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Originally Posted by Supple Cow
Thank you so much! One more question while I'm in here... some of this still sounds like Russian to me because I don't have any experience with it...
Sometime in the next year, I might be shopping for a car.
Does this mean that every time I asked about financing options, they would run a credit report? And doing that too many times is a no-no?
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I wish there as a black and white answer, but....
It depends. If the dealer works with institutions where the dealer is set up to pull a credit report and forward that report to each lender to see what you qualify for, since they aren't pulling a new report each time, it doesn't matter. If the dealer simply forwards your application to several different lenders and they each pull credit reports, I would try and limit the number of institutions to a maximum of three. I have seen dealers forward credit applications to 20+ lenders, dropping the FICO score by well over 100 points in a day. If you're just looking at different options with a specific lender that already has your bureau, you should be fine as well. For example, if the lender pulls a credit report and you check into a 36 month term, a 48 month term, and a 60 month term, generally they will be using the same report to calculate what you'd qualify for...
Hope this helps
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Originally Posted by Jonnypops
NoSoup, could you please check your private messages :X! Cheers
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Done and Done
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Originally Posted by Supple Cow
Okay, WHOA new developments. When you have the time, Mr. NoSoup, I am truly indebted to you...
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Not a problem at all - that's what I'm here for
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In my frenzy to obtain credit this last several weeks (any credit at all), I applied for a bazillion cards (most before seeing this thread) and got a bazillion noes. Apparently, a couple of them were not noes, they were just we-can't-tell-you-onlines. I didn't know this, and in my mail this week, I got two more credit cards. This leaves me with 4 cards (plus I am an authorized user on my mom's... making 5). I really just need two - the AMEX because of the 6-month 0% APR and the current necessity to keep a balance for a few months, and one other because the AMEX limit is very low and I want to have a higher balance in case of emergency. That's the background.
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I would agree that two (and the authorized user) is enough to establish credit history. Remember to use them both.
However - a word of caution. Depending on the limit of the AmEx card and the balance you are going to carry, it may be better to split the balance between the two cards - be sure you are following the no more than 50% of the limit rule. Even if you end up paying a bit of interest, a few buck now for potentially savings tens of thousands on a mortgage is worth it...
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Remembering what you said about having excess credit cards that aren't in use, I called up to cancel one of the Visa cards today (I hadn't even activated it yet - just got it in the mail a few days ago), and the guy told me some interesting stuff and talked me into activating and keeping it for 3 months before cancelling. Now I want to know if he was full of crap so I can cancel it if I need to. He said that because I had just applied for the card (probably about two weeks ago), that my credit rating (I think he mentioned the snapshot the rating agencies take) would take a bigger hit if I cancelled it now than if I kept it with a low or zero balance for three months and THEN cancelled it. Is this true?
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He took you for a ride. Your credit was damaged by the intially look at the application, but cancelling it so quickly vs cancelling it after three months will make very little (if any) difference. Remember, his job is to get you to keep the card open and active...
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If so, will it also be true of my 4th credit card? I have only that last one which has yet to be activated because I haven't received it yet. I also applied for it only weeks ago (probably about 3-4 weeks through my bank), but I know I definitely don't need that one. Should I call and cancel it now or should I wait to get it, activate it and then wait 3 months to cancel it?
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If you're going to cancel it, go ahead and cancel it immediately - three months will not make any noticable difference.
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(I notice that a lot of people are PMing with presumably more sensitive information. I know that I'm being kind of obnoxious with my questions, but I ask so many partly because I figure others can benefit from the answers as well. So thanks again, in advance!)
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You're definately not being obnoxious with your questions - some people just prefer a bit more private council. I appreciate you being so candid - Hopefully your sitution will help answer some questions that others may have.
You're very welcome - if you have any more questions, don't hesitate