Higher overall available credit will lower your balance ratio. It’s probably better to first increase your existing limits, but adding a new card to increase your overall limit will also help in the longer term. It could possibly help in the short term if the impact of lowering credit utilization outweighs the new inquiry.
If you have any regular utilization at all, it almost always helps. Utilization can swing your credit score +/- 50 points very easily, hard inquiries are typically <10 points for a limited amount of time.
1 Like
Interesting development, Washington State trying to ban credit score use in car insurance rating (joining CA and some limits TX has in place):
-=-=-
Report:
4 Likes
Just to add a Datum for you from the other thread
Nissan Credit
- Experian
- Score almost matched my Credit Karma Score at the time.
Not sure what FICO model they use but I was surprised to see a 99% match to my CK score at the time.
What I offered to maintain in this thread is a list of lessors and which score models they use, based on input from other members.
This would allow someone with general concerns about their creditworthiness to acquire in advance the same score model as Lessor X uses, to be more informed about their likelihood for approval (and favorable pricing) before they even start shopping.
Assuming I could find the one I like, as I am not supposed to open any credit before closing, can I get a lease right next day of closing and moving? The main issue I see the lack of proof of address for the new home for at least 2-3 weeks after closing. Any suggestions?
Most credit applications will ask for a current address and, if you’ve been there less than 2 years, a previous address. Provide both.
This is mainly to ensure that they can access the correct credit file for decisioning. Contrary to popular belief, SSN is not the only consumer identifier used by credit bureaus.
The scores are grouped across the various credit repositories in a fairly tight cluster. It should come as no surprise to anyone that different underwriting standards are used for a home mortgage than a car. They’re used to assess different risk factors RELATED TO WHAT YOU’RE PURCHASING AND THE LENGTH OF TIME you will pay to own the product
Having said that, “good” is still “good,” “very good” is still *very good," and “excellent” is still “excellent…”
So: no more than four revolving credit cards open. I use three and keep a fourth open one that I never use and keep a zero balance on. Keeps my usage % rate down.
Additional credit lines can harm your credit as the scoring will “see” them as something that can get you overextended later.
Keep revolving balances at or below 50% use of the total credit available. 30% is better still, but a lot of folks live on the float.
NO late payments in AT LEAST 5 years.
Previous paid off (satisfied) loans and/or leases with no late payments are a credit positive.
If you can manage all that, you should qualify for a decent rate with ease.
I’m not sure your rationale for max 4 cc is correct. I have been opening 4-6 NEW cc for years for the SUBs and this makes my credit usage very very low because I never carry a balance. My score is usually high 700s/low 800s. Before doing 3 refis in 2 years, my scores were always over 800. Just don’t close any cc’s unless there’s an AF, and you’ll be fine.
See Reddit for cc churning. If you like LH, you’ll like churning
Yeah, there is no magic max of four… in fact, I’ve commonly seen 3 considered minimum, 5 optimal and more than that neutral (in terms of the FICO score impact related strictly to how many cards one has [before considering how many have balances, what utilization looks like, etc.]).
I actively use and have balances report on 12-15 different cards in an average month, and have about twice that many open at any given time.
That precipitous drop to 836 was primarily caused by adding another new card, but the drop was because the account is new (age) not because it’s the 29th or 30th open card.
Also, having a thick credit file over a long period of time blunts the FICO score impact of many individual credit report changes, and you don’t get a thick file by avoiding the broad use of credit.
3 Likes
It was said earlier but if you need a credit boost one of the most effective ways to get it is to be added as an authorized user to a card that has a long history/age, higher limit and is used but under 10%. If you have a family member or friend that can do this it can help a lot. Totally legal and a unique quirk of how score are calculated.
If you don’t have someone there are also companies that offer this service (though be sure it’s one of the legit ones). I’ve actually sold spots on my cards through these brokers and made some nice side money on it.
Post deleted
What does “ Early termination/balance owing” mean ?
I had a NMAC Infiniti lease closed due to a total loss - not at fault - both the companies said they are good at their ends.
I am also supposed to get a refund from IFS for my payments.
Depends but in the old days this means you just turn the car in the dealer early ‘thinking’ they will buy it instead of giving it to the OEM. You ‘early terminated’ and owe the difference between Marketvalue and your payments+RV.
Today, MV is so high that most cars don’t matter.
1 Like
Sorry to post here like this, but I think I might need some advice.
My credit score just fell from 763 to 707 and I have my 4xe being delivered this week. I wasn’t expecting this and it was bit of a surprise to me.
Reason:
My oldest account is only 6 years old. (The time I moved to the US)
I have had around 4 credit cards since then.
Credit Limit: about $35k+ (never bothered asking them to increase this).
Recent changes:
A few weeks ago Samsung released S22 Ultra. I ended up buying two S22 Ultras and two watch4 Classic. Chose monthly 0% APR payment during checkout (mistake). Samsung made an inquiry on my credit history, opened a new credit account, and put a $2500 bill in there. I wasn’t aware that would be the process but I wasn’t too worried about it decreasing my credit score even when I learned about it.
On top of that, I bought a $3500 camera as a gift for someone using a credit card.
1st Negative: Credit usage went somewhere from 25% to 35% (Never really noticed I was making a mistake. Should have been careful.)
2nd Negative: Got a new account opened by Samsung with a balance of $2500. (2nd account opened in the last 2 years)
Still unexpected that my credit went from 763 down to 707.
Current credit usage is about $14000. I have already paid about $4k of it so this month’s statement dates (march) should bring my credit usage down to about $10k. This $10k is all 0% APR that I have been making steady payments on. I don’t have to pay them for another 1 to 3 years (Different deals). I would have wished to keep it that way, but if it is really needed, I could pay it off a large chunk of it in a month or two. I don’t have any missed payments in the past 6 years or any negatives on my credit report yet.
So the big questions.
Does this mean I might not be able to get a Tier 1 lease?
Should I get a co-signer? Should be a bit embarrassing to ask for help on this but if it is needed, I’ll do it.
Would one-pay make for a better offer if I am not offered Tier 1?
Is there anything I can do on such short notice to actually change my credit score?
Any help would be appreciated.
Moved your post to this thread since it is more appropriate
I’d get more of an accurate rundown of your score from www.annualcreditreport.com rather than using creditwise. If it’s your first 4xe and you don’t have significant DTI I’d be on the more optimistic side of getting tier 1 imo
The quickest way to improve your credit score in the short term is to reduce your credit usage.
I think CCAP used Experien to get your score.
Check Experien for your latest score. If this your first lease or finance then that will play into getting Tier 1 or 2.