From 579 to 711 -Now need a credit card

Anonymous · ‎03-31-2008

My credit score has gone from 579 to 711 in 8 months. I did some PFDs, paid off my credit card and had some luck with some goodwill letters. My question is, I only have one credit card, which I have had since 2004, when my credit sucked. It is through some bank called Webbank and my available credit is only $500.00. (This card was originally through Cap One, then was sold and resold like every other year until Web Bank got it) I have done very well just using cash over the past 4-5 years because I could not get credit but now I would like to have a "respectable" card but am wondering whether I should apply or not. Last time I was at BofA, they told me that I was approved for a card of $2,500.00. I was just making a bank deposit and they told me this - I did not apply for anything. My question is - should I apply for a new credit card with a higher limit? Will it hurt my credit score? I paid off my car in December so the only other thing I have on my credit report are school loans and they are in good standing. I have no collection accounts on my credit report anymore either. I am so happy to be in the 700 club and don't want to mess it up but I kind of want to "get while the getting is good" - so should I get another card? How much will it hurt my score?

llecs · ‎03-31-2008

dooodooo wrote:
My credit score has gone from 579 to 711 in 8 months. I did some PFDs, paid off my credit card and had some luck with some goodwill letters. My question is, I only have one credit card, which I have had since 2004, when my credit sucked. It is through some bank called Webbank and my available credit is only $500.00. (This card was originally through Cap One, then was sold and resold like every other year until Web Bank got it) I have done very well just using cash over the past 4-5 years because I could not get credit but now I would like to have a "respectable" card but am wondering whether I should apply or not. Last time I was at BofA, they told me that I was approved for a card of $2,500.00. I was just making a bank deposit and they told me this - I did not apply for anything. My question is - should I apply for a new credit card with a higher limit? Will it hurt my credit score? I paid off my car in December so the only other thing I have on my credit report are school loans and they are in good standing. I have no collection accounts on my credit report anymore either. I am so happy to be in the 700 club and don't want to mess it up but I kind of want to "get while the getting is good" - so should I get another card? How much will it hurt my score?

Congrats on the increases!

I started my repair process in August. I started with 0 CCs. I got a score increase with the first card. Got an increase with the second. And I got an increase with the third (is a store charge card). Anything beyond that hurt. Lost around 50 points with cards #4-7 reporting. But did recover within 4 months.

I don't think it will hurt. Damage for me was the decrease in the avg. history. Adding another card shouldn't hurt. It may even help.

Anonymous · ‎03-31-2008

Do you mean that the month after you applied, your credit score went up for getting another credit card? I was thinking I should get a major credit card and then some type of store credit card.

Anonymous · ‎03-31-2008

dooodooo wrote:
My credit score has gone from 579 to 711 in 8 months. I did some PFDs, paid off my credit card and had some luck with some goodwill letters. My question is, I only have one credit card, which I have had since 2004, when my credit sucked. It is through some bank called Webbank and my available credit is only $500.00. (This card was originally through Cap One, then was sold and resold like every other year until Web Bank got it) I have done very well just using cash over the past 4-5 years because I could not get credit but now I would like to have a "respectable" card but am wondering whether I should apply or not. Last time I was at BofA, they told me that I was approved for a card of $2,500.00. I was just making a bank deposit and they told me this - I did not apply for anything. My question is - should I apply for a new credit card with a higher limit? Will it hurt my credit score? I paid off my car in December so the only other thing I have on my credit report are school loans and they are in good standing. I have no collection accounts on my credit report anymore either. I am so happy to be in the 700 club and don't want to mess it up but I kind of want to "get while the getting is good" - so should I get another card? How much will it hurt my score?

I think it's a good time to apply only if you are not applying for a mortgage or autoloan in the near future.

Anonymous · ‎03-31-2008

Thanks - I am not applying for a mortgage anytime soon. I'm getting married in August and my fiance owns a home. I also just paid off my car (24% interest rate . . . ouch) which is why I tripled up my payments to get rid of it. Unfortunately, my score took a 19 point hit after paying it off.

llecs · ‎03-31-2008

dooodooo wrote:
Do you mean that the month after you applied, your credit score went up for getting another credit card? I was thinking I should get a major credit card and then some type of store credit card.

I'd get a store card. My increase with card #2 was less than number #1, but the increase from #3 (store charge) was greater than #2. I figure the mix of credit came into play with that one.

Score changes mentioned were based on when the CC first reported (within a week to a month of getting approved).

Congrats on paying off that car. For killing 24% interest, I wouldn't mind a 19 pt loss.