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Contributor
Tristate
Posts: 82
Registered: ‎06-02-2012
0

Is this a good strategy to apply for a credit every 6 months?

Hello, everybody!

My BK7 was discharged in October 2011.Same month I got Cap1 Platinum ($500 CL), in May of 2012 I got Cap1 secured ($1200 CL).

My plan is to apply for Merrick CC( got pre-selected offer from them) in Oct or Nov in 2012.If I will get that one , I'm planning to apply for Barclays six months later.

In November, when my BK will be more then one year old will I get some boost in my scores?

Is this a good strategy at all to app every 6 months ? Any input is much appreciated?


Starting Score: FICO EQ-660 TU-658 07/2012
Current Score: FICO EQ-680, Walmart TU-640
Goal Score: FICO 700


In my wallet : Cap1Quick Silver-$1250,Barclaycard MC-$6000 , Merrick-$1700,Walmart-$250.



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Roarmeister
Posts: 331
Registered: ‎04-21-2012
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Re: Is this a good strategy to apply for a credit every 6 months?

Some people suggest that if you are applying for CCs, that you should apply in sprees or multiples at the same time.  That way they will see you credit score at the same time.  If you apply every 6 months, your average age of accounts will be low when you keep applying for more credit (and if you are accepted).  Thirdly, new CCs will draw hard pulls which count negatively against your score for the 1st year.

 

If you want to periodically apply for cards, I suggest waiting at least a year in between apps so that the hard pull doesn't negatively affect your score and so that your new CCs have some chance to age and you build some credit history with them.  With cards with low $ CL, you will find it beneficial to pay more than once per month.  This will keep you utilization % lower than paying once a month.  Also, look at your statement date and make your payment a few days before then so that the issuer reports a $0 to the CRA for utilization.  This will help with your credit score and will establish good habits for paying your debts.

 

Cheers.

AMEX_PlatinumBMOWorldMCCapOnePlatinumMBNA_Platinum+ScotiaMomentum
____$25k_______$20k_______$20k_______$25k_______$25k____
Starting Score: 676 Feb 2008; Current Score: 788 EQ, 814 TU, October 2014; Goal Score: 800 by end of year Oldest Account reported by EQ: 12 years; EQ AAoA: 5.6 years; EQ Credit Utilization: 3.5%
Contributor
Tristate
Posts: 82
Registered: ‎06-02-2012
0

Re: Is this a good strategy to apply for a credit every 6 months?

Thanks for your response.

I probably was not clear enough with my question. I'm not going to apply for CC's every 6 months , in fact I just want to have 3-4 cards max.

So the app spree is not for me.I have a plan : 1) Get Merrick ,2) Get Barclays and get to garden for a year or two. One of the reasons for that is that I've burned and included in BK almost all the other prime lenders (Chase,Discover,Citi,GE) so I'm blacklisted in their files , and of course Amex will never look at me as creditworthy person.

So , as soon as I get Barclays card I will be pretty happy with that , and ability to get a mortgage maybe in 7 years...

And concerning utilization - I get it. It is only one card showing less then 9% uti.


Starting Score: FICO EQ-660 TU-658 07/2012
Current Score: FICO EQ-680, Walmart TU-640
Goal Score: FICO 700


In my wallet : Cap1Quick Silver-$1250,Barclaycard MC-$6000 , Merrick-$1700,Walmart-$250.



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Frequent Contributor
Roarmeister
Posts: 331
Registered: ‎04-21-2012
0

Re: Is this a good strategy to apply for a credit every 6 months?

I don't know about being blacklisted, at least not for an extended period.  I applied for and receieved a very healthy CL for a card from MNBA which closed my account with a derogatory back in 2004.  Since then my credit habits have matured and my score much higher so then saw me as fresh tasty meat!  :smileyvery-happy:  Once you stay in the garden and mature your cards you should be able to achieve 700 and 720 without too much effort which will make getting a mortgage easier. Once you get to that level, a 760 is within grasp.

 

As for the number of CCs, that's up to you but I read in a couple different forums that if have more than 50% of your cards utilized during any one month, it counts as a negative.  I don't know that from personal experience but I recently went from 3 to 5 cards partly to test that idea.  I plan to use no more than 2 cards every month (or make sure I PIF on the other cards before the statement date so that it shows 0 utilization).

AMEX_PlatinumBMOWorldMCCapOnePlatinumMBNA_Platinum+ScotiaMomentum
____$25k_______$20k_______$20k_______$25k_______$25k____
Starting Score: 676 Feb 2008; Current Score: 788 EQ, 814 TU, October 2014; Goal Score: 800 by end of year Oldest Account reported by EQ: 12 years; EQ AAoA: 5.6 years; EQ Credit Utilization: 3.5%
Contributor
Tristate
Posts: 82
Registered: ‎06-02-2012
0

Re: Is this a good strategy to apply for a credit every 6 months?


Roarmeister wrote:

I don't know about being blacklisted, at least not for an extended period. I applied for and receieved a very healthy CL for a card from MNBA which closed my account with a derogatory back in 2004.  Since then my credit habits have matured and my score much higher so then saw me as fresh tasty meat!  :smileyvery-happy:  Once you stay in the garden and mature your cards you should be able to achieve 700 and 720 without too much effort which will make getting a mortgage easier. Once you get to that level, a 760 is within grasp.

 

As for the number of CCs, that's up to you but I read in a couple different forums that if have more than 50% of your cards utilized during any one month, it counts as a negative.  I don't know that from personal experience but I recently went from 3 to 5 cards partly to test that idea.  I plan to use no more than 2 cards every month (or make sure I PIF on the other cards before the statement date so that it shows 0 utilization).


1) That is encouraging to hear.

2) You know, for the last 3 years I have learned to live without any credit. And it's one of rare positive things going through hard times, BK ,etc.

So now I need credit cards just for the purpose of rebuilding credit , to get better rates for mortgage and auto loan. For now it's not problem to keep uti under 9%.

Does anyone know if the score goes up when BK hits 1 year mark ? 

 


Starting Score: FICO EQ-660 TU-658 07/2012
Current Score: FICO EQ-680, Walmart TU-640
Goal Score: FICO 700


In my wallet : Cap1Quick Silver-$1250,Barclaycard MC-$6000 , Merrick-$1700,Walmart-$250.



Take the FICO Fitness Challenge

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