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Need ADVICE on whether to apply for new credit - REBUILDING!

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txmetalhead
Established Member

Need ADVICE on whether to apply for new credit - REBUILDING!

Hello all - please bear with me while I discuss a little about my situation. 

I'm 24 - made poor credit decisions when I was 18 & approved for multiple lines of unsecured credit with no problemo! I had approx. $1,500 in credit cards before I ever finished my first semester of my senior year in high school. However, that doesn't mean I was responsible! haha OBVIOUSLY!

 

SO, I didn't make payments on two of them - was late on the third and my mom agreed to pay that one off because they called her to let her know it was past due :/  Anyway, I paid off one of the others. Still, from 2008 - I have ONE initially $500 CL card that I have NOT paid off and have been told it wouldn't even be WORTH paying off because it would renew that card's activity (nothing since 2008) and would not impact my score too well.

 

Flash forward to July of 2013, I decide to finally apply for some new credit. Keep in mind at that point, I had ZERO revolving credit because the only cards I'd had were the ones I got in high school. Anyway, Capital One partially secured with a $200 CL ( and $99 fee) card and Credit One Secured ($300) were both granted to me. I made the mistake of applying to CapOne for a QuickSilverOne card about a month later because my score jumped from 576-591 on EQ then my FACO on CK jumped from 571-639 (yes, that's for real how it jumped just upon GETTING the cards - no payments or cycles YET at THAT point) and was declined. Back then I didn't get it - now I do!

 

I've never missed a payment since I got these cards, I always pay at least the minimum. The only thing I will say is that SOME months I have very high utilization and some months, almost NONE. I am working on continuing with the ALMOST NONE trend! LOL! 

ANYWAY - at the end of December, I received a $100 CLI from Capital One (I had deposited $50 a few months prior to increase my credit line myself lol) WITHOUT requesting it. Even though this is not MUCH, I still feel good that I got SOMETHING, ya know? To not even ask, I was good with that!

 

 

My EQ FICO now is at 618 and CK score at 629 (dropped the first month I had high utilization and hasn't gone above 629 now Smiley Sad   ).  I wanted to get a new car this year - but I may wait until next year so I can have a longer positive credit history and some DQs/negative history should fall off...but I want to improve my score. Should I seek more CLIs from Capital One and/or new forms of credit? I spoke to Wells about a secured loan to boost my score a little bit and diversify, we talked about using that loan as a down payment on a used auto loan at USAA possibly. ANYWAY - ANY advice would be GREATLY appreciated! My fiance and I are getting married in the next few months and he has almost NO credit - so, I want us to grow credit together Smiley Happy

 

 

 

 

THANK YOU IN ADVANCE! Sorry to be so detailed - just wanted to throw it all out there Smiley Happy


Starting Score: 618 EQ / 629 CK
Current Score: 618 EQ / 629 CK
Goal Score: 700 for ALL 3 CRAs


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B335is
Moderator Emeritus

Re: Need ADVICE on whether to apply for new credit - REBUILDING!

People like to give advice not to pay old debts because it will most likely reset the date, but a lot of the prime lenders have long memories and regardless of the amount or time, will continue to have an issue with it.  Chase, for instance, brought up a paid charge off from 1999 even though it's long off my CR and paid in full.  I think it looks more favorable if you've settled up everything, but that is a very personal decision.  Someone may have better advice in the Repair Forum.

 

Have you tried any of the stores that offer pre-approvals shopping cart trick cards (like Express, J Crew, etc...)?  Besides Cap1 I think First Premier and Credit One are within reach - but would highly discourage both of those due to associated fees.  Barclaycard for average credit may be another option.  If you bank with BoA or Wells Fargo, they have secured products and BoA typically graduates to non-secured with good use.

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