topic Re: I got approved! Will it affect my chances? in Credit Cards

I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 06:34:26 GMT

Hey everyone. Today was a very exciting day. I just got home from the honda dealer ship and ended up driving home a brand new Honda! I'm so excited! I was with my parents in the freeway and we drove by the dealership and decided to go just to look around and see what they had. I was already planning to get a car but not this soon, I'm glad we went tho. The sales person came up to us, showed us the car and he asked if i wanted to test drive so I said sure. After the test drive me and my parents talked for a bit and I decided to give it a shot and I ended up getting approved with my dad as a cosigner. I was approved for a lease at 1.9% for 36 months and $0 down through Honda Financial Services. I'm so excited I just wanted to share with you guys. BTW I'm only 19 so it was very surprising to me how low of an APR I got. EDIT: I'm planning to apply for the BofA Cash Rewards card in January do you guys think it will affect me on the chances of approval?

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 07:00:24 GMT

@Anonymous wrote:
Hey everyone. Today was a very exciting day. I just got home from the honda dealer ship and ended up driving home a brand new Honda! I'm so excited! I was with my parents in the freeway and we drove by the dealership and decided to go just to look around and see what they had. I was already planning to get a car but not this soon, I'm glad we went tho. The sales person came up to us, showed us the car and he asked if i wanted to test drive so I said sure. After the test drive me and my parents talked for a bit and I decided to give it a shot and I ended up getting approved with my dad as a cosigner. I was approved for a lease at 1.9% for 36 months and $0 down through Honda Financial Services. I'm so excited I just wanted to share with you guys. BTW I'm only 19 so it was very surprising to me how low of an APR I got. EDIT: I'm planning to apply for the BofA Cash Rewards card in January do you guys think it will affect me on the chances of approval?

Congratulations! Very happy for you, buddy.

Regarding your question, we can't answer that because we don't know what your credit reports look like. Do you have any other credit cards? Do you have any installment accounts? (Personal loans, student loans, etc.) The honda lease will eventually appear as an installment account.

Your signature says that your scores were EQ:705, TU:694, EX:694 as of 09/23/16

What did you use to pull those scores?

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 07:13:58 GMT

@Anonymous wrote:
@Anonymous wrote:
Hey everyone. Today was a very exciting day. I just got home from the honda dealer ship and ended up driving home a brand new Honda! I'm so excited! I was with my parents in the freeway and we drove by the dealership and decided to go just to look around and see what they had. I was already planning to get a car but not this soon, I'm glad we went tho. The sales person came up to us, showed us the car and he asked if i wanted to test drive so I said sure. After the test drive me and my parents talked for a bit and I decided to give it a shot and I ended up getting approved with my dad as a cosigner. I was approved for a lease at 1.9% for 36 months and $0 down through Honda Financial Services. I'm so excited I just wanted to share with you guys. BTW I'm only 19 so it was very surprising to me how low of an APR I got. EDIT: I'm planning to apply for the BofA Cash Rewards card in January do you guys think it will affect me on the chances of approval?
Congratulations! Very happy for you, buddy.

Regarding your question, we can't answer that because we don't know what your credit reports look like. Do you have any other credit cards? Do you have any installment accounts? (Personal loans, student loans, etc.) The honda lease will eventually appear as an installment account.

Your signature says that your scores were EQ:705, TU:694, EX:694 as of 09/23/16

What did you use to pull those scores?

Yes I have 3 cards. I have one store card at $760 limit, Cap1 at $400 limit and Care Credit at $3,500 limit. I also have a personal loan for $1800 with a $1300 balance and another loan on my reports that was paid off last year. Those scores on my signature are FICO scores.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 13:21:31 GMT

Is there a reason why you are waiting until January to apply for the new CC? If it's something you are going to apply for regardless, I'd recommend applying now. The reason is that while you have the inquiry from the auto loan on your reports already, the account definitely hasn't reported yet. Once the account reports, your score will drop a little due to the addition of a "new account" as well as a reduction to AAoA (if you cross a threshold). You pay have lost a couple of points from the inquiry, but when the account reports you could possibly lose say 10-15 more. Rest assured that any additional points lost will return in several months (likely 6 or less).

Another thing you didn't mention is where your aggregate utilization sits between those 3 cards that you have now. If it's relatively high, but could be significantly lower by next month, I'd say that factor is more important than this new loan account and holding off on apping would be better next month. If you give us a little more feedback about the details of your file we can better guide you.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 14:06:57 GMT

@Anonymous wrote:
Is there a reason why you are waiting until January to apply for the new CC? If it's something you are going to apply for regardless, I'd recommend applying now. The reason is that while you have the inquiry from the auto loan on your reports already, the account definitely hasn't reported yet. Once the account reports, your score will drop a little due to the addition of a "new account" as well as a reduction to AAoA (if you cross a threshold). You may have lost a couple of points from the inquiry, but when the account reports you could possibly lose say 10-15 more. Rest assured that any additional points lost will return in several months (likely 6 or less).

Another thing you didn't mention is where your aggregate utilization sits between those 3 cards that you have now. If it's relatively high, but could be significantly lower by next month, I'd say that factor is more important than this new loan account and holding off on apping would be better next month. If you give us a little more feedback about the details of your file we can better guide you.

BBS makes some great points as usual. The only slight caveat I'd give is that the inquiry won't actually begin affecting his credit score for another 29 days. See this language from FICO:

"... FICO Scores ignore mortgage, auto, and student loan inquiries made in the 30 days prior to scoring."

http://www.myfico.com/credit-education/credit-checks/credit-report-inquiries/

Other than that tiny tweak, his advice is spot on.

As he says, if your CC utilization is very low now (< 8.99%), then it makes sense to apply now, before the new account appears and before the inquiry begins to affect your score.

If your CC utilization is NOT ultralow, and you have money to pay your cards down, then it likely makes sense to do that first.

The answer for how the new account will affect your score is that it will hurt it for a while. Beyond just the usual hit to your average age of accounts and so forth, there may be a hit associated with your installment loan balances. Right now your open installment debt is partly paid off (you owe 72%). After the new installment account appears, however, almost none of your combined installment debt will be paid off (you'll be well over 91%). For complicated reasons I am guessing that in your case this hit will be zero, but it conceivably could be more.

Bottom line is that the advice from BBS is great. Circle back with us and tell us what the amount owed is for the three cards as it appears on your credit reports. The ideal place you want to be is with two of the three cards at $0 and one with a small-ish amount (less than $100 say).

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 14:35:25 GMT

CGID,

Good point regarding the inquiry and 30 days for it to impact score. I wasn't really even thinking of it in terms of score, but rather simply that it's visible and that the CC company that the OP is considering applying with would be able to see it depending on the bureau pulled compared to the bureau the inquiry hit. OP, have you looked into which bureau the creditor typically pulls that you're considering apping with? Which bureau did the auto inquiry hit? If they are different bureaus, there's a strong chance you could apply for the card you want now and the creditor you're applying with would have absolutely no idea that you just applied (and got) an auto loan is they wouldn't see the inquiry or account. That would certainly change next month, though. This is one of those examples were a "spree" (if you want to call it that) would be more beneficial rather that opening up several accounts over a period of several months.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 15:01:33 GMT

Nevertheless I am convinced that BBS gave really sound initial advice. There might be a really good reason to hold off on this CC app for at least a few weeks or possibly a couple months, depending on how our friend's CC balances are currently reporting. We need to know those first.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 17:09:27 GMT

My utilization is at 4% and the auto inquiry pulled TU for sure and i think EX too. I got an alert on CK for the TU inquiry but none for EQ. I really dont have a reason for waiting now that you guys say it. Its just that i was in between the CITI costco anywhere card and the BofA cash rewards card. They're both good but im not sure which one i should app for yet.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 17:21:52 GMT

I checked the credit pulls database and for Bofa here in California they pull EX about 90% of the time and a few others got EQ and TU pulled. For CITI they pull EX most of the time too there's some that got EQ pulled and very few that got TU pulled.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 17:24:11 GMT

Quick question, RoyalF. Do you have any derogs? Upper 600s is a strangely low score for someone with three credit cards at 4% utilization, along with an open installment loan.

Just curious.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 17:31:52 GMT

I agree and would assume that Royal isn't in a clean bucket.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 17:42:01 GMT

@Anonymous wrote:
I agree and would assume that Royal isn't in a clean bucket.

Actually I am clean lol. I have no lates/collections/or derogs. I used the CCT dollar trial last week and I compoared my reports side by side and they all have the exact same information. Always pay in time or before time and in full.

Re: I got approved! Will it affect my chances?

805orbust — Wed, 21 Dec 2016 18:02:25 GMT

Brutal and Credit Guy are like the tag team of sound advice. I always wanna grab popcorn when you two jump in cause I know it's gonna make sense :-)

Re: I got approved! Will it affect my chances?

newhis — Wed, 21 Dec 2016 18:13:25 GMT

@Anonymous wrote:
@Anonymous wrote:
I agree and would assume that Royal isn't in a clean bucket.
Actually I am clean lol. I have no lates/collections/or derogs. I used the CCT dollar trial last week and I compoared my reports side by side and they all have the exact same information. Always pay in time or before time and in full.

Are your FICO scores the same from 9/23 to last week (from CCT)?

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 18:16:34 GMT

Wow... that's baffling to me. Surprised to hear you have no derogs. There's something peculiar going on with your credit reports then -- at least to me. Let us know if you feel like chatting further about that.

If so, some of the stuff we might need to know include:

Total number of accounts (closed and open)

Age of your oldest account (closed or open)

Average age of accounts (AAoA)

Age of your youngest account (don't count the Honda lease, since it has not yet appeared on your report)

Whether you have any "finance company" accounts (closed or open)

All five of those questions refer to accounts as they appear on your credit report. Do not use Credit Karma's summary software to figure out out the answers to the "age" questions (CCT is fine though) -- Karma's summary page gives gives erroneous information much of the time about age.

A finance company account is where you buy something at a store and the store arranges "financing" for you to pay it off, perhaps over 24 months. That might be a TV at Best Buy or a bed at Rooms To Go or maybe a computer at Dell or Apple. Those are just examples.

It's possible that FICO is just giving you a low score because you have opened a lot of accounts in a very short time (you are after all only 19 so its not like you have had a lot of time to do this). Still, I find scores in the upper 600s surprisingly low if you have no derogs and otherwise have a great profile.

Is it possible that when you pulled your CCT scores your utilization was not 4% at that moment? The CCT report would tell you.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 19:17:06 GMT

@Anonymous wrote:
Wow... that's baffling to me. Surprised to hear you have no derogs. There's something peculiar going on with your credit reports then -- at least to me. Let us know if you feel like chatting further about that.

If so, some of the stuff we might need to know include:

Total number of accounts (closed and open)
Age of your oldest account (closed or open)
Average age of accounts (AAoA)
Age of your youngest account (don't count the Honda lease, since it has not yet appeared on your report)
Whether you have any "finance company" accounts (closed or open)

All five of those questions refer to accounts as they appear on your credit report. Do not use Credit Karma's summary software to figure out out the answers to the "age" questions (CCT is fine though) -- Karma's summary page gives gives erroneous information much of the time about age.

A finance company account is where you buy something at a store and the store arranges "financing" for you to pay it off, perhaps over 24 months. That might be a TV at Best Buy or a bed at Rooms To Go or maybe a computer at Dell or Apple. Those are just examples.

It's possible that FICO is just giving you a low score because you have opened a lot of accounts in a very short time (you are after all only 19 so its not like you have had a lot of time to do this). Still, I find scores in the upper 600s surprisingly low if you have no derogs and otherwise have a great profile.

Is it possible that when you pulled your CCT scores your utilization was not 4% at that moment? The CCT report would tell you.

I'm using my latest FICO reports bucause i cancelled CCT and i can't see the reports anymore.

Credit History: EQ- 8 months, TU- 1 year, EX- 1 year

Total Accounts: EQ- 3, TU- 5, EX- 7

Current Accounts: EQ- 3, TU- 5, EX- 7

Past Due Accounts: EQ- 0, TU- 0, EX- 0

Revolving Accounts: EQ- 3, TU- 3, EX- 3

Installment Accounts: EQ- 1, TU- 3, EX- 4 . I do have Finance Companies on my reports. I financed a TV and a living room for my parents but those are all paid off, I think maybe that's why Installment accounts differ in the 3 bureaus.

Mortgage Account: EQ- 0, TU- 0, EX- 0

Other Accounts: TU- 0, EQ- 0, EX- 0

Collections: EQ- 0, TU- 0, EX- 0

Public Records: EQ- 0, TU- 0, EX- 0

Negative Records: EQ- 0, TU- 0, EX- 0

AU Accounts: none

I have 4 accounts open and 2 closed. The paid off loans are the closed ones.

My AAoA right now is 7 months \

Youngest account is about to be 2 months old and yes my utilization was at 4% on CCT last week.

Re: I got approved! Will it affect my chances?

newhis — Wed, 21 Dec 2016 19:38:31 GMT

@RoyalFlush123, my DW got CCT last month and canceled before the trial expired.

She is able to login again, they offer another $1 trial but she was able to go into her account, then clic 'Reports', then 'Archived Reports' and select the only one for the 3 bureaus.

She can select 'Compare All' and see the scores and report for early November.

If she select 'Print' then a PDF is generated with all 3 bureaus information and FICO scores.

I started with nothing but 2 cards, at 6 months my first FICO was generated, it was 730, 3 months later it was down at 695 because I opened 2 more cards and a loan.

Your file is clean but new (1 year or less). It is easy to get over 700, just wait a few months from latest new account. You can reach near-800 if you don't app for 2 years, maybe even if you app for up to 4 cards in the next year and then nothing for a year. Good luck.

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 20:29:32 GMT

I am curious... do you have any finance company accounts on EQ?

It sounds like you definitely have finance company accounts (perhaps multiple ones) on both TU and EX... and these are the two bureaus where your scores are in the upper 600s. Your EQ is in the lower 700s.

The simple fact of having any FC accounts on your reports harms your score. This is not widely known but it is nonetheless true. FICO does not consider an FC account that you have responsibly paid off as a good thing -- in that sense FC accounts are very different from other kinds of installment accounts. Naturally if you have an FC account and you have derogs on it, then that is far worse. Fortunately you do not have any derogs at all.

Re: I got approved! Will it affect my chances?

newhis — Wed, 21 Dec 2016 20:38:27 GMT

Interesting. I guess FC accounts open hurt more than closed?

Will the FC accounts closed stop hurting after some time? Like a HP that stops hurting after 1 year?

Re: I got approved! Will it affect my chances?

Anonymous — Wed, 21 Dec 2016 21:24:25 GMT

@newhis wrote:
Interesting. I guess FC accounts open hurt more than closed?

Will the FC accounts closed stop hurting after some time? Like a HP that stops hurting after 1 year?

Yes I am wondering the same thing, good question.

As for dixies question. I do have finance company accounts, it says it on MyFICO and on CCT.