11-05-2010 08:14 AM
Dear Forum Members,
I need your opinon on something. Currently I am at 549 TU and 543 EQ. My Experian score is unknown, but should be in line judging on my report.
I have 3 accounts open, which are Wells Fargo Secured CC ($1,000 CL), US AIrways CC ($500 CL), and a Cap One ($1,000 CL). They are at 50% utilization, but will be paid off this month. They have one 30 day late each which was over one year ago (currently GW'ing each one in hopes of removing that baddie).
I have one collection and 4 charge offs on my account, which I am send PFD letters to. One is an American Express CC, which I will pay off by the middle of next year in the hopes of obtaining an Optima CC (I suppose that is there second chance CC).
My question is whether I should open an USAA Secured CC with a $1,000 or $1,500 limit at this time? If I do, this will give me 4 accounts which will be active and I WILL keep them in perfect standing with less than 3% balance utilization each.
If you think it is a good idea to get a secured CC, then maybe you can let me know if there is a better one than the USAA out there.
If you think it is a bad idea to get another secured CC, then maybe you can tell me of another option or whether I should just keep the 3 accounts I currently have.
Any help and ideas to raise my score would be appreciative. Thank you.
11-05-2010 08:44 AM
The first thing to do is pay down the UTIL which is something you said you will do this month. Be patient let your payments update after you have paid down the balances. Try to bring balances to 0 as quick as you can on 2 of them. On the 1 that you let report a balance keep it under 9% UTIL. Once you are at this point and your CRA's are updated on the next statement period that will give you a little boost in your scores usually. Alternate the cards for activity month to month.
As far as the lates try and GW and see if they will remove. Even if they say no or you do not get a response do not give up, be persistent and keep trying.
As far as CA offering PFD is the best way to go. Just remember that they do not have to accept your offer. IME CA's usually are willing to work with you, just not always on your terms. Example you offer 50% to pay for delete and they counter with 100% payment. Also if these CA's are in SOL then make sure you have 100% the balance to be paid before making any attempt to PFD.
IMO I wouldn't be thinking of opening another CC as of yet. I would first work on bringing down my balances and at the same time letting the cards age. You already have CC rebuilders and things take a little time. By adding additional CC's even if secured only brings down your AAOA and keeps you from applying for bigger and better CC's in the near future.
The negative information on your reports is what is hurting your score the most. Since trying to remove the negative information takes more time to accomplish, you start by using your cards more wisely and PIF every month.
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