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calveless wonder
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what does applying for a credit card have to do with a local bank? as in, why does it matter?
this thread doesn't make sense.
this thread doesn't make sense.
Banking without a local branch?
- Thread starter nangiggles
- Start date
Do you not listen to anything that I say? I'm gonna explain this in more detail. If you don't get it after this I give up.
1. How you Pay your bills makes up for 35% of your score
So...Paying your bills on time accounts for 35%. I assume you do that so I will leave that alone
2. The amount you owe and your available credit limit make up 30%
The amount you owe and your available credit is simple. You don't have any Installment loans (on file) so to make it easy we'll hypothetically give you a couple credit cards.
So say you have 2 credit cards with $5,000 limits, so you have $10,000 in available credit. If you $7500 charged between the 2 cards you're at a 75% Utilization (not good).
Not to mention that statistically people with a lot of credit tend to use it. While that really doesn't affect your score it isn't all that attractive to lenders.
So say you have 2 credit cards with $5,000 limits, so you have $10,000 in available credit. If you $7500 charged between the 2 cards you're at a 75% Utilization (not good).
Not to mention that statistically people with a lot of credit tend to use it. While that really doesn't affect your score it isn't all that attractive to lenders.
3. Length of Credit makes up 15%
The third factor is the length of your credit history. The longer you've had credit -- particularly if it's with the same credit issuers -- the more points you get.
Remember how I told you that you've only had your secured card for 7 months and to be patient? Remember, slow and steady.
Remember how I told you that you've only had your secured card for 7 months and to be patient? Remember, slow and steady.
4. Mix of Credit is 10%
The best scores will have a mix of both revolving credit, such as credit cards, and installment credit, such as mortgages and car loans.
I don't know exactly what all you have, but it sounds to me as though all you have is that one secured card. See why I keep telling you that you'd benefit more from an installment loan than to keep applying for Revolving credit?
Statistically, consumers with a richer variety of experiences are better credit risks. While this isn't a factor in determining your score a lot of revolving credit lines make lenders today leary. It shows the possibility for rapidly increasing indebtedness.
I don't know exactly what all you have, but it sounds to me as though all you have is that one secured card. See why I keep telling you that you'd benefit more from an installment loan than to keep applying for Revolving credit?
Statistically, consumers with a richer variety of experiences are better credit risks. While this isn't a factor in determining your score a lot of revolving credit lines make lenders today leary. It shows the possibility for rapidly increasing indebtedness.
5. New credit applications is 10%
The final category is your interest in new credit. How many credit applications you're filling out. The model compensates for people who are rate shopping for the best mortgage or car loan rates (not revolving accounts) in a 30 day window.
I'm not sure if this will apply to your situation, but here it is anyways. The only time shopping really hurts your score, is when you have previous recent credit stumbles, such as late payments or bills sent to collections.
Then, looking for new credit will be seen as an alarm because statistically, before people declare bankruptcy and default on everything, they look for a life preserver.
This however does apply to you, and if the above does as well double whammy. If you have a very young credit file, an inquiry can count for more than if you've had credit for a long time.
I'm not sure if this will apply to your situation, but here it is anyways. The only time shopping really hurts your score, is when you have previous recent credit stumbles, such as late payments or bills sent to collections.
Then, looking for new credit will be seen as an alarm because statistically, before people declare bankruptcy and default on everything, they look for a life preserver.
This however does apply to you, and if the above does as well double whammy. If you have a very young credit file, an inquiry can count for more than if you've had credit for a long time.
Now that is how you get your score. Lenders use that information, and information that has nothing to do w/your credit score (time on job, length of residence, income, etc) to determine your credit worthiness.
The problem you're running into is that you have a thin file. Your score is good, but there isn't enough in there to give a lender a picture of how you will preform.
I still think an installment loan is your best bet. Now, without a qualified co-signer it can be tough to do. Reason being is even tho you have a strong FICO score your $500 credit card (or whatever it is) isn't enough. If you tried to get say an auto loan you would be turned down for "no comparible credit". Basically, They don't know how you will pay on $10,000 note because all you've ever made payments on was a small revolving balance.
Getting a larger revolving balance isn't the answer either because then you'll just raise your available credit lines and in order to have comparible credit you'd have to use them at an extremely high utilization percentage. Even then you'd be screwed because it would throw your debt to income (DTI) out of whack.
So what can you do w/o a cosigner to get comparible credit? Well, you have a couple options. The easiest would be to come out of pocket. By that I mean if you say were going to try and go buy a car show up with large down payment. There comes a point in which the lenders will give you a loan (and report to your credit) even if you have a thin file. If you're putting enough money down it ends up really not being much of a risk at all to the lender.
i think it's the language barrier. english is her 2nd language
@smurf, English is NOT my second language, I was born and raised in CT, then went to CR and then came back and was in High School in California and in Jersey, and back to CR again, maybe my grammar or sentence construction isnt perfect, but I dont see anyone saying SB or N2 dont have English as a first language because of it...
Some of us like having local branches, like Incrediblehoss mentioned, he goes to the branch and knows employees by name, I like to know that if I need help with something or have questions I dont have to call and wait on hold forever, specially since a lot of banks outsources their phone suppport, if I have an unauthorized charge or whatever I much rather talk face to face instead of talking over the phone with "Peggy" LOL
I've wondered if a bank would refinance/take over my mortgage, considering I have no history but a good score and an asset (the home is under my name but with a lien/mortgage) I currently have a fixed 5% APR for 15 yrs with our friend.
Some of us like having local branches, like Incrediblehoss mentioned, he goes to the branch and knows employees by name, I like to know that if I need help with something or have questions I dont have to call and wait on hold forever, specially since a lot of banks outsources their phone suppport, if I have an unauthorized charge or whatever I much rather talk face to face instead of talking over the phone with "Peggy" LOL
1. That's good...keep it that way. 
2. That's a myth. Credit bureaus don't give a shit if you pay your charges off every month or carry a balance on it. In regards to paying your CC's the only thing the 3 credit bureaus care about is when you pay and how much of your available limit you're using. It's always best to pay your cc off every month to avoid paying finance charges, etc. There are a few exceptions to this, but for the most part pay off your credit card monthly.
3. Nuttin you can do about that except wait it out...you'll get there.
4. Go re-read what I wrote again. The mix of credit isn't that big of an issue. Hell, it only accounts for 10% of your score. My point in all that was that applying for more revolving credit was unnecessary and foolish IMO. The reason why I keep telling you to go the route of an installment loan is typically those are secured with some sort of collateral (ie, auto loan) and will also typically be somewhat of a substantial value. That way in the future when you need to borrow you'll have comparable credit.
I doubt a bank will refi you on a mortgage unless you have a considerable amount of equity in it (doubtful). Remember, just because you have the house as an asset doesn't mean the bank will take it as collateral and loan you 100%. This is why I told you to save your money and when you go to purchase something come out of pocket 30-50%. When you do that there is not nearly the risk on the lenders end and they're more apt to approve you.
2. That's a myth. Credit bureaus don't give a shit if you pay your charges off every month or carry a balance on it. In regards to paying your CC's the only thing the 3 credit bureaus care about is when you pay and how much of your available limit you're using. It's always best to pay your cc off every month to avoid paying finance charges, etc. There are a few exceptions to this, but for the most part pay off your credit card monthly.
3. Nuttin you can do about that except wait it out...you'll get there.
4. Go re-read what I wrote again. The mix of credit isn't that big of an issue. Hell, it only accounts for 10% of your score. My point in all that was that applying for more revolving credit was unnecessary and foolish IMO. The reason why I keep telling you to go the route of an installment loan is typically those are secured with some sort of collateral (ie, auto loan) and will also typically be somewhat of a substantial value. That way in the future when you need to borrow you'll have comparable credit.
I doubt a bank will refi you on a mortgage unless you have a considerable amount of equity in it (doubtful). Remember, just because you have the house as an asset doesn't mean the bank will take it as collateral and loan you 100%. This is why I told you to save your money and when you go to purchase something come out of pocket 30-50%. When you do that there is not nearly the risk on the lenders end and they're more apt to approve you.
I happen to be a finance director and acquire loans for people every day. Much like Mitch does. He laid out the most detailed plan to good solid credit establishing that I have ever seen. With his permission I may copy and paste that post for my finance guys to hand out to our credit challenged customers. Lmao nicely done Mitch.
Sent from my DROID2 GLOBAL
Sent from my DROID2 GLOBAL
Lol, you gonna hand them that along with an adverse action notice? Loloololololol
My thoughts exactly! Lol It gets so tiring having to explain why someone with a 400 beacon can't buy a $30,000 car. Lol
Sent from my DROID2 GLOBAL
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