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Specific help on what to purchase first with my scores

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New Member

Specific help on what to purchase first with my scores

I am in need of a car ( all credit scores listed at bottom ). But here are my issues/questions.

I also need to buy a new iphone. I can pay cash from my checking acct to buy the phone or I can apply for the apple credit card to purchase it.  I am not sure what to do there because I need another form of credit to increase my fico. I only have 1 secured credit card for $1000 through my Credit union. I usually put $100 on it a month, tho I messed up one month because I forgot to take it off Amazon 1click and my score dropped. That credit card gets automatically paid out of my savings account.  The thing is I also DESPERATELY need a car. I dont know if leasing a car for a year is a good move or if with my credit scores I even can. I thought of buying, but the car I wanted (HondaCRV) will get a new very much needed updated interior next year. Thus lease for a year? (I’m also considering a Mazda cx-5 for a lease/possible buy too)

So can someone who knows the ins and outs of all these fico scores, look at my scores and tell me the ways to do the right thing:

1) With my scores CAN I buy or lease a car?

2) Should I consider leasing a car for a year?

3) should I outright buy a new iphone or get an Apple credit card to buy a new iphone.

4) should I do this all within a week so it doesnt show as two hard credit pulls? (or will it since they both arent auto loans?)

4) Any advice on improving my fico faster? 

 

Heres my info:

   • Widowed, had to file Bankruptcy ch.7 discharged 7-18.

  • 1 secured credit card ($1000) since Jan 2020. Autopay thru my bank.

No other credit cards.

  • $2785 monthly income -(permanently for life thru VA Widows Benefits DIC)
  • Rent plus monthly expenses (food, credit card bill, etc.) average right around $1100.

• My scores:

Fico 8

EQ. 638  TR. 593  EX. 634

Fico 9

EQ. 696  TR. 699  EX. 716

Fico 5

EQ. 684

Fico 4

TR. 699

Fico 2

EX. 708 

***********

Auto 8

EQ. 650  TR. 614 EX. 677

Auto 9

EQ. 705 TR. 708 EX. 728

Auto 5

EQ. 682. EX. 696

Auto 5,4&2

TR. 707

***********

Bankcard 8

EQ. 636  TR. 568  EX. 659

Bankcard 9

EQ. 695 TR. 708 EX. 716

Bankcard 5

EQ. 695

Bankcard 4

TR. 689

Bankcard 2

EX. 644

Fico 3 (was told some credit cards use this score?)

Ex. 705

Fyi—

It should not be showing after a bankruptcy, but my fico report still shows my oldest credit card as 21 years old and green (as in active?). But it was discharged in the bankruptcy.

Fyi—

Also I did qualify for a $20,000 car (toyota) last year but after all the dickering and a hard pull on my credit I decided it wasnt the car for me. I’ve had 2 hard pulls on my credit in 2 years. 

Please help.  I need Real advice. I don’t  know what I should do or can do.

I do not want to go into a car lot and have them do a hard pull if I dont have to yet since I dont know if leasing or buying is a better move financially and credit wise.

Also is there any advice for getting my fico score increased faster. I dont have any relatives that can put me as a user on their cards. I’m just learning, what can I do best with the scores I have?  I have read a lot of online info here and other places but truthfully I’m so lost and confused and so not sure what applies to me.

Deepest appreciation for advice!!!! 

Thank You!

GirlluvsNFL

@ links to members 

Message 1 of 12
11 REPLIES 11
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Super Contributor

Re: Specific help on what to purchase first with my scores

You can probably get approved for a loan, but your terms (rate) won't be great IMO.  If the loan is a necessity it is what it is and you'll just have to deal with whatever rate you can get.  Your scores are sort of on the fence in my view, so one thing you do not want to do is apply for other credit prior to going for the auto loan.  If you need a phone as well, buy it in cash and do not apply for credit to obtain it.  Apping for credit prior to the auto loan would be a big mistake, as credit seeking on an already so-so profile is a really bad look.

Message 2 of 12
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New Member

Re: Specific help on what to purchase first with my scores

BrutalBodyShots -Thank you for replying!  

If I’m going to buy I just cant be stressed about the rates because I know my score are borderline depending on what score they use. (WHY are there so many?)

I can refinance it with through my credit union I think at 1% but that was a few months ago so I’m sure now. But definitely buy/leasing a car is a priority so thank you, I wont apply for credit until the car is a done deal. 

But based on my Autoscores, do you think financing is an option for me for a year? 

And what about after the car? 

Should I apply for credit right after the car or wait?

I know I need to get some credit cards.

I can get an unsecured one through my credit union in January. Should I go a head an get an Apple credit card? I need storecredit cards too. Maybe Amazon? 

Also I’ve  had lots of pre-qual offers but I’ve been throwing them away.

I did find these two: 

•First Premier Bank Platinum

$79 Annual/$$monthly fees 36% APR

Smiley Sadyuck

•Capital One American Express

0$ Annual  1% cash back 23.99% APR

 

Should I accept the Am ex just to add to my credit sources after getting the car? Or are there better places to get a card just for the sake of having credit.

Appreciate any advice!

Thank you. 

GirlluvsNFL

Message 3 of 12
Highlighted
Super Contributor

Re: Specific help on what to purchase first with my scores

Not sure what you mean by "needing" store credit cards.  Having those doesn't do anything better for your file above just having major bank cards.  If there's a store card out there that suits your spend and the rewards work for you by all means feel free to grab one, but don't get them just for the sake of having store cards on your report.

 

Don't apply for the card with the $79 AF; no need to pay for having a CC at your stage of the game.  I do not know what you mean by Capital One American Express; I think you mean Credit One American Express?  If that's the case, steer clear of that as well.  Credit One is a predatory lender that will also charge an AF.  Don't waste your time.

 

My suggestions for 2 starter cards are always Discover and Capital One (not Credit One).  Both of them are cool with newer files or files that are so-so.  Both would likely give you a chance.  You may start with low-limit approvals, but that's fine as far as getting your foot in the door and starting to build some history.  How long have you had the secured card through your bank?  If it's been 6-12 months, there's a chance you could have them convert it to an unsecured card depending on their policies.  I'd inquire about that if I were you. 

 

Also, what is the current [reported] balance on that card?  If it's over $89 or so you are definitely leaving some Fico points on the table and would want to bring it down to a low 2-digit balance (say $10-$20) right away and have that report prior to going for the auto loan.  Depending on what your reported balance is now on that $1000 limit, you could be leaving anything from a couple of Fico points to a significant amount of Fico points on the table.

 

Message 4 of 12
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Valued Contributor

Re: Specific help on what to purchase first with my scores


@GirlluvsNFL wrote:

  • 1 secured credit card ($1000) since Jan 2020.

If you can make it 65 days without having to get a car, you are very likely to see some score gains on January 1st, 2021. (Recent account aging to 1 year plus increase in overall revolving credit age.)

 

I don't know what it will look across all 28 FICO scores on what's called a 'dirty scorecard' (presence of BK), but I can't imagine you'll get nothing on the 8's and AUTO scores.

 

You'll probably also have an inquiry aging to 1yr in January (for that card) which will also help. It happens on the exact date rather than the 1st.

 

Definitely avoid seeking credit right now!

 

( @Birdman7 : Any idea what 1yr 0mo AoYA will do to 8/AUTO scores on a dirty scorecard? )

27 FICO Scores + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.

Keeper of the Scrolls of ResilienceEQ FICO Resilience Index Score Leaderboard

48 forum members have shared this new credit score. Share yours today!

Message 5 of 12
Highlighted
Super Contributor

Re: Specific help on what to purchase first with my scores

New accounts are not a factor on dirty cards so there is no new account penalty or new account award at 12 months.

With that said, there may be a 12 month award for AOYA/AoORA, which come from the Length of History category rather than the New Credit category.

With that said, a new card could cost aging and inquiry points but would give points for the second revolver.

It’s hard to say the net result whether it would be positive or negative. The conservative route would be to apply for the cards immediately after the car. But it is likely the addition of the second card would outweigh the change to average ages, considering the ages are so low they probably haven’t even crossed a threshold. I don’t know if it would outweigh the inquiry penalty which is higher in a dirty card, though.

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 6 of 12
Highlighted
Super Contributor

Re: Specific help on what to purchase first with my scores


@GirlluvsNFL wrote:

I am in need of a car ( all credit scores listed at bottom ). But here are my issues/questions.

I also need to buy a new iphone. I can pay cash from my checking acct to buy the phone or I can apply for the apple credit card to purchase it.  I am not sure what to do there because I need another form of credit to increase my fico. I only have 1 secured credit card for $1000 through my Credit union. I usually put $100 on it a month, tho I messed up one month because I forgot to take it off Amazon 1click and my score dropped. That credit card gets automatically paid out of my savings account.  The thing is I also DESPERATELY need a car. I dont know if leasing a car for a year is a good move or if with my credit scores I even can. I thought of buying, but the car I wanted (HondaCRV) will get a new very much needed updated interior next year. Thus lease for a year? (I’m also considering a Mazda cx-5 for a lease/possible buy too)

So can someone who knows the ins and outs of all these fico scores, look at my scores and tell me the ways to do the right thing:

1) With my scores CAN I buy or lease a car?

2) Should I consider leasing a car for a year?

3) should I outright buy a new iphone or get an Apple credit card to buy a new iphone.

4) should I do this all within a week so it doesnt show as two hard credit pulls? (or will it since they both arent auto loans?)

4) Any advice on improving my fico faster? 

 

Heres my info:

   • Widowed, had to file Bankruptcy ch.7 discharged 7-18.

  • 1 secured credit card ($1000) since Jan 2020. Autopay thru my bank.

No other credit cards.

  • $2785 monthly income -(permanently for life thru VA Widows Benefits DIC)
  • Rent plus monthly expenses (food, credit card bill, etc.) average right around $1100.

• My scores:

Fico 8

EQ. 638  TR. 593  EX. 634

Fico 9

EQ. 696  TR. 699  EX. 716

Fico 5

EQ. 684

Fico 4

TR. 699

Fico 2

EX. 708 

***********

Auto 8

EQ. 650  TR. 614 EX. 677

Auto 9

EQ. 705 TR. 708 EX. 728

Auto 5

EQ. 682. EX. 696

Auto 5,4&2

TR. 707

***********

Bankcard 8

EQ. 636  TR. 568  EX. 659

Bankcard 9

EQ. 695 TR. 708 EX. 716

Bankcard 5

EQ. 695

Bankcard 4

TR. 689

Bankcard 2

EX. 644

Fico 3 (was told some credit cards use this score?)

Ex. 705

Fyi—

It should not be showing after a bankruptcy, but my fico report still shows my oldest credit card as 21 years old and green (as in active?). But it was discharged in the bankruptcy.

Fyi—

Also I did qualify for a $20,000 car (toyota) last year but after all the dickering and a hard pull on my credit I decided it wasnt the car for me. I’ve had 2 hard pulls on my credit in 2 years. 

Please help.  I need Real advice. I don’t  know what I should do or can do.

I do not want to go into a car lot and have them do a hard pull if I dont have to yet since I dont know if leasing or buying is a better move financially and credit wise.

Also is there any advice for getting my fico score increased faster. I dont have any relatives that can put me as a user on their cards. I’m just learning, what can I do best with the scores I have?  I have read a lot of online info here and other places but truthfully I’m so lost and confused and so not sure what applies to me.

Deepest appreciation for advice!!!! 

Thank You!

GirlluvsNFL

@ links to members 


IMHO you need to just tough it out for a while without borrowing or leasing.

 

I'm glad to hear that you have a credit union relationship and can get an unsecured card in January. Either that, or a car loan from the credit union, should be your next credit application.


Total revolving limits 653000 (575000 reporting)

Message 7 of 12
Highlighted
New Member

Re: Specific help on what to purchase first with my scores

Thank you! All of you have good advice!

By the way it was a Credit One Am Ex. So I will look into Capital One and Discovery. 

But now I am confused though about getting 2 other credit cards.

Because I’d read about the AZEO method of increasing your score faster. And it takes 3 cards to do it, that is the only reason why I thought I needed 2 more cards. I only want them if it really will help my fico. And if I got 2 cards they would have small balances, all paid off except one. My credit union auto pays off my balance on my secured card of course. 

But I thought I was supposed to keep the monthly charge at $100! One that $1000 secured card! Yikes! And then a month or so ago my score dropped because I forgot it was connected to my 1-click Amazon and I spent $700. But before and after I’ve kept it at $100 🙁 but my score went back up a few points since. I will definitely keep in under $80 from now on. 

 

My Credit Union did tell me to apply for an unsecured card with them in Jan. So I plan to do that. 

As to the car: 

The suggestion to wait until Dec or Jan...

Thats hard because I’m freaked because my whole town burnt down in Sept. and we had to evacuate immediately! And the ONLY reason I survived is because I had borrowed my friends car the day before.  So the anxiety & ptsd from that makes me super anxious to have a get-away car.

Also do you know if leasing a better option than buying?  I was told (by a honda car salesman, right) that leasing shows the small balance on your credit for the month, not the full price as if I were buying a car, so the debt ratio is smaller if I lease? Does anyone know if that sound right? 

Thank you all again! I so appreciate your advice. 

GirlluvsNFL

Message 8 of 12
Highlighted
New Member

Re: Specific help on what to purchase first with my scores

CassieCard I have a question about the length of years  aged credit card.  My Barclay card shows Ive had it for 21 years. And it shows green payments last made 9/2020. Which isn’t possible because that card was discharged in the bankruptcy, but was 19 or 20 years old. So am I getting well-aged credit still since they are still reporting it?  My BK  was discharged 7-18. Should I do anything about it or is it helping me at all.

thank you!

GirlluvsNFL.  

Message 9 of 12
Highlighted
Super Contributor

Re: Specific help on what to purchase first with my scores


@GirlluvsNFL wrote:

Thank you! All of you have good advice!

By the way it was a Credit One Am Ex. So I will look into Capital One and Discovery. 

But now I am confused though about getting 2 other credit cards.

Because I’d read about the AZEO method of increasing your score faster. And it takes 3 cards to do it, that is the only reason why I thought I needed 2 more cards. I only want them if it really will help my fico. And if I got 2 cards they would have small balances, all paid off except one. My credit union auto pays off my balance on my secured card of course. 

But I thought I was supposed to keep the monthly charge at $100! One that $1000 secured card! Yikes! And then a month or so ago my score dropped because I forgot it was connected to my 1-click Amazon and I spent $700. But before and after I’ve kept it at $100 🙁 but my score went back up a few points since. I will definitely keep in under $80 from now on. 

 

My Credit Union did tell me to apply for an unsecured card with them in Jan. So I plan to do that. 

As to the car: 

The suggestion to wait until Dec or Jan...

Thats hard because I’m freaked because my whole town burnt down in Sept. and we had to evacuate immediately! And the ONLY reason I survived is because I had borrowed my friends car the day before.  So the anxiety & ptsd from that makes me super anxious to have a get-away car.

Also do you know if leasing a better option than buying?  I was told (by a honda car salesman, right) that leasing shows the small balance on your credit for the month, not the full price as if I were buying a car, so the debt ratio is smaller if I lease? Does anyone know if that sound right? 

Thank you all again! I so appreciate your advice. 

GirlluvsNFL


@GirlluvsNFL you can do AZEO with any number of cards; however, the more you have, the more effective it is because of the smaller ratio or percentage of revolvers with a balance, understand?


I have 21 revolvers, 22 accounts overall. I had 2 revolvers with a balance. When I went down to one with a balance, all variants of version 2 Experian gave me 4 points; Experian version 3 gave me 2 points; version 8 laughed. I haven't pulled the other two bureaus yet, so I don't know the effect there yet.

 

in addition to that, for your first 3 cards, you are definitely awarded points, as the too few bank card reason code disappears.

 

I'm not saying you need 20 revolvers, but 3 to 5 is my recommendation for scoring purposes and diversity purposes. once you have those and you need age without new accounts or inquiries and your score will increase overtime. Yes, you can have great scores with one card, but you will get higher scores more quickly with 3-5 cards.

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 10 of 12
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