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Thin Credit File - how to intelligently "improve" that?

CreditNoviceRightNow
Established Member

Thin Credit File - how to intelligently "improve" that?

Good morning, crew!

 

First of all, Happy 4th of July.  Not getting political, but God bless the USA.  What an amazing country we live in....I am so grateful.

 

Now, I have not been the best consumer.  I have not played by the rules and I have paid / am paying the price for my decisions.  Yes, my decisions.  See, I know better!  Right?  Well, apparently I do not!  So, I am changing my approach to this Credit Game.

 

I would really like to do things the smart way.  I mean, let's try something new.

 

I have zero debt.  Thank the good Lord for that.  I pay rent and that is it.  I do not have a mortgage.  I have an old beater for a car, so no car payment (paid off something like five years ago).

 

I have but two credit cards.  Have had both for some time now (18 months or so).

 

I have two charge-offs (see previous posts regarding them).

 

I see on various web sites that I have a thin file and, specifically, that I do not have an 'installment loan'.  I do not want to buy a home or a car JUST TO 'fix' that issue.  That just seems silly to me.

 

I do not really want to apply for any more credit cards.  Not sure that is a good idea.  Well, at this point, anyway.

 

I have read about these so-call "SSL" loans.

 

Do I seem like a good candidate for this (will only entertain that thought once I educate myself on this topic)?

 

I do plan on buying a house in about two years (and hopefully will not need to buy a car in the meantime...).

 

Thank you, crew!

Message 1 of 21
20 REPLIES 20
tnhomestead
Regular Contributor

Re: Thin Credit File - how to intelligently "improve" that?

Stockpile cash, watch your 2 cards slowly boost your scores and then buy a house. You called it right, it's a game to many people. If I AZEO, I can boost my score 3 points then if I do fill in the blank, I can get 5 more. Not saying those ideas won't work, just seems like clean up bad old debts, save money and let scores climb naturally will work too.

Message 2 of 21
CreditNoviceRightNow
Established Member

Re: Thin Credit File - how to intelligently "improve" that?

@tnhomestead 

 

Unfortunately (for me), the two COs are with companies that will not budge (no expectation for them to do so, as the issue was 100% mine) so waiting for them to fall off my Credit Reports is the only option available (on this point).

 

I can be VERY patient.  I would just like to play by the rules and maximize things to my benefit (for a change, instead of doing "dumb" things).

 

Thanks, man!

Message 3 of 21
Rebuild2022
Super Contributor

Re: Thin Credit File - how to intelligently "improve" that?


@CreditNoviceRightNow wrote:

@tnhomestead 

 

Unfortunately (for me), the two COs are with companies that will not budge (no expectation for them to do so, as the issue was 100% mine) so waiting for them to fall off my Credit Reports is the only option available (on this point).

 

I can be VERY patient.  I would just like to play by the rules and maximize things to my benefit (for a change, instead of doing "dumb" things).

 

Thanks, man!


Paid CO's effect will reduce as the time passes by. Give it some time and your scores will recover.

Gardening since 08/2020
Message 4 of 21
FireMedic1
Super Contributor

Re: Thin Credit File - how to intelligently "improve" that?

Since you have 2 cards and no loans. You'll need 1 more card and a loan or SSL. If theres a way you can get into NFCU from any family member that served in the military. Thats where you can get the secured savings loan. Deposit over $3000 into a savings account and then get the SSL loan for a few bucks over 3g's. Once it reports. Then pay it down to less than 8% and it will push the date way out. Give Cap1 prequal a try and grab a Platinum card. Then you'll have the 3 revolvers and an installment loan and FICO likes that. I just paid off my SSL with NFCU because I got a new SUV. No need to have 2 loans reporting. Just having no loans until the new car loan hit. I lost 30+ points across the board. So you see theres ways to play the game. If you cant get into NFCU try a credit union. Good Luck!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery @ 540's.
Message 5 of 21
CreditNoviceRightNow
Established Member

Re: Thin Credit File - how to intelligently "improve" that?

Thank you!  Both are indeed paid off (and, to be clear, paid in full).  So time it is.....and I am okay with that.  I just wanted to make sure that I am - so to speak - not leaving any money on the table with this (due to ignorance.....).  Thank you again!

Message 6 of 21
CreditNoviceRightNow
Established Member

Re: Thin Credit File - how to intelligently "improve" that?

@FireMedic1 Thank you.  I am really trying to play this Credit Game correctly now.  I do have numerous family members who proudle served this great country so I do have an in with NFCU.  I will contact them sometime this week.  On the Credit Card, really wanted to wait until 2022 to get that third card but will jump on that (getting the third CC) this week.   Just hope I can get approved! LOL

 

Two questions - if I might bend your ear a bit (so-to-speak) - regarding the SSL (assume NFCU for these two questions):

 

1.  Open up a Savings account with NFCU and once those funds hit that Savings account then contact NFCU and initiate that SSL.  My questions here are - while the SSL is "active" I am assuming that the funds in the Savings account "are locked" (as that is the 'Security Deposit') correct?  Or, am I able to pay for the SSL using the funds in that Savings account?  Read: that first $2,760 payment that I make can indeed come from that Savings account?  Asking for a friend (ha! ha!).

 

2.  If my goal is to purchase a house in the next two years then I need to ensure that I pay off that SSL *BEFORE* I purchase the house.  And, since that whole game is using a different set of FICO Scores (FICO 2,4, and 5) are there different rules to this?  I want to say that Home Mortgage Lendors like to see very little to zero activity something like one year before the house purchase?  Any insight there?

 

Thanks, man!  And mad props to you for your profession (making an assumption there....).

Message 7 of 21
Horseshoez
Valued Contributor

Re: Thin Credit File - how to intelligently "improve" that?

@CreditNoviceRightNow, Here's the cool thing about the way SSLs work, you deposit say, $3,000 into a savings account, let it age for 30 days, and then open the SSL; the very next thing which happens is you get a check in the mail for $3,000 to do with what you choose.  As you pay the SSL down, at least with the PenFed SSL I'm using, the "Available Balance" of the security savings account rises, so that money can be used by you as well.

I categorically refuse to do AZEO!

Message 8 of 21
FireMedic1
Super Contributor

Re: Thin Credit File - how to intelligently "improve" that?

@CreditNoviceRightNow 

I used my grandfathers papers to get in. I went in with all my money from SunTrust. Opened a checking and savings account. Deposited all the money. I asked the CSR if she could use the same HP to join NFCU (which there will be)and applied for the Cash Rewards AMEX. Approved right then in the same visit. I came home and a week later I applied online for the SSL. No calls or anything needed. SSL was opened. It has to be over $3000 for 5 yrs I think it was or 3 I went for. Cant remember. I remember I took a $3100 SSL. But I paid it down to <8% a week later and it pushed the date to 2023? I paid $1 a month to show activity. So that may be a way to get the 3rd card too in 1visit. Keep us updated please. It could help others. Good Luck!!!!!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery @ 540's.
Message 9 of 21
Horseshoez
Valued Contributor

Re: Thin Credit File - how to intelligently "improve" that?

@FireMedic1, interesting on the HP to join NFCU, I've seriously considered joining, but so far I've been happy with PenFed (which only hits you with an SP to join; I didn't get an HP until I applied for a PenFed credit card).  The reason I'm considering joining NFCU is my son, a Navy veteran, is now banking exclusively with them and my daughter, all but engaged to a Navy veteran, will be moving her banking to NFCU once she gets married.  I'm thinking it might just make sense for all of us to have accounts with the same financial institution so pushing money to them (or back to Mom and Dad at some point).

I categorically refuse to do AZEO!

Message 10 of 21
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