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Established Member
Posts: 78
Registered: ‎10-12-2012
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Garden or apply for new card ?

Question for the community,

 

I have been rebuilding my credit for about a year and half now. I just closed out my Matrix Discover card last month due to the fees. Right now I still have  5 cards, 1 secure, 4 unsecure. My Fico according to Walmarts free score is 650. Should I just continue to garden for a while or apply for a new card maybe something decent with rewards ?

 

 

I also am going to try and buy a house in the spring or at least start looking then. So I'm not sure if I want another few inquires. Currently have a decent ammount from my initial app spree but they are due to fall off in the winter/spring.

Valued Contributor
Posts: 1,597
Registered: ‎09-15-2012
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Re: Garden or apply for new card ?

[ Edited ]
Need more info.

When were the 5 accounts opened. How many INQs do you have on each report? What are your baddies?

In My Wallet: Amex BCP (12/12) $32,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600

Last App: April 2, 2014
Established Member
Posts: 78
Registered: ‎10-12-2012
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Re: Garden or apply for new card ?

Accounts that I currently have Cap1 Secure opened in Jan 2012($400 Limit), Orchard bank Feb 2012($300), Credit One Feb 2012 ($600), Bar Clay Aug 2012 ($1250) and Walmart ($450) can't remeber when I got it but its been at least 8months.      Total usage right now is $350 total spread out on 4/5 cards.  Baddies include a GMAC loan for $3k that was settled, a Citi fin loan that was settled, and a Navy Federal card that I have not gotten a settlement yet but is $3.5k.  Baddies are from 2008, have not had a missed payment or late in past 4 years. Before starting to rebuild my credit in 2012 I had a auto loan for 2 years that was paid on time every month.

 

current inquirys is about 16.

 

Not looking to get a new card because I need to purchase something. Would like to drop orchard bank with something that gives me a higher limit that will grow over time unlike the orchard card and matrix that I used to have. However I am looking at trying to purchase a house maybe spring time so I don't want to damage my credit with inquires if I probably wont qualify for a card at this time.

 

 

If its a possabilty I would most likey pay down all cards to 0 except 1 to give my score a small bump before applying next month.

Valued Contributor
Posts: 1,597
Registered: ‎09-15-2012
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Re: Garden or apply for new card ?

When you say 16 inquiries, is that across all 3 reports? Is there one bureau with significantly less INQs?

My point here is this: Your score is low due to those baddies, and probably also a utilization factor and an inquiry factor. Your accounts aren't holding you back at this point because they have aged enough. My opinion would be to optimize utilization (all cards to $0, except one reporting between 1-9% of its limit), and then just wait it out. I know it might seem great to get rewards and everything, but your score will continue to suffer if you keep adding new accounts, lowering your AAoA and adding INQs.

The only exception would be if one of your reports only has 1 or 2 INQs on it, because then it might be worth it to try for ONE card that pulls that specific bureau. If that doesn't work, then it would be back to the drawing board.

Honestly, your best chances at a home in 2014 is to sit on your hands and do NOTHING. You have open tradelines reporting positive history, and that is plenty at this point.

Good luck!

In My Wallet: Amex BCP (12/12) $32,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600

Last App: April 2, 2014
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Senior Contributor
Posts: 26,876
Registered: ‎02-07-2013
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Re: Garden or apply for new card ?

IMHO its time to garden until after mortgage process is complete

Best wishes



+ Chase Ink =

Established Member
Posts: 78
Registered: ‎10-12-2012
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Re: Garden or apply for new card ?

Thanks for the responces, I was thinking the same thing. By spring next year most of my inq will fall off, most of my accounts will be 2+ years old, and should have my last baddie settled out at least. Maybe even get a GW letter to work by then.  My Credit utilization is 22% right now according to Credit Karam. I know I'll get a decent boost once I get it down. Its reproting $900 used but really its at $300. Its hard with such low limits to use the credit and not get dinged for it. Last month I bought a grill with my walmart card. $300.  Posted last day of my cycle so reported $300 balance. I have since paid it off. Happens with other cards too.  Barclay reported $234 which was my grocery bill that I pay off soon as it posts but once again posted last day of the cycle.

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