Jump to content

Credit Question/Repair Adventure


kutuzov
 Share

Recommended Posts

Hi!

 

So now my wife and my collections are old and we've started getting approved for some cc. Not the best but since I plan on applying for a mortgage in 2016/17, I wanna put all my ducks in a row. 

 

Willonscope I know you will tell me store cards suck, but they are easier to get that prime cc. Also there's no good credit union in my area at least not one I like, so I bank with chase. I did try my local CU some time ago and their SC was sort of bad, etc., and the closest branch is a bit too far for me. So my questions:

 

1) Does it matters if you are an AU on one cc, rather than the primary card holder, for the score? (I know legally is not the same), if so please explain.

 

2) Does it makes any difference having a store cc vs a regular master card/visa for credit score?

 

Right now I got 2 cc, one is a Barclay rewards master card and the second is a GE amazon store card.

 

Wife got 3 store cards, 2 with GE and 1 brand new approved today from Firestone CFNA. I plan on making myself an AU of the firestone.

 

I do not like crap1 and for sure will not apply for the sharks lender like First Premier, etc., so I'll hold till 2015 when I plan on appling to citi, discover, and chase the same day and see if anyone approves me.

 

 

Link to comment
Share on other sites

So...basically...to improve your FICO Mortgage Score (FMS).

 

1. Being an AU is pretty much useless.  The FMS wants YOUR payment history, not someone else.

 

2.  These days, I can't think of a single "store" that actually runs their own credit department.  All the ones I've looked at are really one of the major CC companies, like Crap1 cards, with the store logo printed on them.  This fits right into the Crap1 business model..."we'll give you 5 $300 limit cards, for only $24/ear each, because we know you'll over charge on one and then we can rate jack you plus charge a penalty".  And, for the FMS, once you get past 2 CCs, each additional card hurts.

 

3. Do you have checking and savings with Chase?  Personally, I'd suggest you build your savings a bit, and then apply to them first.

Link to comment
Share on other sites

Ok so 2 trade lines of your own, and disregard AU for mortgage purposes.  I do have 2 credit lines 1 with GE money bank, and 1 with Barclay bank. I'll try to get a Discover/Chase cc in 2015 with these accounts reach the 2 years or so. My wife got now 3 credit lines of her own and 1 as AU, so basically I'll need to cancel one of those before applying. The store cards/cc I got are all with no annual fee, and I do not nor will I, if I can help it get a Crap1 one, I dislike them.

 

I do bank with Chase since 2009, I do have a Savings account with them too, but I never got there more than 700-800, since I got a problem here, if I got more than x money I think is 2000, I will be denied food stamps and Medicaid for my kids, so when it reaches certain amount I take the cash away and save it in my house. I also got a 401k right now I got about 15k there, that I can get a loan for a house and pay it in 30 years for 4%, I can only use up to 50% of the 401k for loan purposes. Basically I can pay around 20/30% down in 2016/17.

Link to comment
Share on other sites

I think I've mentioned before...I've got my paycheck direct deposited to a Wells Fargo checking account...overdrafts are backed by my WF savings account (it is $10/$100, so don't abuse it)...a debit card on the checking (better than a secured card)...and an unsecured CC ($12k limit).

Link to comment
Share on other sites

I got direct deposit to Chase, and my wife too, to the same account. I do have 2 cc and my wife got 3 cc so no need for a secure cc.

 

Since 2010 you can opt out of the overdraft fee, so I do not have overdraft protection, if there's no money on the account the transaction will be denied, and I will be charged 0. I do not write checks I pay everything with online banking, or by phone, sometimes I do money orders as needed, but as I do not have overdraft protection to be safe I do not pay or write checks.

 

There's a Wells Fargo, but not close is maybe 15-20 miles away. Also I do not like their policy of holding your cash until next day. If you go to my local wells fargo and deposit cash after 2 pm, your cash won't be available until the next day, if it's a Saturday until Monday, and whatever checks you deposit they hold them too, even a IRS check. I use to bank with them back at the beginning of 2000 until 2005/6 that I changed to BoA, then I saw that BoA didn't have those but where always wanting to take advantage of you, one day I got a offer in the mail to open a Chase account and they will give me 100, which I did. I did at some point between 2000-2009 bank with a local credit union, it was a nightmare, their maths where worst than a kindergarten literally, and they where worst than BoA on fees, etc.. As of today Chase didn't charge me a penny on any fees, or anything, and they do a good math on their statements, and their online banking is easy and well designed and I now pay my bills for $0 online, before I was paying $1-2 to a local store where you could pay bills.

 

Anyways I just wanted to check I was on the right track, 2/3 open cc with 0 balance for applying and 20/30% down payment, with a score of 700+, in 2 years and accounts with 3/4 years history and maybe a new one with 2 if Discover/Chase wants to give me one in 2014/15. No inq for at least 1 year before the mortgage also.

 

So keep the good work and keep 2/3 open cc until the mortgage.

 

I do meet all other requirements like employment etc.

 

 

But my 2 question where answered. AU do not count for mortgages, and store cards are the same for credit score than a regular mastercard. Since my wife and me both got at least 2 credit lines, we should be fine.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.