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Duck Bills

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About Duck Bills

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    Bump Influence XLI
  1. This process is known as "shotgunning" your application. Its a common dealership practice. They do it not to get you the best rate, but to get themselves the best "buy rate"That is the price they pay for the money. They can then mark it up, charge you a higher rate and make money on the spread. Let's say you financed $28,000 for 60 months at 3.49%. If the dealership was able to buy the money at 2.49% They make a 1.0% spread which will make the between $600-$800 depending on their agreement with the lender. Generally when you sign your credit app, it gives them permission to send you app to as many lenders as they please. Some dealers will have a separate form you sign allowing them to do this. The good news is as far as your score goes all of these inquiries will only count as one. The bad news is it can still look bad on manual review.
  2. You said in your first post you defaulted in 2004 Thats 8.5 to 9+ years ago You also said you paid for two years. Were you issued the card in 2002 and defaulted in 2004 or issued in 2004 and defaulted in 2006. either way if the info you have posted is correct, you are beyond the SOL of 6 years.
  3. 3 pullers are usually need to B* EQ. EC from Equifax, USAA with daily pulls, MPM, and Credit Secure thru AMEX are the four options. TU can be achived with just Smart Credit if you have a couple of months, for faster results add TU+
  4. I f you made purchases in March that Still had grace period when that staement cut, then kicked in for April statement its possible.
  5. You are correct it has no effect on you FICO. However it still can be harmful in a couple of ways: Most lenders use an internal scorecard for approvals. While your scores and overall credit is given the most weight, some lenders wil consider other things as well. Thing like do you have checking, savings or both? How long have you been at your current job? How long at your current residence? Do you rent or own? Very rarely will these be deal makers or deal breaker, but often can change your scoring tier which can affect your rate or term or limit. A lack of stability as a renter would hurt the most, However if you move because you were renting and are now buying it could help.
  6. The first question is how many "major" (Visa/ MC/Disc/Amex) credit cards do you have? The magic numbers for higher scores are 2 and 5. If the two FP and the Disc are all you have You need to leave 2 open. I'd try to stop the Discover from being issued. I doubt they will do that however since you accepted the terms, you now owe them $75 and i doubt they let you off the hook. If the won't cancell it without you paying the fee, you might as well keep it open for a year since the $12 monthly fee is waived for year one. I think you are in the smae boat with your new FP (monthly fees waived for the first year). no need to cancel until you have to start paying the fees. That brings us to your other FP (witch you are probably paying a monthly fee on) from a stricly financial point of view thats the one to cancel. The problem is its you oldest and highest credit line, so from a credit building stand point you still need it. Right now you are stuck in toy card Hell, you will remain there as long as you keep appling to those cards. The other thing keeping you there is your scores which will stay in the 500s as long asy your utilization is too high. My advice: Don't apply for any more bottom feeder cards (FP, Credit one, Cerulean ect) Pay off all of your cards, don't worry about 1% util, get it to 0% Join a couple of Credit Unions (don't apply for credit just join) No Apps period for at least 6 months (work on cleaning your reports) Save some money and in 6 months open a couple of secured (or unsecured if you can) cards with the CU Then cancel a couple of toy cards. Joesph, I found this board a few monts before I joined (around Nov 2011) I had 3 CCs a $300 FP, $300 Orchard and a 500 Cap one. My scores were high 500s to low 600s. Today I have over 40K in available credit with thre cards (Navy, DCU, and GTE) at 5K or over. I'm not back yet but I'm on my way. Thanks in large part to the members on this board. I read alot, posted every now and then, asked questions then listened to the advice of others, who had been there before me.
  7. I wouldn't worry too much about FAKOs. With USAA, MPM, and EC my EX FAKO is my lowest score. Yet my EX FICO is my highest score.

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