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Might Need 2 Mod My Plan

New Contributor

Might Need 2 Mod My Plan

Sept/Oct of last year I went from no accounts to 3 reward CC, a Fingerhut revolver and a self lender loan. Closed the FH card and self lender closed this month, 1 month before the actual loan will be PiF.

SL closing hurt my Fico 8 scores more than I expected, they all dropped this month about 35-47 points, I was expecting about 25 max, I know it's always hard to say and maybe my mistake was trying to anticipate the drop all together.

I have a bunch of INQ on my EX CR, and was hoping to garden the most of the year, then app for better TL in the Nov/December time line.

Now however, I can't see having my scores where I want them to be for app round 2.

I do have money set aside, so I am torn. I could get a sizeable no INQ SL in a few months and pay it down to under 30 utilization by my desired timeline. The CU might do a 6yr loan @ 4.05% APR, which means If I do it right I could probably keep the loan open with 1-30% utilization for around 18 months. This would probably regain most of the point drop I took, and with my increasing length of regular and positive payment history may allow me to hit 740 with no INQ by December, for app round two.

But on the flip side, It lowers my AOYA by a few months, and adversely affect anything my AAoA as well which will continue to take hits for the next few years as I continue to grow my TL's. Plus, I don't really need the loan for any specific purchase, so the interest would gain me nothing but a temporary credit score boost. I know it's silly, but I still find myself torn. I am not worried about taking on too much, and am trying to develop a solid credit history for future credit needs, I have not done my credit score Justice in the last 30 years, mostly from not keeping older accounts open, a couple of lates, and
no usage or open accounts in for about a year prior to opening what I have now, I do need to fix that, especially before I seek a mortgage.

Edits: Sentence structure and content added for clarity

Message 1 of 3
Frequent Contributor

Re: Might Need 2 Mod My Plan

Since you don't need the sll for any specific purchase use it before before you apply a mortgage.Use your thee reward cc's to build monthly on time payments an all three and never be late again.Learn the azeo method use it before mortgage app.One cc with utl  way lower than 10%.Keep one cc open to make it your oldest cc account.Don't apply for anything until sll/mortgage app.If you follow these steps your FICO score will improve over time.GOOD LUCK...

Message 2 of 3
New Contributor

Re: Might Need 2 Mod My Plan

I decided to hold off on the SL. The mortgage is still years away, so I want to boost my revolvers (for better rewards) in the meantime.

I think if I push the next app round out a couple of months I can regain most of the lost points.

So currently my plan is to continue saving and Garden till January. It's a couple of months further out than I would like it to be. However, between the points I should gain back (on Experian) from the excessive INQ that will fall off in November, and hopefully a few points for my late aging to 3years, which I hope will bring me up to a 715 on Experian (which MyFico rates as a 6% risk to lender).

Then in January I will need to pick a couple of new revolving TL's to apply for.

Any ideas? My goal is higher CL and better Cash Back Rewards (currently get 1.5% CB with QS, and 1% CB {2% CB on fuel} USAA CC) or cards that will eventually lead me to that. And of course cards with decent approval odds.

Right now I am thinking Discover It Cash Back for one of them, but am open to suggestions.

I am also considering a third inquiry after I apply for 2 new TL to convert my AKUSA rewards Secured Card to an unsecured so I can start earning interest on the $2500 Security Deposit (conversion won't change age of TL etc...).

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