Trying to increase credit score and Credit One Pre-approval

[Anonymous]

Hi everyone!

Love this site!!I am currently trying to rebuild my credit after a BK in 2005. I only have two credit cards-Target-300 CL and HSBC-500CL. I wasn't using the Target card at first, but for the last three months I've started using it at about 10% UTIL, and pay it off before the due date. I've seen a little jump in my score. On the other hand, I have been just making the minimum payment on my HSBC card and kept it close to the limit. Since learning more about keeping cards at around 10% UTIL, I decided to payoff the HSBC card before the due date this month. So, I'm hoping to see a big jump in my scores next month. What do you think? How much of an increase should I see?

I received a pre-approval letter from Credit One. I'm a little hesitant about getting the card, because I don't know what it will do to my score. Should I wait to see what happens to my scores next month after balances are paid in full and then apply? Will the Credit One be a soft or hard it? Any advice??? I have ScoreWatch and currently my EQ score is 575 and TU-590. Goal score-630.

Thanks,

lowfico23

[Wolf3]

Your score should improve with lower Utility.

I agree that you should add to your credit porfolio  However, Credit One is a bad choice, it has no grace period and a high annual fee.   You should be looking for something better than what you have, not worse.

[tengtengvn]

Are you willing to pay $75 AF to get that crappy CO CC?

[BungalowMo]

How old are the 2 cards you have?  If under 1 year, you'll see a bump when they hit the 1 yr point.

After having a Credit One, I agree with the previous poster in that you want to move forward, not back.  What baddies (besides the BK) do you have?  If they were all included in bk, then for now, time is your friend.

This is going to be one of your hardest lessons in rebuilding.  Having the patience to wait out the storm.  In the mean time, you might want to try joining a Credit Union.  Open a savings & checking & after about a year, talk to a rep about credit.  See what they offer for someone in your situation.