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I'm A Credit Virgin And I Want It To Be Special

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pdxuser
Contributor

Re: I'm A Credit Virgin And I Want It To Be Special

Well, my CU swears they report to all three.

 

And if CU CCs are not as effective in boosting a credit score, I wonder if I should really take this CU installment loan, or whether I should get one from BOA or something instead?

Message 11 of 62
haulingthescoreup
Moderator Emerita

Re: I'm A Credit Virgin And I Want It To Be Special


pdxuser wrote:

Also, HTSU, would 3 national bank Visa/MCs be better than two of those and one CU CC? That is, are CU CC's always less potent for a FICO score, or does one help with credit mix? And how do you know that store/gas cards help with credit mix? I've never seen a very detailed explanation of credit mix beyond "revolving, installment, mortgage."

There are no scoring benefits to having CU cards in the mix, other than the fact that they often have higher CL's that bank cards, and that will help your util if you ever have balances post. That's strictly from a scoring benefit. They definitely offer a benefit to your overall credit health by providing diversification and a safety net. So one CU card, two national bank cards, and a retail/gas card, preferably issued by one of the big boys as opposed to the banks that mainly back store cards would be a reasonable spread.

I was really unconvinced about the retail/gas card benefit, because the way I read the explanation in Credit Education is that you shouldn't have only retail/gas cards. But several people have reported that their scores benefited when they added a store card, so there you go. It doesn't appear necessary for those with long history, though.

They recently changed the wording on Credit Education, and now it's even vaguer. Note that they list retail as well as consumer finance loans, which are known to be bad:

Types of Credit Used

* Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)
What’s in your FICO® score
* 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
Message 12 of 62
haulingthescoreup
Moderator Emerita

Re: I'm A Credit Virgin And I Want It To Be Special

eta: this was in reply to the question about loans from CU's. You're out-typing me! Smiley Very Happy

The CU less-wonderfulness applies to revolving (CC) credit. They're great for installment. DH is in love with signature loans from our local CU, and they're all over his report. He only has two open CC's (Discover and BofA), and his scores are in the 800's. I'd stick with the CU loans, definitely.

Up to you whether you believe the loan officer! I generally believe people who don't stutter and stammer and make me think that they're making it up on the fly.
Message Edited by haulingthescoreup on 10-25-2008 04:52 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
Message 13 of 62
pdxuser
Contributor

Re: I'm A Credit Virgin And I Want It To Be Special


@haulingthescoreup wrote:
a retail/gas card, preferably issued by one of the big boys as opposed to the banks that mainly back store cards

Who are the big boys? BOA/Chase/Citi/US Bank? Do they back some store cards? Would I prefer them because of FICO effects or because they'll have better terms and customer service?

Message 14 of 62
haulingthescoreup
Moderator Emerita

Re: I'm A Credit Virgin And I Want It To Be Special


pdxuser wrote:

@haulingthescoreup wrote:
a retail/gas card, preferably issued by one of the big boys as opposed to the banks that mainly back store cards

Who are the big boys? BOA/Chase/Citi/US Bank? Do they back some store cards? Would I prefer them because of FICO effects or because they'll have better terms and customer service?



Your best bet is to go to the bank sites, click Credit Cards, and see what comes up.

I know that Citi offers the Home Depot store card, plus Macy's and Bloomingdales (shows as Department Store National Bank, or some such.)

Chase might only offer co-branded; wait, they now back Kohl's.

GEMB and WFNNB generally back store cards. Many people are happy with them; others despise them. I think that they probably pull equal weight for scoring purposes.

And then some stores back their own cards. Target does, although they appear to be trying to sell them. Nordstrom's has a great store card, and they serve as their own bank. I'd go for one myself if there were a Nordie's within 300 miles of where I live. Smiley Mad
* 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
Message 15 of 62
Junejer
Moderator Emeritus

Re: I'm A Credit Virgin And I Want It To Be Special


pdxuser wrote:

@Junejer wrote:
@pdx, I will speak to a couple of these: CCs--If you are charging $5 per month, there would be no need to prepay before the statement cuts, unless your CL is $50 or less. Also, I don't think that you are going to find an installment loan for $100 @ 2%. It costs the bank/CU that much to approve a loan (manpower, paperwork, etc.). Set your sights a little higher for a loan. But, I could be wrong. One installment loan will do the trick for credit mix.

I'm guessing I'll have a bunch of $500 CLs. And by "bunch" I'm guessing 3 or 4. I don't know if one number is better than the other. So $5 will be 1% util. But if 3% util is better than 9% util, wouldn't 0.002% util be better than 1% util? I mean, if they're comparing me to everyone else in my bucket, wouldn't 0.002% util make me the best of my bucket? Besides, it's not that hard to just go back online a couple days later and transfer $4.99 to my card.

 

I just got off the phone a couple hours ago with my CU, which said that I could make the loan as small as I wanted, and the rate is 2% above the savings rate (and my savings security deposit generates interest, so it balances out to 2%). I specifically asked if I could have a 5-year, $500 loan, pay it down to 60¢, and put the remainder on automated withdrawals, and they said "sure, but why not make it $100?"


Wow, that's great. I was going off of my experience in banking (knowing how expensive it is to process a loan, any loan). That's why I love CUs. They do things that make sense to them and their members.

Most members report that there is no score benefit by moving around between 1-9% utility...me included. No score difference. EQ was 790 at 5% util. Went to 1%, score remained.

Wow, you and HTSU have been getting busy discussing your credit devirginization.  I'd say you have rounded second and are heading into third.  Watch the signs closely though, you wouldn't want to misread the sign and wind up out at home.






Starting Score: 469
Current Score: 849
Goal Score: 850

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Message 16 of 62
haulingthescoreup
Moderator Emerita

Re: I'm A Credit Virgin And I Want It To Be Special


ByrdMan wrote:

Wow, you and HTSU have been getting busy discussing your credit devirginization.  I'd say you have rounded second and are heading into third.  Watch the signs closely though, you wouldn't want to misread the sign and wind up out at home.

Goodness, I've never played Pandarus before! Smiley Surprised

It sounds as though ByrdMan is taking things over now. Smiley Wink

Oh, by the way, as in so many things, you'll probably do best to start with one kind-hearted conquest first. I'd go for the CU first and get some practice (establish some history) before going after the hotties.

wow, hope my kids don't read this...
* 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
Message 17 of 62
MattH
Senior Contributor

Re: I'm A Credit Virgin And I Want It To Be Special


@haulingthescoreup wrote:
...

Goodness, I've never played Pandarus before! Smiley Surprised

...

Look out for DiomedesSmiley Wink

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 18 of 62
haulingthescoreup
Moderator Emerita

Re: I'm A Credit Virgin And I Want It To Be Special


MattH wrote:

@haulingthescoreup wrote:
...

Goodness, I've never played Pandarus before! Smiley Surprised

...

Look out for DiomedesSmiley Wink



I was going with the Chaucer and Shakespeare versions! Smiley Wink
* 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
Message 19 of 62
pdxuser
Contributor

Re: I'm A Credit Virgin And I Want It To Be Special

Are inquiries no longer scored after 1 year? When do they fall off?
Message 20 of 62
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