topic Re: Some questions.. in Credit Cards

Some questions..

Anonymous — Mon, 06 Jan 2014 02:24:44 GMT

Call me crazy, but...

As of Jan 4 I have 17 INQ's on my CR. Down from 22 in November.

I won't really need serious credit until after I move, which will be at least 6 months from now, by then my INQ's should be 8 or less. I don't need serious credit right now because I'm saving money, not spending it.

Anyhow, I applied and was approved for the Merrick Secured Visa and will be sending them $200.

I used the credit score simulator from CK and found adding $200 to my WF Secured card only raised the score a few points, whereas adding a new CC with a $200 limit raised it over 20. The CS simulator does take into effect your current tradelines.

The reason why I apped for the Merrick card were:

1. Free Fico score on each statment.

2. Chance for a Auto CLI on the 7th statement (as I read on here).

Again, call me crazy for apping with so many INQ's, but I don't really need a $5,000 credit card right now, as it would proably entice me into spending instead of saving.

Now, one more benefit is that with another $200 CC, my total CL is $680 combined with the wells fargo card and fingerhut credit account, this means I can spread purchases out (I will need to buy things when it IS time to move), lowering my UTL.

Now it's time for questions...

1. Credit INQ's stay on your report for 2 years, but don't count after one, but can too many credit INQ's after a year still make it hard to get a manual loan such as a car loan? (don't think I will need a car 2 years from now, but just wondering).

2. What CA does Merrick pull the fico score from?

3. CK said that my Rating was "B" for collection accounts, even though I have a $1,100 balance on one CA. Do collection account balances affect your score, or just the number of them?

4. Would closing the Merrick Card be a good or bad thing after one year, and if I do close it, will it lower my score?

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 02:44:43 GMT

General advice is not to over-rely on advice from Credit Karma. Their simulator isn't said to be very accurate, and certainly ignore their letter grades on stuff.

To answer some of your questions:

1) In theory, anything on your report is fair game, so a creditor could comment on the number of older inqs. In reality, probably not. Inqs are a signal that you are searching for credit, maybe because you are in trouble, those over a year old should cause less concern.

3) Whatever the score impact, on a manual review the amount will of course matter

4) Closing doesn't impact AAoA, but can change score if it increases your utilization, because closing the card makes that credit line go away. So if $200 is a significant part of your CL then, and you have balances reporting, your score could decrease. If you always PIF before the statement closes, not really an issue.

Re: Some questions..

LearningMoreAboutCredit — Mon, 06 Jan 2014 02:54:47 GMT

@Anonymous wrote:
Call me crazy, but...

As of Jan 4 I have 17 INQ's on my CR. Down from 22 in November.

I won't really need serious credit until after I move, which will be at least 6 months from now, by then my INQ's should be 8 or less. I don't need serious credit right now because I'm saving money, not spending it.

Anyhow, I applied and was approved for the Merrick Secured Visa and will be sending them $200.

I used the credit score simulator from CK and found adding $200 to my WF Secured card only raised the score a few points, whereas adding a new CC with a $200 limit raised it over 20. The CS simulator does take into effect your current tradelines.

The reason why I apped for the Merrick card were:

1. Free Fico score on each statment.
2. Chance for a Auto CLI on the 7th statement (as I read on here).

Again, call me crazy for apping with so many INQ's, but I don't really need a $5,000 credit card right now, as it would proably entice me into spending instead of saving.

Now, one more benefit is that with another $200 CC, my total CL is $680 combined with the wells fargo card and fingerhut credit account, this means I can spread purchases out (I will need to buy things when it IS time to move), lowering my UTL.

Now it's time for questions...

1. Credit INQ's stay on your report for 2 years, but don't count after one, but can too many credit INQ's after a year still make it hard to get a manual loan such as a car loan? (don't think I will need a car 2 years from now, but just wondering). Yes, it could prevent some successful apps.

2. What CA does Merrick pull the fico score from? If you mean CRA, they have a tendency to pull TU.

3. CK said that my Rating was "B" for collection accounts, even though I have a $1,100 balance on one CA. Do collection account balances affect your score, or just the number of them? Both...the more recent, the more damaging.

4. Would closing the Merrick Card be a good or bad thing after one year, and if I do close it, will it lower my score? Why close a card after one year? If it doesn't fit your needs now, it won't later. Thus, wasting a HP for nothing. Yeah, it will report for an additional 10 years but lowers your overall utilization. Now, if it has an AF and you want to PC to a card that has no AF that's another story.

My responses in red...

Edited to correct statement regarding AAoA v. overall utilization.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 02:47:28 GMT

many have advised you against applying for anymore new accounts........

but even if you really wanted to, you really should have checked out bank of america secured card. at least that card will graduate you after 6-12months, as long as the account remains in good standing...

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 02:53:19 GMT

The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

It will be 2 weeks before I have $200 set aside.

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

Re: Some questions..

LearningMoreAboutCredit — Mon, 06 Jan 2014 02:58:40 GMT

@Anonymous wrote:
The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

It will be 2 weeks before I have $200 set aside.

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

Just curious...what is wrong with waiting three weeks until they fall off if that is a concern? The ding from BOA will be there for another two years but only affects score for one. It won't prevent the others from falling off.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 02:56:44 GMT

@Anonymous wrote:
The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

It will be 2 weeks before I have $200 set aside.

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

2 weeks from today is still going to be january.

the inquiry is still going to age off at the same time.

for experian, inquiries are removed at the end of the month 2 years from now. Example: inquiries gotten in Jan 2014 will disappear in Feb 2016.

and even if the inquiry is going to be made in feb, i don't think it's that big of a deal.

what you should be caring more about is whether that card is going to help you and the future "prospects" of the card. no point carrying a few "deadbeat" cards.

the bofa card will graduate as long as you do not pay late or go deliquent on them, meaning you will get your deposit back, which i think is an important aspect for secured cards. Who likes having their money stuck in the middle of nowhere perpetually?

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:05:10 GMT

Would it be damaging to app for the BOA card now, or should I reap what I sow and stick with the Merrick one?

Thing is, I know I'm approved for the Merrick one, I don't want to waste another INQ knowing I might be declined for them, how good are the approval odds? I know some secured cards still have a min score needed. Capital one is picky too.

If you google "Bank of america denied secured credit card", there are quite a few hits.

Re: Some questions..

LearningMoreAboutCredit — Mon, 06 Jan 2014 03:08:30 GMT

@Anonymous wrote:
Would it be damaging to app for the BOA card now, or should I reap what I sow and stick with the Merrick one?

Thing is, I know I'm approved for the Merrick one, I don't want to waste another INQ knowing I might be declined for them, how good are the approval odds? I know some secured cards still have a min score needed. Capital one is picky too.

If you google "Bank of america denied secured credit card", there are quite a few hits.

Nothing IS certain but death and taxes...the decision is yours to make. Applying for credit is always a crap shoot. Good luck on whatever you decide.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:12:10 GMT

Like every one has suggested many times, on multiple threads, you should stop applying for now. Age what you have and treat it carefully. You have more than enough accounts now that you should see significant progress in your credit reports by the time you move. You also could consider using the money you want to invest into more cards, and secured cards and use that money instead to negotiate payments for deletion or settlements on any negative accounts that you have. If you compile all of your posts and threads, you'll see that you're unlikely to get different answers at this point other than what is already mentioned.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:17:26 GMT

@Anonymous wrote:
@Anonymous wrote:
The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

It will be 2 weeks before I have $200 set aside.

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

2 weeks from today is still going to be january.
the inquiry is still going to age off at the same time.
for experian, inquiries are removed at the end of the month 2 years from now. Example: inquiries gotten in Jan 2014 will disappear in Feb 2016.

and even if the inquiry is going to be made in feb, i don't think it's that big of a deal.

what you should be caring more about is whether that card is going to help you and the future "prospects" of the card. no point carrying a few "deadbeat" cards.
the bofa card will graduate as long as you do not pay late or go deliquent on them, meaning you will get your deposit back, which i think is an important aspect for secured cards. Who likes having their money stuck in the middle of nowhere perpetually?

Really?!

I was trying to figure out why a Jan 5 2012 inquiry didn't fall off today.

What an annoying practice.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:24:20 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

It will be 2 weeks before I have $200 set aside.

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

2 weeks from today is still going to be january.
the inquiry is still going to age off at the same time.
for experian, inquiries are removed at the end of the month 2 years from now. Example: inquiries gotten in Jan 2014 will disappear in Feb 2016.

and even if the inquiry is going to be made in feb, i don't think it's that big of a deal.

what you should be caring more about is whether that card is going to help you and the future "prospects" of the card. no point carrying a few "deadbeat" cards.
the bofa card will graduate as long as you do not pay late or go deliquent on them, meaning you will get your deposit back, which i think is an important aspect for secured cards. Who likes having their money stuck in the middle of nowhere perpetually?
Really?!

I was trying to figure out why a Jan 5 2012 inquiry didn't fall off today.

What an annoying practice.

yup.

in some cases it may stay till a couple days after feb as well, depending. So for EX only the month and year matters, which is why it's sometimes nice if you manage to squeeze some inquiries in right at the end of the month.

On the other hand, Tu and EQ are pretty punctual about removing inquiries from file.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:26:47 GMT

@Anonymous wrote:
Would it be damaging to app for the BOA card now, or should I reap what I sow and stick with the Merrick one?

Thing is, I know I'm approved for the Merrick one, I don't want to waste another INQ knowing I might be declined for them, how good are the approval odds? I know some secured cards still have a min score needed. Capital one is picky too.

If you google "Bank of america denied secured credit card", there are quite a few hits.

like others have said, i think you have enough accounts as is.

if you are to apply for the BOA card now, thats an additional deposit that you will have to come up with. Are you able to do that?

Usually secured cards are a guaranteed deal, unless your BK has yet to discharged, or you have some major recent derogs, or if you have burned that specific lender previously. Talking to a banker in the branch will also help. Some can help you apply via special considerations route.

Re: Some questions..

killer_queen229 — Mon, 06 Jan 2014 03:29:35 GMT

@Anonymous wrote:
Like every one has suggested many times, on multiple threads, you should stop applying for now. Age what you have and treat it carefully. You have more than enough accounts now that you should see significant progress in your credit reports by the time you move. You also could consider using the money you want to invest into more cards, and secured cards and use that money instead to negotiate payments for deletion or settlements on any negative accounts that you have. If you compile all of your posts and threads, you'll see that you're unlikely to get different answers at this point other than what is already mentioned.

I think if you stop applying and let things age, then you will have a better chance with better companies, and this is coming from me. But I'm telling you from experience that at 4 months history with a secured card I couldn't get the Discover card I applied for, couldn't get a card with my bank (and still can't), couldn't get a card from BOA and couldn't get a card from the bank I got my secured card from. I got store cards (Old Navy/Kohls/TJX Rewards) but with low limits. Since then my Old Navy and TJX Rewards credit lines have increased a little.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:35:10 GMT

Not all secured cards are 100%.

I applied for the cap 1 secured in 2010 when I turned 18 and was approved for a $200 limit with $99 deposit. I lost my job soon after so that was a lost deal.

I applied again in 2012 and 2013, got shot down, both times the denials were "lack of credit history". I kid you not.

Many people have been denied cap1 secured, something changed with the CARD act and now it's harder to get a secured with them.

Re: Some questions..

killer_queen229 — Mon, 06 Jan 2014 03:37:22 GMT

@Anonymous wrote:
Not all secured cards are 100%.

I applied for the cap 1 secured in 2010 when I turned 18 and was approved for a $200 limit with $99 deposit. I lost my job soon after so that was a lost deal.

I applied again in 2012 and 2013, got shot down, both times the denials were "lack of credit history". I kid you not.

Many people have been denied cap1 secured, something changed with the CARD act and now it's harder to get a secured with them.

I have a Capital One card, but it's unsecured. I would defintely want a secured card offering me at least a $300 limit. I don't think you need a bunch of secured accounts opened, but that's just me.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:39:52 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
The problem with the BOA Secured was that you cannot fund it by mail, it had to be via ACH.

It will be 2 weeks before I have $200 set aside.

If I apped for the BOA Card, I would need to wait 2 weeks, and that means another ding 2 weeks from now.

The Merrick card has a 20 day funding grace period, so by apping for it now, and submitting my deposit on day 19, I have have almost 3 weeks of letting any INQ's that occured 3 weeks after a year ago to age off, and durring that period I have about 5 INQ's.

2 weeks from today is still going to be january.
the inquiry is still going to age off at the same time.
for experian, inquiries are removed at the end of the month 2 years from now. Example: inquiries gotten in Jan 2014 will disappear in Feb 2016.

and even if the inquiry is going to be made in feb, i don't think it's that big of a deal.

what you should be caring more about is whether that card is going to help you and the future "prospects" of the card. no point carrying a few "deadbeat" cards.
the bofa card will graduate as long as you do not pay late or go deliquent on them, meaning you will get your deposit back, which i think is an important aspect for secured cards. Who likes having their money stuck in the middle of nowhere perpetually?
Really?!

I was trying to figure out why a Jan 5 2012 inquiry didn't fall off today.

What an annoying practice.
yup.
in some cases it may stay till a couple days after feb as well, depending. So for EX only the month and year matters, which is why it's sometimes nice if you manage to squeeze some inquiries in right at the end of the month.
On the other hand, Tu and EQ are pretty punctual about removing inquiries from file.

That stinks!

Inquiries falling off are pretty much all I look forward to, LOL!

If it's there in February, they're getting an annoyed call.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 03:40:45 GMT

@Anonymous wrote:
Not all secured cards are 100%.

I applied for the cap 1 secured in 2010 when I turned 18 and was approved for a $200 limit with $99 deposit. I lost my job soon after so that was a lost deal.

I applied again in 2012 and 2013, got shot down, both times the denials were "lack of credit history". I kid you not.

Many people have been denied cap1 secured, something changed with the CARD act and now it's harder to get a secured with them.

that is because you just recently burned them.........

your original card was partially secured for $99, and they extended $101 of unsecured credit to you, which you eventually became deliquent. common sense would tell you that that particular bank isn't going to offer you any sort of credit anytime soon. CapitalOne may not be as unforgiving as Amex, but they are not a charity organization either. Would you lend money to your "best friend" right away if he just failed to pay you back on the previous loan?

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 04:03:15 GMT

Re read my post. I never sent them the deposit. So the account was never opened.

Re: Some questions..

Anonymous — Mon, 06 Jan 2014 04:10:03 GMT

@Anonymous wrote:
Re read my post. I never sent them the deposit. So the account was never opened.

ok. another question.

are you applying for the partially secured product, or fully secured product?

with any partially secured product, the chances of them saying no is higher, because you're literally asking them to lend you money.

with a fully secured product, you're essentially using your own money as collateral.

if you have a bank of america around your area, it's best to talk to a banker in person and see if they can help you.