Question about new credit card application..with a story line

[Anonymous]

On 1/20/1998 I filed for Chapter 7.

I was able to keep my house through the process which at that time had $79,000 left on the mortgage.The only card I had which was not reported on the BK was a Sears card.I applied for a Wamu credit card to try and start a new credit history and it came with a $300 limit.Through the last ten years I never had a clue to what my Fico scores were and was not happy having to file BK but had to after a heart attack and bypass surgery at age 41 which cut back on my work output and perspectives on life overall.I lost both of my parents within two years of each other with my Father being the last 6 years ago.With me being the executor of his will and one of the heirs to his estate I was able to pay off my mortgage which I did in 2003.I still never checked my Fico scores realizing I was still under 10 years and just kept paying everything on time.The ten year period ended and I thought it was time to check.On 5/13/08 my scores were Trans 753,Eq 696(will explain) and Ex 757,needless to say I was estatic over them.

Unfortunetly before I checked my scores I had three awnings installed on windows 2 of which were installed inside of the shutters and one on the outside of them.I was not happy with the work and held back on the final payment explaining to the contractor that as soon as he made all three match he would be paid in full.He never did and turnt me in to collections.For 4 years I went back and forth with the CA explaining the situation and each call was left with "we will contact the contractor and try and get this worked out",after so so so many calls from them trying to pressure me I lost it with the last agent and low and behold was turnt into Eq and only them(so far),which you can see is hurting that score.Had I known all of this and what I should have done was taken the contractor to small claims court but always held off as the CA said they would try and get it worked out.

Ok now the question LOL...oh first my scores today are Tran 779 Eq 705 and Ex 788

I have 5 cards

Sears 9,600 limit 2,401 bal opened 1990

WAMU 15,460 limit 1,857 bal opened 1998

Best Buy 750 limit(opened before 10 year bk lapsed) 0 bal opened 2006

Home Depot 9,600 limit 0 bal opened 2007

Chase (through AARP used to transfer from WAMU with 0%)6000 limit 2,804 bal opened 2008

Ok NOW the question

Do you think I should try and add a card to the ones I have now or add another mix like a gas card?My total available credit now is $41,310.00.Like I said earlier I really am just now getting back into the credit scene and want to make sure I am playing the game right in order to keep my scores moving in the right direction.I get many offers DAILY but want to make the right desicions at this point as to not do harm to my scores in these crazy times.

Thanks for the ear and any help

[GFer]

Well, you've done very well for yourself, that's for sure! (Sorry about your losses,though!)

Honestly, your credit is superb! The good payments, relatively low balances, and on time payments have you in prime rate territory already. Time is one factor--just keep doing what you're doing with payments!

I did notice that on a few cards you could stand to lower the utilization some and probably gain some points.

Sears 9,600/2,401 = 25%

WAMU 15,460/1,857 = 12%

Chase 6000/2,804 = 46%

Best Buy 750/0

Home Depot 9,600/0

Between 3-9% is ideal for optimum points

For future reference, anytime you have a dispute with a contractor or such--pay the bill regardless---and then file suit. It still gets taken care of, but you look better on your credit and in the eyes of the judge or such.

I'm guessing it's ex that was affected? When was the last inquiry you've had? It really wouldn't hurt to have another credit card in the mix, and with your scores---it's sure to be prime (depending on your choice!).

Personally, I'd go with a cu or BoA. But clearly, up to you.

Message Edited by GFer on 10-12-2008 09:12 AM

[Anonymous]

GFer,

Thank you.

My last Inq was by Chase,I had had a larger balance on WAMU and shifted bulk of it to Chase at 0%,I'm pretty sure it was only about 4 months ago.

I'm basically sending in $500 a month on Chase and Sears and $250 on WAMU,mabey I will just hold off for 4-5 months and then apply.

Yea I know my mistake with that contractor.The balance was only $410.00 but the thing was the job was not done properly.I told the contractor and the CA I would glady pay the balalnce and give the contractor the choice of making the two larger or the one smaller so they matched.I was hoping he would take me to court but I guess he figured he would lose in small claims court so I get screwed now.The CA asked me if I wanted to settle for less and I told them it was not an issue about money it was getting the job done right.Every agent(except the last....guessing she was the last on the line)agreed with me as far as the job being incomplete.From where I sit now and knowing my scores I probably should have just settled to keep it from going this far.

It was Eq and the date assigned was Nov 1st 2004.......Date last active April 1st 2004...Date reported Sept 1st 2008....I know it was originally first reported in June of 2008 so they must be what updating it?Do I go by the date assigned as far as SOL?Would you just let it run it's course at this point?I am concerned the closer it gets to SOL they will turn around and report to the other agencies?

Thanks for your input

[Anonymous]

I agree with GFer on applying for Bank of America or a CU. BoA will usually pull Experian, so that would be good if you are looking to pick up another card.

As far as the collection, you could offer a PFD if you really want to remove it from your report and hope that they don't report over to the other 2. I think it is also wrong that they did not do they work you paid them to do. It looks like the SOL will run from April 2004. Did you dispute it for them to update it in September?

Here is the thread concerning PFD's with a sample letter.

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=130&view=by_date...

[Anonymous]

Stef,

Was just thinking with the way the financial markets are today CC companies may start to reduce limits.I only have 2 bank cards and thought adding one many be a good idea.Going to look into BOA and considering I have a total limit of $41,000 it does not seem exsessive comparred to others limits I have seen posted on the board.

I did dispute the collection with EQ but it was back in July and is noted on my report "customer disputes charges".

Thanks for the PFD link,I may consider it due to the fact I am concerned they will turn ot over to the other two....but like you said that may open a can of worms.Seems a bit harsh 70 point hit for this and considering it is 4 years old.

[Anonymous]

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@Anonymous wrote:

Stef,

Was just thinking with the way the financial markets are today CC companies may start to reduce limits.I only have 2 bank cards and thought adding one many be a good idea.Going to look into BOA and considering I have a total limit of $41,000 it does not seem exsessive comparred to others limits I have seen posted on the board.

I did dispute the collection with EQ but it was back in July and is noted on my report "customer disputes charges".

Thanks for the PFD link,I may consider it due to the fact I am concerned they will turn ot over to the other two....but like you said that may open a can of worms.Seems a bit harsh 70 point hit for this and considering it is 4 years old.

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Things are getting tighter, but with your scores you should have nothing to worry about.

The collection may be older, but for scoring purposes, FICO is treating it as a new derog since it was updated recently. It seems like you have fought this for a good while and have not been able to make headway. You did say in your original post that the money was not an issue. It may not be an issue for that, but it could hold you back from getting a better rate on new credit. Lenders will be looking closer at credit reports, that is for sure. If it were me, I think I would pay it and hopefully be rid of it before it caused any more damage. That is a huge point difference it is costing you. If you go with  a credit union, the majority of them will pull from EQ. With a 705 and the one collection, you should still be ok, but may not get the most favorable terms.