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Regular Contributor
Johnny_Favorite
Posts: 266
Registered: ‎09-05-2012
0

Re: When to apply? How do they decide if you get approved or denied?

Gotta love today's "gimme gimme" mentality. Here's a person who had several derogs on multiple cards and loans and thinking "gee the banks better give me high limit again after I paid them all off."

You're at the starting line again. Get used to it and feel blessed that you have a chance of getting anything at all with your record. Eat some humble pie for a change and if you get a crappy 500 dollar limit then be happy they didn't decline you for derogatory history. My wife has been declined for two five year old 100 dollar collections that are paid off. I can only imagine you might get declined for everything but a jc penney card with a 300 dollar limit. But if that's the start suck it up and be happy.



Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Re: When to apply? How do they decide if you get approved or denied?

Wow......

 

If you recall my first post Johnny:

 

"My question to you guys is, when should we be safe to apply for more credit?  We are in the process of buying a house, and we wanted to put things on a credit card, or various credit cards.  The only problem is, we are afraid to apply and get denied.   We are buying a $300,000 house, we make $150K a year, and our DTI with our House payment included would be approximately 22%.

 

Should we be nervous?  We want to get a Lowe's card, and a major credit card (Chase, Capital One, Etc.).   We fear rejection......Would we be able to get approved for anything considering back in 2011, we had late payments?"

 

Can you please elaborate how I have a "GIMME GIMME" mentality?   My first question is "WHEN" should we be safe.  If it takes 5 years to get a $5000 on limit, i'm ok with that....I'm just looking for an aswer as to "WHEN"

 

I also stated that "We wanted to" put things on a card.....We don't "NEED" to.....

 

I am the last person that thinks I should be given anything...I worked my way out of the trenches, and now I am forecasting my future, or hoping others can elaborate on their past experiences. 

 

As always, thanks to all of you that have provided input and answers to my questions...it is very much appreciated!!!


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Valued Contributor
dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
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Re: When to apply? How do they decide if you get approved or denied?

If you got some cash, it seems to me the fastest way to rebuild would be to get a secured card for the maximum they will let you (like a 4k BofA one. That way you are reestablishing a decent credit limit and you set yourself up for a good sized line of credit in a while when you become eligible for a prime card again.. Good luck.

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log
Contributor
VirusCredit13
Posts: 163
Registered: ‎02-20-2013
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Re: When to apply? How do they decide if you get approved or denied?

Why did you close those cards in first place. 

 

Should have kept them open once they were zero balance and you would have the credit you want now. 

You closed capital one card and now want a new card from them? You closed Home Depot and now want Lowe's, which makes sense if you switching stores, but could keep open until  you get new card in case denied.

 

As a general rule, don't apply for credit you don't need. And don't close accounts unless there is an annual fee you don't want to pay, just keep at zero balance. Closing account and then wanting accounts afterwards, I'm not sure if you need or don't need credit. It confuses me, and will confuse the banks.

Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Re: When to apply? How do they decide if you get approved or denied?

dddewdrop-  I'll be honest, I don't know much about secured vs. unsecured cards, but after doing some quick reading up, I like your idea.  I will consult with BofA today since they are my current bank.   I probably wouldn't do this until after we close, but I like the thought.  Thank you!


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Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: When to apply? How do they decide if you get approved or denied?

ssjjfar- I didn't close them, they closed on me. 

 

I don't necessarily want a Capital One card per se, I was just using them as an example. 

 

The Home Depot put me on a payment plan, but in doing so, they had to close my account.  The others closed because I was repeatedly late.  I can't say that I blame them.

 

Sounds like this is going to be a slow process, but I completely understand as to why.  I am more or less having to build trust back up. 


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Regular Contributor
Johnny_Favorite
Posts: 266
Registered: ‎09-05-2012
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Re: When to apply? How do they decide if you get approved or denied?

[ Edited ]

ccubedzx3 wrote:

Wow......

 

If you recall my first post Johnny:

 

"My question to you guys is, when should we be safe to apply for more credit?  We are in the process of buying a house, and we wanted to put things on a credit card, or various credit cards.  The only problem is, we are afraid to apply and get denied.   We are buying a $300,000 house, we make $150K a year, and our DTI with our House payment included would be approximately 22%.

 

Should we be nervous?  We want to get a Lowe's card, and a major credit card (Chase, Capital One, Etc.).   We fear rejection......Would we be able to get approved for anything considering back in 2011, we had late payments?"

 

Can you please elaborate how I have a "GIMME GIMME" mentality?   My first question is "WHEN" should we be safe.  If it takes 5 years to get a $5000 on limit, i'm ok with that....I'm just looking for an aswer as to "WHEN"

 

I also stated that "We wanted to" put things on a card.....We don't "NEED" to.....

 

I am the last person that thinks I should be given anything...I worked my way out of the trenches, and now I am forecasting my future, or hoping others can elaborate on their past experiences. 

 

As always, thanks to all of you that have provided input and answers to my questions...it is very much appreciated!!!



Sorry if I came off as brash. You were crazy in debt just a few years ago. I don't understand why you're in such a rush to get back into a credit hole? My recommendation to you is to start off with a low limit card now if you can qualify (or 3). Maybe a couple of GE backed cards (Lowes, Chevron, Walmart). Don't charge them up with new furnishings and stuff. Charge a bit and pay it off. Let that work itself out for a year or two and try to get some derogatories off your record if you can via goodwill letters (look up goodwill letters in the search area).

 

Again, sorry if I came off as negative it just feels to me that you just climbed out of the Grand Canyon and then you're intending to jump back in again without a parachute. I would think that somebody like you would want to take it really slow rather than to want to get in debt for such trivial things as window dressings and such. I hope you will see it from a different perspective, even if you do go forward with your new credit. If charging things up didn't work well before... maybe running up high balances isn't a good idea now either? Just food for thought.

 

A curtain rod and a cheap curtain will cost you 20 bucks. Maybe a lifestyle change is in order. Is our life going to be really bad if you don't get the expensive stainless steel frigidaire with the dual icemakers? I used a donated couch when I got my house. Not saying you should, but you can definitely take another look at how you're running your finances. I'm just saying.




Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: When to apply? How do they decide if you get approved or denied?


ccubedzx3 wrote:

Wow......

 

If you recall my first post Johnny:

 

"My question to you guys is, when should we be safe to apply for more credit?  We are in the process of buying a house, and we wanted to put things on a credit card, or various credit cards.  The only problem is, we are afraid to apply and get denied.   We are buying a $300,000 house, we make $150K a year, and our DTI with our House payment included would be approximately 22%.

 

Should we be nervous?  We want to get a Lowe's card, and a major credit card (Chase, Capital One, Etc.).   We fear rejection......Would we be able to get approved for anything considering back in 2011, we had late payments?"

 

Can you please elaborate how I have a "GIMME GIMME" mentality?   My first question is "WHEN" should we be safe.  If it takes 5 years to get a $5000 on limit, i'm ok with that....I'm just looking for an aswer as to "WHEN"

 

I also stated that "We wanted to" put things on a card.....We don't "NEED" to.....

 

I am the last person that thinks I should be given anything...I worked my way out of the trenches, and now I am forecasting my future, or hoping others can elaborate on their past experiences. 

 

As always, thanks to all of you that have provided input and answers to my questions...it is very much appreciated!!!


The thing is if you wait 5 years, you still are not just going to start off with a $5000 limit card.  I have been rebuilding my credit for 5 years and I still don't have a $5,000 limit credit card.  I just closed on a house and I have $7,100 in total available credit across 4 cards now but I am still rebuilding...been rebuilding revolving credit since 2009.  Credit card debt is unsecured debt so you could easily default without collateral.  You will have to show banks that you can be trusted.  Trust me, no one is trying to make you feel greedy.  We have just been there.  When you screw up, it takes time.  The mortgage payments over time will improve you score but that doesn't mean if you wait 5 years that you will get a $10,000 limit out the gate because it is a different line of credit from a auto loan or mortgage.  If you default, the credit card companies get nothing.  However, the bank that secured your mortgage gets your house and the bank that secured your auto loan gets your car.  Credit companies are the ones that are shafted in CO's and bankruptcy. 

I wanted to put more on CC too after I closed but I couldn't because I don't have the limits.  The highest limit card I have $2500.  But I was grateful that I was able to put the move and the inspection on my credit cards.  I was grateful for being approved for a Best Buy card with a $2500 limit so that I was able to put $2200 of electronics on credit but I had to make up $700 with cash.  We purchased $2000 in new furniture.  I had to split it half credit/half cash.  I wish we could put curtains on credit as that is expensive but that will just have to wait.  We have blinds just not curtains yet.  But this is a good thing as I don't like required CC payments every month.  I prefer to PIF or pay it off quickly like over 4 months.  I can't do that right now so if I had a high limit card, I probably wouldn't use it just yet.  I prefer not to pay $150 - $200 a month over 12-24 months...that is just too long to carry additional debt as anything can happen over that long period that could jeopardize the payment plan you setup plus carrying a balance for months and months at a time wrecks havoc on your credit score.  I like to have very low utilization across the board as much as I can.

 

You are going to have to start somewhere....whether it is 5 years from now or now.  In 5 years, the derogatory information will not hurt you as much but your credit file will be thin as far as revolving credit lines are concerned.  You may move up in limit a little quicker in 5 years but you may already have the limits you desire in 5 years if you start now.  You are not going to go any faster if you wait versus doing it now IMHO.  But I would not apply for anything until after closing.  This is very important.  You don't want a last minute denial, and yes banks do them.

Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Re: When to apply? How do they decide if you get approved or denied?

Sorry if I came off as brash. No apology needed, I am just the last person looking for a handout...

 

I You were crazy in debt just a few years ago. I don't understand why you're in such a rush to get back into a credit hole? Not in a rush to get in a hole, just was hoping to take advantage of 0% for 1 year, and make sure it is paid in full before the year is up.  I'd rather do that than dip into reserves.

 

My recommendation to you is to start off with a low limit card now if you can qualify (or 3). Maybe a couple of GE backed cards (Lowes, Chevron, Walmart). Don't charge them up with new furnishings and stuff. Charge a bit and pay it off. Let that work itself out for a year or two and try to get some derogatories off your record if you can via goodwill letters (look up goodwill letters in the search area).  Thank you for the advice...I appreciate the insight and knowledge, and will most definitely take this approach....after I close! LOL!

 

Again, sorry if I came off as negative it just feels to me that you just climbed out of the Grand Canyon and then you're intending to jump back in again without a parachute. I would think that somebody like you would want to take it really slow rather than to want to get in debt for such trivial things as window dressings and such. I hope you will see it from a different perspective, even if you do go forward with your new credit. If charging things up didn't work well before... maybe running up high balances isn't a good idea now either? Just food for thought.  Sometimes it is good to get your hand slapped from time to time, and be told to wake up and smell the coffee!!

 

A curtain rod and a cheap curtain will cost you 20 bucks. Maybe a lifestyle change is in order. Is our life going to be really bad if you don't get the expensive stainless steel frigidaire with the dual icemakers? I used a donated couch when I got my house. Not saying you should, but you can definitely take another look at how you're running your finances. I'm just saying.   You are right...this is going to be our home for a long time (20yrs at least...I hope)..No need to rush into "finishing" everything as a home is truly never "finished"...

 

On another note, I see you have a Wounded Warrior AMEX...I am not sure if that is only available to wounded veterans, but if is, and you are a vet, thank you so much for your service! Your sacrifice to leave this great country to fight for our freedom is something that cannot be repaid.  Thank you!


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Regular Contributor
ccubedzx3
Posts: 171
Registered: ‎04-30-2012
0

Re: When to apply? How do they decide if you get approved or denied?

MovingForward, thank you for your advice.  I have been following your story with your home, and I am not too far behind.  We are hoping to close in May.   I am trying to get all my ducks in a row to make this process a smooth one.....if that is even possible!!

 

Once we are closed, moved, and settled.  I will take the slow approach...maybe even get a secured Visa through my bank to build up trust again.  I made this mess, now it is my responsibility to clean up after myself!!

 

Thank you all for the help!!


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