Recovering from Application Overload

[NICKI183]

Well, I think I am back where I started. When I started on the forum, I was down in the BK blues slumps. I was disgusted because I felt no one would give me credit or recognize that I had been trying. Through many nights of reading and following some forum advice, I managed to pay off some cards lower my utility and be recognized by some credits (not prime).

My appy spree gave me great results: Target-$500 (bal 400), Hooters-$600 (bal 498), Kay/Jared/JR Robinson-$500 (bal 1250), First Premier (times 2), Bank One Card ($300), HSBC Discover Rewards (times 2 -$350), Cap 1 -$1250 (bal 1250).

Now were six and half months later and WHAM!- reality hit. I gained new cards, but added to my utility and lowered all of my scores.  Also, due to job changes I couldnt PIF each month and that is how the balances started to grow.

In no way are this any excuse to abuse credit, but it some way it occured. Now, I am with my reduced income I need a plan. I plan on paying off this cards within the next six month and pay off any existing   cards that I had prior to the appy spree and those I am a AU with DH.

Is this task doable and if so, do you think 6-7 months is enough time to increase my scores from very low 500"s (exact 521-502-498) to the 600's.

What is anyone's opinion or advice on this.

[Bella1980]

Omg, I am so sorry. This is a lesson for all of us rebuilding!

Your scores dipped very low from high 500's....was this due to opening the new cards?

I will let the Credit experts answer the questions!

[haulingthescoreup]

You will see some decent recovery from the newness penalty when each new card hits 6 months. That, plus smacking the utility back down, will definitely help. You will also see a benefit from "diluting" your older bad credit with new credit, so those new cards aren't entirely negatives.

I don't begin to try to predict score numbers, but I think you can recoup most, if not all, of the loss in this time period, if you're able to reduce the util. That's why my siggy looks like it does: I lost 75 points on EX. After 6 months, a bit more than 50 of them are back, and I don't have the option to reduce utility like you do to get even more points.

Keep facing forward, and don't get tangled up in regrets! GL

[NICKI183]

---

haulingthescoreup wrote:
You will see some decent recovery from the newness penalty when each new card hits 6 months. That, plus smacking the utility back down, will definitely help. You will also see a benefit from "diluting" your older bad credit with new credit, so those new cards aren't entirely negatives.

I don't begin to try to predict score numbers, but I think you can recoup most, if not all, of the loss in this time period, if you're able to reduce the util. That's why my siggy looks like it does: I lost 75 points on EX. After 6 months, a bit more than 50 of them are back, and I don't have the option to reduce utility like you do to get even more points.

Keep facing forward, and don't get tangled up in regrets! GL

---

Thanks for the advice Haulings.

[haulingthescoreup]

Fingers crossed for ya!

[Anonymous]

My EQ score jumped from  600 to over 700 (in a few weeks), just by paying down all my cards (util was at like 90ish percent, to about 20-25% percent (it'll be more like 5 % if HSBC ever reports my new PIF balance). In my past credit life in Canada, when I was in a low paying job, I would simply cut up my cards, to remove all temptation to use them (putting them away wouldn't work for me). I could still use the account for some of my online bills, such as gas, hydro, phone and cable, so that they didn't go inactive. Not having a physical card on hand, really helped with my control.

I wish you luck with everything!

Message Edited by siangirl34 on 08-12-2008 08:02 PM

[Anonymous]

You mentioned changing jobs, I suggest you look for a temp way to increase income to slam the util down...or cut all spending to the bone.....the amounts of money that you owe should not be holding you back. so if possible pick up OT or a second and at the same time cut costs........carpooling , not eating out etc..... Its tough to know the road back and have it blocked.....

[NICKI183]

---

siangirl34 wrote:

My EQ score jumped from  600 to over 700 (in a few weeks), just by paying down all my cards (util was at like 90ish percent, to about 20-25% percent (it'll be more like 5 % if HSBC ever reports my new PIF balance). In my past credit life in Canada, when I was in a low paying job, I would simply cut up my cards, to remove all temptation to use them (putting them away wouldn't work for me). I could still use the account for some of my online bills, such as gas, hydro, phone and cable, so that they didn't go inactive. Not having a physical card on hand, really helped with my control.

I wish you luck with everything!

Message Edited by siangirl34 on 08-12-2008 08:02 PM

---

Siangirl- I think you struck a nerve! It is very tempting to carry around the cards and use them "just because" even at times when cash is readily available. I have taken all of the cards out of my wallet and placed them in the safe.  I have difficulty opening that thing, so me trying to get into it is slim to none.

I know my current utility is about 92%-98%, but with a set plan I will see a change in a few months. I will not order a new report until Oct 1st. By then, I should have paid off some of the cards and the CRA's should be reporting something.

Thanks for the great advice.

[NICKI183]

---

tac1234 wrote:

You mentioned changing jobs, I suggest you look for a temp way to increase income to slam the util down...or cut all spending to the bone.....the amounts of money that you owe should not be holding you back. so if possible pick up OT or a second and at the same time cut costs........carpooling , not eating out etc..... Its tough to know the road back and have it blocked.....

---

I understand what your saying. I have already cut back, shop twice a month at discounts stores for groceries, brown bag, on keep $20 in my wallet for emergencies, dont use the vending machines, and dont go out to dinner.  My DH and I sat down and discussed the cards we want to keep and the cards that once we pay them off-were done.  My getting my new and old cards down in utility is a group effort. My husband has seen my make great progress and wants me to continue on that path.

Managing your finances, maintaining a decent job, and trying to save either in a MM fund or 401k is hard but doable. 

There are so  many scams out there that prey on those of us that are on the fence, credit below 600, but able to obtain certain credit cards with great risk involved.

Trying to maintain a decent credit rating & saving is very very hard.

Thanks again for the advice, its already been taken into consideration.

[haulingthescoreup]

BTW, can't remember if you have kids or not, but in my area, school is open again and all the fast-food places are hurting. Mickey D's drive-through took forever yesterday. If you can stand two weekend opening shifts, there's some extra cash; gets you out of bed and running; and there's that num-num-num free meal you get of deelish and nutrish food!

The cash from my part-time second job allowed me to do a lot, first with paying off student loans, and second with jump-starting my overdue retirement funding.