Bad Credit - Chase Sapphire Preferred Approved??

[BillyJean]

Yeah I totally don't know how I got one because last time I checked my credit two years ago it was at 500 something.  Just to give a brief summary of my credit history when I was 20 (11 years ago) my first ever credit card was a discover card gave me a 20k CL which I maxed out and never paid off the balance when to collection then to court.  Then I had some other small things adding up to about 6k I never paid.  Then to top it off about 40k in school loan debt that I just starting paying a year ago. ( I just managed to keep it out of default ).  Now whats weird is the only thing that shows up on all three of my credit reports is my school loan the late payments, and the court judgement for the discover. (Which they almost took my car away from me if I was home that day)

Alot of these incidents happend years ago and I have not used credit in such a long time I can't remember maybe 4 years ago I had a little 500 dollar credit card.  Anyway my score now is a 650 and one of the things hurting me is that I have not current credit.  What made me apply was I was at my parents house and a debt collector called about one of the 6k debts I never paid and I was going to settle it for 18% that day (I was just testing how low they would go) and just to make sure I told them I want to check my credit make sure this debt was legit because the info I can't remember 10 years ago what bank it was with.  So upon checking I don't see anything show up and they never called me back to settle so when I saw the 645-650 score for all three I was shocked.  I gave up on having credit years ago and I always kicked myself for not filing for bankruptcy or doing anything about it. 

Last my gf which has excellent credit was telling me to get a secured card because it boosted her score 30 points which I still don't believe because she has 3 cards all very low balances and about 15k CL combined I don't understand how a secured card could help that much when your credit was already a 790, I think she something else.  Anyway so I was shopping around for a secured and just because I do spend about 2k-3k a month buying stuff for my business/work and my parents do the amex points thing and pay off the balance in full every month I was like why am I not doing that I want the points. 

So I tried that card first just because I heard it was a sexy card like metal and the 40k points thing is a no brainer, so I put I am self employed salary of like 50k even though I am a contractor right now ( it's hard to tally up all my income ) it might be 70k it might be 40k it varies every month.  I was not instant I approved I had to call to verify myself or my address I don't remember but when I called it was instant.  I even had to ask them are you sure about the 5k CL I didn't think somebody with my background this was even an option.  But long story short I am different now I don't even like credit as whatever I want I buy it cash and I don't believe in paying any interest at all.  My checking will always be bigger than CL so there is not a reason to never pay it off.  I might keep like 10 dollar balance.  Anyway that's my story sorry so long its my first post.

[Gibran]

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@BillyJean wrote:

Yeah I totally don't know how I got one because last time I checked my credit two years ago it was at 500 something.  Just to give a brief summary of my credit history when I was 20 (11 years ago) my first ever credit card was a discover card gave me a 20k CL which I maxed out and never paid off the balance when to collection then to court.  Then I had some other small things adding up to about 6k I never paid.  Then to top it off about 40k in school loan debt that I just starting paying a year ago. ( I just managed to keep it out of default ).  Now whats weird is the only thing that shows up on all three of my credit reports is my school loan the late payments, and the court judgement for the discover. (Which they almost took my car away from me if I was home that day)

Alot of these incidents happend years ago and I have not used credit in such a long time I can't remember maybe 4 years ago I had a little 500 dollar credit card.  Anyway my score now is a 650 and one of the things hurting me is that I have not current credit.  What made me apply was I was at my parents house and a debt collector called about one of the 6k debts I never paid and I was going to settle it for 18% that day (I was just testing how low they would go) and just to make sure I told them I want to check my credit make sure this debt was legit because the info I can't remember 10 years ago what bank it was with.  So upon checking I don't see anything show up and they never called me back to settle so when I saw the 645-650 score for all three I was shocked.  I gave up on having credit years ago and I always kicked myself for not filing for bankruptcy or doing anything about it. 

Last my gf which has excellent credit was telling me to get a secured card because it boosted her score 30 points which I still don't believe because she has 3 cards all very low balances and about 15k CL combined I don't understand how a secured card could help that much when your credit was already a 790, I think she something else.  Anyway so I was shopping around for a secured and just because I do spend about 2k-3k a month buying stuff for my business/work and my parents do the amex points thing and pay off the balance in full every month I was like why am I not doing that I want the points. 

So I tried that card first just because I heard it was a sexy card like metal and the 40k points thing is a no brainer, so I put I am self employed salary of like 50k even though I am a contractor right now ( it's hard to tally up all my income ) it might be 70k it might be 40k it varies every month.  I was not instant I approved I had to call to verify myself or my address I don't remember but when I called it was instant.  I even had to ask them are you sure about the 5k CL I didn't think somebody with my background this was even an option.  But long story short I am different now I don't even like credit as whatever I want I buy it cash and I don't believe in paying any interest at all.  My checking will always be bigger than CL so there is not a reason to never pay it off.  I might keep like 10 dollar balance.  Anyway that's my story sorry so long its my first post.

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Welcome to the forum...and congrats on your approval

[takeshi74]

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@BillyJean wrote:

Yeah I totally don't know how I got one because last time I checked my credit two years ago it was at 500 something.  

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2 years is a long time.  Definitely check your reports and scores.  I'd strongly suggest doing so before applying for anything.

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@BillyJean wrote:

Last my gf which has excellent credit was telling me to get a secured card because it boosted her score 30 points which I still don't believe because she has 3 cards all very low balances and about 15k CL combined I don't understand how a secured card could help that much when your credit was already a 790

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A lot of people don't have a good understanding of causal versus coincidental.  Did she actually review her reports to come to that conclusion?  Did she rule out every other possible change?

In any case, congrats and use it responsibly!

[parakleet]

Congrats on the approval. It sounds like you're not really sure what all is on your CRs. I would recommend getting copies of all three CRs directly from the CBs so that you can be sure what's on there. It's possible that a lot of your bad credit activities happened longer than 7 years ago so that's why they're not hurting your credit as much as you think they are.

[randeman]

Congrats and definitely check your reports.  Don't question the approval, just enjoy it!

[BillyJean]

My gf has been monitoring her credit now for about 6 months and she did pay down most of her cards about a month or two ago before the secured but she said after 30 days of her getting the secured it went up 30 points and I just find that hard to believe she did the wells fargo 300 dollar secured and she never has even used it I don't see how that could happen when she already has good credit and other real credit cards.  But I will try it in six months or so see if it helps me right now I want to see what the chase sapphire preferred does for me.  If I can get into the 700 range I will be happy. 

Also when you have a public record court judgement against you does this ever go away it's been since 2006 and I my car was paid for and they tried to take it from me years later one day out of the blue a sheriff came I put my car in my fathers name that same day.  This is the main issue, I could pay it off and settle for maybe half or less but it will still be on my record and that money I could use to put towards a house. 

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@takeshi74 wrote:

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@BillyJean wrote:

Yeah I totally don't know how I got one because last time I checked my credit two years ago it was at 500 something.  

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2 years is a long time.  Definitely check your reports and scores.  I'd strongly suggest doing so before applying for anything.

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@BillyJean wrote:

Last my gf which has excellent credit was telling me to get a secured card because it boosted her score 30 points which I still don't believe because she has 3 cards all very low balances and about 15k CL combined I don't understand how a secured card could help that much when your credit was already a 790

---

A lot of people don't have a good understanding of causal versus coincidental.  Did she actually review her reports to come to that conclusion?  Did she rule out every other possible change?

In any case, congrats and use it responsibly!

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[BillyJean]

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@parakleet wrote:

Congrats on the approval. It sounds like you're not really sure what all is on your CRs. I would recommend getting copies of all three CRs directly from the CBs so that you can be sure what's on there. It's possible that a lot of your bad credit activities happened longer than 7 years ago so that's why they're not hurting your credit as much as you think they are.

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yeah I did and nothing shows just my school debt and the public record.  Most of it did happen over 7 years ago but I did check my credit about two years ago and everything was there still affecting me.  I'm still learning a lot and but I thought when you have something in collection it never goes away.  But I never had more than 4 negative issues it was mainly just the one big one.  I thought I would never have credit again.

[supervelous]

Same boat as you.  I had no high limits, applied for Chase Freedom and approved for $5K, then Saphire Prefferred approved for $6,200.  Both totally suprised me.  Although I do know what's on my CR, some spotty pay history from a few years ago, but high 600 FICO, relationship with Chase for years, and 74k income with not much debt probably helped.

[parakleet]

I would go check posts on the rebuilding forum - there would be more information on there about rebuilding. It's definitely possible so I wouldn't be discouraged. Besides, you have an excellent card to build history with. I wouldn't really worry about getting a secured card since you have the CSP. Use it well and in time, your credit will improve.