07-09-2014 07:47 AM
My fico scores are currently 698 Ex, 710 Eq, 704 Tu. I currently have one student loan, 3 store cards, and 11 credit cards.
My loan status is 30,500 on a 27,000 P. I should have this down to 20% by this year's end, I haven't began paying it yet and I already have enough to pay it in full, I just want to keep the loan around. So I'm knocking the amount down to probably 5,000 then getting my minimum payment changed so I can ride it out over 10 years.
Loan was opened September 1, 2010
I have a Citi Dividend CL: $2,800 Opened April 2013
Macy's Card CL: $800 Opened May 2013
Kohls Card CL: $300 Opened May 2013
AMEX BCED CL: $1,000 Opened September 2013
Discover IT CL: $7,000 Opened October 2013
Citi Diamond Preferred CL $2,500 Opened November 2013
Citi Thankyou Preferred CL $4,000 Opened November 2013
Capitalone Ventureone CL: $5,500 Opened November 2013
Chase Freedom CL: $1,000 Opened November 2013
Chase Sapphire CL: $5,000 Opened December 2013
Bestbuy CL: $10,000 Opened December 2013
Marriott Premier Rewards CL: $13,000 Opened March 2014
Chase Sapphire Preferred CL: $13,000 Opened April 2014
Barclay's World Master Card CL: $4,000 Opened June 2014
My inquires are 23 EX, 2 EQ, 7 TU.
I will be taking on probably 3-4 more student loans and I will be cosigning a car loan/lease hopefully for my girlfriend/soon to be fiancee. I'm only cosigning to get my name on a car loan. I don't need another car and have no intention of buying a new one for at least 5 years as I view cars as a waste of money but an unfortunate necessary evil.
Before I get flamed, I took out all of those cards under the intent of having MANY cards that are paid as agreed. Basically I intend to have these cards for a very long time. I'm looking at down the road when I'm in my 30's I will have 15 accounts that have an age of over 10 years. (I'm 21 now) I don't need credit right now since I have more money than I could possibly spend as a college student in the bank and two parents with near perfect credit scores to cosign anything.
I will be in the garden for the next three years or so for credit cards. Student loans I obviously won't be.
So my question is: After two-three years in the garden, do you think it's possible to see my score rise to/past 750? My utilization is typically around 5-7%. Some times lower, sometimes higher. I try to have balances on only two to three cards at a time.
I also make weekly payments on my cards rather than monthly payments, so missing payments isn't an issue.
I'm looking to buy a few rental properties in the next two-three years and was wondering if I could qualify for the lowest possible rates which is why I ask.
07-10-2014 12:17 PM
It's possible but none of us can really predict what anyone's score will be.
Seconded. Your target score does seem achievable assuming you maintain a clean history, but there are a lot of factors that go into anyone's score.
However, I would strongly recommend against the "cosign for a car just to have an auto loan" scheme. Since you already have an installment loan contributing to your credit mix (and more student loans to come), the boost you'd get from the auto loan is probably minimal at best. And no matter how sure you are that your girlfriend is going to become your fiancee and eventually your wife, it can create stress in a relationship to start merging your financial obligations before you've even fully merged your lives. Keep in mind that financial matters are one of the most often cited reasons for relationships ending.
Unless your GF really has no one else to turn to as a cosigner, it will likely be much better for the long-term health of your relationship if you let her get that help from someone else.
07-10-2014 08:54 PM
In my opinion you only need to do 2 things to meet your goals in two years and they are:
1. STOP APPLYING FOR ANYMORE CREDIT! Even two years from now under manual review it will look like you have an awful lot of new accounts. You need to let as many of those inquiries age off your reports as soon as possible and gather as few as possible new inquiries in the next two years. Let the credit you have now age.
2. Use your cards gently. Keep the balances low. Pay on time or early.
And...Advice 2.5: Friends + Money/Debt = Bad Karma (But hey...You're young! Sometimes you have to learn that lesson on your own.)
07-11-2014 06:26 AM
I could not agree more, re: co-signing for your girlfriend's car loan. It isn't necessary, nor wise.
07-11-2014 06:03 PM
If your doing it just to have your name on the loan.. don't , it won't help you. You have all the accounts you need including mix of credit so no worries.
if your co-signing because she needs a co-signer beware if the relationship goes south so may your credit.
Good luck in whatever you decide!
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