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Valued Member
Posts: 48
Registered: ‎03-18-2017
0

How aggressively should I app? - Charge Off anchoring scores

Currently I'm looking at adding some new revolving lines (mostly with institutions I already have a relationship with), but I'm not sure how aggressive I can be with new apps given the major remaining derog, a 6.5 year old $7k Charge Off on a credit card from Wells Fargo that was sold but has had no further reporting (reports say it will fall off in ~Dec17).  I've been hoping to be in a good position to purchase a new vehicle next year, get the best loan & insurance rates I can, and building my reports back up with these new lines of credit is a significant part of that.

 

Accounts / items that should read as positives:

  • $2k BankAmericard with BofA, graduated from a secured card in March (SP), opened the previous Jan (~16MO), CLI 'button' has been available for 6+months.
  • $5k Shares Secured Loan with NFCU, currently ~8.6%, waiting for first statement in early June.
  • AAoA 7-8 years, thanks to two closed credit cards (one of which was otherwise 100% positive) with AoOA almost 18 years (back in the day when teenagers were getting card apps).
  • With current W2 employer for 2+ years, ~$40k
  • Extremely few inquiries - just one BofA over a year ago on EX and one for NFCU membership on TU a month ago

 

Current FICO 8 scores:

  • EX: 683 (*)
  • TU: 666
  • EQ: 655 (*) (1)
  • *= EX and EQ are sitting on a ~17pt bump from the current state of the SSL, which still hasn't had the first statement.
  • 1= EQ has an additional non-credit $1,500 collection reporting from 2013

 

What I'm currently considering:

  • PC the BofA to a 3-2-1 cash rewards and request a CLI -- I also have a Merril Edge investment account with ~$8k -- highly confident this will be approved
  • Platinum CC from NFCU -- highly confident this will be approved
  • Fidelity VS CC - I have a 401k through work with them, they seee ~$800-1k/month from me; also a Cash Management account - I expect either a TU or EX pull from  USBank, my better scores - I think the Fidelity side of underwriting will be very positive, but I'm concerned about USBank and the CO and scores - will probably app anyway
  • Cashwise V CC from Wells Fargo -- I have a 20+ year history with WF, checking, student loans with slightly patchy but paid in full history (none of which appear on the reports anymore, but WF knows), and of course the CO which is my ~18 year reporting AoOA that had highly positive history until the last year it was open -- I really have no idea what kind of response to expect from them with mixed highly positive and negative history; only really useful for padding the number of accounts with 1.5% cashback
  • Chase Amazon Prime VS -- no history with Chase, not currently a Prime member, but I probably would be before/as part of apping -- both being fairly neutral, it mostly comes down to Chase's reaction to the CO and scores which I suspect is slightly less than 50% approval; it would probably only be used for Amazon and padding the number of accounts 
  • PenFed Platinum Rewards VS -- I'll app for membership anyway, but unfortunately I expect them to pull EQ which is my worst report -- they seem to be more forgiving of another type of major derog, BKs, than I would have though, I'm hoping this goes for COs from other institutions as well -- approval odds seem like a toss-up; will probably go for it anyway

 

My list of "probably doing it anyway", apping in this order:

  1. Fidelity - I want them to have the best odds, but have low confidence in approval
  2. PenFed - similar to above, slightly more confidence, and the HP will happen anyway on a report the others seem unlikely to pull
  3. BofA - highly positive recent history with them, probably fairly tolerant of a couple previous inquiries
  4. NFCU - seem the most lenient/tolerant if they catch a couple other inquiries before them

 

The maybe's -- slightly concerned they'll cause Egyptian type disturbances with PenFed or USBank right away or in a cople months if they do an additional soft pull for new accounts, or just push things into the "too many recent inquiries" or "recently credit seeking behavior" type rejection territory:

  • WF seems less likely to approve ??? so they'd probably get put in the order right after Fidelity - no idea who they'll pull, mostly padding
  • Chase Amazon - probably after PenFed - I'd like an in with Chase, just padding

 

Not a lot of info in the who-pulls-what databases for SD where cows outnumber people 4:1, but a few things seem consistent for pulls regardless of locaiton.

 

I'm mostly pursuing CCs with institutions I already have relationships with -- it will make maintaining them easier -- and probably less likely for them to randomly close / AA the account in the future.  I'm not going out on a limb to get/chase rewards or logging in just to sign up for this weeks rewards category.

 

While the simulators are no doubt off a bit, I do see a 100-120pt increase in all my scores after another year of waiting and maintaining.  Approaching 800 might be pie-in-the-sky, maybe thats only 60pt or whatever in real numbers, but that puts me around 730 when I'm shopping for a new truck -- a few cards added to the mix now could boost that a bit more, but how many should I really risk going for to get the boost, and if I overshoot too much, how much is that going to hurt me?

 

I'm also thinking that the old card accounts will be dissapearing entirely from the reports in the next few years, so my AAoA is going to plunge either way.  (the account not previously detailed is a Citi card a year younger than the WF card, perfect history other than being closed at grators reuest around the same time as the WF)   Might I just as well get a head start on building new ones now while the two older ones are around to prop them up?

 

I guess the question comes down to: if I'm going to app for several card and then garden them for a year as part of a strategy to boost my scores for an auto purchase, how many is it really worth pursuing now?

Regular Contributor
Posts: 566
Registered: ‎03-28-2017

Re: How aggressively should I app? - Charge Off anchoring scores

  • What's your utilization (highest on any card, aggregate overall)?
  • What's your total account age in months?
  • How many total accounts are reporting?

I would say use an AAoA calculator and see how many new accounts will lower your AAoA into the next lower tier.  Do not apply for so many new accounts that your AAoA will fall into a lower tier in months and not recover for many months.

 

If you lower your AAoA tier make sure it is back to the old one before applying for a loan.

Rebuilding through 2018: 5/17: EQ583 | TU614 | EX574
Cap1 Secured ($3000) | Discover Secured ($2500) | Williams Sonoma Store Card ($400) | Alliant SSL | Local Bank Secured ($5000)

Rebuilding towards 740
Valued Member
Posts: 48
Registered: ‎03-18-2017
0

Re: How aggressively should I app? - Charge Off anchoring scores

Utilization this month: 4% -- as reported by all three agencies, the only account being used for calculations in the new BofA card, the old charge-off is ignored.

 

AAoA - 96 months for TU and EX, 92 for EQ -- they're already on a breakpoint as far as I can tell, the EQ report gives another 'young credit history' type reason for the score that the other two don't.  So adding even a single account will lower them into the next bucket.  Not sure what the next one below that would be, 2 years?

 

Number of accounts reporting:

  • Installment 1
  • Revolving 3 (one open)

 

 


ABCD2199 wrote:
  •   Do not apply for so many new accounts that your AAoA will fall into a lower tier in months and not recover for many months.

 


As far as that one, I thnk I get into the realm of considering that the two old closed revolvers are going to dissapear in a few years anyway, and it might be advantageous to use them to prop up a couple extras now.

Frequent Contributor
Posts: 404
Registered: ‎02-22-2017

Re: How aggressively should I app? - Charge Off anchoring scores

Sounds like you may be trying to do too much at one time. Slow it down a bit.

 

First, I'd scrub Wells Fargo from your list. I understand you still have a relationship with them but you still have a $7,000 Wells Fargo charge off showing on your file that I'm sure they aren't just going to just gloss over.  NFCU is going to be likely a great starting limit for you so that would be a great card to get (plus it grows super fast). Pick one more and that would give you three open revolvers. Let those grow for the year before you get your car loan you want next.  Your scores will def get into the 700's especially once those baddies drop in December. 

 

In the end it's your decision but I think moving a bit slower is best as you don't want a ton of new accounts all at one time. 

Valued Member
Posts: 48
Registered: ‎03-18-2017
0

Re: How aggressively should I app? - Charge Off anchoring scores


CharlieFoxtrot wrote:

Sounds like you may be trying to do too much at one time. Slow it down a bit.

 

First, I'd scrub Wells Fargo from your list. I understand you still have a relationship with them but you still have a $7,000 Wells Fargo charge off showing on your file that I'm sure they aren't just going to just gloss over.  NFCU is going to be likely a great starting limit for you so that would be a great card to get (plus it grows super fast). Pick one more and that would give you three open revolvers. Let those grow for the year before you get your car loan you want next.  Your scores will def get into the 700's especially once those baddies drop in December. 

 

In the end it's your decision but I think moving a bit slower is best as you don't want a ton of new accounts all at one time. 


I've thought of it that way too, the minimum number of new accounts that I 'need' to go for now to maximize scoring potential.

 

The shortest list it makes sense to go for would probably be these 3, dropping the Fidelity and just adding accounts for the credit unions:

  1. PenFed -- going to get a HP for membership anyway, I'll toss a CC app in there too; one reason they're on the list is they're a major contender for the future auto loan too -- the question in this version becomes which of their products would it be most advantageous to app for? does my profile support the Platinum Rewards VS I would prefer?
  2. BofA -- just a product change, and I believe they structure accounts in such a way that it would just be adding features to the already existing account, little impact overall beyond the HP
  3. NFCU -- I really want to expand my relationship with them, this is the one app that is guaranteed to happen -- unfortunately most of their product lineup doesn't offer anything special, so I'll probably go for the Platinum card and use it for 0% BTs in the event that I ever need to carry a balance and of course crossing my fingers on a high limit to pad utilization
Frequent Contributor
Posts: 404
Registered: ‎02-22-2017
0

Re: How aggressively should I app? - Charge Off anchoring scores

[ Edited ]

Glen_M wrote:

CharlieFoxtrot wrote:

Sounds like you may be trying to do too much at one time. Slow it down a bit.

 

First, I'd scrub Wells Fargo from your list. I understand you still have a relationship with them but you still have a $7,000 Wells Fargo charge off showing on your file that I'm sure they aren't just going to just gloss over.  NFCU is going to be likely a great starting limit for you so that would be a great card to get (plus it grows super fast). Pick one more and that would give you three open revolvers. Let those grow for the year before you get your car loan you want next.  Your scores will def get into the 700's especially once those baddies drop in December. 

 

In the end it's your decision but I think moving a bit slower is best as you don't want a ton of new accounts all at one time. 


I've thought of it that way too, the minimum number of new accounts that I 'need' to go for now to maximize scoring potential.

 

The shortest list it makes sense to go for would probably be these 3, dropping the Fidelity and just adding accounts for the credit unions:

  1. PenFed -- going to get a HP for membership anyway, I'll toss a CC app in there too; one reason they're on the list is they're a major contender for the future auto loan too -- the question in this version becomes which of their products would it be most advantageous to app for? does my profile support the Platinum Rewards VS I would prefer?
  2. BofA -- just a product change, and I believe they structure accounts in such a way that it would just be adding features to the already existing account, little impact overall beyond the HP
  3. NFCU -- I really want to expand my relationship with them, this is the one app that is guaranteed to happen -- unfortunately most of their product lineup doesn't offer anything special, so I'll probably go for the Platinum card and use it for 0% BTs in the event that I ever need to carry a balance and of course crossing my fingers on a high limit to pad utilization

I like it! I have the Cash Rewards with PenFed and NFCU. I think Penfed is pushing their cash rewards card too so...

 

Not 100% on this but from what I've personally seen, NFCU appears to give out a higher SL on the Cash Rewards card vs the Platinum card. This may just be a coincidence but it's what I've noticed from approvals posted here. At the same time, after 90 days you can typically get their card CL bumped pretty well so...

 

Good luck with your plan! A plan of action is great as long as you can stick to it! 

Frequent Contributor
Posts: 404
Registered: ‎02-22-2017

Re: How aggressively should I app? - Charge Off anchoring scores

I'm trying to reply Glen but every time I do the post disappears?...

 

It's been doing this ever since the last update....gah

 

Anyway...this is what I posted:

 

I like it! I have the Cash Rewards with PenFed and NFCU. I think Penfed is pushing their cash rewards card too so...

Not 100% on this but from what I've personally seen, NFCU appears to give out a higher SL on the Cash Rewards card vs the Platinum card. This may just be a coincidence but it's what I've noticed from approvals posted here. At the same time, after 90 days you can typically get their card CL bumped pretty well so...

Good luck with your plan! A plan of action is great as long as you can stick to it!

 

 

Moderator
Posts: 7,637
Registered: ‎06-20-2015

Re: How aggressively should I app? - Charge Off anchoring scores


CharlieFoxtrot wrote:

I'm trying to reply Glen but every time I do the post disappears?...

 

It's been doing this ever since the last update....gah

 

Anyway...this is what I posted:

 

I like it! I have the Cash Rewards with PenFed and NFCU. I think Penfed is pushing their cash rewards card too so...

Not 100% on this but from what I've personally seen, NFCU appears to give out a higher SL on the Cash Rewards card vs the Platinum card. This may just be a coincidence but it's what I've noticed from approvals posted here. At the same time, after 90 days you can typically get their card CL bumped pretty well so...

Good luck with your plan! A plan of action is great as long as you can stick to it!

 

 


@CharlieFoxtrot, I restored your missing post and removed the duplicate... I don't think you'll have the issue again but if you do any mod can help.  Smiley Wink

 

--UB

Frequent Contributor
Posts: 404
Registered: ‎02-22-2017

Re: How aggressively should I app? - Charge Off anchoring scores


UncleB wrote:

CharlieFoxtrot wrote:

I'm trying to reply Glen but every time I do the post disappears?...

 

It's been doing this ever since the last update....gah

 

Anyway...this is what I posted:

 

I like it! I have the Cash Rewards with PenFed and NFCU. I think Penfed is pushing their cash rewards card too so...

Not 100% on this but from what I've personally seen, NFCU appears to give out a higher SL on the Cash Rewards card vs the Platinum card. This may just be a coincidence but it's what I've noticed from approvals posted here. At the same time, after 90 days you can typically get their card CL bumped pretty well so...

Good luck with your plan! A plan of action is great as long as you can stick to it!

 

 


@CharlieFoxtrot, I restored your missing post and removed the duplicate... I don't think you'll have the issue again but if you do any mod can help.  Smiley Wink

 

--UB


You're the man UncleB! It's happened a few times since the update. It seems to happen when I edit a post...from the edit it just disappears on me! Anyhoo...thanks UncleB!!!!

Contributor
Posts: 76
Registered: ‎05-05-2017

Re: How aggressively should I app? - Charge Off anchoring scores


Glen_M wrote:

 

  1. NFCU -- I really want to expand my relationship with them, this is the one app that is guaranteed to happen -- unfortunately most of their product lineup doesn't offer anything special, so I'll probably go for the Platinum card and use it for 0% BTs in the event that I ever need to carry a balance and of course crossing my fingers on a high limit to pad utilization

IMHO I wouldn't bet the farm on a guarantee of approval with NFCU with that charge off showing, they have been cracking down since they closed the NLSD door last week.   

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