topic Re: What should I app for with no scores? in Credit Card Applications

What should I app for with no scores?

Anonymous — Mon, 01 Feb 2016 20:58:06 GMT

I have recently received a Cap1 secured card with a $351 limit and a secured BofA card with $300 limit. I've read that 3 cards produce the best results for building credit. My reports do not generate any scores due to no recent history. The only thing showing on my reports is my chapter 13 which comes off in April.

What should I app for at this point? I thought about a secured Discover but seen that they are all over the place with approvals even for a secured card so I don't feel my chances are very good with them. Hoping for something that will graduate. Any suggestions would be grateful.

Re: What should I app for with no scores?

dragontears — Mon, 01 Feb 2016 21:04:21 GMT

@Anonymous wrote:
I have recently received a Cap1 secured card with a $351 limit and a secured BofA card with $300 limit. I've read that 3 cards produce the best results for building credit. My reports do not generate any scores due to no recent history. The only thing showing on my reports is my chapter 13 which comes off in April.

What should I app for at this point? I thought about a secured Discover but seen that they are all over the place with approvals even for a secured card so I don't feel my chances are very good with them. Hoping for something that will graduate. Any suggestions would be grateful.

Personally if I was in your shoes I would give it 6 months of responsible use of the 2 cards you currently have then go for unsecured cards. The rule of Thumb is 2-3 cards, you already have 2 so time is your best freind right now.

Re: What should I app for with no scores?

Anonymous — Tue, 02 Feb 2016 19:52:01 GMT

The capital one platinum is most likely the easiest unsecured card to obtain. Discover secured appears to be a nice rebuilder card as well.

Re: What should I app for with no scores?

Anonymous — Mon, 01 Feb 2016 21:05:24 GMT

Then I would wait till April.... Waiting for the Chapter 13 to fall off , can might a difference in a 500 CL and 5000 CL...

Re: What should I app for with no scores?

CYBERSAM — Mon, 01 Feb 2016 21:16:57 GMT

You have one of the best CC companies out there for rebuilding. After your 6th statement is cut, call them and try to do PC to QS. CapOne uses SP for CLI

Try to use your CC as debit card, use heavy PIF. even if you need to buy a gum! In 6 months they should give you nice CLI if rest of your record is good.

For rebuilding I like cards that allow CLI with SP, so may want to look at AMEX and Discover it after you PCed to QS.

Re: What should I app for with no scores?

Anonymous — Mon, 01 Feb 2016 21:23:08 GMT

Ok guys thanks, I'm going to wait until April before apping for anything else. I'm also going tomorrow to my credit union to start a secured loan to help with my scores.

Re: What should I app for with no scores?

Anonymous — Mon, 01 Feb 2016 21:26:01 GMT

From my understanding, the Cap1 secured cannot upgrade. Correct? So I couldn't PC to a QS.

Re: What should I app for with no scores?

dragontears — Mon, 01 Feb 2016 21:31:55 GMT

you are right, Cap1 will not graduate and can not be PC.

After your BK falls off you and you have some history with your current cards you should concider Discover and possibly Amex as they have reputations for liking thin clean files (Assuming you didn't burn them in your BK)

Re: What should I app for with no scores?

SouthJamaica — Mon, 01 Feb 2016 21:44:21 GMT

@Anonymous wrote:
I have recently received a Cap1 secured card with a $351 limit and a secured BofA card with $300 limit. I've read that 3 cards produce the best results for building credit. My reports do not generate any scores due to no recent history. The only thing showing on my reports is my chapter 13 which comes off in April.

What should I app for at this point? I thought about a secured Discover but seen that they are all over the place with approvals even for a secured card so I don't feel my chances are very good with them. Hoping for something that will graduate. Any suggestions would be grateful.

Simple: don't app for anything at this point.

Wait until:

1. you've got credit scores (you'll have them shortly... around 6 mos from when you got your first card)

AND

2. your Chapter 13 comes off

No problem with your plan to get a secured savings loan at the credit union but be sure to pay it down to 9% of original balance.

Re: What should I app for with no scores?

Anonymous — Mon, 01 Feb 2016 21:56:53 GMT

I'm going to wait because I really don't want another secured card. So I will follow the advice here to wait until my file is clean and current cards are reporting.

I I wasn't aware I could pay my loan down to 9%.. Doesn't that kind of defeat the purpose? I figured they would like to see monthly on time payments. But I will ask if the credit union will allow me to do that.

Re: What should I app for with no scores?

SouthJamaica — Mon, 01 Feb 2016 22:01:03 GMT

@Anonymous wrote:
I'm going to wait because I really don't want another secured card. So I will follow the advice here to wait until my file is clean and current cards are reporting.

I I wasn't aware I could pay my loan down to 9%.. Doesn't that kind of defeat the purpose? I figured they would like to see monthly on time payments. But I will ask if the credit union will allow me to do that.

No actually whenever you take out an installment loan, (a) you lose points for having a high percentage balance (b) you get a bump up when you lower the balance (c) you probably peak when you're in the 1 to 9 % range (d) believe it or not you LOSE points when you pay it off.

Re: What should I app for with no scores?

Anonymous — Mon, 01 Feb 2016 22:35:40 GMT

@SouthJamaica wrote:
@Anonymous wrote:
I'm going to wait because I really don't want another secured card. So I will follow the advice here to wait until my file is clean and current cards are reporting.

I I wasn't aware I could pay my loan down to 9%.. Doesn't that kind of defeat the purpose? I figured they would like to see monthly on time payments. But I will ask if the credit union will allow me to do that.
No actually whenever you take out an installment loan, (a) you lose points for having a high percentage balance (b) you get a bump up when you lower the balance (c) you probably peak when you're in the 1 to 9 % range (d) believe it or not you LOSE points when you pay it off.

Ironbull,

This is true. I had a secured personal loan and paid it down very fast. My scores kept going up each month as the balance came down and what SouthJamaica says about leaving it at 9% I didn't know at the time. I paid mine off with a big slap on my back from me in celebration and lost about 50pts on my next score change. When you don't have much there to shore up scores any little move will have a greater impact. As your file and history increases the individual items will have a lesser effect.

Needless to say I was devastated and that when I found this forum. IT's the little details you get here that matter so much more than the big stuff so pay attention.

The point is to pay the 90% (or so, you don't have to be exact about it but you want to be under 10%) down quickly (or immediately if you can) to avoid all the interest and your loan will report without you needing to make any further payments for the bulk of the year (or whatever length of time you put it on. Most banks are a 1yr.) This will get your best possible reporting face out front quickly and you should see the scores fly up.

Re: What should I app for with no scores?

Anonymous — Mon, 01 Feb 2016 23:46:47 GMT

Thank you for all the great advice. You guys are awesome

Re: What should I app for with no scores?

joltdude — Wed, 03 Feb 2016 03:53:31 GMT

A little bit about Secured Share loans and the pros and cons..

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/penalized-for-not-having-installment-loan-what-does-this-mean/td-p/3151642

Also saw this when looking around...

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Should-I-get-an-installment-loan/td-p/4383085

Re: What should I app for with no scores?

Anonymous — Tue, 02 Feb 2016 02:05:20 GMT

@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:
I'm going to wait because I really don't want another secured card. So I will follow the advice here to wait until my file is clean and current cards are reporting.

I I wasn't aware I could pay my loan down to 9%.. Doesn't that kind of defeat the purpose? I figured they would like to see monthly on time payments. But I will ask if the credit union will allow me to do that.
No actually whenever you take out an installment loan, (a) you lose points for having a high percentage balance (b) you get a bump up when you lower the balance (c) you probably peak when you're in the 1 to 9 % range (d) believe it or not you LOSE points when you pay it off.
Ironbull,
This is true. I had a secured personal loan and paid it down very fast. My scores kept going up each month as the balance came down and what SouthJamaica says about leaving it at 9% I didn't know at the time. I paid mine off with a big slap on my back from me in celebration and lost about 50pts on my next score change. When you don't have much there to shore up scores any little move will have a greater impact. As your file and history increases the individual items will have a lesser effect.

Needless to say I was devastated and that when I found this forum. IT's the little details you get here that matter so much more than the big stuff so pay attention.

The point is to pay the 90% (or so, you don't have to be exact about it but you want to be under 10%) down quickly (or immediately if you can) to avoid all the interest and your loan will report without you needing to make any further payments for the bulk of the year (or whatever length of time you put it on. Most banks are a 1yr.) This will get your best possible reporting face out front quickly and you should see the scores fly up.

I'm gonna remember that one. Great advice

Re: What should I app for with no scores?

Anonymous — Tue, 02 Feb 2016 03:24:06 GMT

How does this work exactly? I mean how do I pay it down to 9% and if I pay it down will it shorten the life of the loan? I planned to do a 48 month loan based on the thread in the link above.

Re: What should I app for with no scores?

joltdude — Wed, 03 Feb 2016 03:55:27 GMT

Originally when I coaxed a family member into doing this, I just had them take out the Secured note, and autopulled the payments out of their checking....

Supposedly theres a better way... but I dont know how to do it either.. Check out that second link I added to my previous post

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Should-I-get-an-installment-loan/td-p/4383085

Re: What should I app for with no scores?

Grafton88 — Thu, 04 Feb 2016 06:38:56 GMT

What I did on my second secured loan is to not set up auto pay. The term of the loan is 1 year. They wouldn't allow a longer term.

Once it was posted to my account I paid 20% off. My next payment was shifted back several months. Seeing that it was working as I expected I paid off another 20%. Then this week I paid off another 20%. I will do the same in March and then make small payments for the rest of the term.

You might not be able to get a long term on a small dollar amount loan. My first one was only 6 months on a $500 loan. The good thing is that they took the $500 out of savings and put it immediately into my checking account. As I made each payment they took a few dollars interest off and put the remaining amount into my saving account.

You will be able to find out all the information you need when you visit your CU.