Hello FICO World! First Time Posting!

PoorPeatree · ‎08-20-2017

Hello friends,

I've recently joined myFICO.com and their credit reporting service. I've only begun monitoring and actively working on understanding and improving my credit since early 2014.

My sad story below:

I started out my little journey with under 620 scores across the board in early 2014. At the time, I had no auto loan or revolving credit at all, only student loans while I was still in school working as a waiter. The best thing that has ever happened to me was I had been playing a video game called EVE Online and a community leader talked to me about how to start building my credit. I've since graduated college, and I no longer spend a lot of time playing games at all, but that little bit of advice propelled me to be able to buy my first car I've ever owned that had less than 100k miles on it. Since then, I've bought a brand new car, and I'm clear to close on my first home purchase, we should close in a week when the seller is back in town (she refused to do a PoA or accept mailed paperwork while away). I got a 3.75% interest rate with no points!

I really do have a topic I wish to discuss/ask about:

I wish to refi my car asap, I think I can do so between now and when my CCs report my new balance again next month.

I'm buying a home with no washer/dryer/refrigerator and a jacked up oven/stove. I can buy washer/dryer/oven/refrigerator with a combination of cash/cards, but that would put my CU above 50%, they're (I have 4 cards) at (82.5% of $2k, 0% of $500, 0% of $500, and 29% of 6000). I have two tenants who have commited to living at my home and paying rent, so I need to have these essential appliances and it wouldnt be too savvy to buy the cheapest around. I've estimated I can pay off my CCs by December if I buy these appliances, but I'd rather not overburden my CU for that period of time. What are my options for buying these appliances and a bed (from Casper!)? My thoughts are getting no-credit-check closed end financing from casper, and asking for a CLI or PC for my $6k QS card. It seems the Venture card can regularly offer higher CL than QS.

The other ccards are

CO Secured ($500),

Chase bank Amazon rewards ($500),

BoA cash rewards ($2k, not going to try a CLI, but other options might exist).

Scores:

EQ ~~630~~ 665 TU ~~657~~ 679 EX ~~662~~ 683

These scores do not reflect my recent debt reduction on my COne Secured or COne QS cards for august.

I just paid off $5,500 in debt on my 4 cards. I only had time/cash to pay off about $350 on my BoA CC new balances next week and last week of:

BoA($1980july >>$1650August 14th) reflected in scores

COne QS($5863July>>$1740August 17th) awaiting report to CRA

COne Secured (480>>0 Aug 21st) awaiting report to CRA

Chase (475>>0 Aug 16th) Reflected in scores

I currently have an auto loan I acquired in Feb '17, student loans still on hold since i just graduated in july '17, and the mortgage should close in a week.

Edit: Updated EQ/EX/TU Score after QS Reported its new balance, and added a line about wishing to refi my car

Anonymous · ‎08-20-2017

Welcome to the forum!

So what exactly is your goal here? Are you looking to spend as little as possible in interest on the purchase of these items that you plan to use credit cards for between now and December when you feel you'll be able to have them completely paid off? You seem slightly worried about your credit score (dropping) as you indicate you don't want your utilization to be too high. Keep in mind if you already secured the mortgage that you need, a bit of a score drop is going to be a non-factor. You could also consider scooping up a card that will give you 0% on the purchases that you plan to make. Since you're talking appliances something like Lowe's could work, or a card like Blispay which will give you 0% for 6 months and can be used anywhere (not just a single store). The problem is, though, with your credit scores you may not get a SL that's big enough to handle the purchase of multiple appliances.

I said you plan to rent. If that's the case, have you considered used appliances? Unless it's a new house or a place that you're living yourself, I'd think about just scoring some used stuff as you'd be putting out maybe 15%-25% of the cost of new appliances.

Anonymous · ‎08-21-2017

BBS
I read it as the OP ( Welcome btw PoorPeaTree) is purchasing a home and has secured 2 rent paying tenants...which is one reason for having non shabby appliances because if the OP is looking to collect RENT from folks, there's gonna be a certain expectation.

One might assume the renters are known to the OP if they've already agreed to rent w/o this place being up n running currently ( or students on the way) the reason I bring it up is, as mentioned by BBS

One could get away with 'slow dragging'... meaning ok
You're looking to pay ALL this stuff + whatever new homeowner surprises by December, at least that's the "plan"....
Again, since the tenants are pals/known to you
Maybe consider the fact that you can get away with used functional appliances to start and slow drag newer better replacements over time

And, I don't mean years...IF as you "plan" you would have paid all this stuff off by December, then go right ahead slap up a functional washer/dryer & fridge ( which can be secured for a few 100 bucks) as place savers ...then buy a Stove
then replace the Fridge
then the Washer/Dryer
Do it in pieces, reselling the functional place savers as you go or donating them for Max tax credit

This way you take pressure off having to get everything at once.... again your plan was to knock it out in 3-4 months just buy one newer item at a time
If you run into a hiccup an extra month won't kill you nor jeopardize your credit/finances.

Let's be honest...very decent appliances can be had on the cheap, most function well for YEARS so that used fridge or washer may hang around longer than you think, saving you a bunch...cause once it's in there function you might hold off to Spring or Summer to replace it
Giving your credit time to grow and recover, as well as time for your financial safety net to manifest, as a homeowner you're gonna be happy you have financial breathing room
Trust me you can get solid used appliances, then darn near resale them for what you paid = no losses

Enjoy the house

*This is especially true when you are working with tenants, who 'mean' well but you have to expect the unexpected...who knows, who may lose a job, argue with a girlfriend and move back home, leaving you w/o the rent you anticipated and perhaps damage to repair...just prep for the worse, you're a LANDLORD, now😱
AND a new home owner ALL at once, watch that pocketbook, like a hawk...there will be surprises....if you're lucky enough to make it 6-9 with no hiccups = great but the slow drag provides a bit of protection and non stressed growth into your new property and landlord status

Best Wishes and again Welcome abroad

HeavenOhio · ‎08-21-2017

Don't apply for any new credit until the mortgage has closed. There's likely to be a soft pull on the closing date.

After closing, you can eat a couple of hard pulls for new cards, financing, or CLI requests on your BoA or Chase cards.

However, you can try for an increase on your Quicksilver card as that's a soft pull. If they deny you, there's no waiting period before you can request again. Or if they offer an amount that you deem too small, you can decline it and try again in a couple of months. If you accept an increase, it's six months before you can request again.

PoorPeatree · ‎08-21-2017

I shouldnt have posted so late, i forgot to mention the primary reason I want a higher max score: I want to refinance my autoloan. I am living in the dwelling as a primary residence, and the two extra bedrooms are rented out. I'll update the OP, but I want to refi my car asap and a lower util would be better.

PoorPeatree · ‎08-21-2017

@HeavenOhio wrote:
Don't apply for any new credit until the mortgage has closed. There's likely to be a soft pull on the closing date.

After closing, you can eat a couple of hard pulls for new cards, financing, or CLI requests on your BoA or Chase cards.

However, you can try for an increase on your Quicksilver card as that's a soft pull. If they deny you, there's no waiting period before you can request again. Or if they offer an amount that you deem too small, you can decline it and try again in a couple of months. If you accept an increase, it's six months before you can request again.

COne QS actually declined CLI on me a month or two ago for having a recent delinquency (which is false), I attempted to get them to determine what the delinquency was and they never told me, plus they couldnt find it on my CR which I had already ran. their auto approval system wasn't working in my favor. I did not know you could redo CLI any time after being declined, that's great info. Apparently COne uses Fico4? Is that Fico bankcard 4? If so, my Fico BC 4 score is only 607, right now. I'll update OP when the CCs report the new balance today to the CRA and it reflects in myfico

Anonymous · ‎08-21-2017

@Anonymous wrote:
BBS
I read it as the OP ( Welcome btw PoorPeaTree) is purchasing a home and has secured 2 rent paying tenants...which is one reason for having non shabby appliances because if the OP is looking to collect RENT from folks, there's gonna be a certain expectation.

From my personal experience, how new appliances are is very low on the totem pole of expectations for those that are renting. Every place I've ever rented, as long as there were working appliances my expectations were met. Now if I was renting something that was expensive, new construction, newly rennovated, that's different. Just a regular rental? Regular appliances are just fine. When I bought my first house and was going to be living there myself? Totally different, as I upgraded all of the 25 year old appliances to brand new stuff.

Anyway, I've never when it comes to renting seen the quality of appliances being a deal breaker. Maybe if they aren't there at all, sure, but not simply based on their age, as long as they are functional.

PoorPeatree · ‎08-21-2017

@Anonymous wrote:
@Anonymous wrote:
BBS
I read it as the OP ( Welcome btw PoorPeaTree) is purchasing a home and has secured 2 rent paying tenants...which is one reason for having non shabby appliances because if the OP is looking to collect RENT from folks, there's gonna be a certain expectation.

From my personal experience, how new appliances are is very low on the totem pole of expectations for those that are renting. Every place I've ever rented, as long as there were working appliances my expectations were met. Now if I was renting something that was expensive, new construction, newly rennovated, that's different. Just a regular rental? Regular appliances are just fine. When I bought my first house and was going to be living there myself? Totally different, as I upgraded all of the 25 year old appliances to brand new stuff.

Anyway, I've never when it comes to renting seen the quality of appliances being a deal breaker. Maybe if they aren't there at all, sure, but not simply based on their age, as long as they are functional.

I agree most consumers will not be concerned by appliances that aren't top of the line, but I will also be using these appliances. I don't wish to replace them as I go, although I've considered that used appliances are a much more efficient purchase.

Anonymous · ‎08-21-2017

I'm not only a landlord (for 25+ years) I also rent out my guest room on AirBNB and my entire house out when I travel (also on AirBNB).

In 25 years, never once have I had someone ask for nicer appliances. Ever. One of my stoves had a broken electrical burner and my appliance repair guy said $120 to fix it so I offered the tenant $10 off a month for a year and that I'd replace it. He took the offer and after a year he told me he didn't care that one wasn't working and that I didn't need to repair it and he started paying the correct rent going forward. I think it's been 4 years now and I finally got around to replacing the entire thing and he said I really didn't need to.

The biggest issue I've had as a landlord, repeatedly, is water heaters. That's the main issue, and I think I've installed 4 new ones in 20 years.

Appliances? Never been an issue. Most things deal with putting a cable TV outlet in a certain room, or regrouting a bathroom, or sometimes something like replacing a front door that was leaking cold air in winter. Never anything major.

PoorPeatree · ‎08-22-2017

Thanks for all of the info! I've revised the post to reflect updated scores from the change in balance on the COne QS card, which increased all of my scores fairly nicely. Next step is to find a way to get higher CL! It seems like it would make the most sense to PIF my BoA CC and ask for a HP CLI from that, since SP did nothing for my CL at my QS card, im still looking for the EO email if anyone can PM it to me. I've closed the secured card, since they couldnt graduate it to unsecured.