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trethreethird

How Many Tradelines Can You Apply For, Without Looking "Desperate", in a Short Time Frame?

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Currently working on rebuilding my credit. I am in the process of disputing several items and hard inquiries on my report.

 

Just paid off a $27,000 car loan which, I believe, should post as a tradeline.

 

I am planning on applying for several "NO CREDIT CHECK" tradelines (meaning everyone is approved) soon and want to know how many I can apply for, in say a month's time frame, without looking like a flight risk.

The tradelines I am applying for are kind of like a pay-for-entry kind of credit application. If you're not familiar, you pay for a membership (a small annual fee like $50), purchase a $100+ item, and pay it off in a few months. By doing this, they will post your payments, as well as the credit limit to your report. These credit limits, most times, can only be used on those websites, but my main goal is for these limits to show on my report and boost my scores.

 

The tradelines I intend to apply for are:

  1. My Jewelers Club ($5,000 limit)

  2. Hutton Chase ($1,500 limit)

  3. New Coast Direct ($5,000 limit)

  4. Ox Publishing ($2,500 limit)

  5. DSX Design ($5,000 - $12,000 limit) Brand new tradeline; still doing research

 

I asked my brother for advice and he said I should only apply for two of these tradelines (My Jewelers Club and New Coast Direct, specifically), get a secured credit line from a reputable bank like Chase, Bank of America, etc. and apply for 2 authorized users rather than, solely, applying for all of the tradelines on my list because the examples he gave will hold more weight on my report and the majority of the tradelines I have listed are new so they don't hold much weight.

 

MY REASONING FOR DOING THIS: is because I am starting a business and am planning on applying for business credit (hoping for a high limit). It is my understanding that the better your personal score, and the higher your credit limit, the less likely you are expected to have a personal guarantee to secure that funding.

 

Forgive me if I'm wrong, but to my understanding, I thought the higher your credit limit, the better. I don't have any credit on my account, as of today, and figure letting a $27,000 car loan and, up to, $26,000 in credit would look great on my report. I need help. Please advise!

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6 minutes ago, trethreethird said:

and hard inquiries on my report.

Are you a victim of identity theft?

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You say you have nothing reporting on your credit file in the last paragraph, but you say that you're disputing several items and inquiries in the opening paragraph.  What items are you disputing?  Why dispute inquiries?  If they're legit, this can only come back and cause problems for you (fraud alerts, etc).

 

The accts you're talking about applying for are not going to help you at all.  You're far better off following your brother's advice of getting a 1-2 secured cards (w/ issuers who graduate automatically in less than 12 months) and put up the biggest deposit you can.  Adding a few AUs would help as well if this is an option.

 

How long did you have the auto loan for?  Had it not already reported before you paid if off.  I don't know that you'll get a big score boost by having a paid installment loan report.  

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Welcome.

 

Don't dispute legitimate inquiries.

 

Describe the other items you are disputing for targeted help from experienced members here.

 

All of those new trade lines you are considering look like garbage until proven otherwise.

 

Your car loan should already be reporting positively unless you've been making the payments late.

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There is additional data on OP's situation here:

 

https://ficoforums.myfico.com/t5/Credit-Card-Applications/How-Many-Tradelines-Can-I-Apply-For-Without-Looking-quot/td-p/5549967

 

The only positives are a car loan with "may" start reporting and student loans that appear to have been managed well.

 

Derogatories include a $1200 charge-off and a collection account.  OP believes that because the OC refused a verification request that the tradeline must disappear after a dispute.

 

OP imagines that within 6 months his 530 FICO will grow sufficiently as to allow approval for substantial business credit.

 

I say let Tophie handle this case.  

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Avoid those trash accounts.  Besides the requirement many have of needing to make a purchase of their crappy merchandise, there is a history of several stopping their reporting when future purchases are not made.  Additionally, lenders have caught on to those trash lines and so they hurt more than they help.  There is FAR more to underwriting that just a three-digit score...

 

If the vehicle was not previously reporting, then it will not likely suddenly start to report now that it is paid in full.  If it was reporting, then paying it off won't result in a large boost.  Expect a few points but not much more.  In fact, you could even see a reduction if that was your only installment loan.

 

Your brother gave some good advise about secured accounts with reputable lenders.  Some of those will eventually 'graduate' and grow as your credit improves (while also refunding the deposit that had served as a security on the original account).

 

Another option is the laddering of share-secured loans with a small, local credit union or bank.  CU's are noted for share-secured loans that are a point or two above whatever the collateral account was gaining in interest.  In other words, if you have a CD that was getting 2%, the loan against that collateral would likely be 3.5 to 4%.  These do not need to be huge loans.  Additionally, having the fiscal resources in the form of the CD's will be a potential benefit to underwriters who review you further down the road...

 

You DO NOT want to put yourself in the category of the First Premier sort of client, taking trash regardless of the fees and impact that trash has upon your reports. 

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And he's a member of NFCU.

 

Even CV would berate him for not apping a Navy card.  :)

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