@Pipeguy
one bank card will not be "financial planning" all rolled into one
Okay. So, going to my local credit union bank and asking for a credit card will not help in the least if I want to come back to them and ask for a refinance out of a hard money loan, this right?
The Kohls store card is a credit card, it's not a "bank card" but its a start.
Yes, are all credit cards bank cards then? Do local banks have credit cards?
The best or at least easiest multi-use cards to get, staying away from the sub-prime actors (CreditOne, First Premier, et al) are Capital One and Discover - both offer secured versions if you don't qualify for the unsecured cards.
Should I try to get the highest line of credit I can?
You are starting from scratch so you need to look forward a year or two in establishing credit - note that I doubt you'll see a 70 point bump right away by just opening one or two basic cards.
I have about 11 years of credit history, student loans going back 11 years, so I assume you mean I need to build up credit history for the credit cards, this right?
Your recorded lates (derogs) are not going to help you and they don't just disappear by asking for them to be removed. The late on Kohls is one thing to work on, the 3X student loan lates are a whole different project. Each of these issues needs to be addressed and I doubt you are going to get major investment loans - mortgage or otherwise, with 4 derogs and no real credit history.
If that is true, I can do a partnership in the LLC and have someone with solid credit with my on title to get approved for refinancing, but I need to avoid this if necessary. I will already have the assett acquired with a hard money loan with a tenant renting it out, accruing cash flow rent payments. I'm hoping refinancing out of a property I already own title too might be easier than getting the major mortgage loan to begin with (in fact, I probably won't even try but go directly with an easier to get but higher interest hard money loan or unrecursive loan).
The Student Loan Derogs, I'm hoping are actually a mix up when I was deferring payments for a few semesters when I went to school. If so, and they remove them, I assume my credit will improve, correct? It occured in 2012, worst case, would it clear up sometime next year in 2019?
You can build a relationship with a lender of years where the bank/credit union may favor your credit business but this is a slow process and you are at the very beginning of establishing credit - while you have not provided that many details, it looks like you have experienced a "default" of sorts on 100% of your credit extensions, that being Kohls and your Student loans - something (late payments) that must be avoided at all costs.
I'd be happy to share any other details. Please, let me know which ones might help paint a clearer picture 
I will do the best as I can to improve credit and bank relations, one step at a time.
May I ask you to explain wat you mean by default of sorts on 100% my credit extensions? I did max at the kohls card recently, 314 dollars, but not sure how this is related to the student loans.
I know you are looking forward but you have a lot of work to do, step by step address your current issues and then go after your future financial investment aspirations. As far as establishing a bank card or two, Capital One and/or Discover would be my suggestion, and the secured version if that is all you can get at this point. Good luck!
Thanks so much, I appreciate your help and support. I will look into discover, might stay away from capital one because I heard its easy to get 30 day late notices due to how they report the credits amounts.
Cheers.
@Anonymous wrote:
one bank card will not be "financial planning" all rolled into one
Okay. So, going to my local credit union bank and asking for a credit card will not help in the least if I want to come back to them and ask for a refinance out of a hard money loan, this right?
Establishing a relationship with a credit union, be that a deposit account or a credit card if they approve you helps create a track record so yes it will help, and if they issue you a credit card that will help your over all credit profile - if you honor the terms of the agreement meaning never miss a payment always pay on time, and pay more than the minimum required without using too much of your credit limit. Having a credit card with any lender is not in as of itsself going to get you a mortgage.
The Kohls store card is a credit card, it's not a "bank card" but its a start.
Yes, are all credit cards bank cards then? Do local banks have credit cards?
A "bank card" is a MasterCard, a Visa, an American Express and/or a Discover which can be used in just about any purchase situation. A store card is limited to that store, such as Kohl's can ONLY be used at Kohl's. A co-branded bank card is say Amazon Visa by Chase or a Costco Visa by Citibank or an "Old Navy Visa" which can be used outside of just Old Navy.
The best or at least easiest multi-use cards to get, staying away from the sub-prime actors (CreditOne, First Premier, et al) are Capital One and Discover - both offer secured versions if you don't qualify for the unsecured cards.
Should I try to get the highest line of credit I can?
You can "try" but if someone issues you your first bank card expect a low limit typically $300 to $500. Secured card limits are generally dependant on the amount of your secutity deposit - you'll get a higher limit if you put $1000+ as the security deposit than if you put $200.
You are starting from scratch so you need to look forward a year or two in establishing credit - note that I doubt you'll see a 70 point bump right away by just opening one or two basic cards.
I have about 11 years of credit history, student loans going back 11 years, so I assume you mean I need to build up credit history for the credit cards, this right?
A "whole" credit report includes 3+ credit cards with more weight going to bank cards, plus at least one installment loan (auto loan, furniture loan, etc) and if possible a mortgage. Student loan kind of fall in the installment area, but with 4 late payments on those that's not going to help. If the lates are in error, you need to address that.
Your recorded lates (derogs) are not going to help you and they don't just disappear by asking for them to be removed. The late on Kohls is one thing to work on, the 3X student loan lates are a whole different project. Each of these issues needs to be addressed and I doubt you are going to get major investment loans - mortgage or otherwise, with 4 derogs and no real credit history.
If that is true, I can do a partnership in the LLC and have someone with solid credit with my on title to get approved for refinancing, but I need to avoid this if necessary. I will already have the assett acquired with a hard money loan with a tenant renting it out, accruing cash flow rent payments. I'm hoping refinancing out of a property I already own title too might be easier than getting the major mortgage loan to begin with (in fact, I probably won't even try but go directly with an easier to get but higher interest hard money loan or unrecursive loan).
Business credit issue which many mix up with their personal credit. If you have a good amount of equity in a business asset, especially real estate that gives you options because the lender is protected, but this can be complex and I'm not going to advise you on business credit.
The Student Loan Derogs, I'm hoping are actually a mix up when I was deferring payments for a few semesters when I went to school. If so, and they remove them, I assume my credit will improve, correct? It occured in 2012, worst case, would it clear up sometime next year in 2019?
Perhaps they will fall off 7+ years from their occurance, unless they are being reported as continued late, then its not going to drop off until you either correct the "error" of pay them off.
You can build a relationship with a lender of years where the bank/credit union may favor your credit business but this is a slow process and you are at the very beginning of establishing credit - while you have not provided that many details, it looks like you have experienced a "default" of sorts on 100% of your credit extensions, that being Kohls and your Student loans - something (late payments) that must be avoided at all costs.
I'd be happy to share any other details. Please, let me know which ones might help paint a clearer picture
May I ask you to explain wat you mean by default of sorts on 100% my credit extensions? I did max at the kohls card recently, 314 dollars, but not sure how this is related to the student loans.
You said you have a Kohl's card with a recorded late payment (default aka derogatory mark, I didn't mean it went into collection), you also said you have student loans with 4 "derogs" and NO other credit which means you have derogatory marks (aka agreement default occurance) on both of your accounts.
I know you are looking forward but you have a lot of work to do, step by step address your current issues and then go after your future financial investment aspirations. As far as establishing a bank card or two, Capital One and/or Discover would be my suggestion, and the secured version if that is all you can get at this point. Good luck!
Thanks so much, I appreciate your help and support. I will look into discover, might stay away from capital one because I heard its easy to get 30 day late notices due to how they report the credits amounts.
No lender can report to the credit reporting agencies a "late" unless a payment is late, meaning 30 days past due, I don't have any allegence to Capital One but they are no different than any other lender for credit history reporting. If your statement payment date is June 5th and you miss that payment, you'll have until you next statement to pay it (before the july payment date) with a missed payment $$ penalty and possible a "default" APR increase, but it won't be reported to the CRA's until it's 30 days late.
Cheers.
https://www.imageupload.co.uk/image/EGu7
Tell that to myfico Can you tell me why this is true and how many points would be normal?
@Anonymous wrote:https://www.imageupload.co.uk/image/EGu7
Tell that to myfico
Moving thread to 'Understanding FICO Scoring' to get you more feedback on your FICO question...
@Anonymous wrote:I have a 648 Score. Adding a CC will potentially add 70 points to my FICO, bringing it to 718 (Fico 8). I don't have any regular CC except Kohl's Department Card which I opened in 2015 with one 30 late noticed (I'll call them to remove this).
I have 4 private student loans, 70k owed, Weighted average 7.8% Interest. I need to refinance this but hesitant as it might lower my mortgage score - My priority is to refinance on an investment property soon (getting out of a hard money loan at 12% within a year.
I have 3 120 late notices in 2012 on loan on a loan provider CES, who hence sold to my current one Reliamax. This might be a mixup with deferment. As I was attending, it should have been deferred.
That's my situation in highlight. Based on the above, which credit card should I try to get? Any? I don't want whatever company to damage my score with bad management practices. I've hear Capital One does this.
A CC that could somehow help me get refinance on a previous loan through a local credit union bank would be ideal if such a thing exist. Should I actually get a card from one of the prospective banks I'm considering to get a refinanced loan from?
1. Adding a card will not add 70 points to your score. It may not add any points to your score. Simulators are not reliable.
2. In my opinion you should join a credit union and try to get a platinum Visa or Mastercard from the credit union.
