Adding a Card = +70 points to FIC0 -- CC Recommendations?

[Anonymous]

@SouthJamaica

Considering I don't have any bank credit cards, only a kohls department store one, would you still recommend I open up a credit card soon anyway to vary my credit? 70 points actually does sound to good to be true, even from someone just starting to research credit, but is getting a CC more likely or less likely to improve my situation now or in the future.

I'm sure "it depends". I might just have to take a chance - risk 5 points hard inquiry to gain, hopefully, 20 points (this will bring my FICO score to "good").

[NRB525]

Welcome to the forums. You are getting good advice here, but there is a lot of terminology that we use, it seems that is part of your learning curve. 

The 120-day and 30-day lates, are baddies. Getting these removed ( as noted a project by itself ) is the way to improve your scores. 

Capital One is an excellent place to start. They might want to get you a secured card, but for many members here, it was the first rung on their credit rebuild. You will see a lot of disappointment from some members when Capital One “fails to grow with me” but it is a good start. 

Do not confuse Capital One ( good ) with Credit One ( high fees ). Credit One has a place, and many other members got their start with Credit One, fees and all. Sometimes you have to pay for access to credit, and Credit One is not a bad option for a time. Pay to play, get credit history. 

If you have not made your investment property purchase yet, it might be good to go sit down with a lender, tell them the outline ( including lates ) of your credit situation and ask if it seems likely you can refi later. Advice on MyFICO is well meaning, but we will never be able to approve your credit card app, nor refinance your property. 

[SouthJamaica]

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@Anonymous wrote:

@SouthJamaica

Considering I don't have any bank credit cards, only a kohls department store one, would you still recommend I open up a credit card soon anyway to vary my credit? 70 points actually does sound to good to be true, even from someone just starting to research credit, but is getting a CC more likely or less likely to improve my situation now or in the future.

I'm sure "it depends". I might just have to take a chance - risk 5 points hard inquiry to gain, hopefully, 20 points (this will bring my FICO score to "good").

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I don't think getting a credit card will help your credit scores significantly in the short run but in the long run having a bank or credit card probably will.

I suggest a credit union because:

(a) it's the best place to get good terms on all of your other credit needs and

(b) by getting a credit union platinum card you can get a credit card with no annual fee, no balance transfer fees, no cash advance fees, and modest interest rates on everything (examples: Unify FCU, PenFed, NFCU, Langley, Vantage West).... that will be much more useful and versatile for you than a card which is good for nothing except buying stuff

[Anonymous]

@NRB525

Thanks for the welcome. 

On Monday, first thing I'm going to do is called the loan provider. I looked closer and its showing 3 (90 days) and 7 (120 days) lates! This is good, while clearly a major problem! I'm confident there is actually a mistake. I will call my university on Monday, have them print out a proove enrollment for each semester and then cross reference with the lates. I'd hedge my bets that the lates will coincide with the deferments. Hopefully, this can be cleared up easily.

Unless, all deferred payments show up as lates? If this is normal there may be no other course than to wait until they expire. 

If you have not made your investment property purchase yet, it might be good to go sit down with a lender, tell them the outline ( including lates ) of your credit situation and ask if it seems likely you can refi later. Advice on MyFICO is well meaning, but we will never be able to approve your credit card app, nor refinance your property.

I haven't yet. I'm still in the early stages of setting up my business. I have my website done and I'm building my team now, while I work on getting my financing in 'order', as best it can be now, and certainly for the future. Which financing method I use is contigent upon my investment exit strategy. Luckily, there are many creative ways to finance and structure deals without banks. Some strategies I'd like to use soon though would require refinancing within 12-18 months. If I can do this myself. That would be ideal. If I can't refinance, it will cost me 20-25% partnership in an LLC (the minimum a bank requires to approve partnership). Of course, I could sell this share at a discount rate of 15%, but should be avoided if necessary, of course.

The more I read on the subject however, the more I'm thinking it might not be too big an obstacle. If there is a lot of equity going into the deal one day 1, atleast 30%, and it is producing cash flow with a tenant buyer who themselves are in the process of qualifying for a mortgage, atleast some banks will refinance on strength of the deal itself, possibly overlooking any credit or income disparities. -- Possibly is the operating word. If anyone is confident this is not true, please correct me.

Thanks for taking the time to respond. I appreciate your kind attention and excellent advice about speaking with my bank about my situation. I think I will do just that!

Cheers

[Anonymous]

@SouthJamaica

Very interesting suggestion. I'll probably stop by all of the local credit unions. For real estate investing, their loans are highly valued.

Is this an example of what you mean when you say other forms of credit, aside from buying everyday items?

[HeavenOhio]

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@NRB525 wrote:

Do not confuse Capital One ( good ) with Credit One ( high fees ). Credit One has a place, and many other members got their start with Credit One, fees and all. Sometimes you have to pay for access to credit, and Credit One is not a bad option for a time. Pay to play, get credit history.

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I think you nailed it. I think @Anonymous is confusing Capital One with Credit One. The situation she's describing is exactly what people run into with Credit One. Capital One falls into the category of "normal" banks that don't set up traps like Credit One does.

OP, if your baddies don't get in the way, I think the three-year history on your Kohl's card should set you up nicely for an unsecured no-fee major card from a non-predatory bank. It may be a starter card with a low limit, but that's OK. Use the card appropriately (pay in full), and other opportunities will come your way as the months go on.

But definitely talk to your lender first. Card applications can come after the situation at hand is settled.

[Anonymous]

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@Anonymous wrote:

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?

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     That's not your actual score, it's a scoring simulator which is not accurate ...

[Anonymous]

Update: 

I called my university to confirm dates of enrollment, cross referenced these dates with the late notices. 9 Overlap with enrollement periods where payments should have been deferred! Payments can be deffered 6 months after the last date of enrollment. This fall within this time zone.

I am surprise that instead of a single 120 day late notice, it holds a 60 and 90 day late notices. I guess they aren't consolidated?

I callled them and they requested I send them an email 

June 4, 2018

Conduent (Formerly ACS)
 
Account Number : *********

Me, my adress

Dear Conduent,

This letter is in regard to my previous account with your former company ACS, before it was transferred to ReliaMax around the start of 2017. The account, regrettably, went overdue numerous times. Some of the dates however coincide with dates I was enrolled in college and I believe they should have been deferred for at least 6 months past the last date of enrollment.

In particular, I received late reports for the months of May, June, and July of the year 2012. I believe these months should have been covered in my deferment period. January 8, 2012 is the final day of the 2011 Fall Semester, in which I attended your University.

University Address and Telephone Number

They will be happy to verify the semesters I was enrolled upon request.

Furthermore, I was hoping I can also get the previous late notices excused, taking into consideration I was not employed on these dates.

I understand you guys must be busy and your time is valuable. I appreciate any assistance you can offer in this regard. Please help me adjust, in goodwill, these negative marks on my credit as much as you possibly can.

I believe an adjustment on my credit report will greatly help facilitate a new start in my life with my new real estate investing business. I will be immeasurably grateful. If ever a client inquires about a good  lender, I will remember your good service.

Please feel free to contact me at xxxx  if you would like further information.

Sincerely,

If ever someone needs a template to a student loan for good will adjustments on their credit reports, maybe it will help. 

I'm hopeful while planning for any eventualities.

Kohls - I called them up, they could not look up any history past a year! I was able to get a late fee reversed and credited to my account however. Instead, I need to call Capital One to discuss the matter. They are the creditors for Kohl's Cards.

This will have to wait until I get replacement in the mail. They need the number on the card, apparently. Giving them a SSN wouldn't even allow me access...

Anywho, one step at a time ..

[SouthJamaica]

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@Anonymous wrote:

@SouthJamaica

Very interesting suggestion. I'll probably stop by all of the local credit unions. For real estate investing, their loans are highly valued.

Is this an example of what you mean when you say other forms of credit, aside from buying everyday items?

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You indicated you had other credit needs, such as refinancing your student loans and a real estate investment. A good credit union is better for that type of borrowing, too.

[Anonymous]

@Anonymous

I edited your post to remove the name of your University and your first name.  It's important for privacy reasons to minimize as much personal information as possible.