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Need some insight

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Established Member

Need some insight

Hey everyone! Been following reading all kinds of threads all day to get a better understanding what to do. With recent trouble in our neighborhood (past year shootings, drug raids etc.) we decided to go ahead and move. Now, with that being said, ive been monitoring my credit and subjecting to get some things fixed showing. Main was my student loans, which i have successfully rehabilitated them by paying my last payment yesterday. With my score 8 ex at 524, tu at 550 and eq 549. Although my mortgage scores are 607, 589, and 568. Close for approval through FHA, or USDA loans. Working towards taking care of some collections that are just shy of $1,500. I know CC help a lot with building credit. Had one in the past (young and dumb at 18) i told myself i will not get one again. I know they do not like for you to open accounts before qualifying for a mortgage. I have 0 credit utilization on my report, i know that kills the score. Should I bite the bullet and apply for a secured CC or will my student loans count towards that although they're installation loans? Were wanting to move as soon as we can, and yet we know its a long process. Any input would be greatly appreciated.
3 REPLIES 3
Frequent Contributor

Re: Need some insight

You could consult with your loan officer in regard to weather you should open a secured cc or not depending on what they are looking for.As far the Fico score you are missing credit score points by not having an open active cc account plus you will have a great variety of crdit accounts as long as a student loan remains open.Credit cards are essentual to building a history of of monthly time payments, because one day the student loans will be closed  remain current on all credit accounts monthly.When you open a new credit account it lower your aaoa and a new inquiry which both lowers your credit score some.As long as you every credit account as agreed,keep cc balance way below 10% and only open credit accounts as needed your will improve as time marches on.I hope this helps.

Message 2 of 4
New Member

Re: Need some insight

"Young and dumb" might as well be the tagline of a lot of our stories, so I feel you there.  We're hardly told anything about how the credit system actual works when we are in school...then become debt slaves from that lack of understanding...then sold the Financial Peace message that "ALL CREDIT IS BAD!" therefore when we "fix" our reports, we have no credit utilization or credit age...so when we finally get to an application we are either denied or approved with the worst terms imaginable.

 

You're going to have to take score losses in the short term to make gains in the long(er) term.  That means biting the bullet on some hard credit pulls and some not-so-favorable credit cards.  I'd start with Capital One with their Prequalify site and see if you can at the least get their unsecured Platinum card...maybe the Quicksilver One if you're lucky.  If that succeeds, my next stop would be Merrick Bank or anywhere that will do a Prequal with a soft pull.  Unfortunately, there are no quick answers.

My Cards:

-Capital One Quicksilver One CL: $300
-CreditOne Platinum CL: $300
-Indigo Card CL: $300
-Merrick Bank Double Your Line CL: $500

Credit Utilization: 28% (Feb 2019)

Goal Cards for 2019:
-AMEX Everyday Card
-DiscoverIT Card
-Citi DoubleCash Card
Message 3 of 4
Established Member

Re: Need some insight

Well, after reading and researching here all day/night, i bit the bullet, and was pre qualified for a Cap One secured platinum card. From what i see on my bank score 8 is BAD, so Im sure thats all i can qualify for. Which is fine, i think itll be easy to keep balance low, and still pay. Thank you everyone, i will keep everyone updated, as you'll see my tag around here often!
Message 4 of 4
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