What should I do? Credit Newbie

Anonymous · ‎05-16-2017

HI i was curious if you guys could possibly give me some suggestions. Currently my credit score is a 633. I started my credit 3-4 years ago with a secured credit card(capitol one) with a 600 limit. Then about 2 years ago I got a Chase freedom card with a 2500 limit. At the moment Ive only made 1 late payment and don't have any outstanding bills on my credit. But both the cards are basically maxed out. I live on a small budget but have about 1200-1500 put away that I want to use towards finishing a small home that I own and intend on living in for the rest of my life. What would be the best way to go about spending it? I would like to be able to pay off some of the 2 cards I have and get another one if possible, so I could have more to use in the end. I know it would initially be putting me more in debt but once I'm living in the home I can save alot more to put towards paying the cards off.

Anonymous · ‎05-16-2017

Also forgot to mention a small loan is a possibility.

morgacj2004 · ‎05-16-2017

Pay the CO off. Close if it will not graduate. Pay the balance down on your other card. If u r going to keep balances on your CC which I DO NOT recommend get another card with a low APR such as the BC Ring.

AX Hilton Aspire 20k, AX Bonvoy Brilliant 15k, AX BCP 2k, AX Blue Bus Cash 15k, AX Delta Air Platinum 49k, (AU) AX Delta Gold 15k, AX Amazon Prime Bus 25k, BC Uber 29k, AKUSA FCU -10k , CITI AAdvantage Exec World Elite MC 16.5k, Discover (2) 16k, Kohls-4k, VS Comenity $3k, BofA AK Air Siggy 9.8k, WF Propel AX 5k, JCP $10k PFCU Plat Rewards Siggy 39.5k, PFCU Power Cash Rewards AX 10.5k, NFCU Flagship 50k, CLOC 15k, CITI Costco 9.5k, GAP VISA Synchrony $9k,Target MC 9k, Ulta MC Comenity 9k, Pay Pal 1k, CO Venture One 23k, US Bank Radisson Rewards Signature 10k, US Bank Fred Meyers World MC, 11k, US Bank Plat VISA 15.7k, VS Comenity 2k, 240k total available credit. Utiliz-2%, Current FICO EQ-724, EX 763,TU 802 ,Chapt 7 BK D/C 11-2012. Starting scores 520-550

Anonymous · ‎05-16-2017

I'm not really clear on what your goal is here. Is it to improve your credit score? Is it to acquire another credit card? Is it to reduce your debt?

Figuring out that part would be most helpful in giving you advice.

You said you have 1 late payment. One thing I would do if I were you if that's the only negative item on your credit report is put in some work to get it removed. Doing so would dramatically improve your score. At least 50 points, perhaps 100 points. You can read about what I believe is the best way to get a late payment removed here:

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-o...

I have had dramatic success with that method, as have many others.

Eliminating that baddie will likely help you out no matter what your goal is. If your goal is to improve your score, that's the single biggest thing you can do to help it. If your goal is to get another CC, improving your scores by eliminating your only negative item will assist in that process immensely.

Shoot us a little more info and we'll be able to help you more.

Anonymous · ‎05-16-2017

Wow thanks I had no idea 1 late payment was worth that much. I will definitely take your advice in trying to get it removed. My goal is to make the most of the cash I have to use for the home finishing. Should I just take the cash to home depot or put it towards my credit and possibly qualify for more credit? Getting in the home will save me a tremendous amount of money so going a little more in debt to do so seems plausible.

Anonymous · ‎05-17-2017

If you can remove your 1 negative you'll be in a great place to app for a home improvement store CC if that's what you're after. I scooped up a Lowe's card last summer with about a 730 score at the time. Approved for $3k, called just after and requested $30k which they immediately granted me. Instantly that became my biggest credit line which IMO helped me obtain additional larger credit lines in the following 6 months.

Anonymous · ‎05-17-2017

Awesome thanks for the info Brutal!

SouthJamaica · ‎05-17-2017

@Anonymous wrote:
HI i was curious if you guys could possibly give me some suggestions. Currently my credit score is a 633. I started my credit 3-4 years ago with a secured credit card(capitol one) with a 600 limit. Then about 2 years ago I got a Chase freedom card with a 2500 limit. At the moment Ive only made 1 late payment and don't have any outstanding bills on my credit. But both the cards are basically maxed out. I live on a small budget but have about 1200-1500 put away that I want to use towards finishing a small home that I own and intend on living in for the rest of my life. What would be the best way to go about spending it? I would like to be able to pay off some of the 2 cards I have and get another one if possible, so I could have more to use in the end. I know it would initially be putting me more in debt but once I'm living in the home I can save alot more to put towards paying the cards off.

The main thing now is to pay down the credit cards. Pay the Capital One down to zero and put the rest of the money toward the Chase card. Your score will improve, and will improve even more if you can get the Chase card down to 700 or so.

And of course try to get rid of the late payment on your report.