Well it's me again. crawling out from under the 8 ton rock called WORK.. lol I hunted a newer year used car i was approved i would stretch pay-off a bit more to gain more credit or Average age of account.... Then just pay the whole thing off. So while the auto is being paid off. i would like to used the credit card (under 30%) to at least earn some rewards... Cap1 was kind enough to convert my regular account in their 1.5% cash back card. so i would use that to pay the auto loan and hence gain 1.5% back on that payment ... Question: 1) Since i dinged my credit twice already for the auto loan. Should i just ding it again and go for a rewards card like the discover it card (5% cash back in some categories)??? - My thought was my score is already taking a hit. however is WAS hovering at 650 with EXP. so should i wait a few months and then try? Also by 2/2014 3-4 neg will drop off my Report and a boost is due then...
Be careful, some lenders will not allow you to make your payment with a credit/debit card. Even though more than one inquiry is listed, it's actually looked at as just one if they're both for auto loans (or for mortgages or another installment loan) and done within a couple of weeks of each other. Therefore I would not be too concerned with the inquiry, only when you're real heavy on them (think a couple dozen) is when you'll start seeing significant score changes. If you can wait the 4 months, I would suggest waiting. Not only will you have another positive trade line reporting, but losing some negative weight will help. With your August '13 scores, the Discover IT card may be a stretch.
I agree with mindcrime in that the Discover it may be a stretch. I would check out the cards here: Credit Cards for Fair Credit - Creditnet.com and possibly here: Credit Cards for Good Credit with Rewards & Low Interest - Creditnet The fair credit credit cards are more of a sure thing for your scores, however. This card is pretty solid in my opinion: Barclaycard® Rewards MasterCard® - Average Credit Review - Creditnet.com
i was looking at the link for the fair score group and thats why i thought the discover would be good (editors choice). The barclaycard does seem pretty nice. HOWEVER, i'm a bit skeptic when dollars turn into points. because then you spend $1000 to earn 2000 points but the when you redeem the points it's like 200,000 points for a $10 gas card... (exaggerated of course but you get my point i hope).... i'll go search for a link to there rewards program. but thats why the discover seemed to look better to me... Mindcrime: thanks for the response. I am aware of multiple pulls for the auto loan. i was thinking the pull for the credit card would not count as the same type and hence smash my score down more. Why would discover be a stretch if it's listed under the category of "fair credit"?
Yes, you are correct, an app for a CC would not count in the auto loan pulls, so it would look like 'another' added inquiry on your report; however, as I said, unless you start getting heavy into inquiries, I wouldn't be overly concerned about your score seeing any significant effect from them. At this point, your score is mostly driven by the negative aspects and I would suggesting focusing on taking care of a few more of them before applying. I went to the Credit Card Comparison tool Logan provided, and Discover it card did not show up under "Fair" (only variable I changed was "My Credit is:"), but did show up under "Good" when I checked. Do you have any open revolving accounts as of now? From your signature, I'm guessing you only have 2 positive trade lines including the new auto loan you recently took on, and suggest getting a couple more positives reporting before going for a prime card. We wouldn't see you waste an inquiry on a card that likely is looking for scores close or even above 700.
Mindcrime is correct, I don't know of any lenders who will let you pay off a car loan with a credit card.... I could be wrong tho. I do know if you have a check from a credit card bank that offers promotional limited time aprs (or when the check borrowed amt is paid in full), you could write a check for the loan balance.
yes that's exactly what i was able to do a long time ago (2003-4) one of the first set of CC i had cam with little check book (10 checks), you could pay anything with it and it would charge to you card with 0% apr 6months. But i guess gone are those days........... my cap1 card does not offer something like that. Also the first bank that denied me for the Auto Loan sent me a letter disclosing my Experian score : 679 !!! 100 points up from a EQ product pull in Feb 2013... i had doc's and letters for the disputes their underwriter didn't want to take the time. No worries i found a lender that did look into everything and knew i was serious . got a awesome 5.75% on a used auto. So i'm EXTREMELY happy. At 679 on Experian, and completely clean TU CR. and just getting a letter from 3 CA willing to do a PFD (I didn't ask just sent a well worded letter with all the knowledge i got from here). By Feb i should easily be in the 700's , no? better to apply then.....
FYI, i double check and clicked that link for recommended card for "fair scores" and Discover is the second card on the list.... Credit Cards for Fair Credit - Creditnet.com Anyways i won't apply fo it if it's a 700+ score needed, plus i heard they don' tlike to see new credit lines on your report so i would have to wait in any case... no rush. and thanks for the advice all... but still i swear that link shows me the discover card as the 2nd best and list it as a "editors choice"
That's the Discover it for Students that you're seeing, which means you have to be a current college student to be approved for that. It's not the same card as the Discover it which requires good to excellent credit. However, like I said before, this Barclaycard is one of the most popular and best fair credit cards around right now: Barclaycard® Rewards MasterCard® - Average Credit Review - Creditnet.com
Congratulations on your successes! Your updated scores are on their way to prime territory. I'm surprised you were outright denied with a 679 FICO and approved elsewhere with a 5.7% rate. It would have been more understandable to get denied at one lender, and approved with an high interest rate at another -- willing to take the risk, but 5.7 on a pre-owned is not a bad rate at all. With a completely clean TU report, your score should be hitting 700's quick enough.
If you're really wanting to get a positive revolving trade line reporting, maybe get the Open Sky from AMEX? I do not know much about it other than they don't pull your credit (secured card of course), but IMO wouldn't be a bad way to get a small line reporting without having to take the inquiry hit.
