First I want to say this forum has been the best thing I've found for credit rebuild EVER. I've been stalking the community for months until I realized I could sign up without being a myfico subscriber. I started this process in February and got a Discover secured CC with a $400 limit. My score started at 485 and is 530-550 according to discover and the results of a few disputes I've won
Here's my question:
How soon should I apply for a 2nd card, and what's the best process to minimize declines/hard pulls, OR should I increase the discover limit each month by increasing the deposit until I'm in the 600s?
Your scores limits your choices in regards to who to apply to. With the exception of some of the rebuilder cards like Credit One and First Premier, you could still be looking at getting some secured cards or waiting a few months and seeing if having the Discover card reporting will increase your score over 600. Do you have an installment loan reporting? How may baddies do you still have left on your reports?
I have one still reporting from the HVAC unit I replaced a few years ago. As far as baddies, I have a medical collection I just paid off, a CC that was Charged off that I just settled, and another medical collection still reporting that I paid off a couple of years ago. My 7 years on all of those ends around 2020. What I believe to be holding my score low now is payment history. I had some auto drafts fail that caused a reporting of 90 days late last fall before I caught them. That dropped my score from the high 600s to a low in the high 400s. Now, it has rebounded back to mid 500s.
1) Revolving utilization: 0-5% of $3k: Authorized user on Cap1, Amazon Card, ValueCityFurniture, and Discover (It was 90% until February when I took my credit seriously and used my savings to pay it ooff)
2) Credit Mix: 6 federal SLs, 1 installment loan ($2.5kof$10K), 1 car loan ($21kof$22k), the revolving accounts above
3)Collections/chargeOffs: 2 medical collections paid, one time warner collection I disputed and should be removed
4) payment history: had 2 SLs go 90 days, and the car loan went 30 days in the fall.
I think my two biggest improvements now will be maintaining 100% payment history and getting my available credit limit higher.
Thanks for the feedback.
I would garden for awhile and use that time request goodwill removals of the baddies. The lates are recent and are killing your scores. Only goodwills or time will help with those.
Any cards you get right now would probably be from predatory lenders and, take it from me, they are not worth it.
Not knowing how old your accounts are, I don't know If I would want any inquiries/new accounts dropping my score further.
Hopefully, more seasoned forum members will offer better advice. I'm a year and a half into my rebuild and still learn new information everyday here!