topic Re: App Spree... WHICH to App...? in Credit Cards

App Spree... WHICH to App...?

Charmante — Wed, 19 Aug 2020 19:50:14 GMT

Below are screenshots of my roommates credit. This is the BEST credit in our household and I want to make SURE I do this correctly!!!

He currently only has ONE Open Account: A CapitalOne opened May, 2007 with a $1,300 CL (This used to be the Wal-Mart Discover card, but converted over)...

ALL OTHER ACCOUNTS ARE CLOSED... There are about 6 or 7 closed -- all due to Non-Usage.

The NEWEST account (which is closed) was opened April, 2011.

There is ONE Installment, which is a PAID and CLOSED Auto Loan from Huntington Bank opened August, 2009 and paid off August 2013.

GOAL: Optimize Credit... Hopefully break the 800 mark AND get the LARGEST Limits Possible...

He is NOT eligible for NFCU.

Please walk me down the best path...

We are trying to not open more than 2 or 3 accounts...

Where might he get the LARGEST SL...?

Re: App Spree... WHICH to App...?

AverageJoesCredit — Wed, 19 Aug 2020 20:14:21 GMT

Im gonna regurgitate the good ol fico forum recs🤮🤑😝 check out Discover and Amex. With a thin file, in this i mean no major active accounts and only 1 cc, your friend wont get super high limits from anyone, those usually take time, but if he/she can pull off a Disco or Amex, the possibilty exist for a rather high first limit card as these lenders can be thin file friendly. Look more to getting cards you want that will grow than for an instant gratification of a high limit which isnt likely right now.

Re: App Spree... WHICH to App...?

Charmante — Wed, 19 Aug 2020 20:22:49 GMT

@AverageJoesCredit Question: I SP Pre-Qualified him with Upgrade. They offered $12,500 SL on their Visa...

Should I accept it...?

Is Upgrade respectable, reputable, and a good account to have on file...?

Does it report to ALL 3 CB's?

Re: App Spree... WHICH to App...?

Jnbmom — Wed, 19 Aug 2020 20:35:06 GMT

I would advise not going on a "spree " in these current times , however a card or 2 is doable.

Also it's fine to ask advice and pass it along to your roommate, but HE should be the one applying not you on his behalf .

Re: App Spree... WHICH to App...?

Charmante — Wed, 19 Aug 2020 20:52:57 GMT

@Jnbmom Do you know anything about Upgrade? I'm not at all familiar with it and have never saw a post about it...

I'm doing the applying. Only 2 of us in the house even know how to use the internet. But I of course run it by him and get permission before I do anything set-in-stone.

Re: App Spree... WHICH to App...?

Anonymous — Wed, 19 Aug 2020 21:02:32 GMT

@Charmante wrote:
@Jnbmom Do you know anything about Upgrade? I'm not at all familiar with it and have never saw a post about it...

I'm doing the applying. Only 2 of us in the house even know how to use the internet. But I of course run it by him and get permission before I do anything set-in-stone.

Upgrade is a no-rewards card, so if your friend usually pays in full (as is ideal!) there are better choices. IIt is not a traditional credit card, it is really redesigned to reduce interest costs by making users pay off their balance quicker, by "converting" the balance to a installment loan each month.

Also, think about what goals make sense. There is no great advantage in having a credit score of 800+ over say 760-780, and having high SL isn't all that neccessary, even a smallish SL will improve total credit in this case. Decide if rewards are important and if so, what kind.

I agree with @Jnbmom , it seems that you are driving this and while there may be good reasons, you need to make sure you are getting informed consent (i.e. friend understands fully the implications of everything). Make sure it's not the blind leading the blind at this point!

Re: App Spree... WHICH to App...?

Charmante — Wed, 19 Aug 2020 22:01:42 GMT

@Anonymous LOL! I will admit, I feel we are 4 blind mice truthfully... The roommate I'm posting about in this particular post has had nearly 2 decades of perfect credit history, BUT, never used it for more than a grocery purchase, or a weekend getaway... I personally have only about 4 years of history, with some dents and dings along the way due to being stupid and not caring... The other 2 have, literally, BLANK files (except 1 does have a 6 month old Dell on his @$3,000 and the other is AU on my 6 month old Macy's) and have never in their lives financed anything -- period -- or had a single credit card.

That's why I'm so actively on this forum... Trying to REPAIR mine. Optimize and expand/grow (the one who's credit I screenshot), and START the other two to having credit -- doing all four of us THE RIGHT WAY...

But I must admit, it's soooo confusing. But I understand it better than the others... Like, I now fully understand the utilization tiers, AZEO concept, Mix bonuses, etc...

I just DON'T understand WHERE to go or how best to start... I mean, I HATE to put Inq. on any of us -- if it's not for the right account or denials come from it.

None of us will benefit from rewards. We do not travel, or carry massive balances.

Basically we all 4 are home-bodies. We OCCASIONALLY go out to eat, or a movie -- but even that's rare... 95% of the time, if we are not working, we are at home...

I guess I just need to know what cards would best solidly build the credit for us... EXAMPLE: I learned RETAIL CARDS are NOT good...

Also hear Cap1 are considered SUB-Prime and look bad...

So it's confusing me...

Whatever we open, will receive just enough usage to maintain and grow it: fuel, groceries, cellphone bills, car insurance, etc...

We can PIF or carry -- whichever would best help us...?

SIDE NOTE: (To save from posting additional threads) my other roommate has a BLANK FILE (except he has my 6 month old Macy's on his file -- as AU)... I need to get him a PRIME card (or 2) to get him started... To get at least 12-24 months of aging started... Should I do a Secured Card (or 2)? Would a Discover or Citi/BoA SECURED Card still be considered PRIME (OR at least graduate to prime)?

Thanks!!!

Re: App Spree... WHICH to App...?

Jnbmom — Wed, 19 Aug 2020 22:20:17 GMT

Cap one has sub prime cards but also prime cards not sure where you are getting your info.

Again you can guide your roommates but let them apply and maintain their own credit files , I am all for helping out friends and family but they should be doing this themselves .

Re: App Spree... WHICH to App...?

AverageJoesCredit — Wed, 19 Aug 2020 22:25:28 GMT

@Charmante wrote:
@AverageJoesCredit Question: I SP Pre-Qualified him with Upgrade. They offered $12,500 SL on their Visa...

Should I accept it...?

Is Upgrade respectable, reputable, and a good account to have on file...?

Does it report to ALL 3 CB's?

No clue about this card though it seems Lurker addressed it. Just know hard pulls are part of credit growth but if you take it slowly and build off cards that normally get approved on where your current profile resides, and dont app for everything under the stars, your chances of getting most bang for the hp buck rise.

Re: App Spree... WHICH to App...?

Charmante — Wed, 19 Aug 2020 22:37:43 GMT

@AverageJoesCredit Thank you! Yeah, that's what I'm unfamiliar with, is what cards fit this Category of Credit. Lol I don't want to apply for a card that requires 4+ Open TL or require $50,000 limits LOL... NOR do I want to apply for a card Far BELOW where we fit! Lol...

I think Discover would be a solid Medium. They Pre-Qualified him, too -- but did NOT advise how much of a SL they'll offer...

AMEX also Pre-Qualified him -- for 3 cards I think it was... Blue, Gold, and Platinum. But did not specify a SL...

Do you know Discover and AMEX's Minimum SL's...?

Re: App Spree... WHICH to App...?

dragontears — Wed, 19 Aug 2020 22:41:31 GMT

@Charmante wrote:
@AverageJoesCredit Thank you! Yeah, that's what I'm unfamiliar with, is what cards fit this Category of Credit. Lol I don't want to apply for a card that requires 4+ Open TL or require $50,000 limits LOL... NOR do I want to apply for a card Far BELOW where we fit! Lol...

I think Discover would be a solid Medium. They Pre-Qualified him, too -- but did NOT advise how much of a SL they'll offer...

AMEX also Pre-Qualified him -- for 3 cards I think it was... Blue, Gold, and Platinum. But did not specify a SL...

Do you know Discover and AMEX's Minimum SL's...?

Minimum for Amex is $500 and I think Discover can go as low as $200. This does not imply that would be the SL that your friend would receive.

Re: App Spree... WHICH to App...?

Charmante — Wed, 19 Aug 2020 22:50:21 GMT

Does AMEX offer the easy automatic request for Tax Returns? Or must you manually upload? We're not too tech savvy. Lol

Re: App Spree... WHICH to App...?

dragontears — Wed, 19 Aug 2020 22:57:03 GMT

@Charmante wrote:
Does AMEX offer the easy automatic request for Tax Returns? Or must you manually upload? We're not too tech savvy. Lol

Wouldn't know, they have never asked me for tax returns.

I *think* the way it works is they ask you to fill out a form that allows them to get your returns directly from the IRS.

Re: App Spree... WHICH to App...?

Charmante — Wed, 19 Aug 2020 23:05:30 GMT

Perfect! Thank you @dragontears

Re: App Spree... WHICH to App...?

Anonymous — Wed, 19 Aug 2020 23:13:09 GMT

@dragontears wrote:
@Charmante wrote:
Does AMEX offer the easy automatic request for Tax Returns? Or must you manually upload? We're not too tech savvy. Lol
Wouldn't know, they have never asked me for tax returns.
I *think* the way it works is they ask you to fill out a form that allows them to get your returns directly from the IRS.

Yes, in recent years the process is that you fill out the online form (which is the 4506-T) which they then send to the IRS. They will also send you a paper copy for you to fill out if you don't complete online

Re: App Spree... WHICH to App...?

Azza — Thu, 20 Aug 2020 00:06:50 GMT

Wait what? I'm confused what's going on in here.

You want to apply for a credit card using your roommate's credit?

You mentioned you have a few dents and dings on your credit history. Because you were so forthcoming with your roommate's credit history on a public forum, would you please do us the courtesy of showing us yours, as well?

I don't want anyone to get in a bad situation here. Please understand from my perspective this looks like someone's excited about fake cash and a big spending limit so they can buy something big on somebody else's good credit rating.

edit: STOP.

I just read through your post history. You are all over the place! You're looking at getting a mortgage but your credit score is 20 points shy, you are trying to get approved for a secured (?) card with a soft pull instead of a hard pull, you want a large spending limit for some reason...

1) If you want a mortgage STOP ALL CREDIT SEEKING ACTIVITIES NOW. I don't care who's putting down their credit file for the card, you seem to have a desire that you are not matched up for with a need right now.

2) If you have cash flowing into your pockets, pay off your debt first. Stop using credit cards completely.

3) Do not apply for new cards. DO NOT apply for new cards.

4) Be PATIENT. Credit ages over time. Rushing it does not work. Being a good caretaker of it is one thing; knocking out old derogs, tidying up erroneous reports and making sure everything is proper. But you can't rush it once everything is in place.

Please, please. I got up from a nap because I was lazily reading the myfico forums and rushed to my PC and sat down to type this. Your posts have raised my anxiety and I don't even know you. I'm not trying to reprimand you, I'm just worried for you. I know the temptation and if you are truly excited about taking out a mortgage just please stop.

I am willing to take a look at your credit report details and help you out (as I am sure others here are willing to as well) so we can shape you up to apply for that mortgage. Rates are great right now. Help us help you?

edit: formatting, grammar, etc

Re: App Spree... WHICH to App...?

Anonymous — Thu, 20 Aug 2020 00:12:06 GMT

@Azza wrote:
Wait what? I'm confused what's going on in here.

You want to apply for a credit card using your roommate's credit?

You mentioned you have a few dents and dings on your credit history. Because you were so forthcoming with your roommate's credit history on a public forum, would you please do us the courtesy of showing us yours, as well?

I don't want anyone to get in a bad situation here. Please understand from my perspective this looks like someone's excited about fake cash and a big spending limit so they can buy something big on somebody else's good credit rating.

edit: STOP.
I just read through your post history. You are all over the place! You're looking at getting a mortgage but your credit score is 20 points shy, you are trying to get approved for a secured (?) card with a soft pull instead of a hard pull, you want a large spending limit for some reason...

1) If you want a mortgage STOP ALL CREDIT SEEKING ACTIVITIES NOW. I don't care who's putting down their credit file for the card, you seem to have a desire that you are not matched up for with a need right now.
2) If you have cash flowing into your pockets, pay off your debt first. Stop using credit cards completely.
3) Do not apply for new cards. DO NOT apply for new cards.
4) Be PATIENT. Credit ages over time. Rushing it does not work. Being a good caretaker of it is one thing; knocking out old derogs, tidying up erroneous reports and making sure everything is proper. But you can't rush it once everything is in place.

Please, please. I got up from a nap because I was lazily reading the myfico forums and rushed to my PC and sat down to type this. Your posts have raised my anxiety and I don't even know you. I'm not trying to reprimand you, I'm just worried for you. I know the temptation and if you are truly excited about taking out a mortgage just please stop.

I am willing to take a look at your credit report details and help you out (as I am sure others here are willing to as well) so we can shape you up to apply for that mortgage. Rates are great right now. Help us help you?

edit: formatting, grammar, etc

Probably the best response/advice to this person, though they aren't too receptive to the advices we give. Sometimes you have to take a step back and let your head clear

Re: App Spree... WHICH to App...?

Charmante — Thu, 20 Aug 2020 01:09:29 GMT

@Azza I'm sorry for the confusion. I follow most advice, or the advice that is within my reach. We are trying to do a 4-signer mortgage through the USDA (if 4 is possible?). We already applied individually and all four of us have a laundry list of things that must be met/done...

I post different things, seeking ways to best meet each need. Obviously it's a lot of jumping around trying to fulfill all 4 laundry lists.

Kenneth is a 530, must hit a 660, with MULTIPLE collections and has by far the biggest laundry list and quite frankly is bumming us all out... May be better off doing a 3way mortgage without him? Is it possible to finance with just us 3, but add him to the deed...?

Jauwan has a 780, meets score requirements BUT must 1) Establish more solo credit (hence trying to find matching accounts to his very thin file) 2) Lower utilization by another 10%. -- plus age the new account we establish by 6-12 months...

Benny has a 718, meets score requirements but has ONLY 1 solo account -- a 6 month old Dell -- and an AU spot on my 6 month old Macy's... So he needs both a couple more accounts (has ZERO majors) and some aging.

Chris (me) is a 640-645... So I'm RIGHT on the cusp of goal requirements... Utilization will be met upon next reportings by banks... All Collection Accounts will age off within 6 months... Just need to raise scores about 20 points and finish aging my accounts to 1 year (all 4 newly opened accounts hit 6 months September 10th -- except the Home Depot we JUST opened (and regret opening...) -- which will EASILY happen by the time the other 3 (or 2) are ready...

What people fail to realize is I'm ASKING QUESTIONS to write down data points in my notebook... I ask, learn, take notes, and improve my knowledge. They act like asking questions is TAKING ACTION... They are two separate things...

I am learning as I go. I have over 10 pages of notes from this site!!!

Re: App Spree... WHICH to App...?

Charmante — Thu, 20 Aug 2020 01:15:32 GMT

@Azza BUT I have rehabbed Student Loans about to reappear, too. I'm THINKING they'll RAISE my scores. But worry the USDA may say it raises my DTI too much, too. Do you know...?

Re: App Spree... WHICH to App...?

Azza — Thu, 20 Aug 2020 01:29:48 GMT

Okay, so first off - if your minimum is 660 (is that Fico 8 or a mortgage score?) then you should all be shooting for 700. For two reasons off the top of my head:

1) 700 is the minimum to get some good rates. MINIMUM. Especially on shorter loans like 5/1 or 7/1 ARMs, you can get rates competitive to entire 30-year fixeds. And the rates are smokin' hot right now, so why get tied up with worse rates if you can be patient and save a lot in the long run?

2) When you take out that loan you're going to all be responsible for the maximum loan, so if you're taking out a loan for say, $250,000, it's not going to split it up, it's going to say each of you are on the line for $250,000. That means your DTI is going to see some interesting changes, and your credit is going to take a medium-term dip.

Alright, now I'm not going to dive too much into this because I don't have all of the details, but hopefully I can offer a few pointers. Keep in mind the mortgage is only taken out at the lowest credit score's rate, so there is no averaging or anything. NOTE: All of this process could take a couple of months, if not longer. Seriously do not apply for credit right now

Kenneth: depending on his collections, if he can pay for remove and it's for smaller things then you guys can help him out. File disputes with everything and get all of the information ready so you can either have stuff knocked off straight away, or see what PFR are available. If you guys do a 3-way mortgage then he's legally off the hook responsibility-wise.

Jauwan: He should retain his 'thin' file and continue to establish it. If he applies for credit right now it will knock him down a substantial amount depending on how long that card has been established. He should not apply for new credit right now. When you are seeking a mortgage you never apply for new credit until point blank you are declined for a mortgage.

Benny: you guys have so many store cards... how old are you guys?

You: 650 is not 'right on the cusp,' you want 700. You have 6-12 months of aging to do, if not a bit longer. You can perhaps kick it in the butt by: calling the collection agencies and ask if they will remove the collections from your report. Have you paid them? Did you settle or PIF? getting those knocked off could bump you up by at least 20 or more points and that would give you some headroom to securing that mortgage in six months rather than twelve. And you already opened a card just recently? dude!

So when a bank looks at giving you a house they are not looking at the score. I mean they do, but they look at the entire picture. They want to see that you have established your history and are in a habit of paying your debts on time, living within your means, and possessing the ability to pay the mortgage on top of all of your other spending histories. Credit reports don't just show a snapshot of one point in time, they tell a story. Old collections say someone was irresponsible in the past, new collections say they're irresponsible right now. Debt on a credit card says you are prioritizing new spending against paying off old spending - not at all what someone offering you a piece of property for hundreds of thousands of dollars wants to see. Inquiries show frequency of how often you're trying to get the next shiny thing. Lots of inquiries reek of desperation to spend beyond your means and banks will auto-decline you for that, which is why it is so critically important not to apply for new credit for at least a year before applying for a mortgage.

TIME and WAITING is the only way for you guys, I think. But that means nothing exciting for a year at least, and paying off your debts. What's your guys' living situation like right now? Roomies in the same place? All employed? Do you guys have debt or are you clean?