topic Re: Can I do This Without Adverse Action? in General Credit Topics

Can I do This Without Adverse Action?

stillirise — Thu, 30 Jan 2014 01:49:46 GMT

I am no credit expert; I can't seem to get my score above a certain level no matter what. However, I would consider myself adept in finances. I am shopping for new loans with lower interest rates to replace much higher APR's that I currently have. I have a 20 year credit history but my revolving and installment accts are fairly new. I previously held cards that I never used and they were subsequently closed. Since I read in one of these forums I needed different types of credit; I picked up different types of credit.

Now, I would like to trade some of my high interest accounts for lower rates but I'm afraid I will be penalized for applying. Is there some way to do this with out creditors assuming Im trying to over extend myself?

It seems like a catch-22 if I apply for lower rates the inquiries destroy me. Also if I pay off the older accounts..It seems the new account age will take me down a few notches too. The older credit card accts were deleted from my profiles (I didn't know they did that)

I think my intentions are legitimate and we should be able to lower our interest and payments when the opportunity comes. I can't help but feel I'm being intimidated to keep the higher cost accts. I want to refinance and transfer balances. Is there any way to do this painlessly?

What's the point of working toward the higher scores if we are locked in with the original creditors?

Thanks

Re: Can I do This Without Adverse Action?

Anonymous — Thu, 30 Jan 2014 01:56:32 GMT

I would check with local and national CUs and see if they can help you. They often have low APRs and BT deals.

Another suggestion would be to look at Lending Club.

Re: Can I do This Without Adverse Action?

stillirise — Thu, 30 Jan 2014 02:03:14 GMT

@Anonymous wrote:
I would check with local and national CUs and see if they can help you. They often have low APRs and BT deals.

Another suggestion would be to look at Lending Club.

I agree..I have loans via my credit union. I also just joined Lending Club. They told me they only to soft creit pulls but I see the inquiry on Experian. The credit union still does a hard pull for everything. I think I qualify for better rates and I would like to shop for the better rates but the inquiries seem to hurt.

I like the Lending Club and they did offere a slightly better rate. However, what I had in mind was a 12-15 months 0% balance transfer card.

Re: Can I do This Without Adverse Action?

Anonymous — Thu, 30 Jan 2014 02:08:50 GMT

If you have high utilization, or derogatories, it may be difficult to get a 0% BT card.

But it pays to do a lot of research, to see if you qualify for something.

For example, I'm a member of PSECU, and they have generous CLs and a 2.9% BT rate. Many other people qualify for NFCU, which is also very generous and has frequent BT offers.

Penfed is hard to qualify for, but they also are running a 0% BT offer at present.

Re: Can I do This Without Adverse Action?

stillirise — Thu, 30 Jan 2014 02:49:17 GMT

@Anonymous wrote:
If you have high utilization, or derogatories, it may be difficult to get a 0% BT card.

But it pays to do a lot of research, to see if you qualify for something.

For example, I'm a member of PSECU, and they have generous CLs and a 2.9% BT rate. Many other people qualify for NFCU, which is also very generous and has frequent BT offers.

Penfed is hard to qualify for, but they also are running a 0% BT offer at present.

My utilization is good the only derog I have is a slow pay in the past 6 yrs. I just applied for the AMEX because of the info I read on this board. I was approved and I'm really excited about it. However, it doesnt have a 0% BT it does have 0% 12 month purchases. I also read a post in here about the NFCU...I am investigated the membership requirement now. Thats one of the reason's Im concerned about applying. I see the light at the end of the tunnel...just afraid to go toward the light.

I want to transfer a high balance credit acct and I'd like to refinance some mortgages. How do I do this without setting off alarms and makng my credit worse? If I get the new accts then pay off the higher cost accts, will it make a difference? Will it hurt the acct age of my credit rofile? I ask because the credit card accts I had over 10 yrs ago are no lnger showing on my report. Now it says my average acct age is only 3.5 years and my credit products complain about my "short revolving acct history"

Should I hold off and try many months later? Am I worrying too much ? I dont want to mess this up!

Re: Can I do This Without Adverse Action?

Anonymous — Thu, 30 Jan 2014 03:47:45 GMT

A few comments.

1. I can't say whether you should or shouldn't get an Amex. However, it doesn't do anything for transferring balances. If it's got a promotional 0% purchase rate, you can do an indirect BT by letting the balance on the Amex go up for a while, and using the money to pay off other high APR loans. I'm not necessarily recommending this.

2. If your AAoA is 3.5 years, across N accounts, and you add one additional one, then the new AAoA will be:

3.5 * N / (N + 1)

For example, if N is 6, then the new AAoA would be 6/7 of 3.5, which is 3.0. AAoA is important, but not as important as utilization and derogatories.

3. There are at least three aspects to utilization: (a) overall, (b) per account, and (c) proportion of accounts with balances. Sometimes you can improve this situation by paying balances before the statement date, or moving balances from one account to another, or clearing out all the small balances entirely.

4. I wouldn't worry about applying for new credit, but I would do so only after doing your homework, and not willy-nilly. Only apply for something that really benefits you. I would look especially at CUs, and see which ones you qualify for, such as Alliant, DCU, NFCU, Penfed, PSECU, SDFCU, and so on.

Another thing you could do is take a current copy of your report around to some local CUs in your area, and sit down and talk to a loan officer, and see if they can help you refinance.

Here are two references on CUs that are open to anyone:

http://www.depositaccounts.com/blog/the-big-list-of-credit-unions-open-to-anyone.html

http://www.creditcardconnection.org

Re: Can I do This Without Adverse Action?

RobertEG — Thu, 30 Jan 2014 18:00:41 GMT

Yes, sometimes creditors will simply delete closed accounts with no balance, causing loss of their age in your AAoA, and possibly also your oldest acct.

Closed accts are still included in AAoA, but you have no control over possible deletion of the acct.

It's prudent business on their part, as they no longer need to maintain their reporting, or entertain any possible disputes should there, for example, be old derogs under the account. Housecleaning.

However, if you simply dont close them, but rather use them sporadically and pay them down to a small amount or to $0, they wont delete the account.

By keeping it open, you would also retain an indivicual revolving with low % util, or if paid to $0, also, improve your %cards with balance. As mentioned, FICO scores both the % util on individ accts and the % accts with balance.

The only reason I would close the higher APR cards is if they carry an annual fee that you wish to avoid.

At least that would avoid the double hit on AAoA, with the addition of an acct at 0 age, and the loss of an acct with age higher than your current AAoA.

Re: Can I do This Without Adverse Action?

stillirise — Thu, 30 Jan 2014 21:25:29 GMT

I agree with the utilization theories, Ive seen them in action. Thats how I learned the super low limit cards romising to help your creit are really a joke IMHO. A card with a 300 limit and a 60 fee is pretty useless. I currently have an 8% utilization and no derogatories except for the late pay over a year ago. that was the only late pay in more than 6 years. Thats for all of my accts 15 total. I dont understand why my score wont go up. It was down even before last years late payment. Anyhow thats another post.

I am applying for new cards for two reasons: 1 I want better rates 2 I want better limits. I want accts I can actually use to my advantage without being penalized for using them.I know everyone assumes my payment history and ustilization has to be really bad but...it is not. I have read some of the posts in here and I see a lot of posters with better cards, better limits but worse scores.

Not trying to criticize aynone at all just asking for advice on how to do the same thing. I know income plays a role and while Im not wealthy its not bad.

I took the challenge and posted the scores I just pulled from MYFICO. I am hoping to see my scores go up. ...I feel so beaten by the system I really expect them to go down again with out any real explanation.

I am trying to remain optimistic.

Re: Can I do This Without Adverse Action?

takeshi74 — Fri, 31 Jan 2014 20:39:08 GMT

@stillirise wrote:
I dont understand why my score wont go up.

The derog is holding you back.

@stillirise wrote:
I know everyone assumes my payment history and ustilization has to be really bad but...it is not.

It doesn't take much to affect your payment history. See if you can GW the derog.

@stillirise wrote:
Also if I pay off the older accounts..It seems the new account age will take me down a few notches too. The older credit card accts were deleted from my profiles (I didn't know they did that)

Paying does not affect AAoA. They should continue to report for 10 years if they were in good standing. You'd need to clarify exactly why those accounts were closed and removed from your reports. Or how you're determining that this is the case. Given the context of your posts it's possible that you're misinterpreting things or relying on inappropriate sources.

@stillirise wrote:
What's the point of working toward the higher scores if we are locked in with the original creditors?

The point of the higher scores should be obvious. We are not locked in with the original creditors. You're currently in a state of building/rebuilding. It's a slow process so prepare yourself for the marathon. There aren't any quick fixes. Until your credit improves it's going to be difficult to get the favorable terms (limits & APR's) that you're looking for.

You indicate that you have a bunch of new accounts and you just need to manage and build them. While you may have a 20 year credit history it's your AAoA that's taken into consideration. Definitely hit the FICO scoring subforum and read up a bit for a better understanding.

Re: Can I do This Without Adverse Action?

AndySoCal — Fri, 31 Jan 2014 22:34:10 GMT

You need to look at your credit report and in the section that says what is hurting your score there should be reason((s). Interest rates on loans does not help scores it may make making the payments a little easier on the budget. Opening new accounts regadrless of the creditor does not help your score in the short maybe in the long run but not with any certainty. There may be posts that say it help but that was in that posters particular situation it is not a one size fits all solution. To help with the score reaosns here is a link below.

http://www.scoreinfo.org/FICO-Scores/Pages/Score-Factors.aspx

Hope this helps

Re: Can I do This Without Adverse Action?

stillirise — Wed, 26 Mar 2014 00:57:34 GMT

I do have a decent card with a credit union 5k limit not the highest but they wont go much higher. I was really happy to get the opportunity though. I agree with the Lending Club idea I got one of their loans to pay off higher interest installment loan. I don't have much experience with peer to peer lending one thing I did not like was the hefty fee they witheld before you get the money. The fee seems ok to begin with........but the payoff is immediately a lot more than the original loan which is also another hiden fee IMHO.

Re: Can I do This Without Adverse Action?

stillirise — Wed, 26 Mar 2014 01:04:51 GMT

I dont have any high utilization on revolving credit.

I would love to get in the NFCU it seems I cant get in and I dont know any members.

I still dont know why my score seems to be held down just enough for approvals at much higher rates. I just checked my fico scores today and it makes no sense the highest score lost a few points. the other two gained. It is only a matter of time that the other two will be lowered as well.It has been like this for years. the score will gain 6 points then lose 4. Gain 4 then lose 6.the score does not improve much.

Re: Can I do This Without Adverse Action?

stillirise — Wed, 26 Mar 2014 01:22:30 GMT

I did get the AMEX..... I was so excited about it! Started with a good limit 8100. I think it will help me. Initially, I had credit cards I never used and the accts were closed. I only had one mortgage and a car loan. It was like that for years and I paid cash for everything. I was told I needed credit cards to have a healthy credit history. My score never seemed to go over 670. Just enough to pay the highest interest and fees on everything. My utilization is really good It is usualy between 5 and 20% Once it was at 45% but only for a month during an emergency.

Re: Can I do This Without Adverse Action?

stillirise — Wed, 26 Mar 2014 01:31:42 GMT

The score was the same even before the derog it happened 14 months ago but 5 years prior to that every payment made on time. It took me a while to find out what "GW" meant. I sent a letter to the CEO and a rep called and made a few promises. They will not make good on her promises, I will need to get an attorney.

If the accounts are not on my credit report ..I would assume they have been deleted. How could anyone be mistakened about that? They are either on the report or not on the report.

Re: Can I do This Without Adverse Action?

stillirise — Wed, 26 Mar 2014 01:47:30 GMT

Thank you ...its true. They are sometimes deleted. I didnt know that would happen. Until recently, I didnt know it would count against me.

I have memberships at all CRA's and a 4th with myfico. In fact, thats where I got all of my credit advice before I found this forum. Some of their advice makes little sense.

Example: One says my score is lower because banks like to see a good mixture of types of credit. I dont know how I could be any more diverse 3 mortgages in good standing; several car loans never missed a payment, credit cards with low utilization. Again my scores lose 3-8 points for no apparent reason and any ground I pick up this month will be taken away next month. As a result, 2 years of perfect payments will still have scores in the same range. A pessimist's prediction but really close to my reality.

Re: Can I do This Without Adverse Action?

09Lexie — Wed, 26 Mar 2014 02:31:20 GMT

@stillirise wrote:
Thank you ...its true. They are sometimes deleted. I didnt know that would happen. Until recently, I didnt know it would count against me.

I have memberships at all CRA's and a 4th with myfico. In fact, thats where I got all of my credit advice before I found this forum. Some of their advice makes little sense.

Example: One says my score is lower because banks like to see a good mixture of types of credit. I dont know how I could be any more diverse 3 mortgages in good standing; several car loans never missed a payment, credit cards with low utilization. Again my scores lose 3-8 points for no apparent reason and any ground I pick up this month will be taken away next month. As a result, 2 years of perfect payments will still have scores in the same range. A pessimist's prediction but really close to my reality.

Welcome to the forum. I notice that you might not know how to respond to posts by using our quote feature.

1. Click "reply" on the post you want to respond to.

2. To the right of the Spell Check button -- and above the message post window -- you will see the quote button. It should look like this:

3. Tap the quote bubble to insert the text of the post you are responding to and the block of text will appear in the message post window.

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Re: Can I do This Without Adverse Action?

stillirise — Thu, 27 Mar 2014 01:29:41 GMT

@09Lexie wrote:
@stillirise wrote:
Thank you ...its true. They are sometimes deleted. I didnt know that would happen. Until recently, I didnt know it would count against me.

I have memberships at all CRA's and a 4th with myfico. In fact, thats where I got all of my credit advice before I found this forum. Some of their advice makes little sense.

Example: One says my score is lower because banks like to see a good mixture of types of credit. I dont know how I could be any more diverse 3 mortgages in good standing; several car loans never missed a payment, credit cards with low utilization. Again my scores lose 3-8 points for no apparent reason and any ground I pick up this month will be taken away next month. As a result, 2 years of perfect payments will still have scores in the same range. A pessimist's prediction but really close to my reality.

Welcome to the forum. I notice that you might not know how to respond to posts by using our quote feature.

1. Click "reply" on the post you want to respond to.

2. To the right of the Spell Check button -- and above the message post window -- you will see the quote button. It should look like this:

3. Tap the quote bubble to insert the text of the post you are responding to and the block of text will appear in the message post window.

4. Type your response below the quoted block of text and then click preview if you'd like to proof the post before submitting, or click "Post" at the bottom of the message post window.

doh!

thank you good looking out...

Re: Can I do This Without Adverse Action?

stillirise — Thu, 27 Mar 2014 01:33:55 GMT

@RobertEG wrote:
Yes, sometimes creditors will simply delete closed accounts with no balance, causing loss of their age in your AAoA, and possibly also your oldest acct.
Closed accts are still included in AAoA, but you have no control over possible deletion of the acct.
It's prudent business on their part, as they no longer need to maintain their reporting, or entertain any possible disputes should there, for example, be old derogs under the account. Housecleaning.

However, if you simply dont close them, but rather use them sporadically and pay them down to a small amount or to $0, they wont delete the account.
By keeping it open, you would also retain an indivicual revolving with low % util, or if paid to $0, also, improve your %cards with balance. As mentioned, FICO scores both the % util on individ accts and the % accts with balance.
The only reason I would close the higher APR cards is if they carry an annual fee that you wish to avoid.

At least that would avoid the double hit on AAoA, with the addition of an acct at 0 age, and the loss of an acct with age higher than your current AAoA.

Thank you ...its true. They are sometimes deleted. I didnt know that would happen. Until recently, I didnt know it would count against me.

I have memberships at all CRA's and a 4th with myfico. In fact, thats where I got all of my credit advice before I found this forum. Some of their advice makes little sense.

Re: Can I do This Without Adverse Action?

stillirise — Sat, 12 Apr 2014 02:20:06 GMT

I posted this back in January. Here is an update: I was pretty excited about the info I found on this board. I can't descibe the frustration I felt because my score seemed stuck for years.

I Applied for the Amex and got it...since then I also got the 61 day CLI not 3x but enough to make me happy.

I also went for the BoA low balance card got that one with a 12K limit.

Got a prequal letter for Sams Discover...did not take it really low limit. However, I really wanted a Discover card someone in here told me the Sams card wasnt a real Discover card.

I went to the Discover website and......I got the Discover card!

Woohoo!

I know my AAoA is now down. Yet my utilization is easier to hold in place with more available credit.

My credit score is doing what it usually does it flaps up and down in the same area no real gains there. If I do anything wrong though.....it crashes to the dirt.

I feel like Im building a house of (credit) cards....trying to do everything just right and not topple it over.

Thanks to all of you for your valuable input...it is greatly appreciated.