 months on purchases of $299 or more. Very helpful and useful in case a stove, microwave, etc. goes bad.

[Anonymous]

As far as wanting a store card, IMO(and this is just me talking; no paid endorsement,lol)

You might want to consider a JC Penny card. Really nice selection of clothes for the entire family; they are partnered with Sephora(I buy a lot of things from them, but mainly for the ladies

Plus they have a great selection of home improvement items, and have sales all the time(everything from kitchen appliances to furniture to draperies). They are having a 70% off sale on their drapes. going on right now.

Not to mention the nice cli's you get. I started out exactly a year ago with $300 cl, and now have $1.500 cli with them. And Christmas is right around the corner. It will be used alot between now and New Year's.

Just my thoughts.

[John060675]

Thanks for all the good advice!  You all are awesome!

Sylviatob,

My first CC way back in 1993 (shows my age ) was a JC Penny CC.  I closed it in 1998, because I was stupid (if only I knew then what I know now - cliche).

I called and said I was interested in re-opening the CC, and I could tell in her voice that she wanted to laugh.  She said it was too old to re-open.  I then wrote a letter asking it to be re-opened 6 weeks ago.  They still have not answered.  They are probably too busy laughing at my request.

I just do not want that to fall off, because that is a 14 year old account that will fall off next year.