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Established Member
JP-Photo
Posts: 30
Registered: ‎08-28-2011
0

Opened lots of new accounts 15 months ago... what to do now.

[ Edited ]

My FICO score years ago when I checked was in the 720 range.  About 3 years ago, I got upset at all the CCCs I had, pif and closed all the accounts out of spite.

 

The only negatives I have were 4 late payments from 3-4+ years ago (2 to Chase, 1 BOA, 1 HSBC-Bestbuy), which I was reading about possibly sending them a goodfaith letter to see if they would be willing to delete these from my credit history? (Any suggestions on this?)

 

The only account I kept open until recently was the Bestbuy-HSBC store card, which I requested a credit increase middle of last year and was given from $1500 to $3500.

 

I have had about 10 installment loans ranging from 600-2500 that have been paid off, 2 auto loans, 1 paid off @ $17.5k I still owe $6.7k on my current car.  I have recently found out that my oldest account is a Shell/Citi account from 1986 that I am apparently an authorized user on from my parents.  Not sure if that account helps at all, since I was born in 1983.  

 

As of 2 weeks ago the only accounts that showed to my name as open were:

HSBC - Bestbuy $3,500 (which has about 96% util due to there 18 Months 0% promos, $1k of which is due in the next 60 days to avoid $500 deferred interest)

 

I went out and applied for reasonably every card I could find, at first It was just 1-2, but then like an addicted gambler applied for everything I could find that was worth a shot, and 1 that was a long shot.

 

Active:

HSBC - BestBuy $3500, $3300 used (24.24%) ($1k due in 60 days from 0% for 18 months offers)

 

Longshot:

AMEX Delta Reserve, Declined (Too low credit score, too low # revolving acct, too many inquiries, too many neg statuses)

 

Applied:

Paypal Extra's Platinum, Approved $1500 (23.99%)

Discover More, Approved $1000 (0% 9 months, 19.99% after)

Chase Slate Blueprint, Approved $2300 (0% 12 month, 11.99% after)

Citi Dividen Platinum, Approved $4000 (0% 15 month, 16.99% after)

Target Red Card, Approved $600 (29.99%)

BankAmericard, Approved $2000 (19.99%)

Barclaycard (Apple), Approved $1300 (Then they closed it when I actived the card stating too many inquiries/recent account history)

Walmart Discover, Approve $1000 (22.90%)

Merrick Bank, Approved $1500 (~20+%)

Macy's, Approved ~(Waiting for mail)

Sams Club, Approved $1000 (Waiting for mail)

Home Depot Personal, Approved $500 (25.99%)

Dell Preferred, $1000 (29.99%)

 

Accounts Denied

Spirit Mastercard (BOA)

Capital One (Don't recall which card)

HSBC (Don't recall which card)

Orchard Bank

First National Bank

Sears

 

I effectively went from using $3,300 of my $4,400 credit available to now utilizing $6500 of $20,800 (not including macy's) which is 31.24% overall which is slightly higher than I'd like, but I have about $1200 of payments posting this cycle to bring me below 30% total util. 

 

EF: 694, EX: 687, TU: 697 

 

Am I on the right track? I really want to build as high of a score as I can.  I'm gonna want to be settling down with my fiance soon, I have a Doctorate program I will be starting within a year and a half.  Any other suggestions of what I should or shouldn't do, any accounts that I should open later on?  

 

With the majority of the denial lettes stating the reason for too many recent inquiries, I think I am required to hold off on app for atleast 6months?

 

EDITED Subject to keep people on track.


Starting Score: N/A
Current Score: EQ 694 (08/30/2011), TU 697 (08/30/2011), EX 687 (08/30/2011)
Goal Score: 750+


Take the FICO Fitness Challenge

Wallet:
Citi Dividend Platinum $4K | BankAmericard $3.5K | Paypal Extras Plat MC $2.5K | Chase Freedom $2.3K | Wal-Mart Discover $1.8K | Home Depot $1.5K | Zales $1.5K | Merrick Bank $1.5K | Sams Club $1.4K | Discover More $1K | Dell Preferred $1K | Shell (AU) $900 | BestBuy $800 | Target $600

Garage:
$15000 - Paid off (2005-09) 2004 Colorado (Totaled)
$19000 - Paid off (2009-12) 2009 Mustang (Sold to make room for baby)
$23000 - (08/2012) PNC 3.04% @ 72M 2012 Equinox (Hers)
$23000 - (08/2012) IFCU 2.12% @ 60M 2012 Equinox (Mine)

Student Loans - (08/2012) $5K
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Opening Lots of New accounts..


JP-Photo wrote:

My FICO score years ago when I checked was in the 720 range.  About 3 years ago, I got upset at all the CCCs I had, pif and closed all the accounts out of spite.

 

The only negatives I have were 4 late payments from 3-4+ years ago (2 to Chase, 1 BOA, 1 HSBC-Bestbuy), which I was reading about possibly sending them a goodfaith letter to see if they would be willing to delete these from my credit history? (Any suggestions on this?)

...

 

Am I on the right track? I really want to build as high of a score as I can.  I'm gonna want to be settling down with my fiance soon, I have a Doctorate program I will be starting within a year and a half.  Any other suggestions of what I should or shouldn't do, any accounts that I should open later on?  

 

With the majority of the denial lettes stating the reason for too many recent inquiries, I think I am required to hold off on app for atleast 6months?


You should try to GW those lates.  Don't use a template letter.  Just explain what happened, and explain why it won't happen again.  And try to note any continued positive relationship that you can.  Don't count on them deleting the negatives on your first go round.  It likely will take time and persistence.

 

As to whether you should open anything else, you definitely need to stop for at least 6 months, probably a year.  Your score takes a hit for each inquiry but also for each new account.  Your Average Age of Accounts has now been lowered alot by all of these new accounts showing up (or it will be once they report).  You can't fix this by closing the cards, the damage is done.  Don't compound it by closing anything. 

 

That said, it is also quite possible that a couple of your CCs that you were approved for could close your account or slash your CL once they see all of the other new accounts that you opened.  It may not happen, but that is a lot of credit to open in two weeks and you might spook a creditor once your reports update.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Established Contributor
shane82388
Posts: 968
Registered: ‎07-16-2010
0

Re: Opening Lots of New accounts..

you got 13 new credit cards plus however many you tried to get but were denied for in a matter of weeks? lol

 

Id say it would be as good a time as any to just stop applying for a good 6-12 months at least....i mean what other card is out there to even get anymore at this point? JK...but really, i dont see the point in apping for more right now...those inquiries will take 2 years to fall of your report...but at least in 1 year they wont be dragging down your credit score anymore.

 

I'd not be surprised if someone else besides Barclays threw up a red flag and had a problem with you getting over 20 thousand dollars in new credit in such a short period of time...

 

Side Note: How are you going to fit all those cards in your wallet?!

$1200 $1250 $1250 NPSL $5300 $1350 $2537

$2250 $5000 $7500 $2416 $6500 $3000
Frequent Contributor
dookdig
Posts: 332
Registered: ‎04-08-2011
0

Re: Opening Lots of New accounts..

That's impressive. For now, you might need to freeze all CBs to at least stop yourself from further apps plus some creditors might pull hard on you again after seeing loads of inqs and new accounts popping up to see what actually happens. I would expect some AAs and if they're going to CLD or close account, you might not need extra unexpected hard pull to make matter even worse.

New Contributor
PNut08
Posts: 51
Registered: ‎08-25-2011
0

Re: Opening Lots of New accounts..

I took a somewhat similar approach as you. I had 2 CCs with no new accounts for a while. Over the past week, I've applied for 6 new accounts...5 were approved and I'm waiting on a decision from AmEx though I doubt I'll be approved for that one. My CL on the 2 CCs I have had for a while are low so in about 6 months I'm hoping my score goes back up. I decided to take the short term hit on inquiries and AAoA in exchange for a much lower utilization % when it's all said and done. If Best Buy back dates, which I'm not sure about, then my AAoA won't even take that much of a hit.

 

My only moment of stupidity in those 6 apps was barclay through apple. I really have no need for that card so I am hoping that they cancel it on their own. Anyway, sit tight for the next year, if not two, and your score will rebound nicely so long as you are very responsible with those new cards.

 

Also, general question for others: I've looked at my EX and TU CRs and the inquiries are mostly concentrated on EX. What's the general view of a CCC if they pull EX and see a lot of inq but then pull EQ/TU and see very few inq?

Established Member
JP-Photo
Posts: 30
Registered: ‎08-28-2011
0

Re: Opening Lots of New accounts..

[ Edited ]

shane82388 wrote:

you got 13 new credit cards plus however many you tried to get but were denied for in a matter of weeks? lol

 

Id say it would be as good a time as any to just stop applying for a good 6-12 months at least....i mean what other card is out there to even get anymore at this point? JK...but really, i dont see the point in apping for more right now...those inquiries will take 2 years to fall of your report...but at least in 1 year they wont be dragging down your credit score anymore.

 

I'd not be surprised if someone else besides Barclays threw up a red flag and had a problem with you getting over 20 thousand dollars in new credit in such a short period of time...

 

Side Note: How are you going to fit all those cards in your wallet?!



I did have a phone call from Discover and BOA before they finally approved the account, and I was questioned by both as too so many inquiries.  My response was simple, that I am not rebuilding my credit but making a well planned initiative to strengthen it, because no one is just gonna do it for me.  They both manually approved the apps, the other request were instant approvals in most instances, with the exception of Merrick Bank.  Merrick had actually sent me a pre-approved noticed and once I completed it online they had to do a further review and still approved the app.

 

Do I take an additional hit if any of the other accounts decide to bail on me like Barclay?

 

Re: Side Note: How are you going to fit all those cards in your wallet?!

My wallet is pretty awesome, but I don't plan on carrying them all with me, the main idea of getting all of the accounts like I did was to drop my util %.


Starting Score: N/A
Current Score: EQ 694 (08/30/2011), TU 697 (08/30/2011), EX 687 (08/30/2011)
Goal Score: 750+


Take the FICO Fitness Challenge

Wallet:
Citi Dividend Platinum $4K | BankAmericard $3.5K | Paypal Extras Plat MC $2.5K | Chase Freedom $2.3K | Wal-Mart Discover $1.8K | Home Depot $1.5K | Zales $1.5K | Merrick Bank $1.5K | Sams Club $1.4K | Discover More $1K | Dell Preferred $1K | Shell (AU) $900 | BestBuy $800 | Target $600

Garage:
$15000 - Paid off (2005-09) 2004 Colorado (Totaled)
$19000 - Paid off (2009-12) 2009 Mustang (Sold to make room for baby)
$23000 - (08/2012) PNC 3.04% @ 72M 2012 Equinox (Hers)
$23000 - (08/2012) IFCU 2.12% @ 60M 2012 Equinox (Mine)

Student Loans - (08/2012) $5K
Established Member
JP-Photo
Posts: 30
Registered: ‎08-28-2011
0

Re: Opening Lots of New accounts..

[ Edited ]

 

dookdig wrote:

That's impressive. For now, you might need to freeze all CBs to at least stop yourself from further apps plus some creditors might pull hard on you again after seeing loads of inqs and new accounts popping up to see what actually happens. I would expect some AAs and if they're going to CLD or close account, you might not need extra unexpected hard pull to make matter even worse.




Thank you!


Starting Score: N/A
Current Score: EQ 694 (08/30/2011), TU 697 (08/30/2011), EX 687 (08/30/2011)
Goal Score: 750+


Take the FICO Fitness Challenge

Wallet:
Citi Dividend Platinum $4K | BankAmericard $3.5K | Paypal Extras Plat MC $2.5K | Chase Freedom $2.3K | Wal-Mart Discover $1.8K | Home Depot $1.5K | Zales $1.5K | Merrick Bank $1.5K | Sams Club $1.4K | Discover More $1K | Dell Preferred $1K | Shell (AU) $900 | BestBuy $800 | Target $600

Garage:
$15000 - Paid off (2005-09) 2004 Colorado (Totaled)
$19000 - Paid off (2009-12) 2009 Mustang (Sold to make room for baby)
$23000 - (08/2012) PNC 3.04% @ 72M 2012 Equinox (Hers)
$23000 - (08/2012) IFCU 2.12% @ 60M 2012 Equinox (Mine)

Student Loans - (08/2012) $5K
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Opening Lots of New accounts..


JP-Photo wrote:

I did have a phone call from Discover and BOA before they finally approved the account, and I was questioned by both as too so many inquiries.  My response was simple, that I am not rebuilding my credit but making a well planned initiative to strengthen it, because no one is just gonna do it for me.  They both manually approved the apps, the other request were instant approvals in most instances, with the exception of Merrick Bank.  Merrick had actually sent me a pre-approved noticed and once I completed it online they had to do a further review and still approved the app.

 

Do I take an additional hit if any of the other accounts decide to bail on me like Barclay?

 

Re: Side Note: How are you going to fit all those cards in your wallet?!

My wallet is pretty awesome, but I don't plan on carrying them all with me, the main idea of getting all of the accounts like I did was to drop my util %.


There's no FICO score hit if Barclay closes your account except to the extent that it affects your utilization.  The account will remain on your report for the next 10 years and count for your average age of accounts.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Established Member
JP-Photo
Posts: 30
Registered: ‎08-28-2011
0

Re: Opening Lots of New accounts..

[ Edited ]

Walt_K wrote:
There's no FICO score hit if Barclay closes your account except to the extent that it affects your utilization.  The account will remain on your report for the next 10 years and count for your average age of accounts.


Awesome, that really isn't a worry.  I wasn't expecting the Merrick to be approved. So I lost the $1300 with Barclay, but gained $1500 w/ Merrick.  Thanks for the feedback!


Starting Score: N/A
Current Score: EQ 694 (08/30/2011), TU 697 (08/30/2011), EX 687 (08/30/2011)
Goal Score: 750+


Take the FICO Fitness Challenge

Wallet:
Citi Dividend Platinum $4K | BankAmericard $3.5K | Paypal Extras Plat MC $2.5K | Chase Freedom $2.3K | Wal-Mart Discover $1.8K | Home Depot $1.5K | Zales $1.5K | Merrick Bank $1.5K | Sams Club $1.4K | Discover More $1K | Dell Preferred $1K | Shell (AU) $900 | BestBuy $800 | Target $600

Garage:
$15000 - Paid off (2005-09) 2004 Colorado (Totaled)
$19000 - Paid off (2009-12) 2009 Mustang (Sold to make room for baby)
$23000 - (08/2012) PNC 3.04% @ 72M 2012 Equinox (Hers)
$23000 - (08/2012) IFCU 2.12% @ 60M 2012 Equinox (Mine)

Student Loans - (08/2012) $5K
Frequent Contributor
barbaralee
Posts: 291
Registered: ‎03-13-2008
0

Re: Opening Lots of New accounts..

Wow, kind of don't blame Barclays on that one. 19 applications, 13 new accounts and one cc showing that has over 90% utilization. plus now you have the potential of going into debt over $17,000 on top of the already $3000 you have. Personally I find what you did irresponsible, but I'm probably in the minority. Either which way, good luck.


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