topic Re: WebBank Question in Credit Cards

WebBank Question

Anonymous — Mon, 10 Sep 2018 04:29:32 GMT

It seems that Webbank underwrites cards and loans for dozens of places like Prosper, Fingerhut, Avant...I am intentionally paying a Fingerhut loan 1 day late in order to not graduate to their unsecured card. Its a $2 balance. My question is will this affect my history or internal score with Webbank if I apply for a card or loan which they back? Any info is appreciated

Re: WebBank Question

Medic981 — Mon, 10 Sep 2018 04:52:40 GMT

Why would you not want your card to graduate? That is part of the rebuilding process.

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 06:36:09 GMT

Because it would mean adding a new account to my credit....since I started fingerhut 7 months ago I have several new accts with very good cards. The fingerhut card would simply lower my AAoA and I dont need or want the card....my AAoA is not great as it is with the other new accts

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 13:14:29 GMT

@Anonymous wrote:
It seems that Webbank underwrites cards and loans for dozens of places like Prosper, Fingerhut, Avant...I am intentionally paying a Fingerhut loan 1 day late in order to not graduate to their unsecured card. Its a $2 balance. My question is will this affect my history or internal score with Webbank if I apply for a card or loan which they back? Any info is appreciated

It may affect your internal history with them but not your credit, since you have to be 30 days late to have the 30-day late derogoratory mark added to your credit reports.

IMHO, even if the revolving account reports, your AAoA won't be affected much. I can't gauge what the damage will be, but it won't be much. YMMV.

Just pay the bill. I would not want to pay a late fee on $2 balance.

Re: WebBank Question

AverageJoesCredit — Mon, 10 Sep 2018 12:16:59 GMT

@Anonymous wrote:
It seems that Webbank underwrites cards and loans for dozens of places like Prosper, Fingerhut, Avant...I am intentionally paying a Fingerhut loan 1 day late in order to not graduate to their unsecured card. Its a $2 balance. My question is will this affect my history or internal score with Webbank if I apply for a card or loan which they back? Any info is appreciated

This is like the what not to do with credit and im suprised you would consider it especially with your Navy approvals snd income. Intentionally paying something late just is a bad precedent to set. If you dont want the card , then cancel it but once you start playing with not paying something on time or in accordance with your agreements ,especially if you have means to pay, its a slippery slope. Sorry im just suprised at this but its just my opinion.

As to your question, not sure what affect it would have but in this dsy and age, records are kept so i imagine they will know of previous delinquency.

Re: WebBank Question

HeavenOhio — Mon, 10 Sep 2018 13:09:00 GMT

@Anonymous, pay the bill on time.

Close Fingerhut today if you want to prevent the second account from appearing. The closed account will still contribute to your profile and score.

People who are building or rebuilding are going to have a young AoYA (age of youngest account) and AAoA (average age of accounts). That's just how it is. Acquiring a new account isn't going to change that by much. If your age stats were much older, there'd be cause for concern.

Re: WebBank Question

Loquat — Mon, 10 Sep 2018 13:18:47 GMT

I agree with others here. I would never, ever intentionally pay something late when I have the funds to take care of it. Just pay the balance and close.

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 13:32:06 GMT

Thanks for the input guys but I shouldve been more clear, Im not paying it 30 days late, just one day.

The way Fingergut freshstart works is you have an 8 month installment loan for a small $50 or $100 purchase. If you make all 8 payments on time, the loan will be paid off and you'll be given a revolving card with Fingerhut. In other words, loan is closed and a new revolver opens.

I have 5 new accts this year already and plan to go for a car loan. My AAoA has steadily dropped from 5yrs to 3.7yrs to 3.0 to 2.5 as it is. With another revolver it would go down further - Id certainly get dinged for it AND get dinged for having no open loans.

The way I see it (and disagree if you do) is the worst consequence is I get charged a $2 late fee (yes $2) and Fingerhut never lets me get a credit card with them. Since its not a 30 day late, my credit isn't harmed. Id then pay the loan off one day after the due date and simply not graduate. This way, when I go for an Amex or car loan or mortgage in the next two years I have one less new account to be showing....thats my thinking

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 13:41:32 GMT

So this is the other main thing...I dont think Im a rebuilder anymore...heres my current FICOs

EX08 - 740

TU08 - 754

EQ08 - 778

Fico9s are all 20pts higher.

Oldest acct 12yrs

AAoA 2+yrs

AoYA 1mo

Util 3%, no COs or lates on any bureau clean file

Inqs last 12 mos: 3/3/9

Started this journey in spring with 590/608/690 scores

Re: WebBank Question

Loquat — Mon, 10 Sep 2018 13:57:36 GMT

@Anonymous wrote:
Thanks for the input guys but I shouldve been more clear, Im not paying it 30 days late, just one day.

The way Fingergut freshstart works is you have an 8 month installment loan for a small $50 or $100 purchase. If you make all 8 payments on time, the loan will be paid off and you'll be given a revolving card with Fingerhut. In other words, loan is closed and a new revolver opens.

I have 5 new accts this year already and plan to go for a car loan. My AAoA has steadily dropped from 5yrs to 3.7yrs to 3.0 to 2.5 as it is. With another revolver it would go down further - Id certainly get dinged for it AND get dinged for having no open loans.

The way I see it (and disagree if you do) is the worst consequence is I get charged a $2 late fee (yes $2) and Fingerhut never lets me get a credit card with them. Since its not a 30 day late, my credit isn't harmed. Id then pay the loan off one day after the due date and simply not graduate. This way, when I go for an Amex or car loan or mortgage in the next two years I have one less new account to be showing....thats my thinking

OP you're free to do as you choose. You asked for advice, we offered. In my opinion, not that I'm interested in anything WebBank has to offer at the moment, but the reason I wouldn't want to pay late is because while it may not affect your credit being reported, it could potentially put a dark spot on an internal profile with them.

With the way lenders buy and sell account these days, you never know if an account you have (or may want in the future) will end up in the hands of WebBank or any other bank for that matter. Paying on time helps to keep a clean report to the bureaus as well as internally. Again, do was you wish but the advice mentioned in this thread from other is solid and for any of us to advise a forum member to intentionally pay late would be as bad as taking a wrecking ball to the foundation that this forum is build upon.

Best of luck to you in whatever you decide.

Re: WebBank Question

Medic981 — Mon, 10 Sep 2018 14:09:52 GMT

@Loquat wrote:
@Anonymous wrote:
Thanks for the input guys but I shouldve been more clear, Im not paying it 30 days late, just one day.

The way Fingergut freshstart works is you have an 8 month installment loan for a small $50 or $100 purchase. If you make all 8 payments on time, the loan will be paid off and you'll be given a revolving card with Fingerhut. In other words, loan is closed and a new revolver opens.

I have 5 new accts this year already and plan to go for a car loan. My AAoA has steadily dropped from 5yrs to 3.7yrs to 3.0 to 2.5 as it is. With another revolver it would go down further - Id certainly get dinged for it AND get dinged for having no open loans.

The way I see it (and disagree if you do) is the worst consequence is I get charged a $2 late fee (yes $2) and Fingerhut never lets me get a credit card with them. Since its not a 30 day late, my credit isn't harmed. Id then pay the loan off one day after the due date and simply not graduate. This way, when I go for an Amex or car loan or mortgage in the next two years I have one less new account to be showing....thats my thinking
OP you're free to do as you choose. You asked for advice, we offered. In my opinion, not that I'm interested in anything WebBank has to offer at the moment, but the reason I wouldn't want to pay late is because while it may not affect your credit being reported, it could potentially put a dark spot on an internal profile with them.

With the way lenders buy and sell account these days, you never know if an account you have (or may want in the future) will end up in the hands of WebBank or any other bank for that matter. Paying on time helps to keep a clean report to the bureaus as well as internally. Again, do was you wish but the advice mentioned in this thread from other is solid and for any of us to advise a forum member to intentionally pay late would be as bad as taking a wrecking ball to the foundation that this forum is build upon.

Best of luck to you in whatever you decide.

What it comes down to is fulfill your commitments and take personal responsibility for your actions. You can do as you wish but be ready to face the consequences. You agreed to the terms of credit when you signed up with Fingerhut. To build and maintain creditworthiness, a person has to fulfill the terms agreed to. This is a good example of thinking before acting. So many people want a quick fix and apply for any credit they can qualify for.

It appears to me, you know what you should do, however you are looking for an excuse not to do it. It is time to adult-up, be responsible, and honor your commitment. As Loquat mentioned, there may be unintended consequences down the road if you continue with your present plan.

Re: WebBank Question

JR_TX — Mon, 10 Sep 2018 14:15:36 GMT

@OP ;
We all perfectly understand what you’re trying to accomplish and we all think that that’s NOT a good way to prevent a new acct from opening.... Pay the $2 balance and CLOSE that pesky fingerhut acct! You said yourself you’re not a rebuilder anymore so there’s nothing they have then that you will ever need.
All our opinions against your own can’t be all that wrong can they?
In the end it’s all up to you. Best of Luck!

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 14:43:52 GMT

I have to agree with everyone else - pay the remaining balance and then close the card (which you really don't need anymore anyway). When you do so, you might contact Fingerhut to advise them that you don't want your card graduated. Speaking strictly for myself, I always go to a fair bit of trouble to make sure everything is paid on time - I check all my accounts at least weekly and often more than that just so as to not get caught unexpected by an approaching due date. One's on-time payment record, after all, is one of the most crucial components of one's credit score, and I wouldn't want to jeopardize it even if there was a card I wanted to dispose of.

Re: WebBank Question

Brian_Earl_Spilner — Mon, 10 Sep 2018 15:13:49 GMT

Your scores may not say rebuilder, but your way of thinking does.

Loquat is right. These banks are keeping longer records these days and with the economy the way it is, the effects could carry for years. In my situation, I accidentally didn't pay my full minimum on my secured Discover and was late by 2 days. Discover doesn't even count a payment late until 6 days. My card is now 14 months old with no graduation in sight, which is 7 months longer than most people, because of that, and confirmed by Discover. That's exactly what your looking to happen for you. But, what happens if webank is bought up by Synchrony, Capital One, or Citi? That black mark has now followed you to their systems.

As for applying for an auto loan, your fico8 scores already qualify you for the top tiers of all the captive lenders. I'm sure it would be the same with any credit union. Having the ding from the closed installment loan wouldn't take you out of those tiers. In fact, it will help your fico auto index scores, which is what they'll really be looking at. The auto index score is based on factors in your report that predict how you'll behave with an auto loan. It could be higher or lower than your traditional fico depending on many factors including previous auto loan history, paid and closed installment loans, whether they were paid and closed on schedule, trending data on whether your balances and utilization went up or down, and how much you paid monthly in comparison to your minimum due. The factors particular to your situation is your installment loan would now be closing later than scheduled, the late fee would increase your balance before closing and show it and utilization trending up, and your payment would reflect the late fee when comparing it to the minimum and previous payments. The dings to your auto score would be greater than just closing the installment loan, paid as agreed.

Re: WebBank Question

FinStar — Mon, 10 Sep 2018 15:15:28 GMT

OP, collective and great advice has already been given, but if you are looking for validation it's unlikely that you will get members to join in your adventure and advocate an "intentional" late payment (even if it's a day late) to satisfy your curiosity. You can rationalize things until the cows come home - ultimately your profile and direction.

Ultimately, you can decide those actions and whatever outcomes yield from such, but in the spirit of supporting responsible behavior in our forums, these types of discussions (although lively) are simply counterproductive OP.

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 15:45:44 GMT

I’ll add one thing. It’s a myth that credit card companies can’t report you late until you are 30 days past due. Typically that’s what happens but they (CC companies) can and have reported people late well before 30 days is up. To do it intentionally is foolish and asking for trouble.

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 17:01:43 GMT

@Anonymous wrote:
I’ll add one thing. It’s a myth that credit card companies can’t report you late until you are 30 days past due ...

Nerd Wallet says otherwise, attributing to Credit Reporting Resource Guide, based upon federal law. So the OP need not fear a CRA showing his 1 day "late payment."

That said, it seems 100% clear the best way to proceed is to pay off & cancel the unwanted card before it converts.

Re: WebBank Question

AverageJoesCredit — Mon, 10 Sep 2018 18:06:49 GMT

Fantastic views and advice here even for anyone just reading. Most of us have come to the forum to build or rebuild credit and paying late on anything is an ingrained no no . Lates can happen for a variety reasons as we all know. In most cases paying on time is what we can control the most. To not do so with proper means would be going against that grain.

Op, i know seeing your aaoa go down stinks but with so much that goes into an approval , be it cc or car, its just one factor. Your score, income, and other factors will still help you.

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 19:13:37 GMT

Wowzers I'm grateful so many of you offerred an opinion. Thats whats great about this sounding board I suppose your good ideas and bad ideas can be validated.

Ive taken into consideration all your feedback and I sent Fingerhut a message asking clarification on if its possible to decline acceptance of the card. They responded that Id need to call in to discuss.

The best outcome is the $2 gets paid on time and I do not have to accept the card ultimately...

In hindsight I should have read the disclosures that if you are denied the card, you will be enrolled in Freshstart Installment Loan program. I considered at the time just paying it off early (as is the only other disqualifying graduation scenario) and in hindsight I shouldve.

I do not condone nor would I ever even consider paying any other type of acct even 1 day late. All my cards are PIF before cut date and I make smalller payments weekly. I would not have made the leaps that I have this year without all of your input so I take it very seriously

Re: WebBank Question

Anonymous — Mon, 10 Sep 2018 19:23:43 GMT

Also, can someone lend me $2 please?

!!joking....