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Any Thoughts????


argento05
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I was talking to a friend who has been a mortgage broker for several years and we were discussing my situation. He is very knowledgable and has helped many clients qualify for loans.

I told him that in preparation for qualifying I was clearing up some OLD credit items.

Here are the highlights of what we talked about.

1. Avoid Cap One like the plague because they are dishonest about how they report and they are VERY unfriendly to consumers. THEY ARE NOT YOUR FRIEND!

2. Don't worry about trying to clear items off that are older than 24-36 months because the banks don't consider those as much as the more recent items (0-24 Months). Even if you get them removed that probably wouldn't change your score.

3. Make sure that the last 24 months are perfect.

4. A high credit score 750+ does not equal automatic loan qualification. It's the quality of the credit that counts (i.e. 2 good quality credit cards, a good store account, an installment loan, secured loan, etc.) and the duration.

5. 35% outstanding balance to high credit limit ratio seems to bee the sweet spot.

Has anyone heard anything like this? If true, I may rethink my strategy for restoration.

TIA

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Yes, it is true!

There are also other factors that way in: length of job, savings/checking account, and your debt ratio.

If you do have any unpaid charge offs, the lender will require you to pay them off before getting a mortgage.

I would still try getting any negative remarks removed, because they may not weight that much now if older, but they certainly don't help you either!

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Cap 1 does have good points if you have their prime CC. The BT rates on mine will not change with just one late or with an overlimit. And lucky for me because I made a BT to mine by mistake and went over by $70. My BT-for-life of 3.99% was not touched.

Also, it's not that hard to get around the fact that they don't report the card's credit limit to the CRA's -- as long as you know how the game works.

But to the uninitiated, or if you get one of their subprime cards, Cap 1 can be the devil.

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Well, I certainly have to agree with #1!!

Crap one is the CC from Hell xxHellxx, and I believe I've actually spoken to Satan once when I had to call their customer service dept!!

:roflmao:

BTW what are some of Crap1s prime cards??

I want to know so that I never make the mistake and get anything that is even remotely associated with them.

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Thanks Direred!

Please excuse my ignorance but whats the effect/benefit of reporting "high credit" but not "limit" or vice versa?

FICO substitutes your highest balance when furnishers don't report a credit limit. Max out your Capital One credit card and then pay it off the next month and you will be fine.

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FICO substitutes your highest balance when furnishers don't report a credit limit. Max out your Capital One credit card and then pay it off the next month and you will be fine.

Thanks sr28b! Much appreciated!

7:06PM CST - GOOD NEWS...I hope! Just got a call from Capital One (never got a call before when applyin for a CC always got a declination letter) asking to verify income. Said I should have an answer within 7 to 10 days if I am approved.

Keep your fingers crossed please!!! May not be the best card but in my eyes at least its a start!

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