Really want to apply for Barclays but not 100% sure.

[Repo-ed]

---

@Anonymous wrote:

---

@LS2982 wrote:
How many card do you have total OP?

---

I only have Cap1 $500,Cap 1 secured $1200 limit,and car loan that I got almost 5 years ago and will be paid off this coming january.That is all.

---

That's actually a decent mix.

Keep the util% down, and all 3 free of any derogs (30 days, etc..) and in a year you will be in a MUCH better position.

[OptimalFICO]

TriState, don't fret you don't need the Barclay's card.

You can end up shorting your FICO score 15-20 points by failing to have an active revolving account with a "bank or national credit card company," considered prime lenders. Banks are depository institutions that operate checking and savings accounts and offer loans to their customers (most have "Bank" in their name). National credit card companies are lending institutions whose primary operation is offering credit cards (AmEx, Capital One, Discover, etc.). They hold equal value to a bank institution in the FICO lender classification model. You receive most of the benefit to your FICO scores when you have at least one. Having more than one can be a factor with EQ and EX, but it is a relatively minor FICO factor once you have one.

[Anonymous]

Yea.Almost got carried away with this "pre-approved" thing from prime lender.

Thanks to this community , just saved myself from unnecessary INQ and denial.Will wait another year and then try.

[Anonymous]

---

@OptimalFICO wrote:

TriState, don't fret you don't need the Barclay's card.

You can end up shorting your FICO score 15-20 points by failing to have an active revolving account with a "bank or national credit card company," considered prime lenders. Banks are depository institutions that operate checking and savings accounts and offer loans to their customers (most have "Bank" in their name). National credit card companies are lending institutions whose primary operation is offering credit cards (AmEx, Capital One, Discover, etc.). They hold equal value to a bank institution in the FICO lender classification model. You receive most of the benefit to your FICO scores when you have at least one. Having more than one can be a factor with EQ and EX, but it is a relatively minor FICO factor once you have one.

---

I didn't get this clear...So what you are saying is that it doesn't really matter how many credit lines i have and from whom , for my FICO score? 

[OptimalFICO]

My understanding regarding the magic number of revolving lines of credit for FICO scoring is three. I've also heard that FICO doesn't like to see more than one revolving balance reporting at a time. There is some dispute about this one (from MarineVietVet), but another user posted that they have tested it in the past and it seemed to be true.

[jamesdwi]

---

@Anonymous wrote:

I will definitely stay away for another year.I was just probably got too excited about this approved offer from non Cap1 or Orchard club.

Thanks for dragging me back to reality.When I will pay off my auto loan in January (20,000 for 60 months) is that going to boost my score?

And do I need to open another credit card lets say in 5-6 months,something easier to get than Barclays?

Thanks again for your advices!

---

nope, no boost from paying off your autoloan. Welcome to the backward world of credit, they like a mix of credit. By not having a mix of credit cards and other loans you get a lower score, on the other hand its great not to have the payment and you can potentially save the money or put it into your secured card. it may help you improve your credit in other ways your debt to income decreases which help in some credit scoring systems, though FICO doesn't count it, with a manual credit review it may help in some boarderline cases. 

[OptimalFICO]

I learned this the hard way, paid off my fiancee's auto loan early and it stopped improving the FICO scores. As james mentioned, FICO likes to see a mix credit types: mortgage, installment loan and revolving credit. If you have another installment loan (such as a student loan), that works too.

[trumpet-205]

---

@OptimalFICO wrote:

I learned this the hard way, paid off my fiancee's auto loan early and it stopped improving the FICO scores. As james mentioned, FICO likes to see a mix credit types: mortgage, installment loan and revolving credit. If you have another installment loan (such as a student loan), that works too.

---

You should always save money whenever possible. Paying off a loan early IS a good thing. You should not for the sake of FICO score to defer the loan or to apply a loan you don't need.

[Tristate]

What do you guys think about this idea:Barclays offers online savings and online CD's,if I will open a saving account with them now and apply for the credit card (of my dream a year from now? Will that help my chances? Or savings has nothing to do with credit accounts even within the same bank?

I've just read a lot about "getting in relationship" with certain banks. Thanks!

[Anonymous]

I was thinking that I got denied by Barclay's in Feb of this year but it was actually Webbank/DFS (Dell).  Now that I know this, I think this will be one of the cards that I go for when I do a mini app spree in a few weeks.  My BK was discharged in Jan of '10. One of my Cap1 cards is about 2 years old ($300. limit) and the other Cap1 and Orchard are each 1 year old next month with a $750. limit. Car loan 1 year next month also. No lates since the BK. I think I might have a chance...