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Add 30 points fast

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Moderator Emeritus

Re: Add 30 points fast



Wonderin wrote:

Ah. Yuck. Thank you, Sidewinder!!

If I can ask another dumbo question (believe me, I'm full 'o them!)? 50% UTL is BAD isn't it? Even though they're installment loans, it can still keep us from getting any new credit, can't it?

Other than paying it all off (which we can't do -- WISH we had an extra $30K laying around, LOL!), is there anything we CAN do to being it down? Would credit cards help? Assuming, with our FICO, we could GET one, that is. Smiley Sad

/aside/ Congrats on making Moderator!! Yay!! Smiley Happy

50% is bad, but with installment, it doesn't weigh the same as util on revolving credit. Mortgages are excluded from util also.
 
With installments, everyone is at 100% as soon as they get the loan. It is much more common for someone to have high util on installment loans compared to revolving loans.
 
Revolving credit usually comes with 0% util(unless you have fees charged on the card when you get it). Revolving credit is weighted much more because someone who is using 90% of their available CC limit is much more of a risk than someone who has 90% of the car loan remaining.
 
Would you rather loan your money to someone who is using nearly all their CC limits or someone who has 90% left on their car loan?
 
Other than paying more than the payment, your util will drop slowly each month.
 
Personally, I wouldn't sweat the installment util and work on other things that may help.
 
Are you expecting to app for anything large in the next few months(car, mortgage, etc)?
 
From your post, I am going to assume you have no revolving credit. I saw a 20 point increase for adding revolving credit.
 
I got a Crown Jewelers card, all the benefits, minus the hit for an inquiry. Purchased something cheap so that it would report. However, it only reports to TU and EX. Type "Crown Jewelers" in the search box above.
 
Maybe try to get a few secured cards to help you out. Get one that will grow with you, one that will switch over ot unsecured after a certain point. I know BoA secured does. Check out the CC forum for more information.
 
I hope the above wasn't too confusing.
 
And thank you!
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Message 11 of 14
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Senior Contributor

Re: Add 30 points fast


@sidewinder wrote:
50% is bad, but with installment, it doesn't weigh the same as util on revolving credit. Mortgages are excluded from util also.


With installments, everyone is at 100% as soon as they get the loan. It is much more common for someone to have high util on installment loans compared to revolving loans.


Revolving credit usually comes with 0% util(unless you have fees charged on the card when you get it). Revolving credit is weighted much more because someone who is using 90% of their available CC limit is much more of a risk than someone who has 90% of the car loan remaining.


Would you rather loan your money to someone who is using nearly all their CC limits or someone who has 90% left on their car loan?


Other than paying more than the payment, your util will drop slowly each month.


Personally, I wouldn't sweat the installment util and work on other things that may help.


Are you expecting to app for anything large in the next few months(car, mortgage, etc)?


From your post, I am going to assume you have no revolving credit. I saw a 20 point increase for adding revolving credit.


I got a Crown Jewelers card, all the benefits, minus the hit for an inquiry. Purchased something cheap so that it would report. However, it only reports to TU and EX. Type "Crown Jewelers" in the search box above.


Maybe try to get a few secured cards to help you out. Get one that will grow with you, one that will switch over ot unsecured after a certain point. I know BoA secured does. Check out the CC forum for more information.


I hope the above wasn't too confusing.


And thank you!






Ah. I see what you mean. The whole "50%" thing really spun me into a tizzy!! We were practically 2 seconds away from getting a loan against our TSP/401K to pay the stupid thing off!!

I don't think we'd qualify for ANY credit right now ... but can I ask what you know about BoA's secured cards? Do they do a hard pull? I'm trying to wait a bit before we jump into any more credit -- hopefully soon, we'll have 3 collections PFD'd and a tax lien either satisfied or removed completely (man at tax office said they don't answer disputes on paid liens).

I'm also feverishly GWing our SL servicer (ACS) hoping that they'll forgive some lates in exchange for us shutting up about their inability to provide a copy of our promissory note. We're prepaid on that loan for the next three months, so hopefully that will count in our favor!!

Thanks again for answering my stupid questions!!! You are a life-saver!!! I'd have to guess that's why they made you a moderator!!! Smiley Happy W00t!! W00t!!

EDIT: Forgot to say: DH does have a revolving credit account, but since it's a Government Travel Card (for paying his expenses on travel) it's not reported to the CRAs -- which sucks since he's had it for 7 years and we've never been late on it!!

We didn't even know about the majority of all this mess until about a month ago ... when we realized that we HAVE to buy a house soon so we can move my MIL in!!!

DH has been offered a job (higher paying, and more stress) out of state and though we'd like to take it, we don't want to have to move us and MIL into an apartment!! So we're desperately trying to get our FICO to where we can qualify for a house with a $40K down payment!!

Message Edited by Wonderin on 05-30-2008 08:14 PM

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Message 12 of 14
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Moderator Emeritus

Re: Add 30 points fast



Wonderin wrote:

Ah. I see what you mean. The whole "50%" thing really spun me into a tizzy!! We were practically 2 seconds away from getting a loan against our TSP/401K to pay the stupid thing off!!

I don't think we'd qualify for ANY credit right now ... but can I ask what you know about BoA's secured cards? Do they do a hard pull? I'm trying to wait a bit before we jump into any more credit -- hopefully soon, we'll have 3 collections PFD'd and a tax lien either satisfied or removed completely (man at tax office said they don't answer disputes on paid liens).
 
I'm also feverishly GWing our SL servicer (ACS) hoping that they'll forgive some lates in exchange for us shutting up about their inability to provide a copy of our promissory note. We're prepaid on that loan for the next three months, so hopefully that will count in our favor!!

Thanks again for answering my stupid questions!!! You are a life-saver!!! I'd have to guess that's why they made you a moderator!!! Smiley Happy W00t!! W00t!!

BoA pulled EX on me, I didn't apply for their secured, was only offered it after being declined for an unsecured. I am not sure what is if you apply directly for the secured. Might do some searching over on the CC forum. It was a hard for me, but you can do their pre-approval process to see what they will offer and it is a soft. If you have opted out on your CR, they won't be able to do a soft, which means they can't offer you anything. There are a few that do soft pre-approvals/approvals. You'll find more info on the CC forum. Crown Jewelers does not pull any.
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Message 13 of 14
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Valued Contributor

Re: Add 30 points fast

You can't apply directly for BofA 99/500 secured card...it is only a counter offer card...but you can apply directly for their fully secured card...where you have to put up...the amount of your CL...
Message 14 of 14
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