SecretAgentWoman Posted March 10, 2007 Report Share Posted March 10, 2007 I'm debating whether to up my limit on my current secured card with more deposit money or to open up a different account with another bank.Which would be better for my score? Link to comment Share on other sites More sharing options...
IHateCAs Posted March 10, 2007 Report Share Posted March 10, 2007 The former IMO.Especially in your situation since the already existing account will have more age than a new card (which leads to a new INQ).UT% matters per TL and overall. A $500 balance on a $2k card is only 25% util. A $500 balance on a $1000 card is 50% util (on that specific card). Link to comment Share on other sites More sharing options...
willingtocope Posted March 10, 2007 Report Share Posted March 10, 2007 Multiple CC's with $1000 limits don't help much at all. Secured CC's with any limit doesn't help much at all. I'm guessing neither approach would get you more than 10 points or so...Note: Secured cards put you in the "screwed up, trying to dig out" category or "new to credit, future unknown" category...new things in the mix will just cause small movements. Subprime lenders will probably throw credit at you, but your scores won't change much. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted March 10, 2007 Author Report Share Posted March 10, 2007 How does the FICO system know it's secured when it's not reported as such?I mean, I know a human eye can look at "Orchard" and smirk knowingly, but a computer algorithm? Link to comment Share on other sites More sharing options...
willingtocope Posted March 10, 2007 Report Share Posted March 10, 2007 If I were writing the system, I'd use the account number to determine which bank authorized it...and factor it into the equation accordingly. But...I'm sure the actual CR records have a little flag in them somewhere that says "secured" even if we can't see it. Link to comment Share on other sites More sharing options...
rm2738 Posted March 11, 2007 Report Share Posted March 11, 2007 If I were writing the system, I'd use the account number to determine which bank authorized it...and factor it into the equation accordingly. But...I'm sure the actual CR records have a little flag in them somewhere that says "secured" even if we can't see it.That's a thought, but in the "Terms and Condition" of most secured cards, it states whether or not it will be reported as a "Secured Card." and since secured cards are offered by the same bank that also offers unsecured cards, why would knowing the account number or bank from which it is issued make a difference? Secretagentwoman... if you can keep the UT% low, then I would think that having 2 TL's with good history will help you out a little more over over the next few months. And I wouldn't worry about the inquiry, I applied for 2 different secured cards and neither of the company's inquired for my CR. Link to comment Share on other sites More sharing options...
Recovering Attorney Posted March 11, 2007 Report Share Posted March 11, 2007 either. with no balance. Link to comment Share on other sites More sharing options...
Ahntara Posted March 12, 2007 Report Share Posted March 12, 2007 "either. ith no balance."I disagree with this. The information we have shows that a zero balance actually causes a slight deduction. Zero balances provide no data for the scoring software (in the utilization category).The optimal mix is to have between 2 and 4 revolving accounts, nicely aged with the balances between (at least) 1% and 9% of the highest credit limit reported. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted March 12, 2007 Author Report Share Posted March 12, 2007 So, 2 cards with a $1k limit, both being used to the tune of about $100 per month (and fully paid off)...better than one card with a $2k limit being used to the tune of $200 a month (also fully paid off)? Link to comment Share on other sites More sharing options...
rm2738 Posted March 12, 2007 Report Share Posted March 12, 2007 So, 2 cards with a $1k limit, both being used to the tune of about $100 per month (and fully paid off)...better than one card with a $2k limit being used to the tune of $200 a month (also fully paid off)?That would be my way of thinking. If you wouldn't mind waiting, In about 30-45 days I will have my 2nd secured card that should be reported. I'll post the results. I know my first one increased my score drastically the day it was reported. I know a 2nd one prolly won't increase it as much, because they are both so new, but we shall see. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted March 12, 2007 Author Report Share Posted March 12, 2007 Thanks, I may experiment myself. I still have 10 months at least before I will be shopping for mortgages. Link to comment Share on other sites More sharing options...
willingtocope Posted March 12, 2007 Report Share Posted March 12, 2007 Folks, one of the things we need to agree on here is...what score are we talking about?We need to start with the understanding that what we can see is NOT what the creditors can see...and furthermore, not all kinds of creditors see the same score. And, just to confuse things even further...each credit bureau reports on a slightly different model...and each bureau receives "new" data on a differeing schedule.So, therefore, if we're going to obesses about "scores"...can we qualify this a bit? How about...the only scores that mean anything in this kind of discussion are FICO...and only after at least 2 months worth of reporting?It would be nice if we were at least compariing apples and oranges instead of baseballs and grizzly bears... Link to comment Share on other sites More sharing options...
June Posted March 12, 2007 Report Share Posted March 12, 2007 I read/heard that the scores we see are estimates. There are different scores too, such as Mortgage and Insurance Scores that we never see, unless we apply for a Mortgage or Auto Insurance.Although the scores we see are not true and accurate, the "least sophisticated" consumer may enjoy seeing some numbers. lol. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted March 12, 2007 Author Report Share Posted March 12, 2007 Ok, in my case the only thing that matters is:How will my FICO score and overall credit file look to the guy reviewing me for a mortgage in a year? And, how does the number of open, revolving accounts effect this bottom line? Link to comment Share on other sites More sharing options...
rm2738 Posted March 12, 2007 Report Share Posted March 12, 2007 Ok, in my case the only thing that matters is:How will my FICO score and overall credit file look to the guy reviewing me for a mortgage in a year? And, how does the number of open, revolving accounts effect this bottom line?In that case.... If you're just trying to buy a house I would do 2 cards, 1000 each and keep utilization low. Keep in mind that when you do finally decide to get your house, a lot of times mortgage companys will want you to close any revolving accounts. I don't think they want you to have any "Open Credit." I know when I bought my house, I was going to have my Fiance' as a co-signer on the loan and they told her to close her 2 credit cards. One from HSBC and the other was a best buy credit card. Link to comment Share on other sites More sharing options...
June Posted March 12, 2007 Report Share Posted March 12, 2007 I wonder if there is a way for a person to find out their true Mortgage Credit Score, without actually applying for a mortgage loan. This is interesting!We know our regular FICO scores before applying for credit cards. Why shouldn't we know our Mortgage Credit Scores before applying for a mortgage loan? It makes sense to me, unless I'm missing something. Link to comment Share on other sites More sharing options...
willingtocope Posted March 12, 2007 Report Share Posted March 12, 2007 I wonder if there is a way for a person to find out their true Mortgage Credit Score, without actually applying for a mortgage loan. This is interesting!We know our regular FICO scores before applying for credit cards. Why shouldn't we know our Mortgage Credit Scores before applying for a mortgage loan? It makes sense to me, unless I'm missing something.See that's the problem...only someone who has paid the fee to be a "mortgage score getter" can see the mortgage FICO score. (I'm sure its not quite that way, but you see what I mean). And actually, the same thing applies to CC FICO scores. What we see as consumers is not the same thing (although I do recall that there is a movement in congress to make it a law that consumers get to see all their scores). Link to comment Share on other sites More sharing options...
June Posted March 12, 2007 Report Share Posted March 12, 2007 See that's the problem...only someone who has paid the fee to be a "mortgage score getter" can see the mortgage FICO score. (I'm sure its not quite that way, but you see what I mean). And actually, the same thing applies to CC FICO scores. What we see as consumers is not the same thing (although I do recall that there is a movement in congress to make it a law that consumers get to see all their scores).That sounds absolutely correct to me.I believe that we (consumers) will never see what they see. There will always be some internal stuff not for our eyes to see.Thank you for sharing. Link to comment Share on other sites More sharing options...
tre3_77077 Posted March 13, 2007 Report Share Posted March 13, 2007 From what know 2 trade lines for $1000 helps you have a higher FICO then 1 for $2000. Most lenders ask that you have a min of 3 open trade lines. All lenders want you to get the loan, no loan for you no money for them. all you need is a mid score that they can work with and your on you way to that. Link to comment Share on other sites More sharing options...
direred Posted March 13, 2007 Report Share Posted March 13, 2007 One tradeline for $2000 will help you get that 2nd $2000 card faster, though.Really. Link to comment Share on other sites More sharing options...
SecretAgentWoman Posted March 13, 2007 Author Report Share Posted March 13, 2007 And the debate goes on... Link to comment Share on other sites More sharing options...
rella5 Posted March 13, 2007 Report Share Posted March 13, 2007 The loan officers at the mtg co I work for will take a basic (1003) loan app for no fee, pull the CR and then give the prospect some suggestions for credit repair. They will place the file in a "to be determined" status while the prospect is shopping for a house. Or if they want a refi they will say suggest that the homeowner take the suggested actions for credit repair and try again in 3-6 months. My point being, if you develop a relationship with an HONEST mtg co. you can probably get a look at your mtg. score. Of course our loan officers appreciate it if the prospect comes back to them for the real deal! Link to comment Share on other sites More sharing options...
June Posted March 13, 2007 Report Share Posted March 13, 2007 Wow!!!Rella5, thank you so much. Link to comment Share on other sites More sharing options...
rm2738 Posted March 13, 2007 Report Share Posted March 13, 2007 One tradeline for $2000 will help you get that 2nd $2000 card faster, though.Really.Ok, but at what point does debt to income ratio come in play?? Especially for a mortgage? or a car loan? The lender always wants to see paystubs for the past 2-3 months and w-2 from previous year. Link to comment Share on other sites More sharing options...
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