Advice Needed for Accelerating Rebuild and Future Credit Profile

[Anonymous]

Hello,

 My Fico=EQ 729, TU 746, EX 738. 74,600 available; using 15763.70.

AAoA 3.5 yrs

AOOA 12.9 yrs

What do I keep, merge or get rid of?

Which is going to grow with CLIs?

Credit One 0/2100 (Oldest card 11/2012)

Chase Southwest Priority 0/2000 (9/2015) 

Amex BCE 395/2000 (9/2018)

Walmart 0/1000 (6/2018)

Citi DC 97/1450 (3/2015) 

Mercury 0/3750 (11/2015) 

Amex Delta Plat 0/2000 (6/2017) 

Discover It 130/1500 (10/2015) 

Amazon Prime Store Card 358/3000 (8/2017) 

Credit One 0/800 (12/2016) 

Cap One QS 0/3500 (10/2015) 

Discount Tire 825/5000 (9/2015) 

Discover Chrome 9151/13500 (10/2018) BT 0%-11/2019

NFCU Plat 965/1000 (10/2018) BT 0%-10/2019

NFCU CLOC 0/10000 (11/2018)

HSBC 3798/4500 (11/2018) BT 0%-5/2020

Chase World of Hyatt 0/7500 (11/2018) 

Capital One Venture 0/10000 (11/2018) 

Amex Gold Charge PIF (11/2018) 

GOALS:

Pay BTs by 11/2019 (on track and not worried, should I do it sooner or stack away cash in savings?)

Grow Credit Lines

purchase new car 2019/20

set myself up for mortgage loan 2020/21

No bads or lates ever on anything.

Thank you all for yalls advice here. Sorry for the length. 

[CreditInspired]

OP

This is a lot of info to digest in one post. Can you edit it and keep your scores but just list CCs/CLs/UT. Leave out all the extraneous info and just summarize what your goal is.

IMHO, I think this will get MyFICOers to respond.

[Anonymous]

Sure will thank you.

[Anonymous]

Does that look a little better?

[CreditInspired]

Very nice OP, thank you. I’m going to take a stab at this but MyFICOers with more knowledge than me will come along and offer advice too.

Your scores and UT are great for a mortgage. To get the best interest means getting your middle mortgage score to 760.

1. Since the Credit One cards are at 0, I would probably keep for UT only. I would see if they could be merged into one. Don’t use them.

2. You have 19 CCs and 1 loan, and 8 have balances. I would work on PIF the BCE, CitiDC, DiscoIT, Amazon, Discount tires & NFCU Plat, which will gain you some points.

3. That’s a good idea fast tracking the Disco Chrome BT so it’s PIF before interest kicks in.

4. Do you have monies earmarked for down payment and closing costs? Savings? 401K? If yes, excellent! If no, start saving.

5. If it were me planning to purchase a house in 2020-2021, I would not acquire a long-term, big monthly car note until after the home purchase. Use those funds to go toward the house.

6. How many inquiries do you have? The majority of your cards look new. 8-9? If yes, go to the garden for 2 years. Let your cards age. This will also give you a bump in scores.

7. No more HPs for 24 months. Only SP CLIs. Ask for 61-day 3X CLI, if you haven’t already, on your BCE.

8. Ask for CLIs on your DiscoIT and CitiDC. Make sure the language says it will be a SP.

So, here I’ve asked you to shorten your list and now I have a big list. 😂🤣

GL2U

[Anonymous]

I appreciate the feedback. That’s what I had read about the 760s. I am good on savings goals to use towards a down. I have tiny-ish house dreams so it’s a small loan.

So don’t close anything just leave it all. As you know pre-edit I have about 12 years of mortgage history. With the last one paid off 11/2015. Do lenders look at that previous history or simply the score?

As far as the vehicle loan. I’ll be paid off in a little under 14 months. I’ve read that’s not good. That’s why I wanted to go ahead and get a new vehicle? Bad idea?

[CreditInspired]

On vehicle loan—I say don’t pay off until after you close on the house then, especially if this will be your only installment loan. Because paying an installment loan off will cause a big drop in scores.

On previous mortgage—I don’t think it’s taken into consideration because you will be considered a 1st time home buyer if you haven’t purchased a home in the prior 3 yrs.

IMHO, I wouldn’t close any CCs if they were mine and you feel you can handle that many cards. Actually, in hindsight, I would close both Credit Ones once the other cards I listed above are PIF so that closing won’t affect your UT.

Everything really looks good.

[Anonymous]

Yes. I’m in a pickle. The vehicle note matures 1/2020 regardless of me. I have not accelerated the payment at all. Just let it ride. Talked to my CU about this. They’ll approve me right back into a new one on same terms etc. But that puts me back into a high LTV ratio, that I’m seeing benefits if this one paying off. I dumped all the toys in 2015 too.
What do you think about a long term new recreational vehicle note like 5-6 years $5000? Would it keep same effect on scores? Does a UTV/motorcycle have the same score weight as a vehicle?

[iced]

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@Anonymous wrote:
Yes. I’m in a pickle. The vehicle note matures 1/2020 regardless of me. I have not accelerated the payment at all. Just let it ride. Talked to my CU about this. They’ll approve me right back into a new one on same terms etc. But that puts me back into a high LTV ratio, that I’m seeing benefits if this one paying off. I dumped all the toys in 2015 too.
What do you think about a long term new recreational vehicle note like 5-6 years $5000? Would it keep same effect on scores? Does a UTV/motorcycle have the same score weight as a vehicle?

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I don't suggest going out and buying something you don't need just to have a loan open on your report. There's more efficient ways to have an open loan; for example, get a small personal loan and then use the loan to quickly pay it back down to such a small balance that interest is a non-factor.

[HeavenOhio]

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@Anonymous wrote:

My Fico=EQ 729, TU 746, EX 738.

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Are these your FICO8 scores or your mortgage scores? If they're FICO8s, would you be able to post your most recent mortgage scores?

The good news is that mortgage scores don't react to the lack of an open installment loan the way FICO8 does. I believe EQ and EX will likely remain unchanged, with the possibility of a loss of half a dozen points or so on TU.

For card closures, I'd target Credit One and Mercury. I think your payment schedule is fine as long as you feel you're on track. One payment I'd make right now is to bring your NFCU Platinum card down to $889 or a little lower. That way, it'll no longer be maxed.

When the mortgage is in sight, you'll want to have opened no new accounts within the previous year. That gives you a nice AoYA (age of youngest account) scoring bump. And you'll probably want to do AZEO at that point. That's when one card reports a small balance ($5, but not much more) with the rest of your cards reporting zero.