cancel
Showing results for 
Search instead for 
Did you mean: 

finance learning curve

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted

finance learning curve

Hi.

10 years ago I looked at my credit report for the first time and was shocked to see someone had used my info to get a mortgage!

Although I had been supporting myself for years I didn't think I was in a position to get a mortgage!

 

Now I've finally taken the "fraud alert" off my file and am trying to get some more credit lines going.

 

Is it advantageous to have an auto loan in one's history?  I would like to aim for my first mortgage in the next few years but not yet.

I have always paid for used cars in cash in the past.

 

Also, I recently opened up a few accounts... I got the BestBuy visa, some store cards that seem ok (through Comenity, with high interest), and a kind of not-so-great Total Visa because it was recommended by this site, which seems like a good site with good advice generally...

 

My fico is 618, almost good enough for a mortgage.  Smiley Happy  Though I still have some student loans to pay down!

 

Any tips for whether I should go for an auto loan or another card?  I am also thinking about doing a secured loan, maybe the "Lend Me" one with the CD or the one you guys were mentioning ... but it seems to have mixed reviews!  http://www.richmanpoorbank.com/2012/12/bank-scam-8-cd-secured-loans/

Or the SS Loan through Alliant?

 

I can't seem to get my credit score above 620 Smiley Sad  Please help!

 

Thanks

 

Learning Slowly but Surely!

8 REPLIES 8
Established Contributor

Re: finance learning curve


@financelearningcurve wrote:

Hi.

10 years ago I looked at my credit report for the first time and was shocked to see someone had used my info to get a mortgage!

Although I had been supporting myself for years I didn't think I was in a position to get a mortgage!

 

Now I've finally taken the "fraud alert" off my file and am trying to get some more credit lines going.

 

Is it advantageous to have an auto loan in one's history?  I would like to aim for my first mortgage in the next few years but not yet.

I have always paid for used cars in cash in the past.

 

Also, I recently opened up a few accounts... I got the BestBuy visa, some store cards that seem ok (through Comenity, with high interest), and a kind of not-so-great Total Visa because it was recommended by this site, which seems like a good site with good advice generally...

 

My fico is 618, almost good enough for a mortgage.  Smiley Happy  Though I still have some student loans to pay down!

 

Any tips for whether I should go for an auto loan or another card?  I am also thinking about doing a secured loan, maybe the "Lend Me" one with the CD or the one you guys were mentioning ... but it seems to have mixed reviews!  http://www.richmanpoorbank.com/2012/12/bank-scam-8-cd-secured-loans/

Or the SS Loan through Alliant?

 

I can't seem to get my credit score above 620 Smiley Sad  Please help!

 

Thanks

 

Learning Slowly but Surely!


I was about to answer this: "Is it advantageous to have an auto loan in one's history?" by saying that while FICO does look at your loan mix and you should get a loan, it doesn't need to be an auto loan...but then you said this: "Or the SS Loan through Alliant?" and answered your own question  Smiley Wink

 

Yes, do the SSL, it should give you a nice boost

Message 2 of 9
Super Contributor

Re: finance learning curve

Hello FLC!  Welcome to the forums.  Here are my thoughts, prioritized as a plan of action (as you see fit).

 

(1)  Set yourself up with tools that allow you to see all three of your credit reports (as opposed to scores) on a monthly basis.   You mention seeing a credit report (singular) ten years ago.  Right now you should be looking at all three of your reports frequently and making sure you understand them very well.

 

(2)  Identify what derogs you have on your file.  You don't mention having any, but I'd be surprised if there aren't some substantial ones, given that you can't seem to get your score above 618, which is quite low.  Once you identify the derogs you need to figure out how they happened and how to prevent them from happening in the future.  (Autopay, for example, is a great technique for ensuring you will never be late.)  Finally, armed with your list, you need to circle back to the forum to see what if anything can be done to get them removed.

 

(3)  You mention having opened a number of store cards and a Total Visa.  I would stop and look carefully at those, which I am guessing are not actually particular cards that you want or need.  That needs to be a sign to stop and analyze your behavior: every account you open should be because that particular account is going to be especially helpful to you.  For example, I am opening this Target card because it will give me 5% cashback and I shop all the time at Target and my rebuilding plan calls for one more revolving account than I have right now.  Those would be carefully thought out reasons. 

 

(4)  Armed with an understanding of your reports, your derogs, and your recent behavior, you need to begin taking steps to see how how high you can get your score, focusing first on your CC balances.  Some steps:

 

     (a)  If you have not yet used a card, use it.  It can be for something small.  Allow it produce a statement, and then pay the statement in full after it prints.  You should always pay every card in full every month, no exceptions.  The store cards do not need to be used all the time.  Once a year is probably fine.  Major cards should be used once every six months (more often than that is also fine).

 

     (b)  Make sure that at least one card is reporting a positive balance each month,  Only needs to be one.

 

     (c)  Make sure each card is reporting < 29% each month.  (In truth < 49% is probably fine.)

 

     (d)  Make sure that your total utilization (counting all credit limits together) is < 8.99%.

 

     (e)  Try to have most of your cards reporting a $0 balance, when you can. 

 

If you need a simple way to remember those rules, it can be to generally try to have all cards reporting $0 except one which will report a small balance.

 

It sounds like you have at least four credit cards, which is all you need from a FICO scoring perspective.

 

(5)  Installment loans.  It's unclear whether you have any open installment loans.  If you do not, then you should open a $500 Share Secure loan with Alliant.  Here is everything you need to know about that, incluuding who it helps, why it works, and how to do it:

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

After you have done everything in 1-5, and you have had a chance to allow your reports and scores to adjust (an additional two months beyond that) you can circle back and get more advice if you like.

 

Message 3 of 9
Super Contributor

Re: finance learning curve


@financelearningcurve wrote:

Hi.

10 years ago I looked at my credit report for the first time and was shocked to see someone had used my info to get a mortgage!

Although I had been supporting myself for years I didn't think I was in a position to get a mortgage!

 

Now I've finally taken the "fraud alert" off my file and am trying to get some more credit lines going.

 

Is it advantageous to have an auto loan in one's history?  I would like to aim for my first mortgage in the next few years but not yet.

I have always paid for used cars in cash in the past.

 

Also, I recently opened up a few accounts... I got the BestBuy visa, some store cards that seem ok (through Comenity, with high interest), and a kind of not-so-great Total Visa because it was recommended by this site, which seems like a good site with good advice generally...

 

My fico is 618, almost good enough for a mortgage.  Smiley Happy  Though I still have some student loans to pay down!

 

Any tips for whether I should go for an auto loan or another card?  I am also thinking about doing a secured loan, maybe the "Lend Me" one with the CD or the one you guys were mentioning ... but it seems to have mixed reviews!  http://www.richmanpoorbank.com/2012/12/bank-scam-8-cd-secured-loans/

Or the SS Loan through Alliant?

 

I can't seem to get my credit score above 620 Smiley Sad  Please help!

 

Thanks

 

Learning Slowly but Surely!


If you tell me

1. your open credit card limits and balances, and the types of cards

2. whether you have any open loans and if so, the original amount, and the balance, and

3. what the negatives are in your report....

then I can give you some advice on how to improve your scores.


Total revolving limits 720500 (594000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 4 of 9

Re: finance learning curve

Thanks for the good advice.
In truth I took on the total visa and walmart cards because they were reccommended and u wanted to increase my total credit line.
I ended up using more of the best buy line than I intended due to covering other people's portions of bills in my family for christmas :@ and have made my boundaries stronger regarding that for 2017, the best buy card went to statement with a higher util than I intended!
Will be fixing that ASAP

None of the cards I got were silly, they are all useful to me

I have been bad in the past about carrying balances, will be keeping up good behavior for 2017

Thanks again

WI'll check in later this spring
Message 5 of 9
Super Contributor

Re: finance learning curve

Glad you are making the right decisions for you!

 

Very encouraged to hear that you will be paying off all your CC debt and that after that you will be moving into paying in full for every card.  Good for you.  This will help you a huge amount.

 

Have a happy New Year and stay in touch with your new friends here in the Forum.

Message 6 of 9

Re: finance learning curve

Hi,
So I'm happy to report my scores are up to 630&640. (Except transunion which has a collection I'm not sure what to do with. It's from 2014 and I do not agree with amount reporting oqed, $125. Is it best to suck up and pay it off or contest it?)

I've been using all the accounts and paying them down to below 30%.
However I'm sad Synchrony closed my Amazon store card, my favorite that I had since 2012. I made a stupid accting mistake and bounced an e-payment. Smiley Sad

I really want another all-purpose everything you need card like Amazon was for me.

Any recommendations?
Or should I keep grooming my citi bank best buy and Walmart store cards even though Walmart is practical, it's not my favorite? (It's Synchrony so hopefully I can get back in their good graces.)

Also I was offered a Cap One Secured with a $99 deposit but I didn't take them up on it yet. It seems like they're not very generous about returning deposits and a $200 lone isn't that great.

Thanks for your thoughts. I feel like I'm really close to getting bumped up from "ok" credit to the next level!

Btw, I don't have an auto loan or any travel/gas cards, is that necessary?

Thanks for your feedback.
Smiley Happy

Cheers,
FINANCE LEARNING CURVE
Message 7 of 9
Established Contributor

Re: finance learning curve


@financelearningcurve wrote:
Hi,
So I'm happy to report my scores are up to 630&640. (Except transunion which has a collection I'm not sure what to do with. It's from 2014 and I do not agree with amount reporting oqed, $125. Is it best to suck up and pay it off or contest it?)

I've been using all the accounts and paying them down to below 30%.
However I'm sad Synchrony closed my Amazon store card, my favorite that I had since 2012. I made a stupid accting mistake and bounced an e-payment. Smiley Sad

I really want another all-purpose everything you need card like Amazon was for me.

Any recommendations?
Or should I keep grooming my citi bank best buy and Walmart store cards even though Walmart is practical, it's not my favorite? (It's Synchrony so hopefully I can get back in their good graces.)

Also I was offered a Cap One Secured with a $99 deposit but I didn't take them up on it yet. It seems like they're not very generous about returning deposits and a $200 lone isn't that great.

Thanks for your thoughts. I feel like I'm really close to getting bumped up from "ok" credit to the next level!

Btw, I don't have an auto loan or any travel/gas cards, is that necessary?

Thanks for your feedback.
Smiley Happy

Cheers,
FINANCE LEARNING CURVE

With those scores I'd almost be tempted to try to replace the Amazon store card with the Chase Amazon Visa.  It doesn't sound like you've done anything to piss off Chase (and you don't have the BK keeping me from doing so myself).  If you can pick one up it would be a major coup for you.

 

Alternatively, I'd recommend NFCU.  Their CashRewards card makes a great 'everywhere' card you could likely pick up while waiting to get a stronger profile.

Message 8 of 9
Super Contributor

Re: finance learning curve


@financelearningcurve wrote:
Hi,
So I'm happy to report my scores are up to 630&640. (Except transunion which has a collection I'm not sure what to do with. It's from 2014 and I do not agree with amount reporting oqed, $125. Is it best to suck up and pay it off or contest it?)

I've been using all the accounts and paying them down to below 30%.
However I'm sad Synchrony closed my Amazon store card, my favorite that I had since 2012. I made a stupid accting mistake and bounced an e-payment. Smiley Sad

I really want another all-purpose everything you need card like Amazon was for me.

Any recommendations?
Or should I keep grooming my citi bank best buy and Walmart store cards even though Walmart is practical, it's not my favorite? (It's Synchrony so hopefully I can get back in their good graces.)

Also I was offered a Cap One Secured with a $99 deposit but I didn't take them up on it yet. It seems like they're not very generous about returning deposits and a $200 lone isn't that great.

Thanks for your thoughts. I feel like I'm really close to getting bumped up from "ok" credit to the next level!

Btw, I don't have an auto loan or any travel/gas cards, is that necessary?

Thanks for your feedback.
Smiley Happy

Cheers,
FINANCE LEARNING CURVE

No, an auto loan is not necessary, nor are travel or gas cards.

 

An SS loan would help you a good deal if you have no open loans.  It's not merely the loan but the whole technique surrounding it that's important.  Earlier in this thread I gave you a link that explains the SS loan technique.

 

You mention that you are using all your cards and keeping them at under 30%.  You will get a significant score boost if you will pay all your cards to $0 and have one reporting a small balance (e.g. $20).  That's a basic thing that most people do about 40 days before they apply for a new card or a loan.  Is that doable for you?

Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.