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Hello all,
Long time lurker, first time poster! I've read a lot of helpful info on these boards, and for that, I thank you.
I think I'm ready to jump out of the garden, but I'm not positive if I should pull the trigger on a HP. Anyway, about 4 years ago, I started running into credit issues. To make a long story short, I had several credit cards closed, collections, etc. I did not go into bankruptcy but am paying everything back through a Wisconsin Chapter 128 (kind of like a debt amortization, but not bankruptcy). I have about 8-9 months left before everything is paid off.
I currently have a $300 secured card with Wells Fargo that I've had 100% positive payment history on since December 2015, and only 1-2 inquiries for each bureau. Credit Karma/USAA show Vantage Scores of 678 Ex, 714 TU, Wells Fargo shows a BankCard Score 2 of 648, and Discover says FICO 8 is 604. I've basically plateaued over the last 3 months and am ready to try something else. I have multiple paid collections, a few of which are going to fall off in a 6-12 months, and one open collection that will be paid in the next month. I have one closed credit card showing 49% utilization that is being paid on every month.
I was thinking of applying for a Capital One card, since they're showing (and sending) me prequals for their Platinum and Quicksilver One cards, but I'm not sure if I should wait a little longer until the closed credit card has a better utilization rate?
Hey all,
My last post disappeared, so I'll try again.
I've been actively working on repairing my credit since August 2015. I started with a Vantage Score of 492 when I opened a Wells Fargo secured card with a limit of $300 in December 2015. Since then, I have paid most of my collections/credit cards that were closed (with the exception of one closed card that has a utilization rate of 49%, being paid on every month), and my scores have risen to 678 Ex and 714 TU (Vantage Score), 648 (Wells Fargo FICO BankCard Score 2), and 604 (Discover FICO 8). I have 1-2 inquiries in each bureau, and a 100% positive payment history and very low utilization on the secured card, plus I am listed as an authorized user on my dad's Capital One Platinum card (100% positive history and low utilization since April 2012).
My scores have plateaued and I'm wondering where to go next. Should I apply for my own Capital One card? Their site says I'm prequalified for the Platinum and Quicksilver One cards. Or should I wait until the closed card shows a lower utilization?
The closed card is showing a maxed out utilization, not 49% -- if it reports a credit limit of $0, ANY balance is going to max it out and really ding your scores.
I recently had a new account post with a maxed out balance (surprise to me as I was expecting another month to report) and my scores dropped 20ish points across the board. So paying that one tradeline to $0 will help you probably 15-20 points.
How many open credit card accounts are you reporting?
Do you have any installment loans reporting?
The closed credit card is still showing a $4750 credit limit, and it has been closed since 2014. I'd like to get it paid off, it's currently part of a Wisconsin Chapter 128 plan (it's like a debt amortization, not a bankruptcy) that will be completed by next July.
So far, 2 open credit card accounts (one secured, one being an authorized user), no open installment loans, but 7 closed installment loans, 5 of which have perfect positive history, 1 with a couple of lates, and one was a charge-off that was paid.
I would work on your utilization first.
@Anonymous wrote:Hello all,
Long time lurker, first time poster! I've read a lot of helpful info on these boards, and for that, I thank you.
I think I'm ready to jump out of the garden, but I'm not positive if I should pull the trigger on a HP. Anyway, about 4 years ago, I started running into credit issues. To make a long story short, I had several credit cards closed, collections, etc. I did not go into bankruptcy but am paying everything back through a Wisconsin Chapter 128 (kind of like a debt amortization, but not bankruptcy). I have about 8-9 months left before everything is paid off.
I currently have a $300 secured card with Wells Fargo that I've had 100% positive payment history on since December 2015, and only 1-2 inquiries for each bureau. Credit Karma/USAA show Vantage Scores of 678 Ex, 714 TU, Wells Fargo shows a BankCard Score 2 of 648, and Discover says FICO 8 is 604. I've basically plateaued over the last 3 months and am ready to try something else. I have multiple paid collections, a few of which are going to fall off in a 6-12 months, and one open collection that will be paid in the next month. I have one closed credit card showing 49% utilization that is being paid on every month.
I was thinking of applying for a Capital One card, since they're showing (and sending) me prequals for their Platinum and Quicksilver One cards, but I'm not sure if I should wait a little longer until the closed credit card has a better utilization rate?
Closed accts with a balance are hurting you. Get that paid off first, and get your scores up to at least a mid-600's range before thinking of any apps. Is there any way you could waut till your 128 is done in repayment, and your closed card with a balance is paid ? Sounds like your scores will be in a better postiion, as well as your reports to apply for anything.
Welcome to the fourms
Closed cards with balances always report maxed out utilization as the credit limit is actually $0, so any value over $0 = maxed out.
Pay it off, then jump out of the garden once you get your new FICO scores after your reports update.
The frustrating thing is, it's a part of the Chapter 128 that won't be completed until next July, and I can't "favor" one creditor over the other by paying it off first. So I either have to wait until next July (way too long IMO), or take my savings and put it towards paying off the Chapter 128 (about $12,500 total left on it).
My scores have stalled out quite a bit since May, so I'm not sure how much it will change with the utilization going down (now showing 46% utilization, no change in scores). I'll wait another month or two and see what happens. I wish Wells Fargo would unsecure my card, but sadly I think I'm in the camp that will be paying that annual fee forever.
As for the utilization, it shows a specific percentage, and not maxed out, because the creditor didn't zero out my credit limit after closing the account (back in 2014). It still shows as having a $4750 limit, thus the non-maxed out utilization. So not sure what's up with that?
Utilization is a big deal, but I have found that people on this site seem to think that creditors will not give credit to people over 9% or 30% (different people have different numbers). I have consistently been approved with high utilization, and any denials I have gotten have cited other reasons. That being said, I have perfect payment history, baddies of any kind. At this point, I think it would be worth it to app for one of the cards you are prequalified for. If you're denied you can try again in 6 months, which is the exact spot you would be otherwise. And with so few INQs, I doubt 1 more is going to hurt you that drastically.
Also interesting to note...I'll have to call the creditor because after just logging into Credit Karma they are all of a sudden reporting the card as open again? That doesn't make any sense, it's been closed for years. Well, I should say Equifax is now reporting it as open, TU is still saying it's closed. *scratches head*