topic Re: APP SPREE Question in Credit Cards

APP SPREE Question

KeepingScores — Mon, 23 Sep 2013 11:07:39 GMT

Today I am applying for a vehicle loan from a credit union. The credit union uses Equifax Fico score. My income can support this loan.

My Fico Scores are: Equifax 715, Experian 743 pulled in the last two days.

Equifax: Reports that my oldest account is 2 years, 9 months; my average age of accounts is 2 years and my file is thin.

Since I am applying for the vehicle loan, I think that it's a good time to also do an app spree since I have no credit cards

I think that I can get Prime Credit Cards, but have no idea which ones to apply for. My main purchases are gasoline, groceries and maybe some utility bills.

***Any suggestions as to which cards to get and how to do an app spree so that everything goes smoothly? Timing? Order to apply for the cards? Anything else that I should know because I haven't applied for a card before.***

Re: APP SPREE Question

azguy13 — Mon, 23 Sep 2013 11:14:07 GMT

@KeepingScores wrote:
Today I am applying for a vehicle loan from a credit union. The credit union uses Equifax Fico score. My income can support this loan.

My Fico Scores are: Equifax 715, Experian 743 pulled in the last two days.

Equifax: Reports that my oldest account is 2 years, 9 months; my average age of accounts is 2 years and my file is thin.

Since I am applying for the vehicle loan, I think that it's a good time to also do an app spree since I have no credit cards

I think that I can get Prime Credit Cards, but have no idea which ones to apply for. My main purchases are gasoline, groceries and maybe some utility bills.

***Any suggestions as to which cards to get and how to do an app spree so that everything goes smoothly? Timing? Order to apply for the cards? Anything else that I should know because I haven't applied for a card before.***

You may have decent scores but I am not sure if your credit file supports prime cards with a decent CL. I am not saying you can't get prime cards, just that sine you have basically no revolving credit, you may not get what you are looking for.

What type of accounts are on your CR?

Any baddies?

Any prior auto loans?

What is your income?

Re: APP SPREE Question

KeepingScores — Mon, 23 Sep 2013 12:25:41 GMT

What type of accounts are on your CR?

Two accounts--never late:

1) Credit union secured loan dated July 2013 ($9,495 high balance which the current balance is $894.)

2) Retail store card with high balance of $4,500 which was paid in full and is now closed.

Any baddies?

No baddies whatsover

Any prior auto loans?

No prior auto loans

What is your income?

$100,000+K

Re: APP SPREE Question

azguy13 — Mon, 23 Sep 2013 12:35:15 GMT

@KeepingScores wrote:
What type of accounts are on your CR?
Two accounts--never late:
1) Credit union secured loan dated July 2013 ($9,495 high balance which the current balance is $894.)
2) Retail store card with high balance of $4,500 which was paid in full and is now closed.

Any baddies?
No baddies whatsover

Any prior auto loans?
No prior auto loans

What is your income?
$100,000+K

Just based on your income, you may be able to get a card from a prime lender with a low CL. I would not expect anything over $3K though. It really doesnt matter though. Once you get your foot in the door and establish a good payment history you can get CLI and new cards if needed.

As for the auto loan, I have no idea what your APR will look like since it is your first auto loan. I would provide a large down payment. Are you part of any CU? I lucked out with my first auto loan when I was in the Army. USAA gave me 6% which was amazing for someone with NO credit history at all. Granted, you have a credit history but it is very very thin.

Out of curiosity, why did you close your retail card?

Re: APP SPREE Question

KeepingScores — Mon, 23 Sep 2013 12:56:23 GMT

As for the auto loan, I have no idea what your APR will look like since it is your first auto loan. I would provide a large down payment. Are you part of any CU?

Yes, I belong to some credit unions.

Out of curiosity, why did you close your retail card?

I was an authorized user on someone else's retail store account which I never used; they filed for bankruptcy and the retailer closed the card.

Re: APP SPREE Question

azguy13 — Mon, 23 Sep 2013 13:03:57 GMT

@KeepingScores wrote:
As for the auto loan, I have no idea what your APR will look like since it is your first auto loan. I would provide a large down payment. Are you part of any CU?
Yes, I belong to some credit unions.

Out of curiosity, why did you close your retail card?
I was an authorized user on someone else's retail store account which I never used; they filed for bankruptcy and the retailer closed the card.

Well, the good part is that you are basically brand new to credit which means you have not screwed it up in any way. You have established a good payment history with the credit you do have which is good.

Since you have no active credit cards, I am not sure how the lenders will look at you. Hopefully once other members drag themselves out of bed they can help a little more. I do not think you will have to start secured but I do not think you will get high CL's. Either way, you will be set within a year.

A credit union will be your best bet for your auto loan. They could very well be your best bet for your first credit card as well. Maybe once Myjourney, Shogun or 09Lexie wakes up he can give some input. They are very knowledgable in this area. There are many others as well but those 3 are who come to mind.

Re: APP SPREE Question

KeepingScores — Mon, 23 Sep 2013 13:43:36 GMT

THANKS so much for your support and information.

I haven't thought long and hard about credit before now. I paid cash, paid my bills on time and lived within my means. I thought that I had a higher credit score--only to learn that I have an average credit score and need to build great credit by borrowing and paying back. I want to improve my credit strategically by performing the best tactics for my situation. Then I want to pass it on and help others do the same.

I plan to apply for the auto loan at Digital Credit Union which offers a 1.99 IR; I AM concerned on their ratings page that some members state that DCU retracts the 1.99 a few weeks or months later, even after signing a contract--only to charge a higher rate.

I also saw on the myFICO forums that truetoforums obtained a no-membership CC from https://www.oregoncommunitycu.org/credit-cards/duck-card. OCCU has a CC evaluator located at https://www.oregoncommunitycu.org/credit-cards/evaluate-credit-cards where I may qualify. CHFCU and PSECU also have competitive CC rates.

Maybe it's too premature for me to do an app spree to coincide with the auto loan. With so little experience, it's hard for me to tell so I am waiting for additional input before making a decision.

Re: APP SPREE Question

azguy13 — Mon, 23 Sep 2013 13:57:26 GMT

@KeepingScores wrote:
THANKS so much for your support and information.

I haven't thought long and hard about credit before now. I paid cash, paid my bills on time and lived within my means. I thought that I had a higher credit score--only to learn that I have an average credit score and need to build great credit by borrowing and paying back. I want to improve my credit strategically by performing the best tactics for my situation. Then I want to pass it on and help others do the same.

I plan to apply for the auto loan at Digital Credit Union which offers a 1.99 IR; I AM concerned on their ratings page that some members state that DCU retracts the 1.99 a few weeks or months later, even after signing a contract--only to charge a higher rate.

I also saw on the myFICO forums that truetoforums obtained a no-membership CC from https://www.oregoncommunitycu.org/credit-cards/duck-card. OCCU has a CC evaluator located at https://www.oregoncommunitycu.org/credit-cards/evaluate-credit-cards where I may qualify. CHFCU and PSECU also have competitive CC rates.

Maybe it's too premature for me to do an app spree to coincide with the auto loan. With so little experience, it's hard for me to tell so I am waiting for additional input before making a decision.

I do not believe that one CC ap would affect your ability to qualify for an auto loan. I am unfamiliar with Digital CU so I can't be any help there. I would try for an unsecured CC from a CU and if you dont qualify, they may counter you with a secured offer. It sucks in the beginning because of what you do and do not qualify for but I promise, it is better than rebuilding.

Your thoughts of you having a higher CS than you do is a very common misconception. People believe if they have never paid their bills late, pay cash, and live within their means, they have excellent credit. Sadly, non of those things are reported to the CRAs.

I remember reading an article once about a man who paid cash for everything in his life. He became wealthy and boutght a few apartment buildings. The problem was he never used any type of credit at all. The most interesting thing I read on there was he passed an apartment building once and thought to himself that he could buy that building outright but would never be approved to rent an apartment in it because he had no credit history. It kind of makes you realize how crazy our credit system is.

Re: APP SPREE Question

KeepingScores — Mon, 23 Sep 2013 14:26:52 GMT

Ahhh, a mistake all too easily made without the right information.

Re: APP SPREE Question

azguy13 — Mon, 23 Sep 2013 14:32:28 GMT

@KeepingScores wrote:
Ahhh, a mistake all too easily made without the right information.

Exactly. We always red in the news how, as a country, we are financially irresponsible and get into debt way to fast and easy. I think one of the easiest ways to help this is to have a mandatory class in high school before going off to college. Granted, a lot of kids will ignore it, but it will be in the back of their mind.

Re: APP SPREE Question

Creditaddict — Mon, 23 Sep 2013 16:25:57 GMT

check some of the pre-qual offers on each site to get a feel.

chase.com

citicards

capitalone

i might apply for blue cash preferred for the 6% grocery and 3% gas

Re: APP SPREE Question

09Lexie — Mon, 23 Sep 2013 18:42:47 GMT

The revolving credit cards that were IIB are they reported that way on your cr?

Re: APP SPREE Question

mongstradamus — Mon, 23 Sep 2013 18:47:55 GMT

@Creditaddict wrote:
check some of the pre-qual offers on each site to get a feel.
chase.com
citicards
capitalone

i might apply for blue cash preferred for the 6% grocery and 3% gas

how accurate are those pre qual offers. I got prequal from discover it and chase freedom. I was thinking of applying for freedom and bcp, but once i pulled my experian credit report today and saw how score has dropped almost had an heart attack. right now i have only one card reporting and my overall util is 3%. I thought once I PIF all my other cc i would be in good shape. Apparently not so it made me very sad.

Re: APP SPREE Question

myjourney — Mon, 23 Sep 2013 18:50:04 GMT

Here is some good info for starting new credit files

http://ficoforums.myfico.com/t5/Credit-Cards/quot-Start-From-Scratch-quot-Credit-Builders-Handbook/m-p/2326027#M655421

Re: APP SPREE Question

mongstradamus — Mon, 23 Sep 2013 18:55:09 GMT

@myjourney wrote:
Here is some good info for starting new credit files
http://ficoforums.myfico.com/t5/Credit-Cards/quot-Start-From-Scratch-quot-Credit-Builders-Handbook/m-p/2326027#M655421

i have done most of the things , the thing that has annoyed me is my experian has the most up to date shot of my credit reports, which is actually reporting an lower utilization then my equifax, but my equifax is over 60 points higher. I just don't understand what else i can do . i am thinking maybe garden for an year or two and maybe will have an chance then.

Re: APP SPREE Question

myjourney — Mon, 23 Sep 2013 19:01:11 GMT

@mongstradamus wrote:
@myjourney wrote:
Here is some good info for starting new credit files
http://ficoforums.myfico.com/t5/Credit-Cards/quot-Start-From-Scratch-quot-Credit-Builders-Handbook/m-p/2326027#M655421
i have done most of the things , the thing that has annoyed me is my experian has the most up to date shot of my credit reports, which is actually reporting an lower utilization then my equifax, but my equifax is over 60 points higher. I just don't understand what else i can do . i am thinking maybe garden for an year or two and maybe will have an chance then.

Do the files have the exact same info?

When was last app and how many INQ's do you have on those 2 files? (EX EQ only)

Re: APP SPREE Question

mongstradamus — Mon, 23 Sep 2013 19:07:33 GMT

@myjourney wrote:
@mongstradamus wrote:
@myjourney wrote:
Here is some good info for starting new credit files
http://ficoforums.myfico.com/t5/Credit-Cards/quot-Start-From-Scratch-quot-Credit-Builders-Handbook/m-p/2326027#M655421
i have done most of the things , the thing that has annoyed me is my experian has the most up to date shot of my credit reports, which is actually reporting an lower utilization then my equifax, but my equifax is over 60 points higher. I just don't understand what else i can do . i am thinking maybe garden for an year or two and maybe will have an chance then.
Do the files have the exact same info?
When was last app and how many INQ's do you have on those 2 files? (EX EQ only)

they have mostly the same info exp has two more inq, but experian has the updated util that went down to 3%, equifax has my util at 15% because equifax hasn't updated my wf account yet. my last app was in august. I just can't understand the major discrepncies tho, the last app was an cap one card showed up on all three cra

Re: APP SPREE Question

myjourney — Mon, 23 Sep 2013 19:25:31 GMT

@mongstradamus wrote:
@myjourney wrote:
@mongstradamus wrote:
@myjourney wrote:
Here is some good info for starting new credit files
http://ficoforums.myfico.com/t5/Credit-Cards/quot-Start-From-Scratch-quot-Credit-Builders-Handbook/m-p/2326027#M655421
i have done most of the things , the thing that has annoyed me is my experian has the most up to date shot of my credit reports, which is actually reporting an lower utilization then my equifax, but my equifax is over 60 points higher. I just don't understand what else i can do . i am thinking maybe garden for an year or two and maybe will have an chance then.
Do the files have the exact same info?
When was last app and how many INQ's do you have on those 2 files? (EX EQ only)
they have mostly the same info exp has two more inq, but experian has the updated util that went down to 3%, equifax has my util at 15% because equifax hasn't updated my wf account yet. my last app was in august. I just can't understand the major discrepncies tho, the last app was an cap one card showed up on all three cra

I could be wrong but

Sounds like the differences in the files along with the 2 extra INQ's which i'm guessing are new combined with a new TL reporting and you have been dinged big time.

Time to garden and let time heal ........re-elvaluate in 6 months

Re: APP SPREE Question

KeepingScores — Tue, 24 Sep 2013 00:42:21 GMT

No, it's been over a year since the bankruptcy was filed and it is not showing up in any way on my CR.

Re: APP SPREE Question

KeepingScores — Tue, 24 Sep 2013 00:44:45 GMT

Thank you so much for taking the time to give this information. Myjourney, and everyone, I will let you know how things work out.