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Member
z00ming
Posts: 9
Registered: ‎10-15-2012
0

Score rising slowly... Rebuilding advice

Hello all, I'm currently rebuilding my credit and am looking for advice. I've learned a lot as a lurker so I was hoping to get some answers specific to my situation.  I screwed things up in college and found my self with a low 500s score.  I started rebuilding in 2007 and have no baddies in the past four years.  I opened up my first secured card a year ago, followed by an unsecured card six months later and would like some advice on where to go next.  My secured card was issued by my credit union and they cannot offer a CLI without an additional deposit.  Plus, they do not report to TU.

I've started to received credit card offers and while I understand those "pre-selected" offers have no bearing on approvals, I'd like to hear your thoughts on the merits of these offers/card.  I'd also like to start building a history with Amex, but I don't think I'm quite there yet. 

 

Here's a timeline:

  • Oct 2011 - Secured Visa opened CL 1k
  • April 2012 - EQ 653 (bank pulled)
  • May 2012 - AMEX denied
  • May 2012 - CapOne Rewards MC opened CL 2k
  • Oct 2012 - EQ 664 (myFico)

Other notes:

  • "Pre-selected" - BarclayCard Rewards MC; Citi Diamond Preferred
  • Credit Inquiries: EQ -3; EX - 4; TU - 4
  • Utilization: Visa - PIF every month, zero balance; CapOne < 10%
  • Baddies should start to come off reports in early 2014.

Specific Questions:

  1. Any advice regarding when to apply for my next card?
  2. Any recommendations on cards to go after where my chances of approval are pretty good?
  3. Should I bite the bullet and hold on to my secured Visa to keep building history?
  4. How are my chances for AMEX Zync approval?

 

Thanks!

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Score rising slowly... Rebuilding advice


z00ming wrote:

Hello all, I'm currently rebuilding my credit and am looking for advice. I've learned a lot as a lurker so I was hoping to get some answers specific to my situation.  I screwed things up in college and found my self with a low 500s score.  I started rebuilding in 2007 and have no baddies in the past four years.  I opened up my first secured card a year ago, followed by an unsecured card six months later and would like some advice on where to go next.  My secured card was issued by my credit union and they cannot offer a CLI without an additional deposit.  Plus, they do not report to TU.

I've started to received credit card offers and while I understand those "pre-selected" offers have no bearing on approvals, I'd like to hear your thoughts on the merits of these offers/card.  I'd also like to start building a history with Amex, but I don't think I'm quite there yet. 

 

Here's a timeline:

  • Oct 2011 - Secured Visa opened CL 1k
  • April 2012 - EQ 653 (bank pulled)
  • May 2012 - AMEX denied
  • May 2012 - CapOne Rewards MC opened CL 2k
  • Oct 2012 - EQ 664 (myFico)

Other notes:

  • "Pre-selected" - BarclayCard Rewards MC; Citi Diamond Preferred
  • Credit Inquiries: EQ -3; EX - 4; TU - 4
  • Utilization: Visa - PIF every month, zero balance; CapOne < 10%
  • Baddies should start to come off reports in early 2014.

Specific Questions:

  1. Any advice regarding when to apply for my next card?
  2. Any recommendations on cards to go after where my chances of approval are pretty good?
  3. Should I bite the bullet and hold on to my secured Visa to keep building history?
  4. How are my chances for AMEX Zync approval?

 

Thanks!


Your secured card is only a year old.   I suggest you add to deposit and get the CL up to level you would be happy with in your next application.   Then wait six months and see if you can get your CU to graduate it to unsecured.    Rebuilding takes time and you have done well so far, have some patience.

 

Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: Score rising slowly... Rebuilding advice

I have never been in your situation, so please take my advice with a grain of salt.  But, here is what I have learned from this forum:

 

I would certainly hold on to that secured card (if there is no AF), and increase the deposit if possible.  Both that card and the CapOne are the two most important things in your credit history right now, if you are able to show continued good behavior with those, your rebuilding will certainly go faster. 

 

I suggest holding off on the applications for as long as your financial ability allows.  Obviously, things come up where credit may be needed, but adding lots of accounts may scare some lenders and have the opposite affect than desired.  I would suggest adding one strategic card in 2013 to get another unsecured reporting.  Hopefully, this card will be able to grow with you and provide CLIs in the future.  You can research that as you wait.

 

Then, once all of those baddies come off, your reports will show 2 unsecured cards with (hopefully) perfect payment history.  Come and join the Garden Club to reduce any urges to app. There are many success stories where members let a small number of positive tradelines report, and gave time for baddies to drop off.  This is a clear recipe for prime scores and obtaining future credit goals.

 

Welcome to the Forums!


In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Frequent Contributor
TheConductor
Posts: 492
Registered: ‎07-24-2012
0

Re: Score rising slowly... Rebuilding advice

A few questions before I answer your questions:

 

- Which AmEx were you denied for?

- How long ago were your pre-selected offers each received?

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12)
Current: EQ 670 (myFICO 9/8/14), EX 694 (Prosper 7/17/14) , TU 693 (WalMart 9/2/14) Goal: 700+ x3
My Wallet: Amex BCP $30k, Chase CSP VS $12.2k, Amex Zync NPSL (> 10k), C1 Venture VS $5k, Amex SPG $4.5k, Walmart (Store) $2.5k, Barclaycard Apple V $2k, Chase Freedom V $1100, BoA Cash Rewards V $500, Best Buy Rewards MC $500
My Loans: Prosper $25k/36mo
My Business: Chase Ink VS $5k
Member
z00ming
Posts: 9
Registered: ‎10-15-2012
0

Re: Score rising slowly... Rebuilding advice


Wolf3 wrote:

Your secured card is only a year old.   I suggest you add to deposit and get the CL up to level you would be happy with in your next application.   Then wait six months and see if you can get your CU to graduate it to unsecured.    Rebuilding takes time and you have done well so far, have some patience.


Thanks for the advice, I will have to talk to the CU again, I believe last time I asked, they said that going from secured to unsecured entailed a whole new application.  I didn't want to waste an inquiry on a card that only reports to two bureaus.

Member
z00ming
Posts: 9
Registered: ‎10-15-2012
0

Re: Score rising slowly... Rebuilding advice


SnackTrader wrote:

I suggest holding off on the applications for as long as your financial ability allows.  Obviously, things come up where credit may be needed, but adding lots of accounts may scare some lenders and have the opposite affect than desired.  I would suggest adding one strategic card in 2013 to get another unsecured reporting.  Hopefully, this card will be able to grow with you and provide CLIs in the future.  You can research that as you wait.

 

Then, once all of those baddies come off, your reports will show 2 unsecured cards with (hopefully) perfect payment history.  Come and join the Garden Club to reduce any urges to app. There are many success stories where members let a small number of positive tradelines report, and gave time for baddies to drop off.  This is a clear recipe for prime scores and obtaining future credit goals.


This is great advice and is what my plan was all along. I want to add one card this upcoming year and wait until the rest of my report gets cleared up. Hopefully I'm calculating the time until these come off correctly.

 

Member
z00ming
Posts: 9
Registered: ‎10-15-2012
0

Re: Score rising slowly... Rebuilding advice


TheConductor wrote:

A few questions before I answer your questions:

 

- Which AmEx were you denied for?

- How long ago were your pre-selected offers each received?


 

- I honestly can't recall which card I applied for, I believe it was the AmEx Green, but it may have been a Blue.

- The offers started around three months ago and I continue to receive these pre-selected offers on a regular basis. Citi sends another one once the time window to apply for their previous offer has expired.

Frequent Contributor
TheConductor
Posts: 492
Registered: ‎07-24-2012
0

Re: Score rising slowly... Rebuilding advice

OK.

 

On the whole, I agree with SnackTrader.  Right now, a combination of gardening and only very strategic apping is going to be the key for you.

 

You do seem to be right on the cusp of Amex Green Card territory. I'd wait in the garden a few months until early December, then if your scores are up by 20-ish points, app for the Green and either a GECRB card of your choice (Walmart is a popular one for the backdating) or a credit union card from your credit union or one of the popular ones widely discussed on the forum. The combo of these two will get you access to Amex backdating on the one hand, and a growth credit line on the other hand (GECRB and credit unions tend to be best for growing your limit rapidly).

 

Once you've gone for those two, garden garden garden for 6-12 months. Ask for CLIs at the appropriate intervals but no new apps. This is exactly the phase I am currently in. Patience brings rewards!

 

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12)
Current: EQ 670 (myFICO 9/8/14), EX 694 (Prosper 7/17/14) , TU 693 (WalMart 9/2/14) Goal: 700+ x3
My Wallet: Amex BCP $30k, Chase CSP VS $12.2k, Amex Zync NPSL (> 10k), C1 Venture VS $5k, Amex SPG $4.5k, Walmart (Store) $2.5k, Barclaycard Apple V $2k, Chase Freedom V $1100, BoA Cash Rewards V $500, Best Buy Rewards MC $500
My Loans: Prosper $25k/36mo
My Business: Chase Ink VS $5k
Member
z00ming
Posts: 9
Registered: ‎10-15-2012
0

Re: Score rising slowly... Rebuilding advice


TheConductor wrote:

 You do seem to be right on the cusp of Amex Green Card territory. I'd wait in the garden a few months until early December, then if your scores are up by 20-ish points, app for the Green and either a GECRB card of your choice (Walmart is a popular one for the backdating) or a credit union card from your credit union or one of the popular ones widely discussed on the forum.

 


Good to know! Thanks for the information, I'm sold on waiting another 3-6 months before my next app, then gardening.  Question though, isn't the Zync an "easier" card to get than the Green?

Frequent Contributor
TheConductor
Posts: 492
Registered: ‎07-24-2012
0

Re: Score rising slowly... Rebuilding advice

It was thought to be, but Zync was discontinued a few weeks ago.

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12)
Current: EQ 670 (myFICO 9/8/14), EX 694 (Prosper 7/17/14) , TU 693 (WalMart 9/2/14) Goal: 700+ x3
My Wallet: Amex BCP $30k, Chase CSP VS $12.2k, Amex Zync NPSL (> 10k), C1 Venture VS $5k, Amex SPG $4.5k, Walmart (Store) $2.5k, Barclaycard Apple V $2k, Chase Freedom V $1100, BoA Cash Rewards V $500, Best Buy Rewards MC $500
My Loans: Prosper $25k/36mo
My Business: Chase Ink VS $5k

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