I’m starting over to build my credit (it’s been 10 years since my last CC account closed). I got a Cap1 Platinum CC with a $300 CL end of May / beginning of June and that’s it. I didn’t think to apply anywhere else until reading the forums. I just checked and I prequalify for a Discover IT card (unsecured) but my 14 year old car is on its last legs and I will have to get an auto loan to finance a car in the very near future (in the next month or two). Will a new card (& HP) hurt or help before applying for the loan? FYI, I will need a co-signer (already secured), as I do not qualify for any auto loans on my own (already checked). Also, my nearly 10 year old account is about to age out in October and my current 742 FICO will likely take a dive as a result.
Anyone have any thoughts?
@KLEXH25 wrote:I’m starting over to build my credit (it’s been 10 years since my last CC account closed). I got a Cap1 Platinum CC with a $300 CL end of May / beginning of June and that’s it. I didn’t think to apply anywhere else until reading the forums. I just checked and I prequalify for a Discover IT card (unsecured) but my 14 year old car is on its last legs and I will have to get an auto loan to finance a car in the very near future (in the next month or two). Will a new card (& HP) hurt or help before applying for the loan? FYI, I will need a co-signer (already secured), as I do not qualify for any auto loans on my own (already checked). Also, my nearly 10 year old account is about to age out in October and my current 745 FICO will likely take a dive as a result.
@sccredit wrote:IMO a new card should help since you have so little reporting now. Could be wrong.
Why do you say you'll need a cosigner?
@Anonymous @sccredit - that seems to be the consensus from a few others as well. Even though I currently have a FICO score reporting, it's due to the fact that I have an old credit card accout reporting history (which falls off in Oct). At least this is what I have gathered from going through these forums and my credit reports. Unfortunately, since I haven't had any recent credit history, I'm essentially considered "new credit," and don't have a long enough credit history. I applied at about 4 different lending websites, as well as CapitalOne, for a determination of my prequalification for an auto loan, but I don't qualify on my own. The CapitalOne letter listed the reason as "not enough credit history." I considered finding a high interest loan, but my fiance thinks that's a waste and offered to cosign. It is probably my best bet at this point. Otherwise, I will have to either repair my current car or try to find a car I can pay cash for to hold me over until I can fatten up my credit file. Both of which would be better spent going toward a newer car.