@Anonymous wrote:
I’m not really a credit card type person but of course we all have to have it. I have 2 capital one accounts with under 30% utilization and I have a Capital one account which I had issues with because of error in their system. I have never had a late payment at all. My capital one cards are under 30 and I have a discover card hat was closed out of error but I paid the whole balance but it’s still reporting at 800 limit with a 1200 balance. I have a car loan that I paid off on a 72 learn in 3 Years through BMW for 55k never missed a payment and I want to sign for a car that the cost after DP is 60k. My score is 602 becasie for some random reason my capital one cars aren’t reporting to TU???? Nor is my BMW history reporting as well. I want to close on car on 2 weeks. I make over 200k a year. No mortgage or loans of any kind. My credit cards have been open for over 2-3 Years. My BMW payment was from 2013 paid for satisfactory till December 2017. Will I get approved - what should I do? First time forum and need some insight? The credit union I plan on using pills only TU.
Joe,
Welcome to the forum! It's really great that you found this place and I'm going to try and help you out.
You need to learn a few things about credit that are very important for your credit well being. It is obvious by your post that you don't give your credit scores much thought until you want to use your credit to buy something and then it's like, "Oh sh**! What do I do now?"
Building great credit scores is a marathon and not a sprint. That can be a good thing or a bad thing depending on how you look at it. With your income you can easily build great credit scores in the next 2 to 3 years without much effort on your part. It isn't that difficult, I promise!
Read this next line, learn it, you can even print it out and hang it on your refrigerator. This is all it will take for you to have great credit scores in two to three years:
I need at least 3 credit cards, but 5 to 8 credit cards would be better, that have high credit lines that I hardly ever use!
Yes, it really is that easy. I know you said you weren't a credit card person. You don't need to be a credit card person. You just need some credit cards that you hardly ever use and your scores will climb month to month and year to year until they are stellar. Put a reccurring bill on each card like Netflix, Spotify or your Cell Phone bill and set them up to have the credit cards paid directly from your bank account each month. It is not that hard.
You only want credit cards from the following so called "Prime" lenders becauise they will grow with you for life:
American Express (AMEX)
Bank of America
CitiBank
Chase
Discover
Wells Fargo (Stay away from these guys.)
After you get your auto loan and your credit reports cleaned up, you should apply for 2 credit cards per year until you have 5 to 8 credit cards. Use each credit card for a small purchase every 3 to 6 months to keep them open and keep them open for life.
ABOUT YOUR AUTO LOAN...
This is what you need to do:
- Get your credit reports reporting properly as soon as possible. Clean up any mistakes. Two weeks is a really short time period to have this done and may be impossible to do in that time frame. You will probably have to fly with what you have right now.
- You want your credit cards reporting in the AZEO fashion. (All Zero Except One) This means that you want one credit card reporting a small balance that is less than 9% of that credit card's credit limit. You want all the rest of your cards reporting a $0 balance. Do not pay all cards to $0! You will lose 10 to 20 points on your scores if all your credit cards report $0. Yes, it is true! The only time you really need to use the AZEO technique is when you plan on applying for credit in the next month or you want to see how high you can get your scores. The AZEO technique grooms your scores to be the best that they can be. It is really the only control that we have over our scores short term.
- PUT DOWN A LARGE DOWN PAYMENT. Put down the largest down payment that you can. The larger the down payment is, the less risk the lender has because the auto loan is secured by the vehicle. If the lender has to repo the car and you put down a large down payment there is a chance that when they sell the car at auction they can recoup all or most of their money. I would consider a large down payment to be 30% or more. The larger it is, the easier it will be to get the loan. You might be able to skate by with a 20% down payment but I'm not sure.
In your post you stated, "No mortgage or loans of any kind." This is not what lenders want to see. They want to see that a person has a long history of responsible credit use. You could be really rich and have terrible credit and not be able to get a loan or a mortgage. Lenders need to see a good long credit history. This is where credit cards come in to play because they are really the only credit account that you can keep open for life.
Once you get your auto loan, apply for 2 credit cards a year until you have 5 to 8 cards, ask for credit line increases on those cards once a year, pay all your bills on time and you are golden! It really is that simple.
Let me know if you have any questions.
Good luck!
Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20
