Reply
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Application Spree - How badly will this hurt??

[ Edited ]

ninjaroo wrote:

the problem here is she is becoming a slave to fico score as many people before her have done.

with no ability to get into further trouble with debt she will be able to get what she needs in life much faster. A debt free life, home, "car" are needed


People who are "slaves to their FICO scores" might run the risk of being boring at cocktail parties, but they certainly don't get tempted by major app sprees. FICO scores reward conservative, rational behavior with no appreciable debt, so if everyone became a slave to their FICO scores, this country's credit picture would be in a lot better shape.

Having credit cards doesn't mean having debt. That's naive. That's also something that Dave Ramsey says over and over and over ad nauseum, and it's incorrect. I have enough cards that I'm now culling them, and my only CC debt is at 0%. I could pay it off this afternoon, but it would be stupid financially. My only real credit issue now is low average age, and that heals itself with time.

For those who do find themselves with a batch of new cards as a result of an unplanned off-road credit excursion, I think the best bet is to research the ones you have, figure out which ones might have the most growth potential, cultivate those, and use the others minimally in order to keep them alive until they are proven to be duds. Once you've taken the hit, you might as well get some use out of them for a year or whatever.

And of course, PIF them every single month, no matter what. Unless you want to be one of those awful people that Brother Dave talks about.


edit to add: and bella, I was glad to see that you now will have new clean tradelines reporting! Diluting not-so-great history with good clean history is a proven way of improving scores. That will help you out as you head toward that mortgage. (I meant to add this but got distracted by three e-mails popping up at once. :smileytongue: )

Message Edited by haulingthescoreup on 07-25-2008 10:31 AM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Member
newbie5
Posts: 13
Registered: ‎11-16-2007
0

Re: Application Spree - How badly will this hurt??

Hi Bella.  I am new to this forum.  I was wondering if anyone can tell me what pfd and gw-ing is??
 
thanks.
before myfico March 05 TU=480
then after, July 08 TU=685 EQ=708 EX=680
Sept 08 TU=700 EQ=734 EX=707
I finally made the 700 club. Long hard trek!
Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008
0

Re: Application Spree - How badly will this hurt??



newbie5 wrote:
Hi Bella.  I am new to this forum.  I was wondering if anyone can tell me what pfd and gw-ing is??
 
thanks.



PFD =  Pay-for-delete. Before you pay off a collection it's best to try to negotiate a pay for delete. Always get it in writing first. You are basically agreeing to pay so long as they delete the entire negative entry on your credit report.
 
GW = Goodwill.  You are writing a letter briefly explaining your situation that let to the default and then asking the creditor to make a goodwill adjustment by way of removing the negative entry on your credit report. These are only good if you have already paid the debt and it's still reporting on yoru credit report. It's a crapshoot, they are not required to do anything, but it's worth the few minutes and a postage stamp to ask for forgiveness, if you will.
New Visitor
UpwardsClimb
Posts: 1
Registered: ‎07-25-2008
0

Re: GWing and PFDing

Hi Hauler,
 
I saw your reply to the credit app spree.  Sorry I'm a little green, but what do "GWing" and "PFDing" mean?  I assume these are actions one can take to improve the credit score.  I have been trying to figure it out, but can't.
 
It's probably really obvious, isn't it??
 
 
Established Contributor
MsKiwi
Posts: 832
Registered: ‎03-20-2008
0

Re: Application Spree - How badly will this hurt??



haulingthescoreup wrote:

 
People who are "slaves to their FICO scores" might run the risk of being boring at cocktail parties,



And to their coworkers. :smileyvery-happy::smileysurprised:
Established Contributor
Bella1980
Posts: 583
Registered: ‎06-22-2008
0

Re: Application Spree - How badly will this hurt??

Thanks guys, I am confident that I am on the way to A-PLUS credit and its all thanks to this site.


Starting Score: TU- 682, EQ- 698, EX- 713
Current Score: TU- 723, EQ- 747, EX- 737
Goal Score: 760 PLUS FICO's


Take the myFICO Fitness Challenge

Established Contributor
MsKiwi
Posts: 832
Registered: ‎03-20-2008
0

Re: Application Spree - How badly will this hurt??



ninjaroo wrote:
the problem here is she is becoming a slave to fico score as many people before her have done.
with no ability to get into further trouble with debt she will be able to get what she needs in life much faster. A debt free life, home, "car" are needed


You can be debt free and have credit. Not too many people pay for a car or home with cash.
Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007
0

Re: Application Spree - How badly will this hurt??

This is not a guns-versus-butter issue. You can act in your own financial best interests, have access to plenty of credit, and maintain a solid FICO score.

An application spree affects several FICO-factored variables, some negatively, others positively, some over the short run, others over the long haul.

Immediately, you'll take on a lot of inquiries. This will lower your score, probably around 30 points or so given the number of inquiries. This will start to wear off in a few months, and dissipate after a year.

Assuming you are approved for at least some of these new accounts, you'll lose some average age of accounts (AAoA) points. How many depends on your existing credit profile. If you had two accounts that were ten years old, and you get approved for six new ones, you're looking at going from and AAoA of ten to around three or so--a hit of probably 15 to 30 points. On the other hand, if you already have several accounts, and those accounts are only three or four years old, you'll go from three years to maybe eighteen months on AAoA...a hit of 5 to 10 points.

Your utilization will also be affected. If you were at 80% with a total credit limit of $1000, and you got approved for $2000 of new credit, your utilization would drop substantially, to around 27%. This would give you a significant score boost, probably 30 to 40 points. If, on the other hand, you have $3000 in credit, with 20% utilization, and you get approved for another $1000, the effect will be negligible.

In the long run, additional accounts generally improve your score as they are bills paid on time.
- - - -
in a credit-scoring postnuclear Stone Age...
New Contributor
texasoklahoma
Posts: 71
Registered: ‎04-01-2008
0

Re: Application Spree - How badly will this hurt??

Wow! Hauling, were you talking to me or Bella1980? lol....The advise you gave was just what I needed to read. My situation is different than the OP though.
Within the past month, I went app crazy and got denied for all but Orchard. Its a crappy card I guess but being I had no revolving credit, its perfect for me for now.
I have questions about the cc but I need to go to that forum to post.
Thanks for the advice / info.
6-03-08 FICO TU 621 EX 630 EQ 595
7-23-08 FICO TU 648 EX 642 EQ 640
8-28-08 FICO TU 648
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Application Spree - How badly will this hurt??


texasoklahoma wrote:
Wow! Hauling, were you talking to me or Bella1980? lol....The advise you gave was just what I needed to read. My situation is different than the OP though.
Within the past month, I went app crazy and got denied for all but Orchard. Its a crappy card I guess but being I had no revolving credit, its perfect for me for now.
I have questions about the cc but I need to go to that forum to post.
Thanks for the advice / info.


There are times that being denied by every credit card company on the face of the earth is a blessing! :smileyvery-happy:

Good for you, you have a revolving account now. Do all the things that you read about here --use it, PIF it, use it, PIF it. Keep a very sharp eye on your account: I would check it online at least once a week, because ya just never know.

After six months of perfect history with this card, plus your installment history, you might well be ready to pick up something better, like a BofA secured card. Just be very picky, very choosy with your apps. Instead of thinking of begging someone to give you a card, shift over to the mindset of having them compete over you. :smileywink:

I keep telling myself that I didn't screw up overnight, so I really can't expect turnarounds overnight. Just set yourself a goal, and a plan on how to get there, and stick to it. And if you fall off the plan, dust yourself off, climb back on, and keep on going. Time and persistence cures just about everything in credit land!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}