Help with Credit Plan

[wbg]

Hey guys,

I am looking for help in developing a credit plan. I just pulled my reports and have EX 659, EQ 665, and TU 679. I only have 3 open TLs at the moment and all closed accounts are in good standing with no negatives. The open TLs include:

Student Loan $35.000, balance no negatives, payments start this month

Banana Republic CC $300 CL, $120 balance no negatives, Open since July of last year

Crap 1 CC $5575 CL, $3781 balance with one 120 late, Open since 2000

I am pretty sure that my credit utilization on the Crap 1 card is really hurting my score. That 120 doesn’t help either, but I should have this balance paid down in about 6 months. I should expect to see my score climb then shouldn’t I?

I will also be looking at taking out an auto loan within the next few months.

My question is what I should do in the meantime? I have alreadly thought about calling up Banana republic and asking for a CLI. Other than that, should I be trying to get subprime cards now and start builing a history with them or should I wait until I am sure I can get the Prime cards.

Thanks for the help!

Wayne

[Ahntara]

Ask for that CL increase from BR and pay both revolving accounts down. Don't open anything else until you get your car loan. Good luck!

[LNY]

I'm willing to bet that Crap 1 is tanking your score on both levels. I remember from another post that you said you're showing as 126% utilization. That will make it very hard to get other unsecured cards. Good old Crap One. But you could try Orchard.

Pay Banana Republic down to zero, then ask for for a CLI. You might not get it, but you will help your utilization a tad.

Your student loan shouldn't even be reporting yet. In the meantime, if you can get your hands on an extra $500-$1000, open up a savings account or buy a CD and take out a personal loan secured on it. That will report monthly as a positive tradeline. Get that going soon if you can. (I've given this advice before, so apologies to everyone.) Anyway, they'll often knock .25% off the interest rate for having the payments taken directly out of your checking account. And make sure you ask if they report to all three CRAs first!!

[wbg]

Thanks for the great replies.

Crap 1 is holding me back and I think I will just wait until that is payed down until I try for another card. I will go ahead and pay off the balance on the Banana republic card since it's not that much and then ask for the CLI.

I like the idea of taking out a secured loan against a savings account. I will do that very soon. I am suprised to learn that they discount .25% just for taking it directly out of a checking account. I have a pretty good relationship with the loan officer at my bank. They didn't report to EX, but they reported to EQ and TU. I am sure I can get him to report to EX. There isn't much involved is there?

Oh by the way, My student loans have been deferred until just now. I graduated back in May so now its time to pay up Once again thanks for all the help! I will keep ya posted on what happens in the next few months.

Wayne

[LNY]

So you have some money in savings already? Good!! Take some of that money and buy a CD with it, one that matches the life of the loan. If you have, say $2000... take out a 3-yr CD and a 3-yr loan. Secure the loan on the CD. This way at the end of the 3 years, you not only have 3 years of good reporting (and your two grand back!), but you're earning interest on the CD that will effectively cut your loan interest in half. Then take the $2000 loan money and pay down Crap One!!!