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Change of Plan! What steps should I take ?

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MrPepperoni
Regular Contributor

Change of Plan! What steps should I take ?

Hi Community,

So, I was planning to buy a car this month and especially considering plummeted car sales due to COVID-19 I was super excited to get a good deal.
After going to multiple dealers and requesting quotes over the email I concluded that dealers are not ready to meet client requirements and they still push regular prices, even tho market has dropped 11% overall. Seems like dealers would rather keep a vehicle on a lot instead of discounting it 10-15% on used cars. New cars of some brands are deeply discounted, but not to the point where I am ready to pull the trigger, again the same 10-15% over what I expected as per online research and numbers of their falling from a cliff sales. 
The decision has been made to buy an electric scooter. I live 6 blocks away from my office and 2 blocks from gym / grocery store. So, do I really need a car payment of 600+$ incl insurance each month for 3 years? Hell NO! So I have decided to buy a vehicle I want in cash in December, by December I will have 100% of what it costs. This way I am saving all the interest I would gift to a bank for a loan (with my thin file I don't think I am getting anything lower 8% for used car or 6% for new).

The new plan now is to keep building my credit file and here I have a question to more knowledgeable folks:

1. I want to open up Amex BCE + Citi Costco on the same day, but if I do so, when will I be able to apply for CSP in your opinion?
2. If I open just 1 account right now, either Amex BCE or Citi Costco, then do you think I can get CSP in September when my CFU ages 1 year old ?
3. Should I take a small personal loan from a CU just to build a credit file? Is this a smart move?

Thank you all!

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Also have Chase Marriott Bonvoy Bold (6 months old, $11k limit)
Bilt Credit Card (6 months old, $2k limit)
Amex Hilton Honors Surpass (1 month old, $16k limit)
Two paid off auto loans ($20.5K and $15.7K)



Message 1 of 13
12 REPLIES 12
RSX
Valued Contributor

Re: Change of Plan! What steps should I take ?

or you could take out the CU loan for the scooter and get it now

 

then you will be fulfilling the loan piece of your credit mix

Dec 16/2019. EX. 721. EQ. 723. TU 746
Jan 25/2024 EX. 774 EQ. 751 TU 758
Inq. EX 2 EQ 3 TU 6 - - CC 2x24, 0x12
Amex BCP $35k - Apple GS $21k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Bountiful $10k - Chase United Club Infinite $26k - Citi CustomCash $3k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $31.5k - PayBoo - $15.6k - Penfed Gold - $19.3k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $15k
Message 2 of 13
MrPepperoni
Regular Contributor

Re: Change of Plan! What steps should I take ?

So, the mail goal is to get CSP as soon as possible actually. Should I then take a loan after CSP or before? I read here on this forum that your score at its best when you have less than 20% of loan left to pay off. Like I think it drops when you pay off...?

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Also have Chase Marriott Bonvoy Bold (6 months old, $11k limit)
Bilt Credit Card (6 months old, $2k limit)
Amex Hilton Honors Surpass (1 month old, $16k limit)
Two paid off auto loans ($20.5K and $15.7K)



Message 3 of 13
M_Smart007
Legendary Contributor

Re: Change of Plan! What steps should I take ?


@MrPepperoni wrote:

So, the mail goal is to get CSP as soon as possible actually. Should I then take a loan after CSP or before? I read here on this forum that your score at its best when you have less than 20% of loan left to pay off. Like I think it drops when you pay off...?


I gained the most points when I had a SSL installment reporting below 8.9%

and yes, you lose points when you pay it in full.

 

Probably go for the CC first. JMO

Message 4 of 13
SouthernCredit
Frequent Contributor

Re: Change of Plan! What steps should I take ?

I'll assume you have no offers in your Chase account. If you're not signed up for Chase Credit Journey, I'd get signed up there as well, as there are reports of existing customers getting offers there that don't appear in their regular banking portal.

 

Check both the Amex and Citi sites for prequal offers. Any offers that show a single rate are probably solid. My first Amex prequals were when I was low to mid 600s. I never get Citi prequals; cold app'd the Costco Card in upper 600s and was approved.

 

If you had to pick one, I'd say Amex, simply because of the 3x CLI. That's your best bet to get a higher limit prior to attempting CSP.

Message 5 of 13
MrPepperoni
Regular Contributor

Re: Change of Plan! What steps should I take ?

 


@SouthernCredit wrote:

I'll assume you have no offers in your Chase account. If you're not signed up for Chase Credit Journey, I'd get signed up there as well, as there are reports of existing customers getting offers there that don't appear in their regular banking portal.

 

Check both the Amex and Citi sites for prequal offers. Any offers that show a single rate are probably solid. My first Amex prequals were when I was low to mid 600s. I never get Citi prequals; cold app'd the Costco Card in upper 600s and was approved.

 

If you had to pick one, I'd say Amex, simply because of the 3x CLI. That's your best bet to get a higher limit prior to attempting CSP.


I bank with Chase for 2 years, but they never pre qualify me for anything. It is sad. I am actually thinking to move my checking from Chase because they are just not happy to have me as a client lol!
I am also not pre qualified for Amex and Citi. I check regularly...
So, if I open both Amex and Citi now, I will probably not get CSP in 3 months I feel like.
But if I open just 1 account now lets say Amex because of 3xCLI, then in 3 months I have a chance for CSP you think ?

Also I just spotted BoA Cash Rewards which I am starting to consider. Do I qualify with my current profile? Any idea?

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Also have Chase Marriott Bonvoy Bold (6 months old, $11k limit)
Bilt Credit Card (6 months old, $2k limit)
Amex Hilton Honors Surpass (1 month old, $16k limit)
Two paid off auto loans ($20.5K and $15.7K)



Message 6 of 13
M_Smart007
Legendary Contributor

Re: Change of Plan! What steps should I take ?


@MrPepperoni wrote:

 


@SouthernCredit wrote:

I'll assume you have no offers in your Chase account. If you're not signed up for Chase Credit Journey, I'd get signed up there as well, as there are reports of existing customers getting offers there that don't appear in their regular banking portal.

 

Check both the Amex and Citi sites for prequal offers. Any offers that show a single rate are probably solid. My first Amex prequals were when I was low to mid 600s. I never get Citi prequals; cold app'd the Costco Card in upper 600s and was approved.

 

If you had to pick one, I'd say Amex, simply because of the 3x CLI. That's your best bet to get a higher limit prior to attempting CSP.


I bank with Chase for 2 years, but they never pre qualify me for anything. It is sad. I am actually thinking to move my checking from Chase because they are just not happy to have me as a client lol!
I am also not pre qualified for Amex and Citi. I check regularly...
So, if I open both Amex and Citi now, I will probably not get CSP in 3 months I feel like.
But if I open just 1 account now lets say Amex because of 3xCLI, then in 3 months I have a chance for CSP you think ?

Also I just spotted BoA Cash Rewards which I am starting to consider. Do I qualify with my current profile? Any idea?


@MrPepperoni, Have you tried going into a branch and speaking to a personal banker about pre-approvals?

 

Message 7 of 13
MrPepperoni
Regular Contributor

Re: Change of Plan! What steps should I take ?


@M_Smart007 wrote:

@MrPepperoni wrote:

 


@SouthernCredit wrote:

I'll assume you have no offers in your Chase account. If you're not signed up for Chase Credit Journey, I'd get signed up there as well, as there are reports of existing customers getting offers there that don't appear in their regular banking portal.

 

Check both the Amex and Citi sites for prequal offers. Any offers that show a single rate are probably solid. My first Amex prequals were when I was low to mid 600s. I never get Citi prequals; cold app'd the Costco Card in upper 600s and was approved.

 

If you had to pick one, I'd say Amex, simply because of the 3x CLI. That's your best bet to get a higher limit prior to attempting CSP.


I bank with Chase for 2 years, but they never pre qualify me for anything. It is sad. I am actually thinking to move my checking from Chase because they are just not happy to have me as a client lol!
I am also not pre qualified for Amex and Citi. I check regularly...
So, if I open both Amex and Citi now, I will probably not get CSP in 3 months I feel like.
But if I open just 1 account now lets say Amex because of 3xCLI, then in 3 months I have a chance for CSP you think ?

Also I just spotted BoA Cash Rewards which I am starting to consider. Do I qualify with my current profile? Any idea?


@MrPepperoni, Have you tried going into a branch and speaking to a personal banker about pre-approvals?

 


No, I didn't try that yet. Is the process differs from online pre approvals ?

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Also have Chase Marriott Bonvoy Bold (6 months old, $11k limit)
Bilt Credit Card (6 months old, $2k limit)
Amex Hilton Honors Surpass (1 month old, $16k limit)
Two paid off auto loans ($20.5K and $15.7K)



Message 8 of 13
TG10X
Regular Contributor

Re: Change of Plan! What steps should I take ?


@MrPepperoni wrote:

Hi Community,

So, I was planning to buy a car this month and especially considering plummeted car sales due to COVID-19 I was super excited to get a good deal.
After going to multiple dealers and requesting quotes over the email I concluded that dealers are not ready to meet client requirements and they still push regular prices, even tho market has dropped 11% overall. Seems like dealers would rather keep a vehicle on a lot instead of discounting it 10-15% on used cars. New cars of some brands are deeply discounted, but not to the point where I am ready to pull the trigger, again the same 10-15% over what I expected as per online research and numbers of their falling from a cliff sales. 
The decision has been made to buy an electric scooter. I live 6 blocks away from my office and 2 blocks from gym / grocery store. So, do I really need a car payment of 600+$ incl insurance each month for 3 years? Hell NO! So I have decided to buy a vehicle I want in cash in December, by December I will have 100% of what it costs. This way I am saving all the interest I would gift to a bank for a loan (with my thin file I don't think I am getting anything lower 8% for used car or 6% for new).

The new plan now is to keep building my credit file and here I have a question to more knowledgeable folks:

1. I want to open up Amex BCE + Citi Costco on the same day, but if I do so, when will I be able to apply for CSP in your opinion?
2. If I open just 1 account right now, either Amex BCE or Citi Costco, then do you think I can get CSP in September when my CFU ages 1 year old ?
3. Should I take a small personal loan from a CU just to build a credit file? Is this a smart move?

Thank you all!


I think that if you plan to get the CSP then you should not attempt to get both cards. I actually think that you should put as much spend on your current Chase card as possible up until the point you apply for the CSP (& pay in full every month). My experience with Chase has been to build a relationship. I got almost all of my Chase cards consecutively and just got most of them out of the way before I hit 5/24. If your credit score is high enough I would say just go for it. I don't think one account would hurt you but in this climate I think everything is going to seem more exaggerated so I wouldn't put multiple inquiries before applying.

 

The personal loan would definitely be a smart move and help your credit mix. Personally, I don't think buying a new car cash is the best use scenario unless you plan to keep it forever. However getting a loan will help build your credit and if you plan to get a new car in the future you won't lose your shirt on depreciation. Just something to think about.





Message 9 of 13
MrPepperoni
Regular Contributor

Re: Change of Plan! What steps should I take ?

 


@TG10X wrote:

@MrPepperoni wrote:

Hi Community,

So, I was planning to buy a car this month and especially considering plummeted car sales due to COVID-19 I was super excited to get a good deal.
After going to multiple dealers and requesting quotes over the email I concluded that dealers are not ready to meet client requirements and they still push regular prices, even tho market has dropped 11% overall. Seems like dealers would rather keep a vehicle on a lot instead of discounting it 10-15% on used cars. New cars of some brands are deeply discounted, but not to the point where I am ready to pull the trigger, again the same 10-15% over what I expected as per online research and numbers of their falling from a cliff sales. 
The decision has been made to buy an electric scooter. I live 6 blocks away from my office and 2 blocks from gym / grocery store. So, do I really need a car payment of 600+$ incl insurance each month for 3 years? Hell NO! So I have decided to buy a vehicle I want in cash in December, by December I will have 100% of what it costs. This way I am saving all the interest I would gift to a bank for a loan (with my thin file I don't think I am getting anything lower 8% for used car or 6% for new).

The new plan now is to keep building my credit file and here I have a question to more knowledgeable folks:

1. I want to open up Amex BCE + Citi Costco on the same day, but if I do so, when will I be able to apply for CSP in your opinion?
2. If I open just 1 account right now, either Amex BCE or Citi Costco, then do you think I can get CSP in September when my CFU ages 1 year old ?
3. Should I take a small personal loan from a CU just to build a credit file? Is this a smart move?

Thank you all!


I think that if you plan to get the CSP then you should not attempt to get both cards. I actually think that you should put as much spend on your current Chase card as possible up until the point you apply for the CSP (& pay in full every month). My experience with Chase has been to build a relationship. I got almost all of my Chase cards consecutively and just got most of them out of the way before I hit 5/24. If your credit score is high enough I would say just go for it. I don't think one account would hurt you but in this climate I think everything is going to seem more exaggerated so I wouldn't put multiple inquiries before applying.

 

The personal loan would definitely be a smart move and help your credit mix. Personally, I don't think buying a new car cash is the best use scenario unless you plan to keep it forever. However getting a loan will help build your credit and if you plan to get a new car in the future you won't lose your shirt on depreciation. Just something to think about.


Yeah I agree about not getting 2 cards right now if I plan on applying for CSP in September.
I found a good alternative to Citi Costco and Amex BCE and it is BofA Cash Rewards. It would feet me better right now.
But I read a lot that BofA is a relationship Bank and it is hard to get approved for a CC without having any relationship with them? 
I see that you have BofA Cash Rewards, at what point in your credit you got approved? Like my average age right now is 11 months with 2 cards, do you think I can get approved? Also did you have any relationship with them?

Moved to the US in August 2018.
Applied for Citi Costco in November 2018 - Denied due to lack of history (no history).
Started building credit in January 2019. Please hover over each card:

Also have Chase Marriott Bonvoy Bold (6 months old, $11k limit)
Bilt Credit Card (6 months old, $2k limit)
Amex Hilton Honors Surpass (1 month old, $16k limit)
Two paid off auto loans ($20.5K and $15.7K)



Message 10 of 13
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