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Hello, my two red issues are:
few accounts, paid on time ( i have one Cap 1 CC)
short credit history ( I year 11 months)
I will need to buy a car AND to apply for credit for a new Apple computer in the next month ( for work).
Each will seriously ding my credit score, but will add more accounts ( from 1 to 3) and diversify it.
What should be my next move? The car or the computer?
My only account will be 24 months in December 2009?
Marie
@Anonymous wrote:Hello, my two red issues are:
few accounts, paid on time ( i have one Cap 1 CC)
short credit history ( I year 11 months)
I will need to buy a car AND to apply for credit for a new Apple computer in the next month ( for work).
Each will seriously ding my credit score, but will add more accounts ( from 1 to 3) and diversify it.
What should be my next move? The car or the computer?
My only account will be 24 months in December 2009?
Marie
You only mention one report up there. Which one is this & what's your other score? When was the late with Cap 1??
champagneclara wrote:My only account will be 24 months in December 2009?
To clarify, you only have one single account reporting on your CR? Where did you get your credit score from and which CR is it (TU, EX, EQ)?
I use score watch, and this is the score they gave me.
They was never a late on my account. I just provided you the exact sentence used in my report.
Yes, I have only 1 account reporting: a CC from Capitol One with a limit of 750. This is the only card I could get when I arrived in the country from Europe two years ago.
That's why I am asking you this question about a car loan and the opening of a credit card with Apple. Which one first? and When? Now or after my account is 24 months old?
I am self employed, and make a decent income, but I am afraid I will be refused a car loan because of the two red flags I mentioned: too few accounts and a short credit history.
Can someone please answer my question?
Impressive....743 EQ FICO with only one TL reporting at just under 2 yrs.
If the computer is needed for work, and you had to finance it, then I'd focus on that first. Applying for and opening a new Apple account or new car will drop your scores. No doubt about that. Applying for and receiving a new car could hurt your chances for a new computer and that can hurt your job if that's something you need. IMO, a car lender can be a little more forgiving than Apple (or whoever underwrites their lending).
Re; the car.
I would like to finance a used model for about $ 8000/9000 with 1000 down payment...
Well, I'm thinking the car loan will help your FICO because you don't currently have an installment loan in your mix. I'm wondering what kind of a score ding you're expecting? I think it will be quite minimal for both of these new accounts. You're building and you just don't get hit like established FICO folks do.
(For example, DH added his car loan, his only current installment loan, he took a 2 pt. hit when the account reported and no hit for the inquiry).
I would also do the math on your AAofA. It'll be at 2 yrs next month, but right now it's at 1 yr (they only count whole years). If you add one account in Dec., your AAofA will be 12 months (I think) and if you add two new accounts, your AAofA will be 8 mos (if my math is good).
If you're worried about AAofA, I would open either account, wait 4-6 mos. and then open the other. That way your AAofA will stay above 1 year (which is what it is at now) and you won't see an AAofA hit. On the other hand, it's already fairly low so opening two accounts now may not be too bad of a hit.
And again, I think the installment will raise your score - especially 3-6 months down the road.
Inquiries aren't going to bite you too much at the point - if you're worried about them, check out who Barclay's Apple pulls (Barclay's pulled EXP for me - YMMV). And check out who your car loan pulls. Car loans tend to be easier to get because they're secured. In our state, CU's are more liberal in what they'll lend on a used car than the banks are. DH's car loan was for a $9,000 Nissan - banks offered $9,000 in financing & CU's offered $11,000. Check around before you have them pull your credit.
Good luck!
I've just learned that my credit limit had been upped from 750 to 3250 on my Capitol One....Nice
But i will not use the limit increase to buy the computer, I still plan to apply for another card, once my new credit limit will be reported by Cap 1 next month.
I've not began to shop around for a car loan .
Thanks to all of you for your help. It is very rewarding to be able to control our debt and our scores
Nov 2009: TU 750 EX 743, AAoA 1 year, 9 %util