How long will this cause credit denial??

[Pharoe33]

Hi, so I have two credit cards with NFCU that are now closed with balances.

Each balance was 15K each and until January both were past the limits

Previously I'd been lat by 90 days on each card but now have them both below 13K each as I'm aggressively paying them.

I'm curious as to how much time must I let pass since the last late payment in December before I try to apply for credit.

I've recently been denied and one of the reasons were recent delinquient payments.

[Anonymous]

Why are you talking about applying for credit?  If you have two accounts you couldn't pay, you probably shouldn't get any more.

[Anonymous]

I agree with @Anonymous.  You need to get the balances on those accounts paid off before you consider applying for additional credit. 

[Anonymous]

@Pharoe
Honestly, where's the FIRE?

Are you looking to qualify for a house, a car, certainly not another CC at this point...

Both accounts are closed now, right?
So you are paying back w/o % right now and yes you aren't building credit with your payments but let's be serious

When the lights were on and the cameras were rolling you later an egg and you've got what 26 grand to go

26k and you're sniffing for more?
How LONG before you put me back in Coach...

Honestly, you may need to get some help , especially if you think you're anywhere near where a creditor would lend to you in the near future

Hopefully you can work on this to the point some time next year you may get a loan big enough to pay the rest down like a car loan but I can't see you getting a loan large enough to suck down 26 in your present state.

Im sure if you had a home equity line or such you would have saved yourself prior to sinking to this point, so there no need to ask about other resources.

[Pharoe33]

Thanks for your replys.

I'm wasn't applying for unsecure credit but was seeking approval for a car loan. I was however approved with one of my credit unions but was denied by Capitol one and NFCU. 

No excuses for the cards being closed and not being paid. Due to the Oil & Gas downfall I was laid off and without work for a very long period of time. Now that I'm working again I'm very aggressive with payments. Although the cards are closed with a balance, paying them down has shot my FICO scores up by almost 100 points with Experian, 90 with Transunion and 53 with Equifax. I have two badies outside of the late payments on my report, one being a charge off and the other a collection.

My intent isnt to further myself in CC debt, that would be foolish. I was seeking an auto loan as the car I have is done and also working to rebuild my credit for the purchase of a home this time next year.

[Anonymous]

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@Pharoe33 wrote:

Thanks for your replys.

I'm wasn't applying for unsecure credit but was seeking approval for a car loan. I was however approved with one of my credit unions but was denied by Capitol one and NFCU. 

No excuses for the cards being closed and not being paid. Due to the Oil & Gas downfall I was laid off and without work for a very long period of time. Now that I'm working again I'm very aggressive with payments. Although the cards are closed with a balance, paying them down has shot my FICO scores up by almost 100 points with Experian, 90 with Transunion and 53 with Equifax. I have two badies outside of the late payments on my report, one being a charge off and the other a collection.

My intent isnt to further myself in CC debt, that would be foolish. I was seeking an auto loan as the car I have is done and also working to rebuild my credit for the purchase of a home this time next year.

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@Pharoe33.

Going forward, please include all information available so as to get suggestions more in line with what you are asking.  Had you stated that you were looking for an auto loan, then the responses would be more tailored to that.

I'm sorry that you suffered job loss due to failing oil prices.  My BF is in the energy sector and last year was difficult for most of us, especially coming off of years where money was flowing like water.  Going forward, take this as a lesson that it is never good to live beyond one's means and try to save because one never knows when a downturn is around the corner. 

[Pharoe33]

@kaykay65 Thanks for following up and I apologize for the confusion.

Coming into 2017 Jan 1 my scores were:

502 EX

516 TU

488 EQ

These were a reflection of the frequently missed payments on the 2 maxed out credit cards. 

As of today my scores are now:

600 EX

602 TU

556 Eq

I refuse to apply for unsecure credit no sooner than 12 months from my last late payment. I've read here that another approach to elevating my scores would be to open 2 secure cards but I'm afraid of inquiries and possible denial. The only other things anchoring my score besides the High utilization of the two closed cards is one collection account with Hunter Warfield and a chargeoff with USAA. I do have one open unsecure line of credit with NFCU for $500 which I keep at a o balance.

My short term credit goal is to possibly qualify for the purchase of a car as the one I have now is on it's last leg and needs to be sold or traded.

My long term goal is to have a middle Fico of no less 650 or higher by Christmas of this year because next year I'd love to qualify for the purchase of my first home.

[Anonymous]

@Pharoe33.

No problems.  I had to go the secured card route when I started rebuilding.  Your goal for this year should be to pay down those two cards.  If your CU offers a secured card, then consider going that route.  Also Open Sky offers a secured card for rebuilding, no credit check.  There's nof much you can do about the COs, but if you can, take care of the collection whether it is updating monthly or not.  The last thing you need is to add a judgment to the mix.  Good payment history over time will help your scores rise again.  You can realistically reach 650 if you get the high UTI down from the COs.  You might consider paying for your 3B if you haven't already so you know what your Auto Enhanced scores are.  Also, your CU is the direction you want to take for the auto loan rather than the dealer as they kill one's scores when they are rate shopping and while one or two more INQs won't hurt, when the dealers end up adding 20 or 30 that doesn't help your profile either.   

[Pharoe33]

Thank you very much, I greatly appreciate your advise!