KayveBear's Running Credit Thread

[pbarnes]

It amazes me that CC issuers would grant 50k lines to 90kish income. I mean... In general.

 

Awesome limits!

[kayvebear]

It amazes me that CC issuers would grant 50k lines to 90kish income. I mean... In general.

 

Awesome limits!

 

Yeah.. I am not going to complain - although truthfully 50k CC line on 96k reported income is probably not a wise play for your average consumer.

 

None of these lines were built though as an 'average consumer'. I fought tooth and nail for CLI's, recons etc. I also had AU lines reporting in the 50k lines that were aged 25 years.

 

Once you establish a single high line of your own, getting the rest to the same level is pretty easy. It is getting those initial lines to a high level that is the hard part.

[kayvebear]

Patting myself on the back today. I officially feel like I have a 'thick' file. I had never run the #'s before, but with my current 44 accounts reporting (avg of 6.8 AAOA between three bureaus) when I open a brand new account my AAOA only goes down by 0.15. I had no idea that new accounts were such a small impact on me at this point. #math. Wish I had done it sooner.

[mendelssohn]

Patting myself on the back today. I officially feel like I have a 'thick' file. I had never run the #'s before, but with my current 44 accounts reporting (avg of 6.8 AAOA between three bureaus) when I open a brand new account my AAOA only goes down by 0.15. I had no idea that new accounts were such a small impact on me at this point. #math. Wish I had done it sooner.

I will pat myself on the back for saying I told you so.

[kayvebear]

 

Patting myself on the back today. I officially feel like I have a 'thick' file. I had never run the #'s before, but with my current 44 accounts reporting (avg of 6.8 AAOA between three bureaus) when I open a brand new account my AAOA only goes down by 0.15. I had no idea that new accounts were such a small impact on me at this point. #math. Wish I had done it sooner.

I will pat myself on the back for saying I told you so.

 

 

You most certainly did. Lead me to do the math. You can bring a horse to water...

[kayvebear]

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

[cv91915]

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

 

Negative equity in the car?

[kayvebear]

 

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

 

Negative equity in the car?

 

 

Depends on which blue book you go off of. We financed registration/taxes, $500 in necessary mechanical repairs, $100 in a interior detail etc. Right about on target.

 

Also insured by USAA who is INCREDIBLE on claims.

[cv91915]

 

 

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

 

Negative equity in the car?

 

 

Depends on which blue book you go off of. We financed registration/taxes, $500 in necessary mechanical repairs, $100 in a interior detail etc. Right about on target.

 

 

I count at least seven red flags on this car transaction.

[kayvebear]

 

 

 

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

 

Negative equity in the car?

 

 

Depends on which blue book you go off of. We financed registration/taxes, $500 in necessary mechanical repairs, $100 in a interior detail etc. Right about on target.

 

 

I count at least seven red flags on this car transaction.

 

 

Please enlighten me?

[kayvebear]

 

 

 

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

 

Negative equity in the car?

 

 

Depends on which blue book you go off of. We financed registration/taxes, $500 in necessary mechanical repairs, $100 in a interior detail etc. Right about on target.

 

 

I count at least seven red flags on this car transaction.

 

 

CV - Very curious to hear why this was anything but a complete win for us.

[cv91915]

 

 

 

 

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

 

Negative equity in the car?

 

 

Depends on which blue book you go off of. We financed registration/taxes, $500 in necessary mechanical repairs, $100 in a interior detail etc. Right about on target.

 

 

I count at least seven red flags on this car transaction.

 

 

CV - Very curious to hear why this was anything but a complete win for us.

 

 

This is how I would parse the situation for a similarly-situated friend - or rather advise him/her of the risks and mistakes that seemed apparent with the approach:

 

Co signed a auto loan (co-signing is universally regarded as ill-advised under almost all circumstances) with Penfed for my girlfriend today. $10,300 at 2.49% 48 months (someone with a prime credit profile should go to one of the CUs widely discussed here to secure financing in the range of ~1.5-1.75%, saving 30% or more on interest charges over the life of the loan) .... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her (an installment loan isn’t a significant asset to one's credit profile).

 

Depends on which blue book you go off of. (don't buy a car until you are absolutely sure what it's worth) We financed registration/taxes (don't pay interest on sales tax or license fees for four years, ESPECIALLY if it appears that doing this would create negative equity*) $500 in necessary mechanical repairs (don't buy someone else's broken car), $100 in a interior detail etc. (don't pay interest on a car wash for four years) Right about on target.

 

Made her get the gap insurance (* which then makes expensive GAP insurance on an $8,000 car “necessary”?) as deal to co sign.

Edited July 10, 2015 by cv91915

[kayvebear]

 

 

 

 

 

Co signed a auto loan with Penfed for my girlfriend today. $10,300 at 2.49% 48 months.... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her.

 

I am making payments on both the car and insurance and she pays me directly... and I sit on title. Love her dearly, but also being smart. Made her get the gap insurance as deal to co sign.

 

Also moved Amex tradelines around. BCP is now 9k, Hilton 9.9k and Everyday 20k

 

Negative equity in the car?

 

 

Depends on which blue book you go off of. We financed registration/taxes, $500 in necessary mechanical repairs, $100 in a interior detail etc. Right about on target.

 

 

I count at least seven red flags on this car transaction.

 

 

CV - Very curious to hear why this was anything but a complete win for us.

 

 

This is how I would parse the situation for a similarly-situated friend - or rather advise him/her of the risks and mistakes that seemed apparent with the approach:

 

Co signed a auto loan (co-signing is universally regarded as ill-advised under almost all circumstances) with Penfed for my girlfriend today. $10,300 at 2.49% 48 months (someone with a prime credit profile should go to one of the CUs widely discussed here to secure financing in the range of ~1.5-1.75%, saving 30% or more on interest charges over the life of the loan) .... she needed the credit help and we are trying to build her credit... not thrilled to have taken more inqs or a new TL.... but whatever, it is for her (an installment loan isn’t a significant asset to one's credit profile).

 

Depends on which blue book you go off of. (don't buy a car until you are absolutely sure what it's worth) We financed registration/taxes (don't pay interest on sales tax or license fees for four years, ESPECIALLY if it appears that doing this would create negative equity*) $500 in necessary mechanical repairs (don't buy someone else's broken car), $100 in a interior detail etc. (don't pay interest on a car wash for four years) Right about on target.

 

Made her get the gap insurance (* which then makes expensive GAP insurance on an $8,000 car “necessary”?) as deal to co sign.

 

 

Thanks CV for being so in depth. Maybe after reading my response you will change your thoughts on at least some of your points.

 

1) The car is in my name, the loan is in OUR name. I am making the monthly payments on both the car and insurance (which I can afford). She makes payments directly to me. If for some reason she stopped making the payments or we broke up, I would sell the car.

 

2) We bought a 2007 car. Penfed blew every lender in the world out of the water with 2.49%. You can get below 2% on 2014 and 2015 models only. After that, all lenders I've come across (and I did my homework) put their rates higher. They advertised used loans below 2%, but read the fine print. Older than 2013 does not apply.

 

3) I disagree on the installment loan. 48 months of successful auto payments will help her young and thin credit profile significantly. It is also the beginning of her building a healthy relationship with Penfed.

 

4) We bought the car knowing EXACTLY what it is worth. We paid nearly 3k$ less than what blue book put it at from a dealers price, and $100 cheaper than what it would be in 'very good' condition from a private party. We found the damage done to it (just a wheel bearing and a dirty cabin filter) prior to buying, and used these repairs in negotiations. In Northern California, Honda Accords are impossible to find.. especially with 93k miles. They go for 1-2k above bluebook all day long. We got a great deal. I have sold two of them myself in the last 5 years. There was nothing 'broken' about the car. Mechanically it is in excellent condition with all service records.

 

5) Agree on not paying interest on tax and license and your point is noted. She just made an expensive move this month from WI to CA and her funds are low... though she has finally started her new job. I will concede to you on this point.

 

6) Car wash. Meh. 2.49% on a 99$ detail. I hear you though. Wanted to make the car feel special and brand new for her and it worked.

 

7) Penfed's gap insurance is incredible. On top of the typical gap coverage, in a total loss scenario they also pay your deductible in full, and give you a $1,000 credit if you finance your next vehicle with them also. I didn't do gap insurance on my new hyundai sonata because I can afford the gap. Since I am co signing and she can't afford the gap, it was a pre-requisite to me agreeing to co-sign. She pays the gap, and I am covered on the loss.

 

8) Lastly, even financing everything above mentioned, and including ammortized interest on a full 48 month term, we still financed less than kelly blue book of buying this car from a dealer by over $1,000.

 

9) I am Jewish through and through. Bar Mitzvah'd and all. I am not saying I don't make business mistakes. Sometimes I do. But I analyze the lemonade out of everything and usually make a very prudent decision. I used my blood on this transaction as I do on all

Edited July 10, 2015 by kayvebear

[kayvebear]

It is time for gardening mode like I have never had before. I have announced multiple times that I was going to garden on this board, but I never lasted more than a few months. I have added so many accounts... my AAOA is perpetually stuck at 7 years (for 3-4 years in a row now).

 

I have more INQs than I have ever had before. 11/12/9 EX/EQ/TU and most of them are within the last year.

 

I have been approved for the first year of private student loans I need...

So here is the new plan and I hope that I stick with it. There is absolutely no reason to open any new revolving lines. No need to churn bonuses, M$.. nothing. I won't have the time in grad school and I cannot afford the INQ's.

 

I am going to take a two year break from applying for ANYTHING for myself (unless a car gets stolen and I am forced into it). I will only be adding one new account per year for the next two years (one student loan each year) until every single INQ I have falls off.

 

I am ready to be clean of INQ's, with an AAOA above 10 years. I am forced into 4 separate student loan accounts (at a minimum) over the next four years... each will require a single hard INQ on TU but the first two will have already fallen off by the time I take the next two.

 

That is the plan. I am going to try hard to stick with it.

 

Kayve. Signed July 15 2015

Edited July 16, 2015 by kayvebear

[kayvebear]

Paid down close to $7,000 in long term CC debt this month (that sits at 0% interest of course). That brings my util on Navy Federal card below 20% (was at 33%). I expect to see a big FICO boost this month.

[kayvebear]

Approved for Southwest Business Card via Chase... 10k limit. Can anyone say companion pass?

 

And my girlfriend just happily informed me that Southwest flies to Jamaica and Costa Rica

[mendelssohn]

I thought you were gardening.

[kayvebear]

I thought you were gardening.

 

I am. Business cards don't report to CR's Plus couldn't turn down a companion pass once I learned I was ovr halfway there and just had to open this card. Gonna save us thousands of $$

[mendelssohn]

I'm not arguing against new apps, but you were concerned about inquiries.

 

I have 20 on EX and have no regrets. Citi, Chase and Amex don't seem to have any issue with them.

[kayvebear]

I'm not arguing against new apps, but you were concerned about inquiries.

 

I have 20 on EX and have no regrets. Citi, Chase and Amex don't seem to have any issue with them.

 

I've realized INQ's don't matter as much to me as AAOA... I don't want to do anything to hurt AAOA. Want to see it at 10 years

[kmwrestle]

I'm not arguing against new apps, but you were concerned about inquiries.

 

I have 20 on EX and have no regrets. Citi, Chase and Amex don't seem to have any issue with them.

+1

[jeraldallen]

Hi Kaybebear! I have learned a lot reading your posts. Thanks! Hey, I saw that you were driving a Hyundai Sonata. Having lived and worked in Seoul, Korea for five years (NO, I was NOT an English teacher), I am very familiar with the Hyundai brand. I am considering buying or leasing a Sonata, either that or an Audi A3 or A4. How do you like the new Sonata? I have heard a lot of good things about that car.

[kayvebear]

Hi Kaybebear! I have learned a lot reading your posts. Thanks! Hey, I saw that you were driving a Hyundai Sonata. Having lived and worked in Seoul, Korea for five years (NO, I was NOT an English teacher), I am very familiar with the Hyundai brand. I am considering buying or leasing a Sonata, either that or an Audi A3 or A4. How do you like the new Sonata? I have heard a lot of good things about that car.

 

I am loving the Sonata... keep in mind mine is a 2013 (I bought it right as the 2014's came out) ... so I dont know anything about the 2015 or 2016's (if they are out yet).

 

You cannot beat the 100,000 mile warranty. I was out of the country for a year so mine only has 14k miles on it... still very happy. Really good bang for your buck.

[tobettercredit]

Just finish reading the whole thread.

 

Truly inspiring.

 

Quick question, what technic you used to attack OCS and CA.

 

I need to deal with 2 OC accounts(Bofa and Chase0 and 1 CA(Midland)

 

Thank you

[kayvebear]

Just finish reading the whole thread.

 

Truly inspiring.

 

Quick question, what technic you used to attack OCS and CA.

 

I need to deal with 2 OC accounts(Bofa and Chase0 and 1 CA(Midland)

 

Thank you

 

I am not the right person to talk to about this. My repair portion of my journey was surprisingly easy... all my CO's had been paid in full years prior and would have fallen off within a couple of years of finding CB. I was able to dispute and goodwill damn near everything off if memory serves. There are a lot of people on this board more educated than me when dealing with current collections etc