HELP!

[Anonymous]

Applied for a credit card (and was denied). Reasons I was denied are below. Can someone elaborate on the first 2. Are they talking about items in collections. I currently have 2 store cards. Limits of $300 each, an auto loan (I owed about $7500 on it).

-Delinquent past or present obligations with others.
-Excessive obligations on exsisting account
-limited bank card experience
-number of inquiries on credit reports.

My credit score is around a 580 now (I know, I’m working on it). How Can I fix this things? My dad added me as an authorized user a few days back to his very well managed PenFed credit cards. I have two things in collections from 2013&2014 ($213 and $1800.) should I pay those collections off. Anything I can do about the inquires? (I have 9 on Transunion and 15 on Equifax). Also according to Credit Karma and credit sesame, my credit history is a year and a couple months.
Any feed back is appreciated!

[bizarrocreditworld]

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wrote:
Applied for a credit card (and was denied). Reasons I was denied are below. Can someone elaborate on the first 2. Are they talking about items in collections. I currently have 2 store cards. Limits of $300 each, an auto loan (I owed about $7500 on it).

-Delinquent past or present obligations with others.
-Excessive obligations on exsisting account
-limited bank card experience
-number of inquiries on credit reports.

My credit score is around a 580 now (I know, I’m working on it). How Can I fix this things? My dad added me as an authorized user a few days back to his very well managed PenFed credit cards. I have two things in collections from 2013&2014 ($213 and $1800.) should I pay those collections off. Anything I can do about the inquires? (I have 9 on Transunion and 15 on Equifax). Also according to Credit Karma and credit sesame, my credit history is a year and a couple months.
Any feed back is appreciated!

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I have some ideas as to why you got the first two items. The "Deliquent Past or Present Obligations to Others" points to the collections, which stay on your report for seven years. "Excessive obligations on exsisting account" can point to either the collections or to the utilization on your current accounts and auto loan (although from my experience, this comes up more with lower credit scores. YMMV.).

Assuming the items in collection are yours, you should pay them.

Inquiries affect a credit score for one year but stay on the report for two. Creditors may view the inquiries based on how it's been since they were done (some don't care after six months, others after two years).

Which card did you apply for and which credit bureau has you at 580? If it is Credit Karma or Credit Sesame, then you are not looking at the correct scores. Go to Credit Card Total and get a trial for $1 to see your FICO scores (or sign up here of course if you want to monitor your credit on a regular basis). I would look at a secured card or maybe (just maybe) check out the Capitol One prequalify site for a Platinum or Quicksilver One.

[Anonymous]

I would definitely encourage you to pay off those collections. Once paid, your scores should jump at least 10 points per collection. (When I paid mine, my scores jumped between 15-20 points)

And try to slow down with the inquiries. I know it’s tempting to apply for new cards, but look at when they inquiries fall off, and once they age off, then look at getting some new credit lines.

Also, I’d encourage you to keep those store card limits low. It’ll help with over credit utilization. And have patience. It’s the key with credit rebuilding. Patience pays better than anything else, from what I’ve learned.