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Frequent Contributor
Posts: 372
Registered: ‎07-20-2013
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Re: Wanting a Rewards/Travel Card


MuadDibx wrote:

The City of Dallas collection is only $100.  I was actually unaware of it until yesterday.  Would it make a significant difference in my score to pay it off?


Try to negotiate a "PFD" (pay for deletion) with the City of Dallas before paying it off.  Check out the rebuilding forum for more info on PFDs.  If you can get a deletion, this would be best for score improvement.  Having a collection account update as "paid" doesn't help your score (Fico scores paid & unpaid collections similarly) and at times, updating a collection account to a more recent activity date may decrease your score.
AmEx PRG (NPSL) | AmEx BCP (10k) | AmEx Blue Cash (1k) | AmEx SPG (3.5k) | Barclay Arrival WMC (7.5k) | Barclay Sallie Mae (1.5k) | Cap1 QS (2k) | Chase Freedom (1k) | Discover IT (4.5k) | InTouch (Local) CU MC (5k) | InTouch (Local) CU LOC (25k)

Citi/Best Buy (AU) (1.5k) | Citi/Best Buy (7.5k) | Comenity/Crate & Barrel (4k) | Comenity/Restoration Hardware (9k) | GE/Ethan Allen (2.5k) | Synchrony Bank/Banana Republic (3.3k) | Synchrony Bank/Gap (3.3k) | Synchrony Bank/Walmart (3.3k)

myFICO scores ~ 691 (EQ) 670 (EX) 712 (TU) || Goal scores: 750+ (all 3)
Member
Posts: 12
Registered: ‎01-24-2014
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Re: Wanting a Rewards/Travel Card

[ Edited ]
FastForward wrote:
Try to negotiate a "PFD" (pay for deletion) with the City of Dallas before paying it off.  Check out the rebuilding forum for more info on PFDs.  If you can get a deletion, this would be best for score improvement.  Having a collection account update as "paid" doesn't help your score (Fico scores paid & unpaid collections similarly) and at times, updating a collection account to a more recent activity date may decrease your score.

Thanks, I'll look into that. Do you think the Sprint collection from 2008 is worth doing the same?

Frequent Contributor
Posts: 372
Registered: ‎07-20-2013
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Re: Wanting a Rewards/Travel Card

[ Edited ]

MuadDibx wrote:

FastForward wrote: Try to negotiate a "PFD" (pay for deletion) with the City of Dallas before paying it off.  Check out the rebuilding forum for more info on PFDs.  If you can get a deletion, this would be best for score improvement.  Having a collection account update as "paid" doesn't help your score (Fico scores paid & unpaid collections similarly) and at times, updating a collection account to a more recent activity date may decrease your score.

Thanks, I'll look into that. Do you think the Sprint collection from 2008 is worth doing the same?


Yes, in general, getting derogs deleted off your CR is worth it IMO.  However, a few factors may come into play prior to making that decision. 

 

So, for example, with the City of Dallas, it being so recent (2012) & with a fairly low payoff amount, I think your return on that investment (if you can get it deleted), would be worth it since the more recent a derog is, the more it is affecting your cs.  So, with that deletion, you should see a relatively good score boost.

 

In regards to your Sprint account being in 2008, it should be falling off on its own next year, so if you're ok with waiting another year or so for it to fall off on its own (depending on what your financial goals are this year), paying it off any sooner may or may not be worth it to you. 

 

Also, how much do you owe on this account?  If also a fairly "nominal" amount, I would say, yes, try for a PFD.  In fact, you may have better success (depending on who is reporting it), since it is an "older" account & the creditor may be more willing to accept a PFD and even perhaps a PFD at a lesser amount than the full balance due to its age. 

 

IME, if ALL of your collections are deleted off your report (leaving TU "collection-free"), you should also be able to see a more substantial score boost as well.

 

Regardless, please do consult the rebuilding forum prior to proceeding with the PFD's or doing anything with these accounts.  The experts on that board are very helpful.  Do try to get any PFD agreements in writing, when possible -- prior to paying.  This may not always be feasible.  But in general, a good rule of thumb when repairing is to try and do everything in writing (vs. just verbally) for better long-term results.

AmEx PRG (NPSL) | AmEx BCP (10k) | AmEx Blue Cash (1k) | AmEx SPG (3.5k) | Barclay Arrival WMC (7.5k) | Barclay Sallie Mae (1.5k) | Cap1 QS (2k) | Chase Freedom (1k) | Discover IT (4.5k) | InTouch (Local) CU MC (5k) | InTouch (Local) CU LOC (25k)

Citi/Best Buy (AU) (1.5k) | Citi/Best Buy (7.5k) | Comenity/Crate & Barrel (4k) | Comenity/Restoration Hardware (9k) | GE/Ethan Allen (2.5k) | Synchrony Bank/Banana Republic (3.3k) | Synchrony Bank/Gap (3.3k) | Synchrony Bank/Walmart (3.3k)

myFICO scores ~ 691 (EQ) 670 (EX) 712 (TU) || Goal scores: 750+ (all 3)
Member
Posts: 12
Registered: ‎01-24-2014
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Re: Wanting a Rewards/Travel Card

I've made one purchase on my Barclays Finance card and paid it off over the 0% interest period (1 year).  I've made no purchases since.  I've read something regarding people being denied for Barclays cards due to a lack of activity on their existing Barclays card.  Would you suggest I begin using my card more often?  Should I make it my daily card?

Valued Contributor
Posts: 3,190
Registered: ‎06-05-2013
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Re: Wanting a Rewards/Travel Card


MuadDibx wrote:

I've made one purchase on my Barclays Finance card and paid it off over the 0% interest period (1 year).  I've made no purchases since.  I've read something regarding people being denied for Barclays cards due to a lack of activity on their existing Barclays card.  Would you suggest I begin using my card more often?  Should I make it my daily card?


To keep a card open you only have to make a very small purchase once every other month or so, like a pack of gum and then PIF. I wouldn't make the barclays card your daily card unless its the card you will get the best return on or if your trying to get a credit line increase on it.


Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 730 6/27/14, Last App 1/3/15
Goal Score: 800 In garden until 4/2015
Frequent Contributor
Posts: 372
Registered: ‎07-20-2013
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Re: Wanting a Rewards/Travel Card

[ Edited ]

red259 wrote:

MuadDibx wrote:

I've made one purchase on my Barclays Finance card and paid it off over the 0% interest period (1 year).  I've made no purchases since.  I've read something regarding people being denied for Barclays cards due to a lack of activity on their existing Barclays card.  Would you suggest I begin using my card more often?  Should I make it my daily card?


To keep a card open you only have to make a very small purchase once every other month or so, like a pack of gum and then PIF. I wouldn't make the barclays card your daily card unless its the card you will get the best return on or if your trying to get a credit line increase on it.


+1 

I agree, use the Barclays as you everyday card only if its rewards structure benefits you the most in comparison to your other cards and in consideration of what you're trying to achieve, e.g. more usage can be justified if trying to meet minimum spend for bonus points/rewards, etc. 

Otherwise, using any of your "non-everyday" cards at least once every 2-3 months should be adequate to show activity and keep open. Do read through your cc's terms to verify what the minimum usage should be. I believe for Barclays, it has to be used at least once every 6 months (?) to prevent it from closing...but do verify that.

AmEx PRG (NPSL) | AmEx BCP (10k) | AmEx Blue Cash (1k) | AmEx SPG (3.5k) | Barclay Arrival WMC (7.5k) | Barclay Sallie Mae (1.5k) | Cap1 QS (2k) | Chase Freedom (1k) | Discover IT (4.5k) | InTouch (Local) CU MC (5k) | InTouch (Local) CU LOC (25k)

Citi/Best Buy (AU) (1.5k) | Citi/Best Buy (7.5k) | Comenity/Crate & Barrel (4k) | Comenity/Restoration Hardware (9k) | GE/Ethan Allen (2.5k) | Synchrony Bank/Banana Republic (3.3k) | Synchrony Bank/Gap (3.3k) | Synchrony Bank/Walmart (3.3k)

myFICO scores ~ 691 (EQ) 670 (EX) 712 (TU) || Goal scores: 750+ (all 3)
Member
Posts: 12
Registered: ‎01-24-2014
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Re: Wanting a Rewards/Travel Card

Quick update, my impatience won and I applied.  I was given the review screen and a check on the status a few minutes later revealed that I was denied.

 

I called the backdoor and was told that my TU FICO was 651, which doesn't match what I pulled using MyFico last week (676).  I can't imagine anything negative that would cause me to drop 20 pts in a few days.  I did charge a little over $400 to the Barclays card in order for them to see some activity.

 

Anyway, after an interview with the credit analyst answering a few questions, she asked about my $3500 line on the Apple card. I told her I didn't really need it and she reduced the limit in order to move that limit over to the Arrival card.

 

So in 7-10 days I should see my new Barclays Arrival card in the mail.  :smileyhappy:

Valued Contributor
Posts: 4,799
Registered: ‎06-05-2013
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Re: Wanting a Rewards/Travel Card

[ Edited ]

MuadDibx wrote:

called the backdoor and was told that my TU FICO was 651, which doesn't match what I pulled using MyFico last week (676).  I can't imagine anything negative that would cause me to drop 20 pts in a few days.


There are a nuymber of FICO scoring models.  No guarantee that the creditor uses the same model as the score from myFICO.

Member
Posts: 12
Registered: ‎01-24-2014
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Re: Wanting a Rewards/Travel Card


takeshi74 wrote:

MuadDibx wrote:

called the backdoor and was told that my TU FICO was 651, which doesn't match what I pulled using MyFico last week (676).  I can't imagine anything negative that would cause me to drop 20 pts in a few days.


There are a nuymber of FICO scoring models.  No guarantee that the creditor uses the same model as the score from myFICO.


Ah yes, I do recall reading about the updated 08 model.  Oh well, no use worrying over it.  Either way it's getting better and better as I'm being more and more responsible these days.  :smileywink:

Moderator
Posts: 4,525
Registered: ‎12-18-2013
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Re: Wanting a Rewards/Travel Card


takeshi74 wrote:

MuadDibx wrote:

called the backdoor and was told that my TU FICO was 651, which doesn't match what I pulled using MyFico last week (676).  I can't imagine anything negative that would cause me to drop 20 pts in a few days.


There are a nuymber of FICO scoring models.  No guarantee that the creditor uses the same model as the score from myFICO.


Right. In fact in this case, there is almost a guarantee that they don't. I believe myFICO uses TU98, which cc companies do not.

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