Hi, new here, but been reading the forums for advice for several months, and would love some guidance on how to proceed. The BF and I are discussing marriage and I can't stick him with my crap credit so all advice is greatly appreciated. This is my story:
Moved to a new apt in summer of '02 and a few months later lost my job during a corp restructure. (I "permalance") It was about 5 months before my job was back on track, but I let my 2 CC's go to collections. It was that, or not pay rent. I paid the collections (Cap 1 $1281 and Providian $3800) and made the decision to live CC free b/c I had no idea I would qualify for any CC until the collections fell off my CR, and didn't want a secured card since many issuers are shady.
December of '07 got a pre-approval from Cap 1. Thought it was weird since they'd sent me to collections 5 yrs before, but thought what the heck and applied. Denied. Wish I knew they blacklist back then. However, Cap 1 has fallen off my reports since. No idea why. Hasn't been 7 years, and I didn't beg, but I'm gonna run with it
This spring I got proactive about fixing it, so I got all 3 CR's and FICO's were around 570. Also had to fix EQ and TU who were reporting my SS# wrong. Took care of that. Applied for a Credit One card. Approved with a $200 limit. Useless, but a start. Been charging small amounts and paying it off every month.
As of July FICO's were all slightly above 600, so thought I'd try for another CC. Approved by Household Bank $750 limit. I was expecting another $200 deal so it was nice.
My main questions are these:
Where do I go from here?
Thought I'd hold off applying for more CC's til Dec-Jan when I want to try for the BoA 99/50. WaMu won't approve me b/c of Providian, and I'm not trying again with Cap 1. On principal I can't get behind the Hooters card even if it is great for rebuilders. Can't do it. No family in the military so the NFCU won't work. I live in NYC and CU's in general don't seem to exist here unless you live in an economically depressed neighborhood which I don't. I would also like the oppurtunity for more prime cards rather than fill my wallet with sub primes which is why BoA is appealing. Also I read Chase approves lower limits?
I need help understanding util. I know to keep it under 10%, but is that usage in general? Or is that carry over balance? I'm terribly confused by some of the things I read.
Do I leave a small balance on 1 card to show managment of revolving credit?
I keep seeing PIF, PIF, balance, PIF, but is that the right?
I just want out of this mess. I have no student loans, tax liens, medical bills, mortgage, bk, nothing but the CC collections from '02. Of course I also have had nothing reporting b/t then and this May. Have lived in my current apt for 2.5 years, and make about 65-70k a year. Would love to raise those scores and one day have an AMEX (I lust) That's probably years away, but a girl can dream.
I know this was insanely long, but maybe somebody is bored and wants to share their sage advice? It is much appreciated.
OP stated she's already above 600 since July. I agree with BofA, because if they deny you, you will almost certainly get the 99/500 semi-secured card that will graduate into a decent limit card in 9-12 months and build great history. Plus its a card you'll never get rid of like other "rebuilders," since it will probably wind up being one of your highest limits down the road.
Starting Score: EQ: 665 - TU: 687