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Next step(s)?

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RebuildingAgain14
Valued Member

Next step(s)?

Good evening, everyone,

I have been working hard over the last couple of years to rebuild my credit. In the last year or so I have seen my scores climb over 100 points, to the low to mid 600's. (TU fako 641, Eq. in that same range, not sure about Exp.)

I've had a Capital One secured card for a little over 2 years now. I started with a $200 limit on a $49 deposit and never increased it. I was one of the many who received an automatic CLI a month or so ago, from the initial $200 limit to $750. Decided to app for another Capital One card but was denied due to an apparent fraud alert that I was not aware of...

Fast forward to this past weekend and after much consideration I decided to apply for a personal loan with my credit union. Asked for $5000 knowing any approval would likely be less. Was expecting something like $500 to 1000, but was approved this morning for $2500! 11.99% interest, 24 month term. To put this in perspective, a year ago I could not qualify for anything--even with a good cosigner.

Wondering if anyone has suggestions in terms of what the appropriate next step or steps would be as I continue to attempt to build my credit. I thought about Barclay, but was concerned about number of inquiries... After being approved for the personal loan I wonder if going through my credit union might be the best bet? Wondering if they might be able to use the same HP for the loan for a credit card app?

Any comments and or suggestions would be greatly appreciated appreciated. I must say that even though I have a long way to go I do owe the bulk of my success thus far to these boards. Thanks in advance.
Starting Scores: EQ 542/TU 500/EX 513
Current Scores: EQ 611/TU 611/EX 628
Goal Score: All 700+

Cap One Secured ($750/$701 'unsecured'), Cap One QS1($1000), Victoria's Secret ($250), Brylane Home ($500), Amazon Store Card ($600)
Message 1 of 7
6 REPLIES 6
jd352
Regular Contributor

Re: Next step(s)?

I would recon that Cap 1 denial. If it was a fraud alert denial, proving you are the one who submitted it should suffice for a decision. Have you taken the hard pull yet? If so, there is nothing to lose.

The personal loan will add to your variety of accounts, but I would be hesitant to take out all that you were approved for. Did you take out the PSL for a reason or just to see if it would work? Some lenders may see this as risky if you make the utilization too high on that loan. Since you were approved for the PSL, why not try for the credit card if it is of use.

Start to think about which cards will be useful. You don't want too apply for a bunch of cards just to get a bunch of accounts Otherwise, you will get to a point in your rebuilding where you will wonder why you obtained that card in the first place. Plan now so you are set for your rebuilding.


NPSL............... $20,700........... $15,200.......... $5,000............ $15,000............ $20,000
Current Scores: Equifax: 761 (Fico) TransUnion: 751 (Fico) Experian: 768 (Fico)
Message 2 of 7
RebuildingAgain14
Valued Member

Re: Next step(s)?

Thanks jd,

The Capital One rep told me that federal law prohibited any type of reconsideration due to the fraud alert. He wouldn't even tell me which CRA had the alert.

Interestingly enough, my CU was able to verify my info over the phone this morning to deal with the fraud alert. Should I try the EO, do you think?

Thanks again.
Starting Scores: EQ 542/TU 500/EX 513
Current Scores: EQ 611/TU 611/EX 628
Goal Score: All 700+

Cap One Secured ($750/$701 'unsecured'), Cap One QS1($1000), Victoria's Secret ($250), Brylane Home ($500), Amazon Store Card ($600)
Message 3 of 7
RebuildingAgain14
Valued Member

Re: Next step(s)?

Also, forgot to mention... Not sure yet what my Eq score is... But for the rate I got, my score range is somewhere between 610-659.
Starting Scores: EQ 542/TU 500/EX 513
Current Scores: EQ 611/TU 611/EX 628
Goal Score: All 700+

Cap One Secured ($750/$701 'unsecured'), Cap One QS1($1000), Victoria's Secret ($250), Brylane Home ($500), Amazon Store Card ($600)
Message 4 of 7
Kenny
Moderator Emeritus

Re: Next step(s)?

Awesome! The installment loan I think will do you a good service to your report. How many CCs do you currently have? With the capital one card, are they able to add on the rewards to it? If they can, then I would suggest using it a great deal and you'll likely have a good chance at getting the CLI with them again.

It would never hurt to ask your CU what they thought about extending a card to you. Explain that you would be willing at this time to take a lower amount of unsecured card to prove to them that you are committed to ameliorating your credit.

With the Capital One denial, I don't think it would hurt to get the big wigs to speak involved. Again, humility will get you a great distance here. Best of luck and let us know if you have any further questions!
Message 5 of 7
ancanter
New Member

Re: Next step(s)?

Just wanted to let ou know im going through the same thing with cap one, I called eq and got my fraud alert removed and cap 1 will recon your app withoiut a new hard hit after you get that removed. I should know in a couple days if I will be recieving my card, ill keep you updated. check the forums for the ca numbers, usually you can call and get it removed on the phone as long as you answer all secuity questions right.

Message 6 of 7
RebuildingAgain14
Valued Member

Re: Next step(s)?

Thanks for that info... My CU dealt with the fraud alert by asking me some questions over the phone. The rep was also able to tell me that Equifax was the issue. I'll contact Equifax, and check back for updates. Thanks!!

Starting Scores: EQ 542/TU 500/EX 513
Current Scores: EQ 611/TU 611/EX 628
Goal Score: All 700+

Cap One Secured ($750/$701 'unsecured'), Cap One QS1($1000), Victoria's Secret ($250), Brylane Home ($500), Amazon Store Card ($600)
Message 7 of 7
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