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Member
DjWesley
Posts: 9
Registered: ‎02-16-2012
0

Lesson Learned... I need advice!

I started my journey on building my credit last January 2012. My FICO was 602 and I had no CC's. I snagged a $300.00 Secured First Progress card just to start. 3 months later I added two Capitol 1 cards (both at 500, 1 being secure) ... Fast forward to the end of November and My FICO was up to 645 and I was feeling good, by the way I pay my cards in full or at least 90% every month. December I decided I needed a higher limit card (you know for utilization purposes...).  I was approved for a 1000.00 Citi Dividend and a 1300.00 MyNFL car (Barclays)... Anyways, as of January 22nd of this year my FICO is essentially back to where is was when I started with NO credit. Currently at 611... (SMH). Evidently applying for to much credit within a short amount of time is extremly bad for the FICO score... (I knew this because I have been an avid reader of these forums, but of course I didn't listen). 

 

Please take my advice for all the newcomers starting out!  Get a few and then sit on them! Don't get to trigger happy when all the offers come in the mail like I did...

 

I was going to try and get approved for a mortgage later this year, however it looks like I may have sabotaged that for at least another 6-12 months...

 

I am going into my second year of good credit history, I just hope that the score climbs faster now that I have a little history behind me...

 

My next concern is whether I should get a car payment or not. I don't have one and from what I have been reading on here is that a second type of credit can help build the score faster. Can anyone confirm this or give me some advice...

 

Any questions or input would be appreciated from all fellow members reading this. 

 

Patiently Frustrated, 

Wesley B.

 

 





Starting Score: 800
Current Score: 800
Goal Score: 850


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Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
0

Re: Lesson Learned... I need advice!

im assuming the new accounts already reported? 

 

this is probably due to a mix of new account / more inquries etc... (your score should recover in 6 months) 

if your going for a mortgage they usually ask you to explain inqruies in the past year. so i would garden those bad boys until feb of next year and pull your reports then. 

 

 

your aaoa should be higher, all inq will have no effect on your score and so forth. 

come join me since i have no desire to app for anything. (going proably till jan' 14)

Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


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Member
DjWesley
Posts: 9
Registered: ‎02-16-2012
0

Re: Lesson Learned... I need advice!

Thanks man. I assume "garden" means don't use it at all. If so are you saying garden the higher limit new cards(1000) or the older small limit cards (500)...





Starting Score: 800
Current Score: 800
Goal Score: 850


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adavis425
Posts: 525
Registered: ‎02-14-2012
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Re: Lesson Learned... I need advice!


DjWesley wrote:

Thanks man. I assume "garden" means don't use it at all. If so are you saying garden the higher limit new cards(1000) or the older small limit cards (500)...


No. Gardening is simply not apping for new credit. Instead, you tend to the CLs you have so that they grow. Tending them includes using them and either PIF or paying the minimum-every month, ON TIME, no matter what.

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tinuviel
Posts: 4,875
Registered: ‎11-02-2010
0

Re: Lesson Learned... I need advice!


adavis425 wrote:

DjWesley wrote:

Thanks man. I assume "garden" means don't use it at all. If so are you saying garden the higher limit new cards(1000) or the older small limit cards (500)...


No. Gardening is simply not apping for new credit. Instead, you tend to the CLs you have so that they grow. Tending them includes using them and either PIF or paying the minimum-every month, ON TIME, no matter what.


+1. Check out the Garden Club threads for more info. There's a new one each month -- the current one is here.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
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jamie123
Posts: 927
Registered: ‎03-22-2012
0

Re: Lesson Learned... I need advice!

I agree with what the others have said about gardening your cards now. Your scores should snap back to where they were in about 3 months and will climb from there. You did the right thing in my opinion.

 

You need to try and make sure that you have at least a 6 month seperation from the last time you applied for credit and when you apply for a mortgage. One year is probably best.

 

Unless you really, really need a new car do not get an auto loan at this time. The auto loan figured into your debt to income ratio when you apply for your mortgage will do far more damage than any help it would be to your scores right now.



Starting Score: EQ 658 6/18/12
Current Score: EQ 690 11/17/14 - EX 687 7/21/14 - TU 701 12/8/14
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Valued Contributor
beb86
Posts: 1,115
Registered: ‎10-31-2011
0

Re: Lesson Learned... I need advice!

Your making good progress and should see an nice bump in 6-12 months if you take care of your cards

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