Basically my plan is to do a AOR and if that can't be done then just a few new cards and let them sit and age. -------------------------------------------------------- Background: BOA Platinum plus: 0/5000cl (09/2007) Citi Divedend :17/3000cl (10/2007) Cap1 Auto :11000/15000 (12/2007) Chase Platinum: 300/6500cl (01/2008) Discover (AU) : 100/13000cl(10/1998)
EXP:730 EQ:749 TU:742 Average Age:2yr 10mo experian has highest inq: 10 . Rest are 2-3 inq on reports. Income: 60-68k year. ----------------------------------------------------------
What is my best bet here. Should i add another AU on there with good history. Is it possible to make myself a joint holder on my parents card with 15yr history? Is joint same as AU or will joint seem more as individual accnt and will they add all history to my report?
Any one have any tips or advice? Any educated guess at what my CL's might be?
For the AOR. I'm going to apply for one card with each major bank on same day. So I will attempt at 5-6 personal and 4-5 business cards on same day.
I will then BT 30-40% of CL's into high yield accnt.
I don't plan on applying for any loans for atleast 2-3 yrs. So it shouldn't really affect me in anyways.
Too many inquiries, too young of a credit history, too low of credit limits on existing cards, too low of income. Even without these factors, it is pretty clear that you have a lot more reading to do before even thinking of doing an AOR (otherwise this question would not be asked).
youstone
New Member
posted: Jul. 9, 2008 @ 5:41p
Thats why i was asking about adding AU or Joint accnts.
If i add 2 joint accnts with CL10-15k and 15yr history.
Will that add like i have had the accnt for 15yrs.
With that my Average age should go to 8-9 yrs.
I dont need 15k+ limits. I'm looking for 3.5k-10k limits.
Also if i put in household income then its 150-200k yr/
Corndogg
Senior Member
posted: Jul. 9, 2008 @ 6:28p
I think this depends on if you see yourself needing credit in the next two years. Are you planning on getting a car/house loan? If you can afford the two years to let the inquiries roll off your credit reports then I say go all out and see what you get. It's better to start now so when you do apply for loans your accounts will age more down the road. More than 15-20 apps at a time would reach diminishing returns quite quickly, especially since you already have 10 inquiries on Experian. On the other hand, if you are going to apply for any loans in the next 2-3 years I would be a bit more cautious about letting your score tank.
youstone
New Member
posted: Jul. 9, 2008 @ 6:34p
I'm not gonna be applying for any loans for at least 2 years.
Also will try to target banks that pull TU and EQ. Since i only have 2 inq's on them.
But if someone can give me info on the joint accounts? Is it easy to add your name to a account? Do you get more benefit than a AU? Does the whole history get added like a AU? Does it result in a inquiry?
Freeze your EX report and you can be sure no creditor will pull EX. link
edit to add: I was in a similar position a few years ago. It made a great deal of sense to target cards with sign up bonuses as that was worth more than a 0% balance transfer with a low credit line. Later you can consolidate request credit line increases and consolidate cards to get large lines.
xerty
Senior Member - 2K
posted: Jul. 9, 2008 @ 7:20p
I think a better plan would be to do a 17 year old AOR (or younger?) so that when they mistakenly issue you lots of credit despite being underage, you use sleazy legal tricks to get them to forgive your AOR debts. Well, good luck to OP for starting early.
How did you get 10 inquiries on one report as an 18-year old? Numerous car dealers, until you settled on Cap1 for your $15k(??!!) car? I'd suspect that even if you are successful, you will have problems keeping your hands off the A0R money, and will be back here in a year wondering how to handle your credit card balances since you spent all the cash you got.
Anyways, adding another AU account wont hurt. But your results will be limited regardless, because of your age, all your accounts (aside from the AU account) are less than a year old, and 3/4 are already reporting balances.
You'll see your success as soon as you start applying. If the apps keep going through without instant denials, keep applying beyond even the 10 planned - once you stick your foot in the water with 5-6 new accounts you will be relatively 'frozen' credit-wise for the next year anyways, so you might as just dive in and go for broke.
I did get a few inq shopping for car loan until i applied for cap1 and was approved for $40,000 at 5.75%apr. this was with the discover AU and BOA at 1 month.
Anyways, Should i apply for one card first and see what the result is before going forward. I'm thinking Chase so I can recon and get instant result with CL.
I haven't had any new accounts or inquires in last 6 months. That should help a bit. I just have to go for TU and EQ pulls. How about penfed, Do they always require docs? If i can get 6-8 cards with 2500-8000CL. Then my goal will be complete.
After that they can sit and age for a good 1-2yrs.
SonorityGenius
Senior Member
posted: Jul. 9, 2008 @ 11:08p
At 18 you should not do an AOR.. yes its "exciting", "thrilling" and keeps you busy but.. the potential of error on your part, the economical climate of creditors presently, and your short credit history will prevent a "dont look back, profit! AOR"
Especially since if you put 50+ apps on your credit reports, tank your scores, and any potential mishaps (AAs, etc) your credit will be profoundly affected..
just a caution, from the looks of it you are "well set" to go ahead in your own mind and were only seeking "ya! do it do it!" response..
youstone said: Basically my plan is to do a AOR and if that can't be done then just a few new cards and let them sit and age. -------------------------------------------------------- Background: BOA Platinum plus: 0/5000cl (09/2007) Citi Divedend :17/3000cl (10/2007) Cap1 Auto :11000/15000 (12/2007) Chase Platinum: 300/6500cl (01/2008) Discover (AU) : 100/13000cl(10/1998)
EXP:730 EQ:749 TU:742 Average Age:2yr 10mo experian has highest inq: 10 . Rest are 2-3 inq on reports. Income: 60-68k year. ----------------------------------------------------------
What is my best bet here. Should i add another AU on there with good history. Is it possible to make myself a joint holder on my parents card with 15yr history? Is joint same as AU or will joint seem more as individual accnt and will they add all history to my report?
Any one have any tips or advice? Any educated guess at what my CL's might be?
For the AOR. I'm going to apply for one card with each major bank on same day. So I will attempt at 5-6 personal and 4-5 business cards on same day.
I will then BT 30-40% of CL's into high yield accnt.
I don't plan on applying for any loans for atleast 2-3 yrs. So it shouldn't really affect me in anyways.
How are you making $60-68k a year at age 18?
Alimo
Member
posted: Jul. 10, 2008 @ 2:15a
I'm 20 and did my first mini-AOR back in February. As someone close to your age, I recommend you NOT do an AOR. The people here guided me well. If everyone is telling you not to do one, it's for a reason. If for some reason you think you actually do have a chance at a good AOR, do not apply for any business cards. It will be rejection across the board and it'll just add inquiries to your CR.
My mini-AOR was somewhat successful. This does not mean yours will be. Nothing on your credit report is better than what my credit report had at the time and I personally think I got lucky. The only thing you have is more cards. I had 3 before my mini-AOR. Plus, I applied at a better time.
Wait 'til your cards are a year old and wait 'til most of your EX inquiries get over a year old.
I wonder what the OP is doing at 18 and getting 60-68k for it... Hardly seems worth the AOR effort if you are only expecting low limits. I would maybe do an AOR for rewards, but not AOR for BT interest..
linedrivekid123 said: How are you making $60-68k a year at age 18?
Just came across this picture of the OP at work...
youstone
New Member
posted: Jul. 10, 2008 @ 8:07a
I work for my family business in the wholesale work. I make a good 1500-1800 a week. But I live in L.A. and cost of living is high. Especially in the area I live.
Reason I ask if Penfed ask for docs. Is because I only starting getting paystubs last 8months and I dont have 2 years of W-2
This might not be a full blown AOR. But I will get a few more cards and some rewards. Then they can sit and age all together.
treasurebeacon said: rates are too low for any worthwhile AORs
I would agree with that in priciple if the only point was interest rate arbitage. But OP is young and if he does the AOR now focusing more on the account bonuses and building as much available credit as possible, then the results down the road can be much more rewarding once the inquiries roll off the reports. He could also use the credit monitoring services to help expedite rolling those inquiries off. If managed properly, OP could be in a much better situation credit-wise in 2 to 3 years when he does go to buy a house/car.
BUT (and that's a big BUT) if there is any doubt on OP's part about the ability to respect the available credit, then this could put OP into a credit-death spiral. Really scary stuff and I hope the OP reads every one of the AOR related FAQ's.
You seem to be handling your revolving debt well, as long as you're paying in full. Hey, you gotta start somewhere. Put your HHI if that's what they ask. Start with signup bonuses, and do the same with checking accounts. Your ability to get the cards you have already is impressive. My wife had to start with the prepaids and AU for 6 months. Good luck!
you can ask parents to add yourself as AU this probably will help... although it might look a little suspicous: 18 year old with 15 years of credit history may be it's better to ask them to add you to the cards that are about 5-6 years old... But that of course depends on the algorithm used by the programm that processes CC applications.
I would not bother with joint accounts. Just ask parents to add you as AU, apply for 4-6 cards from different banks(1 app per bank) and see what happens. Repeat in 6+ month.
PolarDude
Senior Member - 1K
posted: Jul. 10, 2008 @ 3:22p
If you're going to do 50 apps, be smart, and don't go for 10 chase apps, etc. Keep it reasonable. If there isn't a corp involved, maybe 40 apps is good, but get it all out of your system, because your scores will tank once the new tradelines start showing up. Juniper, GE, Discover rapidly report tradelines..
I don't think you're going to be able to make huge money on BTs because you won't get high credit limits. Also, I notice you are carrying $11,000 in debt on a 6-mo-old card. You should pay that off if it isn't 0%.
My advice would be to wait seven months, until your current cards are all at least a year old, and then add one or two more cards, focusing on signing bonuses. If you are lucky, you may get a 0% BT offer then that is worth taking advantage of, as well.
For now, I fear you will just tank your score if you add more new cards onto such a thin file and already very new accounts.
youstone
New Member
posted: Jul. 11, 2008 @ 12:33p
That 11,000 debt is an auto loan not a CC. My payment is 250mo, But Ive been sending $1,000mo.
UPDATE:My 3k Citi card was upped to 8k with a soft pull. Also changed it from Citi Divided Select to a Citi Diamond Preferred AMEX.
I have taken in everyone's consideration. But I plan on applying on Monday. I've targeted 5-6 cards. Shouldn't be too much of a hassle getting approved for 3-4 of them.
MAIN GOAL: My available credit it at 20k. I would like to reach 40k.
Why bother? so you can make 4% of $20000 for 1 year? and have to keep track of / pay 5 credit cards off each month?
Who cares...just dont screw up your credit in the next couple of years - who knows where the mortgage market will be and doing stuff like this *could* at some point redflag you as a risky borrower or something.
I'll chime in because I'm 20, and did my first mini-AOR last year. When I was 18 I did a small 'building credit AOR'. Once that worked out and I had about 75K in credit lines, I did another smaller AOR with maybe 5 accounts (this is back when rates were better). For this year, after some allocation, I was able to get 2, no fee BT's that are all between 20-25K. Not much work, nor a lot of money given current rates, but hey it's over a grand I didn't have before.
tuffghost
Senior Member
posted: Jul. 11, 2008 @ 1:20p
JorgeBurrito said: Too many inquiries, too young of a credit history, too low of credit limits on existing cards, too low of income.
60-68K is too low of income?? I wish I made that much money.
tuffghost said: JorgeBurrito said: Too many inquiries, too young of a credit history, too low of credit limits on existing cards, too low of income.
60-68K is too low of income?? I wish I made that much money.
To get the credit limits to make an AOR worthwhile with his short credit history, yes.
I think you decided on an OK plan OP, although I would crutail it to only 3 or 4 cards. Keep it small, concentrate maybe on some good signup bonuses instead of building credit lines. If you get some good 0% offers, sure use them, but I would not make it a primary emphasis. Regardless of what you choose to do, I would definitely freeze experian. From reading your posts, while I still think you have some reading to do, you sound mature and could probably handle it.
Why bother? so you can make 4% of $20000 for 1 year? and have to keep track of / pay 5 credit cards off each month?He can save 5.75% on $11k since he's already paying it off at a rate which will finish the loan in less than a year. He can also make 4% if he pays himself instead of Crap One. That's 9.75%, 8.75% after tax. Sounds like a plan.
Youstone: Here's an educational exercise for you --- Once you have the BTs available, walk into Crap One and talk to the person who gave you the loan. Be very nice. Mention you have a no-interest loan available and are considering a total payoff now. See what he says. I'm pretty sure he won't be able to do much for you. But you'll learn how it feels to bargain from a position of power, and you'll be smiling at rejection as you walk out the door.
Don't listen to all the naysayers out there. Go ahead and do a 10 card AOR and target signup bonuses primarily. If you do only get 20k in BT money, think cautiously about whether it's worth it or not for $800. If it's just one or two cards, go ahead, but if it's on several don't bother. You are making quite a bit so it may not be worth it.
FWIW, I did a single 19k BT and was happy to make $800 last year, I had only summer income and it was only one card.
However, even if you DONT take out the BTs, the credit lines you build will help TREMENDOUSLY in the future. I'm on my BT #2 and now i have 60k across 5 cards and that creates about $2200 in profit. That is not chump change! That's about half a summer's worth of work!
The only reason I can think of for NOT doing an AOR is either you'll be taking out a loan soon or you don't think you can stay on top of it. I won't be purchasing a home for quite a few years so I am not worrying about that. I *may* take out a car loan in the near future, but it's hard to see why I would when I can juggle 0% BT money for ATLEAST 2 years (Apply for 2 BT cards, take out one BT immediately, take out second BT at end of year one). Obviously this forces me to buy a car that I can actually afford(10k), not a brand new 20-30k one. But that's an added plus.
Mithrin
Nerdy Member
posted: Aug. 6, 2008 @ 3:26p
OP: It sounds like you're fairly mature about this, so I'd say go ahead and apply for a few cards, but you should really focus on getting cards that have good sign-up bonuses or CashBack rewards than BT offers this time around.
If you do get a card with a decent line, and it has a 0% transfer that has a capped fee--use it to pay down the car loan. Beyond that, the current interest rates just don't have that much spread between the 3% BT fee and the interest you can earn (which also gets taxed). In the past, no-fee offers were easier to find. Even offers that have a cap on the 3% fee only really work if you have a large enough credit line to reduce the effective % significantly. If you get an offer with a 3%, max $100 fee, but only get an 8K CL, the fee still limits your profit potential. You'd only want to take out 6 to 7K of the line to avoid high utilization, and $100 is still about 1.5% of the transfer. You be risking the $100 fee to make around $150 in interest after taxes. Not a great deal. Find a card that gives the equivalent of a $100 sign-up bonus instead, and you get about the same return without the risk of making a mistake on the BT.
I would agree with Tyrone that if you get a decent BT offer, use it for the auto loan, where the spread between the interest rates is higher. Plus it would give you the experience of handling the payoff of a BT without trying to juggle 5-10 different balances the first time out.
After collecting the sign-ups, and setting up maybe one BT. Sit back and let your cards age. You might try pushing an online CLI button every 6 months if there is no hard pull. In a couple years, when the inquiries and accounts have aged, consolidate or increase credit lines on the existing cards to bring up your average line, and you might be in a good spot to try a bigger AOR.
Has anyone else noticed the weird line spacing / word wrap on ALL of the OPs posts? Like they are written in Notepad then cut-n-pasted here? Like maybe after spellcheck, or run through a translator? and there are no commas to be found? and short, blunt sentences?
OP, I say go for it... When I was 18, I was making 700 bucks a month.
Things I thought might be advantageous/interesting about an AOR at a young age:
More likely to have low income taxes so savings interest rates are effectively higher More likely to have low savings, so reward checking accounts are more attractive (still being under their limits), making interest yield effectively higher.
Too bad this AOR doesn't seem to fit either of those
jcole21
Senior Member
posted: Aug. 6, 2008 @ 7:02p
TyroneSchulace said: bNeta86 said: youstone we have a problem.
Why bother? so you can make 4% of $20000 for 1 year? and have to keep track of / pay 5 credit cards off each month?He can save 5.75% on $11k since he's already paying it off at a rate which will finish the loan in less than a year. He can also make 4% if he pays himself instead of Crap One. That's 9.75%, 8.75% after tax. Sounds like a plan.
I don't understand this math. 5.75% on 11k and 4% on 9k (assuming 20k available) does not = 9.75%, it averages to 5.75*(11/20) + 4*(9/20) = 3.1625 + 1.8*(75%)= 4.29%.
Regardless of the numbers, just don't screw it up kid. It sounds like you have a good head on your shoulders, just avoid the hookers and blow, and don't use the money (maybe lock it in a CD so you're not tempted to touch it). Good luck.
jcole21 said: Regardless of the numbers, just don't screw it up kid. It sounds like you have a good head on your shoulders, just avoid the hookers and blow, and don't use the money (maybe lock it in a CD so you're not tempted to touch it). Good luck.
It will be a $800 savings if he only takes out 20K in BTs. He could actually MAKE money if he takes out more. Also, I really WOULD NOT suggest a CD. While it is tempting to touch the bank's money when it's in a high yield account, it's much better to have it LIQUID just in case one does miss a payment and has to pay it all back ASAP. It depends on the CD early withdrawal penalty.
jcole21 said: TyroneSchulace said: bNeta86 said: youstone we have a problem.
Why bother? so you can make 4% of $20000 for 1 year? and have to keep track of / pay 5 credit cards off each month?He can save 5.75% on $11k since he's already paying it off at a rate which will finish the loan in less than a year. He can also make 4% if he pays himself instead of Crap One. That's 9.75%, 8.75% after tax. Sounds like a plan.
I don't understand this math. 5.75% on 11k and 4% on 9k (assuming 20k available) does not = 9.75%, it averages to 5.75*(11/20) + 4*(9/20) = 3.1625 + 1.8*(75%)= 4.29%.
Regardless of the numbers, just don't screw it up kid. It sounds like you have a good head on your shoulders, just avoid the hookers and blow, and don't use the money (maybe lock it in a CD so you're not tempted to touch it). Good luck.I was only referring to the first 11k. The 5.75% will be gone. Then he uses the money from his paycheck to earn interest that was going to Cap1.
But I would like to correct my simplistic calculations. The first month he'll only have 1k in the bank, which will average out to 5.5k over the year. 4% of 5.5k average balance is really like making 2% of 11k, without compounding.
Based on $250 mo'ly payment, I would guess that's a 72 month note, and he's 9 months into it. According to my amo schedule, he'll save about $720 this next year, which is 6.54%, and add 1.5% after tax from his paycheck deposits. So he gets 8% after tax on the first 11k. Not bad.
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