topic Re: So you are saying for my next card that I am going to app... in Credit Cards

What should I do?

Anonymous — Wed, 24 Sep 2014 05:09:07 GMT

Hi everyone!

I currently have one BoA unsecured card with a $700 limit (have reported 3 months of great utilization and history). I only had 1 hard inquiry from Citibank last December that I did not get approved of.

I decided not to post this in the auto section as I know this forum will get more responses, but I am looking forward next year to getting a 2015 Mustang without a cosigner with a great APR. I'm going to have a DP of $3,000.

My question is, what could I do to enhance my qualifications of getting a good loan? I feel like having only one credit card would not give me enough history. Should I take out a personal loan to show loan history? Should I app for another credit card in 3 months to make my file thicker?

Please help me out here, guys!

Re: What should I do?

Anonymous — Wed, 24 Sep 2014 05:31:43 GMT

Im not no expert here, but from what I learn so far...

If you planning to get your car next year, I would get a small installment loan and have bank strecth your loan out to 12months. I also would get a couple more of CC and paid it off each month. By next year this time you will have a strong 12 excutive months of good standing (no late) change are your score will improve and you better change getting auto loan with-out any co-signer. Just my 2cent. Im still learning myself, but this is I would do IF im in your shoe.

Re: What should I do?

Anonymous — Wed, 24 Sep 2014 06:35:14 GMT

Thank you for the response there! My only down fall with the installment loans is the interest.

I remember talking to a Ford salesman a few weeks ago and he was like, "Well yeah, you can have a great credit score... Its your loan history that matters."

I definitely plan on apping for a new CC whenever I have reported 6 months to help build my thin file. I just want to get a head start here for my big goal!

Re: What should I do?

Anonymous — Wed, 24 Sep 2014 06:37:11 GMT

I'm not sure if this is relevant either, but I currently have a 2012 vehicle that my mother financed for me at 5% and we still owe about $11,000.

Do you think refinancing with my name (as well as hers) would help any?

Re: What should I do?

Anonymous — Wed, 24 Sep 2014 07:06:11 GMT

Does your local bank any credit union? Credit have very low rate for interested on installment loan.

I'll give you an sample what I did.

I did a loan installment with my local DCU credit union bank for 1000. They stretch the payment to out for 12months, this way it build good history with the bank and in your CR. The amount doesnt matter, what it matter is that its always on time. Also DCU allow the payment deduct it from my checking or saving account to pay for the loan, so that will assure you that it will be on time every month as long as you have fund in your account. Also this installment is going against my own money, another words at my very last payment on the 12th month I paid them my last payment of my loan and they bank will hand me the 1000. Its like using your own money for the loan, this is great way to build credit. The interest of these loan is only $36 for 12 months. $36 dollar to build my credit and help me get loan and get good credit? Why not,

Im not sure about your last question. Some one would have answer for you on that one. Hope my reply helps you.

Re: What should I do?

SunriseEarth — Wed, 24 Sep 2014 09:48:47 GMT

@Anonymous wrote:
Hi everyone!

I currently have one BoA unsecured card with a $700 limit (have reported 3 months of great utilization and history). I only had 1 hard inquiry from Citibank last December that I did not get approved of.

I decided not to post this in the auto section as I know this forum will get more responses, but I am looking forward next year to getting a 2015 Mustang without a cosigner with a great APR. I'm going to have a DP of $3,000.

My question is, what could I do to enhance my qualifications of getting a good loan? I feel like having only one credit card would not give me enough history. Should I take out a personal loan to show loan history? Should I app for another credit card in 3 months to make my file thicker?

Please help me out here, guys!

I'm generally not in favor of taking out an unnecessary installment loan for the purpose of credit building. I do think that more revolving credit could help you, however.

What's your credit profile like? What are your scores? What other positive TLs are on their now? Baddies?

Re: What should I do?

coldnmn — Wed, 24 Sep 2014 10:11:15 GMT

@Anonymous wrote:
Hi everyone!

I currently have one BoA unsecured card with a $700 limit (have reported 3 months of great utilization and history). I only had 1 hard inquiry from Citibank last December that I did not get approved of.

I decided not to post this in the auto section as I know this forum will get more responses, but I am looking forward next year to getting a 2015 Mustang without a cosigner with a great APR. I'm going to have a DP of $3,000.

My question is, what could I do to enhance my qualifications of getting a good loan? I feel like having only one credit card would not give me enough history. Should I take out a personal loan to show loan history? Should I app for another credit card in 3 months to make my file thicker?

Please help me out here, guys!

If you have a BoA unsecured card with three months of history with only one hard pull inquiry from Citi I would check your credit reports. If you have already pulled your free credit reports for this year from annualcreditreport.com I would pull them through here. That way you would know for sure of any baddies AAoAs inquiries etc. I find it hard to believe BoA gave you a credit card with no HP. By doing so it will be easier to give you advice. Good Luck what ever your decision.

Re: What should I do?

Anonymous — Wed, 24 Sep 2014 20:51:50 GMT

Believe it or not, I'm not seeing a HP from them on my credit report from Credit Karma, which is giving me a 734 score.

However, I did have a checking account with them for a good few months before I applied for the Cash Rewards CC.

Re: What should I do?

newhis — Wed, 24 Sep 2014 21:04:50 GMT

@Anonymous wrote:
Believe it or not, I'm not seeing a HP from them on my credit report from Credit Karma, which is giving me a 734 score.

However, I did have a checking account with them for a good few months before I applied for the Cash Rewards CC.

CK use TU, I bet your HP show on EX

Re: What should I do?

lexrjSD — Wed, 24 Sep 2014 21:06:27 GMT

I dont think personal loans will improve your file/credit much, I was in similar situation when I moved to the US (4yrs ago) and trying to build credit. My advice is to get an AMEX revolver that fits your spending (prob. BCP or BCE) and get all the CLIs (specially the 61days one) you can, hopefully you'll be around 10k CL by the time you apply for your car loan. It really helped me, I was able to lease a 55k car with the lowest int. rates possible 1yr and a half later.

Re: What should I do?

SunriseEarth — Wed, 24 Sep 2014 22:17:05 GMT

@newhis wrote:
@Anonymous wrote:
Believe it or not, I'm not seeing a HP from them on my credit report from Credit Karma, which is giving me a 734 score.

However, I did have a checking account with them for a good few months before I applied for the Cash Rewards CC.
CK use TU, I bet your HP show on EX

+1. CK only shows info from TU. However, you can use that fact to your advantage and app for cards that pull TU. Barclay and SyncB pull TU. Discover often pulls TU (but probably EQ more frequently).

So you are saying for my next card that I am going to app...

Anonymous — Thu, 25 Sep 2014 01:30:42 GMT

So you are saying for my next card that I am going to app for in 3 months (when I have 6 months reported history) should be an AMEX to get the goal done in a year? I'm really looking into the BCE. Here is my storyline and next plans:

Dec 2013 - Citibank application for retail store, but instantly denied (no credit, of course).

June 2014 - BoA Cash Rewards for Students approved with $700 CL. (Submitted in an app for the BoA Cash Rewards AND Signature.. not sure if BoA counted 2 hard pulls).

-----------Currently right now have 3 months reported of good utilization and payment history---------

December 2014 - App for AMEX, Chase Freedom, or Discover It. (Really like the thought of having the AMEX.. I'm just worried if they would approve me).

May 2015 - Put in applications for auto loans on a $27,000 vehicle (with $3-4,000 DP, of course) and attempt to find the best rate.

I'm 19 with a $21,000 annual salary, but I don't pay any bills. I have calculated the monthly cost of the car and the insurance and I can do it.

Re: So you are saying for my next card that I am going to app...

Boonie — Thu, 25 Sep 2014 03:32:19 GMT

Check you insurance rates on the Mustang before you buy. It likely will be considered a "sports car" and have a higher risk rating, thus higher insurance premiums. I am not sure what you drive now, but it is well worth checking insurance rates before buying a Mustang. You may be shocked how high it could be at your age. You may be better off getting a non sports rated vehicle that is cheaper to insure, but thats up to you. Also, your credit can be a factor in calculating your insurance premium. You may check into getting a small personal loan of $500 for 6 months from BOA and then pay make timely payments to show you are responsible. Otherwise, try for a Barclays Rewards or a card from Synchrony Bank to build more credit (they both use TU for approval). Good Luck to you!

Re: So you are saying for my next card that I am going to app...

Anonymous — Thu, 25 Sep 2014 04:11:29 GMT

Thank you for the advice!

What bureau does AMEX pull? Do you think given my circumstances they would approve me in 3 months?

Re: So you are saying for my next card that I am going to app...

CreditDunce — Thu, 25 Sep 2014 04:16:38 GMT

@Anonymous wrote:
So you are saying for my next card that I am going to app for in 3 months (when I have 6 months reported history) should be an AMEX to get the goal done in a year? I'm really looking into the BCE. Here is my storyline and next plans:

Dec 2013 - Citibank application for retail store, but instantly denied (no credit, of course).
June 2014 - BoA Cash Rewards for Students approved with $700 CL. (Submitted in an app for the BoA Cash Rewards AND Signature.. not sure if BoA counted 2 hard pulls).
-----------Currently right now have 3 months reported of good utilization and payment history---------

December 2014 - App for AMEX, Chase Freedom, or Discover It. (Really like the thought of having the AMEX.. I'm just worried if they would approve me).
May 2015 - Put in applications for auto loans on a $27,000 vehicle (with $3-4,000 DP, of course) and attempt to find the best rate.

I'm 19 with a $21,000 annual salary, but I don't pay any bills. I have calculated the monthly cost of the car and the insurance and I can do it.

Personally, I would wait until you have at least 1 year of credit history before applying for an Amex. Or at the very least go for a charge card or Delta revolver. But I really think you want to have 2 CC's with at least 1 year of history before app'g for an Amex. Not that it wouldn't be ideal to get your MSD set to 2014.

Even though you have minimum bills, you may still have problems getting approved by some CCC's. The law says until you turn 21 they have to verify you have the income to be able to repay the CC. I have heard that means you need at least 2k of gross monthly income.

You may have better luck with student cards (e.g. Discover IT student). The Chase Freedom is student friendly, but I am not sure about the income requirements.

I am not your parents, but how much are you going to be able to save each month with the car payment and insurance? You really should have an emergency fund with 3-6 months of expenses (including unexpected car repairs) plus save 15% gross of your salary in a IRA or ROTH IRA (assuming you don't have a 401k available). But lenders will lend you more money than you should borrow. You will certainly find someone to lend you the money.

Re: So you are saying for my next card that I am going to app...

SpendWisely — Thu, 25 Sep 2014 04:22:17 GMT

@Anonymous wrote:
Thank you for the advice!

What bureau does AMEX pull? Do you think given my circumstances they would approve me in 3 months?

AMEX pulls EX.

Re: So you are saying for my next card that I am going to app...

Anonymous — Tue, 30 Sep 2014 08:04:29 GMT

Do any of you guys know when or if Discover is going to bring back the sign-up bonus where you'd get like $150 if you spent $1,000 in less than 90 days- whole deal?

Re: So you are saying for my next card that I am going to app...

Chris679 — Tue, 30 Sep 2014 09:28:23 GMT

You're not going to want to hear this but I'll say it anyway. At $21000 per year thats about $1400 per month take home. The car loan is going to be around $350 a month but at 19 with a Mustang you could easily be looking at $150+ per month in insurance. This means that you are commiting 35% of your income to transportation expenses for the next 6+ years. You may not have bills now but do you anticipate living rent free until you are at least 25? I'm never one to talk someone out of a toy but you would be much better served looking for something at about half that price. With all that being said I think the biggest issue for a lendor on this loan isn't going to be your credit (should be good enough) but it will be your employment history/income. They are going to want to see a couple years of history at your current job and it may be a good idea to get in with a local credit union now and start building that relationship in advance.

Re: So you are saying for my next card that I am going to app...

Anonymous — Tue, 30 Sep 2014 12:14:48 GMT

@Boonie wrote:
Check you insurance rates on the Mustang before you buy. It likely will be considered a "sports car" and have a higher risk rating, thus higher insurance premiums. I am not sure what you drive now, but it is well worth checking insurance rates before buying a Mustang. You may be shocked how high it could be at your age. You may be better off getting a non sports rated vehicle that is cheaper to insure, but thats up to you. Also, your credit can be a factor in calculating your insurance premium. You may check into getting a small personal loan of $500 for 6 months from BOA and then pay make timely payments to show you are responsible. Otherwise, try for a Barclays Rewards or a card from Synchrony Bank to build more credit (they both use TU for approval). Good Luck to you!

I'm not gonna lie, I was wondering why the Mustang also. People don't always consider the full cost of owning a car (e.g., insurance, maintenance, repairs, etc.).

Re: So you are saying for my next card that I am going to app...

elim — Tue, 30 Sep 2014 12:20:00 GMT

my way...

go to local credit union and get a share secured loan for 1 year (no credit pull).

pick up 2 CC's when you can along the way (as early as possible)

in that year, cram every penny you can into that share account.

try to have 15k in that account when the loan completes (for your down payment).

your credit union will give you a great rate and a CC to boot.

finance the needed 10k and get your car.

you now have property with a positive value if you need to bail and sell at any time.

you will suffer for 1 year but that's what we "toy buyers" do

your priorities/needs may change by then and you may dodge a credit nightmare if an emergency arises.

remember, cars are cheaper in winter

my toys are race boats so it's easier for me. i can split costs engines/hulls/trailers

my latest...

best of luck