Balancing Credit Goals - Please advise

[Anonymous]

At least you are researching your options!

[Anonymous]

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@AllZero wrote:

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@Anonymous wrote:
I have old, old student loans, so except for youngest credit, age is not a problem.

Here's a clarification on my two derogatories. I have a United Bank loan with a 90 day late payment. It is from 7 years ago. But the earliest delinquency will not reach 7 years until March. I suppose I have to wait until March. There's a similar issue with my First Premier account. It is also at about seven years, but the first delinquency will not hit seven years until 2021. I have tried challenging both of these without success. Looks like I will just have to wait. But in reality, how many points are they really costing me at the seven year mark? One is a paid charge-off and the other is a late payment.

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As Birdman7 mentioned, those 90 day lates are a major delinquency and greatly impacting your score. They usually hurt the entire 7 years compared to a 30 day late.

You can try calling Transunion. Ask to speak to a supervisor to remove the United Bank loan late payment. Sometimes the front line CSR can assist. If the 7 year mark is 3/2020, you should be eligible now.

For the First Premier account, what is the DOFD Date Of First Delinquency? Was the account ever brought current in between the time it was charged off 6.5 years ago?

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Birdman7, I finally found the time and COURAGE to follow your wise counsel about asking for an early removal for my United Bank late loan payments. It was scheduled to drop of in Mar 2020 (three months from now). The Transunion customer service rep was very friendly and she agreed to take it off. She said I will get something in the mail in the next 5-7 days. I will keep an eye on Credit Karma and other sites to see if my credit report changes. Should I go ahead and try that with EQ and EX?

Here's an update on my evolving credit goals:  I've had enough with the 30-year-old van! (Don't want to get into it.) I really need to take a step up and improve my transportation and quality of life.  I've decided on a 2017 Honda Fit LX for $11,700. I drove a Fit yesterday, and I like it, but I want a red one with manual transmission, so I will have to drive 450 miles to get one. U.S. News puts it at the top in three categories for subcompact, etc. It gets 29 city/36 hwy -- three times the gas mileage of my van. The car payment should be under $250, and I will probably save close to that in fuel costs. I think this is an excellent way to use my credit, and it  might even help my score, no? I guess I should wait on the Transunion update.

So I put off the mortgage for 6 months to a year. No problem. I'm moving around anyway. Finally found a room that I can get by the week. I'm going to look at it later today. Maybe things are finally coming together. Courage.

Do I go ahead an pull the trigger on the Honda Fit? What good is good credit if you don't use it? I think that's what it's for. Youngest credit is now at 3 months, and all three of my credit cards are only 3-4 months old. Please advise.

[Anonymous]

I just spoke with Experian. The rep says they have no early removal policy. The account will drop off the middle of Apr 2020. Nothing else I can do there.

[Anonymous]

@GoHerd1 Congratulations! That’s great! I’m glad to hear that you got it removed from TU!

Each CRA has its own policy, but typically they all three will remove at least a little early. I’m not familiar with all the specifics. You may want to call back and try a different CSR at EX, but first double check what the exclusion times are for each bureau because I don’t know them off the top of my head. One of the members may have already mentioned it earlier in the post.

Sounds like a great deal on a great vehicle with a low enough payment that it’s not going to kill your DTI. If you’re going to do this, it pushes your mortgage out 12 months from the time of doing it. But if you feel you’ve got to do this, then I can’t blame you.

Yes, I would wait for the update on TU. And you need to pick a lender and go get financing before you go get this. Is it from a private seller or a dealership? Have you explored financing with a credit union? You don’t want to go to the dealership and get 1 million inquiries on all bureaus.

[Anonymous]

Also it looks like @AllZero first suggested the early exclusion! So thanks to him for the suggestion for early exclusion!

[Anonymous]

Many thanks to both of you! And guess what? My TransUnion score just popped to 763! I went back and checked my scores with a new purchase from Experian. So now I am showing TransUnion 763, Experian 734, Equifax 725. I was really excited when I saw the 763!

Now here is the situation on the financing. I have been working on developing a relationship with 1 Bank + 2 credit unions. First is Regions Bank. The local Banker in Tennessee is just wonderful! She has been so nice to me and has been helping me get these credit issues dealt with, as I explained before. The good thing is that Regions Bank pulls from TransUnion. So it would just work out I think to go ahead with my banker at regions. I do believe in loyalty oh, and I want to give her first dibs any possible financing.

I think the two credit unions that I am part of use Equifax. My Equifax 9 score with Navy Federal is actually 745. But of course, the TransUnion it 763 is much better.

[Anonymous]

@GoHerd1 Excellent! Nice job on TU! You deserve to be excited!

My opinion is that if Regions is going to give you a decent rate, go for it! Perfect that they pull TU! I lack personal experience with them though, but it seems you are having a great CS experience.

How many inquiries do you have at each bureau in the last 12 and 24 months?

If they are gonna give you payments at @ $250 like you said, its gonna keep your DTI in check, which is what you have to do with the mortgage 12 months later. And, even if the rate were a tad high, you can always refi after the mortgage.

I think Navy would treat you right with that score, TBH. Might wanna compare rates before you jump. Bottom line is $ out of your pocket. I'm sure both can give you an idea of the rate for your score range, which you already know.

Who is the other CU?

[Anonymous]

Ascend CU in Middle Tennessee. They use EQ and will give best rate to anyone over 720.

Inquiries:
EX: 0
EX: 2
TU: 6

But two of those six are with Regions and two with NFCU. The other two were stupid inquiries before I knew anything. One with JC Penney - denied.

My banker said I could do 3 in 12 months. So I could still do something for my business over the next year and go for mortgage later. I think it helps when you get new credit for a legitimate reason - like a car and a business CC.

[Anonymous]

I am just concerned about the short revolving credit. Should I wait till my NFCU CC posts on 12/20? That would put it at 4 months. Will that move the needle or affect lender decision? Maybe I should just go for it.

[Anonymous]

Navy just approved me for 30k auto loan at the best rates!!! Wow!

Options:
2.89% for 5 yrs new
2.99% for 6 yrs new
4.29% for 5 yrs used

My finances have been so messed up for decades. But I fixed them ! Good for me!

The CSR was so nice! I love NFCU. My Regions banker still hasn't called me back.