ETA: Here's link to common abbreviations, it was under user guidelines and general information: http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/td-p/88458jax_chris wrote:
Hello everyone. I've been lurking this board for the past few months and finally took the dive to see if I could get a few opinions from time to time. Forgive me if I get the lingo wrong. Quick background: - Scores were in low 500's in 2008, now sitting on 680+ FAKO's - Got an IRS lien in 2008, on payment agreement, working toward Withdrawl (got audited for past years on brink of SOL, they threw out my deductions for 60k miles/year driving and said I didn't pay enough for self employment tax) - Have 6 sub CC's (1xWAMU/Chase, 2xHSBC, 2xCapOne, 1xMerrick), now PIF (combined CL's = 5k) - 1x Neg (600$ Medical bill that Humana kept declining) - Zero lates - Currently have all banking with Chase (not by choice, WAMU convert) - Just app'd last week for USAA, got checking/savings/auto-refi/auto-ins & instant 7k World MC (YAY!) - Followed that with a Discover More cold app, same day as USAA, got review notice, was called 2 days later with "we'll give you 3k CL" (Took it) - Want to do any possible apps now, will be looking to buy house in 10 months - Merrick just gave me an auto CLI 1 week ago, right after I paid my card off - HSBC used to give auto CLI's, haven't seen one since 2009 - CapOne has never given anything, they suck, and with HSBC going to CapOne I'll have 4 POS CC's with them (shoot me) Ok, so here's my opening questions - and thank you to all those that respond.
1. Now that I finally have 2 Prime cards, should I app for a third right now? No. If you are looking for a house in 10 months you should stop applying for any more credit.
2. If yes, which card would be the suggested favorite? N/A
3. Should I attempt to have Chase PC my old WAMU sub to a Chase Freedom instead? Attempt as a 4th Prime? Or don't bother? Absolutely do not attempt for a 4th application. If they will PC to Freedom and you want that card, then sure.
4. Anyone have a link to a list of acronyms? What is GW mean when people talk about removing lates? And does gardening mean coffee/PIF/coffee/PIF each month to maintain? Thanks again everyone. There is a list of basic acronyms, think it is at top of main forum page? Will have to check. But GW means Good Will. It refers to writing a letter to a company asking them for a gesture of good will, like deleting a late payment because you have rehabilitated your relationship with them, are a continuing good customer, etc. It is at their discretion. There is no requirement that they grant a GW request. Gardening means not applying for any more credit. It doesn't mean small charge, pay in full, small charge, pay in full, etc. Although you do want to keep your accounts active, which you can do by making a small charge every so often so the account isn't closed down due to inactivity.
Starting Score: ~500 (12/01/2008)
@Anonymous wrote:Thanks for the fast responses. I guess 10 months isn't enough time for no new apps before buying a house? I was under the impression it was 6 months, and I thought I was being conservative with 10 months. Hmm, guess I'll end up having to wait 18 months before buying then.
At this point I'm still more interested in getting my score comfortably past 720 while also eliminating my sub primes (I know closing accounts isn't good, but CapOne has never waived an AF for me and that money is wasted at 60$/card/year). And my total CL goal for CC's is 20-25k by the end of 2012.
Thanks to everyone for any and all views, opinions, suggestions.
Cheers,
-Jax
Edit to fix formatting
At least a year without applying for any new credit is a good benchmark for applying for a mortgage. It's all up to you what you want to do, but I would reevaluate why it is you want to get rid of the subprime cards. The annual fees are annoying, but don't let that in and of itself set back your goal of buying a house. Another $60 annual fee isn't much in the long run. You can cancel those cards right after you get your house.
12 months is a benchmark. Ask for more info over in the mortgage boards, but if you are otherwise ready in 10 months, i.e., have your downpayment saved, have your debt paid down to where you want it, etc., you're probably ok to apply in 10 months. I guess what I'm saying is that it would have been great if you knew earlier not to apply for more credit when you are getting ready for a morgage app, but you already did it. It's not such a hard and fast rule that you can't still apply in 10 months. But you also shouldn't compound the issue by applying for two more cards.