08-18-2011 11:19 PM - edited 08-18-2011 11:28 PM
So I did something truly stupid in March of this year.
While having my credit run for a potential home loan with positive results, having used two secured credit cards to get my credit up to around 750 (middle score), and having previously been denied repetitively by the likes of Citi and Capital One for an unsecured card (or secured), I decided I'd try again to attain some unsecured cards.
My philosophy at the time was I'd apply for everything in one or two days in hopes that the systems wouldn't update each other in regards to inquiries in such a short amount of time and hopefully increase my chances of getting credit cards from various sources... and it worked! I received cards from PayPal ($2500 unsecured limit!), WalMart, Kohl's, Old Navy, JCPenney, a few gas cards, ...for about a total of about 8 or 9 approved cards. UNTIL...
All of my approved cards were sourced from GEMoney Bank who subsequently CLOSED ALL of them! I had balances on most and they were indeed closed in good standing but it killed my average length of credit in leaps and bounds with absolutely nothing to show for it but a few cards that weren't sourced by GEMoney Bank.
When I called to see what happened the rep stated that they were closed due to too many inquiries. I picked her brain a bit and told her I was attempting to build credit (unwisely of course) and couldn't get a definitive answer as to whether or not I could re-apply at a later date but she didn't sound closed to the idea.
Obviously I don't want to dig my hole even deeper but I want all of my credit lines to be unsecured and hold just one secured to maintain my length of credit life. In a month from now, at the 6 month mark since I had my 17 inquiries, I would like to re-apply for ONLY PayPal knowing in advance I'll probably qualify for a $2500 limit which was the highest limit of all of them. 6 months after that I'd like to apply to Amazon.com which gave me a decent limit as well (around $1800 I think). 6 months after that I'd like to get a REAL card to gauge my credit worthiness, i.e., Citi, Chase, etc. and call it a day with attaining any new credit.
Question is, the likeliness of GEMoney Bank forgiving me and letting me re-apply 6 months later? Is it possible? Very few others would touch me (clean bill of health on reports except for Equifax collection which should fall off that report any month now).
Current FICO as of 07/10/2011: EQ - 688, EX - 717, TU - 738.
08-19-2011 12:05 AM
I'm not sure when GEMB will let you reapply, but I'm sure 6 months is enough time to wait.
Your scores look good, why didn't you apply for one or two secured cards (am I missing something)? I'm no expert, but it seems like you'll be ok if you do some gardening (like so many of us) and, as you seem to have planned, wait a bit before reapplying for anything. Do you know what GEMB is going to report as the reason for closing your account?
08-19-2011 07:57 AM
08-19-2011 08:24 AM
Your scores look good, why didn't you apply for one or two secured cards (am I missing something)?
I actually already did, which is how I was able to get my scores high enough to qualify for unsecured cards to begin with. I was attempting to move away from having to go the secured route--basically attempting to wean myself off of them.
I've never heard of that happening, I can imagine your disappointment when they were closed. I'd say you'd be good to apply in 6 months. I also think that with your scores, it wouldn't be bad to forego GEMB and try with Chase for a Freedom. Your scores are pretty close to mine, and I was approved, however with less inquiries.
Yeah, I'd like to but for some reason they hate me. My credit was rapidly climbing using just my two secured cards for about a year--to the point where I could easily qualify for a home loan--but getting a credit card? Pfft! Various companies like Chase, American Express, Capital One, Citibank would either say I didn't use my credit enough, didn't have it long enough, I looked ugly, I smelled--a plethora of excuses. GEMB (Paypal, Amazon, Old Navy, JCPenney, Chevron, etc.), Exxon/Mobile, Macy's were the only ones willing to give me credit and I think I covered pretty much everyone with my 17 inquiries. ;-) Now I'm not sure if I should go for "sure things" (ones I've already qualified for) or hit up somebody new now that more time building credit has passed. I'd consider Chase and the other big players as my "real card" in phase 3.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.