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Need some advice on potential apps

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Anonymous
Not applicable

Need some advice on potential apps

Hi guys (and gals)! First of all thanks to everyone who contributes on here, I've been lurking here since i first began my credit journey (which granted wasn't very long ago but I've learned a ton from you guys in that time) and i can't even put into words how helpful you all are, literally every time i google something credit related i find the most applicable and thorough information right here and I really appreciate it 😸

Essentially I'm looking for some advice as to who I should apply with and when (thinking about pulling the trigger on cap1 journey, and ultimate goal is a BCE). My first account just turned 6 months old on Nov 2nd and I got my first ever fico scores. According to discover (and experian, but obviously just for the EX score) I'm at 651 EX and 648 TU - one or both of which might be slightly higher now since I recently got my capital one credit steps CLI from 200 to 500, and paid it down to 0 thus bringing more than 50% of my cards to a zero balance - not sure if that's accounted for in either score, it might be in EX but almost positive it isn't in TU

I currently have 3 cards (2 secured/partially secured, 1 store card):

Discover secured - opened 5/2/17 (6 months old, first account)

$200 CL, balance will report soon, not sure yet exactly what it'll be but I always make sure it reports at under 9% (for some reason my statement didn't cut yet though so I'm slightly concerned some pending stuff could post on it, if so it would still just barely be over 10% though)

Capital one secured platinum - also 6 months old, opened about a week after the discover

$500 CL, balance zero (it's been updated on my CRs but again I'm not sure if it was when they pulled them to get my FICOs)

Comenity Overstock - 5 months old, will be 6 months soon

$250 CL, balance zero - I haven't even used this one yet, honestly I probably shouldn't have even opened it but I got it with the SCT and was so stoked to be offered my first fully unsecured credit line I jumped on it immediately, I'll probably use it in the next few days so they don't close it on me

The rest of my credit profile:

All 3 bureaus show

3 TLs
Overall util 1%
Highest single util under 9% (and will stay that way unless my discover posts some pending stuff on my statement, should've cut yesterday but still hasn't)
AAoA 6 months
No missed payments

As for the rest:

TU, EX:
3 derogs (all unpaid medical collections from Oct 2014)
1 inq

EQ
5 derogs (again all unpaid medical collections, the same 3 from above plus 2 more from Jun 2014)
2 inq

I've done the prequal circuit and all that I've come up with is Capital One platinum and QS1 (I want journey, they say I'm not eligible for a PC yet and I'm not sure if journey is even a prequal option, I do know you can only apply online for it though), and ultimately I'd like an amex BCE but I'm pretty certain even with their allegedly loosened UW standards I'm still not there yet.

Really I'd go for any no AF cash back card, but unless I'm mistaken I think at this point the only one I'd have a chance of being approved for is the journey (I'm not a student but as far as I can tell that's not actually a requirement)

My question is, would I be better off apping for that now and taking the 3 hp's, or would it be in my best interests to wait and try for one of the more prime cards at some point in the future? (Also wouldn't mind certain store cards - target, walmart, or maybe amazon) - I'm also not concerned with tiny SLs, I'd be happy with whatever somebody feels like trusting me with

Thanks again to everyone, and sorry if this was way too long, I tried to include all the stuff that might be pertinent but I do tend to ramble ☺
16 REPLIES 16
marty56
Super Contributor

Re: Need some advice on potential apps

I would take a copy of your CR and go to a local CU and see if they would approve you based on your CR.  They may not tell you unless you apply but if you don't apply, it won't cost you an INQ.  Being a member of a local CU may pay off down the road if it doesn't right away.  Even without the derogs on your CR, your AAoA is very low so you may have to wait anyway.  Check out the rebuild section to the forum to see if there are any options you have to getting ride of those collections on your CR.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 2 of 17
Anonymous
Not applicable

Re: Need some advice on potential apps

Thanks for the suggestion! I've been thinking about trying to join a CU for a while now so I might just take that leap, any in particular you would suggest? I'm in the DC area so there's a lot around here, the only ones I've really looked into the requirements on are NASA FCU, SDFCU, and Penfed (I don't think I have an in with navy federal unfortunately)
Message 3 of 17
Moneyklutz
Frequent Contributor

Re: Need some advice on potential apps


@Anonymous wrote:
... I've been thinking about trying to join a CU for a while now so I might just take that leap, any in particular you would suggest? 

You might want to consider reading CreditGuyInDixies long but detailed and awesome post on the Shared Secured loan through Alliant Credit Union. It'll take $510 of liquidity to do, but the bump in your scores might help you get better cards down the road in having an installment loan report along with the cards you currently have.

 

If you already have an open installment loan then disregard this suggestion. 

 

(Edit to add that I started my rebuild with Cap One with a Journey card and then PC'd over to a QS after 6 months...the only student part that allowed me to qualify was from the University Of Hard Knocks  Smiley Wink)   

Message 4 of 17
Anonymous
Not applicable

Re: Need some advice on potential apps

Good call that's a great guide lol I've studied that thing a few times CGID should get mad props for writing all that up, you're right on point I don't have any open installment loans (no closed ones either actually), I don't have the funds available currently (lol I bet that's one of the 'key phrases' that I saw somebody talking about the other day that'll earn you a CLD with a certain ccc - I wish I could remember what thread that was, it was an interesting one) but I feel like it could be a great thing to do if I happen to get my security deposits on the secured cards back around the same time, thanks I literally always forget about that every time I have enough money available to actually do it

Haha and it looks like we went to the same school! Nice that's really good to have confirmation on, I think I'm just about ready to bite that bullet and throw an app out there, it would be awesome to have a fallback cash back card for the places that don't take discover
Message 5 of 17
Anonymous
Not applicable

Re: Need some advice on potential apps

There will be people on here with a full menu of what you should do.  I am not well versed enough to do that for you.  But just throwing in my 2 cents, I have a couple comments.

 

If it were me I would not apply for my favorite Capital One card yet.  The multiple HP's are not justified by the risk of being denied and the low SL you will receive.  Also, keep in mind you are limited to two Capital One cards(co-branded is not included in the limit).  Also keep in mind, Capital One tends to "brand" or "bracket" people, meaning if you get a card from them when you are weak, they will always consider you weak even if years later you are very strong.  So in my view you would be "wasting" your Capital One opportunity.  Personally, I don't care about Capital One or even like them.  But just in general, if that is the card you want, you should wait until you know you will get approved and you get approved for a good SL....because again, you will have to live with it.  I personally can't get a Venture card.  I am not allowed.  Why?  Because I am stuck with two little QS cards I got a very long time ago and can't get rid of them because they are my oldest cards.

 

What my first priority would be is to see if you can get rid of some of those collections on your report.  "If you feel justified in doing so (due to inaccuracies, etc)" I would Dispute those with the credit bureau.  If it does not work, try it again.  and again.  and again.  You just need the creditor to not respond in time once.  OR Then you can also try to negotiate a payment to settle it if the creditor will delete it.  But for sure your first plan of action should be to try and "clean" your credit report.

 

I would then work to turn those secured cards into unsecured cards.  If you can do that, then you are ON YOUR WAY and life would get easier after that.

 

Getting rid of a negative or two, turning those secured cards into unsecured, and by then having a longer Age of Accounts by that time....THEN you could get approved for a good card and build from there.

 

Alternatively, there are also the credit building cards, but most on here seem to feel getting a good secured card is the better way and you seem to be on that path already.  You will see on my profile I went the crappy credit builder card route and it actually worked out great for me.

 

Mostly, PATIENCE and avoid compiling wasted Hard Pulls is the most important in this game.

Message 6 of 17
Ardecko
Frequent Contributor

Re: Need some advice on potential apps

AMEX has a prequal page as well(it seemed like you had not tried this).

 

Also, bump, because I'm curious... If the OP already had an installment loan, and they already have 3 cards, what's next?

 

It seems like the best option is to go to garden, wait for unsecures, SP CLIs, try to deal with the collections, and wait for their accounts to age some more. What would be gained by app'ing right now?

2017-09-09 FICO 08: EQ 677, TU 640, EX 705
2020-02-07 FICO 08: TU 789
2020-02-10 FICO 08: EX 752

Gardening, mostly, again until... soon(I need to replace my car)

Message 7 of 17
Moneyklutz
Frequent Contributor

Re: Need some advice on potential apps


@Ardecko wrote:

 

...Also, bump, because I'm curious... If the OP already had an installment loan, and they already have 3 cards, what's next?

 

It seems like the best option is to go to garden, wait for unsecures, SP CLIs, try to deal with the collections, and wait for their accounts to age some more. What would be gained by app'ing right now?


Asking for a friend?  Smiley Wink

 

..silly-fun teasing aside, you're spot on. Extending one's credit at that hypothetical situation would not make any sense. I'd grab a shovel, turn dirt and pluck away at credit score sucking bugs.    

Message 8 of 17
Anonymous
Not applicable

Re: Need some advice on potential apps

I don't think I can quote on mobile but thanks for the advice guys, I kinda had a feeling some more gardening might be in my immediate future 😸 that's a really good point on the whole capital one thing, QS is ultimately the one I'd like so wait I shall

Also just for the record I am OP and I do not have any installment loans, I've checked out the SSL thread a few times but always forget about it on the off occasions when I actually have the available capital (also recall seeing a few people say that baddies could potentially cancel out the benefit but I'm not sure if that applies in my case or not)

I've tried the amex prequal a few times lately but no dice yet 😿 presently I mainly I wanted a card with a little cash back so that I don't feel like I'm leaving free money on the table everywhere discover isn't accepted haha but overall building my score is probably my main concern

Thanks so much everybody, I really appreciate you guys lending me your expertise in these matters

I will most definitely take a shot at disputing the collections, 3 of them are transworld/TSI and those folks are PERSISTENT lol, worth a shot though (or many shots haha)
Message 9 of 17
HeavenOhio
Senior Contributor

Re: Need some advice on potential apps


@Anonymous wrote:

Also, keep in mind you are limited to two Capital One cards(co-branded is not included in the limit).


According to CapOne's website, a customer can up to five cards. But according to posts here, only two "starter" cards are allowed.

Message 10 of 17
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