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confused on what to do next

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bmis42988
New Contributor

confused on what to do next

Hey guys, I've been lurking the forums for quite a while but now that I've gotten my life back on track I can start planning for the future. I'd like your thoughts though because the decisions I've made in the past regarding credit cards haven't been all that great lol. Back in 2008 I lost my job due to the decline of the economy and 2 of the credit cards I had with cap back then I couldn't afford to pay. I worked out a deal with cap1 and they let me slide on payments for 2 months on both of them in good faith that I'd have a job and could start paying again. Well, after 8 months of no job, both went to collections. I settled around 2 years later for less than full.

I have 2 cap 1 cards right now, both 500$ cli's with around 80% util (paying that off in the next 2-3 months) and an auto loan with chase for 12,800$ currently. My EQ fico says I have 629 and my AAoA is 2 years.

I want to eventually get a premium card but I'm unsure what route I should take to get there. I have a tip job, so my income flucuates monthly, making anywhere between 1500$ - 3500$ monthly on the lows and highs, with around 2400$ being the average I bring home. I currently only have around 900$ a month in bills if that helps. Also note I've only gotten my life back on track around 1 year ago, being able to finally get a car loan and some credit cards.

Thanks in advance everyone.

TU: 687 EQ: 670 EX: 665
Message 1 of 10
9 REPLIES 9
john398
Senior Contributor

Re: confused on what to do next

Do you do any other banking with chase other than the auto loan? Do you know your scores?

 

If you have a checking account with Chase with a good record you maybe able to get a Freedom card depending I guess on your score and your banking history

Message 2 of 10
Revelate
Moderator Emeritus

Re: confused on what to do next

It's probably not the advice you're looking for, but in terms of working on FICO positives, you're doing fine currently and just need to hang out.

 

You have 2 revolving tradelines, and an auto (installment) loan, you might do a little better with another credit card but it'll be something of a wash.   You can attempt to write some Goodwill letters to Capital One, but I don't know how responsive they're going to be.  Eventually the accounts you settled will age out.

 

What you might consider doing, is there's more and more lenders offering secured products which graduate, but they also offer a rewards package one (NFCU, USBank I think graduates not sure, and now BOFA).  This is sort of a backdoor into a prime card other than the AF might be different.  I'm trying to get ahold of BOFA today to do what other forum members have recently, and seeing about getting my secured card switched over to their Cash Rewards (which is no different than their prime version of this card, just still secured) and that actually turns it into a pretty good card for the long term when I'd originally just planned to drop it in the sock drawer once I got approved for a rewards card from literally anyone else.

 

I don't think it's something you have to do, as you're doing about as well as you can currently FICO wise in continuing to make ontime payments, but it is a shortcut for me, and possibly for you as well.




        
Message 3 of 10
bmis42988
New Contributor

Re: confused on what to do next

Yes, I also have a checking account with chase, but its only around 6 months old. The only score I've gotten so far is the EQ fico which is 629 right now.

TU: 687 EQ: 670 EX: 665
Message 4 of 10
webhopper
Moderator Emeritus

Re: confused on what to do next

I would say that you are doing well. Do you have any military affiliation? If so you may be able to join usaa or nfcu who are great to work with as far as products for rebuilding. If not check and see if you are eligible to join any local credit unions to build a relationship with. They will be likely to issue a major cc after the banking relationship is established. Their interest rates are usually much better than major banks and in some cases they may be more forgiving of past mistakes when deciding whether to issue credit to you. Otherwise, just continue to pay your cc accounts and car loan on time. Time is your friend, and each payment you make on time will improve your score. You may look into getting a secured loan, as installment history is weighted somewhat more heavy than credit card payments in determining your score. Also, if you have any stores that you shop at, such as amazon.com, old navy, wal mart, lowes, or jcpenney... A store card could likely be added to your wallet at this time, to help your mix of credit. GECRB is one issuer of retail cards, and the criteria for approval is less than for a major bank major credit card.
FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 5 of 10
bmis42988
New Contributor

Re: confused on what to do next

Should I wait and pay down my balances before apping for anything? Silly question but I'd rather not waste a HP if I'm not going to get approved.

TU: 687 EQ: 670 EX: 665
Message 6 of 10
webhopper
Moderator Emeritus

Re: confused on what to do next

Yes, I would totally pay down your balances to less than 9 percent of your total limit. This will actually boost your score and help you get higher initial credit limits, especially on GECRB store cards
FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 7 of 10
webhopper
Moderator Emeritus

Re: confused on what to do next

Also, don't apply until you are sure that the lower balance is actually being reported, your credit reports usually only uopdate your balances once per month, so it may take several weeks for a credit account to be reported with a zero balance after its been paid.
FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 8 of 10
bmis42988
New Contributor

Re: confused on what to do next

Ok, thanks for the advice. I'll def pay down what I can asap!

TU: 687 EQ: 670 EX: 665
Message 9 of 10
webhopper
Moderator Emeritus

Re: confused on what to do next

You're doing great Smiley Happy keep up the good work and your score will definately reflect your efforts!
FICO 9:
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.

Goal: Gardening!


Message 10 of 10
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