03-10-2017 01:39 PM - edited 03-10-2017 01:49 PM
I just got my discharge 3 weeks ago and am actively starting the rebuilding process. I have read the rebuild to 700 in 24 months thread and had a few questions.
I have already burned the following companies
TD BANK USA/TARGET CREDIT
CREDIT ONE BANK
GATEWAY ONE LENING AND FIN
so getting a Credit One card is out of the question. I did reaffirm an auto loan with Capital One which is in perfect standing with 1 year of payments. I saw they were listed as a follow up card to replace the Credit One card with so I went ahead and applied for one. I was approved for the Capital One Master Card Platinum with a $1,000 credit line, no annual fee and 25% apr. I obviously plan to keep this card at less than 10% utilization but I was wondering if I should be looking into additional cards? I noticed the strategy seems to be to have 3 cards (two paid in full with 0 balance on statement and 1 with a low amount such as $10 due). Also, I currently bank with Wells Fargo as they are all over my home state (Arizona) so is it still worthwhile to go the Navy Federal Credit Union route? Especially seeing as they have no branches in my state. I am just looking for advice on what my next step should be to work towards this credit rebuild.
Also, I haven't yet signed up to myfico (I plan on it) for reporting but I do know my FICO score is somewhere around 550.
Thank you so much!
03-11-2017 07:16 AM
03-13-2017 02:30 PM - edited 03-13-2017 02:31 PM
Thanks for the information! I am going to look into my bank for a credit building loan which will help start saving as well. As for the 2 additional cards should I go ahead and apply for them simultaneously or would it be better to wait a certain amount of time between opening up new cards?
03-13-2017 02:50 PM
03-13-2017 04:32 PM
If you reaffirmed your auto loan that counds as in installment loan so there isn't any reason to do a credit builder. If you want, you can but you should look at adding other credit cards. I burnt a lot of lenders as well with my BK. Comenity is very friendly, however I would wait till a little over a month from DC to apply. I would look into the shopping cart trick, or specially with Overstock and see if you can get a card with them since it's a soft pull if done correctly with the SCT. I would sit on the one CC you have, and then maybe try another one in a month or so. I know store cards aren't ideal, but if you can get some that would help.
03-13-2017 10:43 PM
I just want to add.....Comenity/SCT cards can be easy to get, but do not go overboard. Only get one at a store you shop often, but that's really all you need, if that.
03-14-2017 10:42 AM - edited 03-14-2017 10:44 AM
Capital One will most likely give you a second card.
After that, be on the lookout for any offers you might receive from Merrick Bank. There is an annual fee but they're far from Credit One and I've had a decent experience with them.
I also got my Discover IT card right around a year post discharge. CLI from $2500 to $3500 6 months or so after that.
I only joined NFCU this month and am waiting to apply for their credit products until my cards report March balances, but it definitely sounds like you want to get in with them.
It's okay if this takes some time. Sure you can get your three revolvers all at once now, but I think a lot of folks that are too anxious get stuck with a bunch of lousy low limit store cards.
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