My Credit Story

[Anonymous]

I am a new poster to these boards. I just wanted to share my story in the hopes that someone can learn from it. I got my first credit card when I was 18. Never applied for one, Citibank just sent it to me in the mail. I didn't know what to do. I had no job, no disposable income and I was starting college in the fall. I thought I had hit the big time. I was charging everything, and paying just the minimum as that was all I could afford. Long story short, I fell behind on my payments and the card was closed, even though I eventually paid it off. My credit score dropped and was in the low 500s throughout my early 20s. I stayed away from credit for about two years, when I got a secured card through Bank of America (with a 300 dollar limit, the same limit I carry on the card today but rarely if ever use). I also obtained a few low limit cards from Capital One and Orchard Bank (bought out by Capital One). After I graduated, I obtained an auto loan (with a ridiculous interest rate - I was paying nearly $350 a month on my car). Slowly but surely by paying on time, every time, I saw my score in the high 500s (when I started regularly tracking my credit). Capital One increased my limit on my oldest card to $3500 without my asking for it, which was a nice surprise. Fast forward to today - that $3500 Capital One Card is now a $6000 Quicksilver, I have a $4000 Barclays Card (US Airways Dividend Miles), and another $2000 Capital One Card. I've kept all of the lower level and lower limit cards as they are some of my oldest and use them for gas and groceries, pay my bill as promised and keep them as badges of honor. At this point I probably have more credit than I need - although reading these forums are tempting me to try for an Amex or a Discover - but right now I'm happy with where I am at and with what I have. I am living proof that it takes time and effort - along with a bit of education about how credit works - to rebuild. My FICO scores are all in the high 600s, the highest I've ever seen them, and I'm hoping all three will be over 700. My journey continues.

[Anonymous]

Great success story and congrats on coming all the way back.

It's a long grind and you played it conservatively which is a good way to do it in the long run.

AMEX is very tempting especially with the backdating trick.  I'd try to get my foot in the door with them as early as possible...your scores are borderline YES for an AMEX

Your BofA secured can be Product changed to an unsecured card and they'll probably give you a credit increase if you ask.

Good job and hope you break 700

[joeyoey]

Your story (& cards) are very similar to mine.  Congrats on your hard work & success!

Just FYI...my scores are a bit lower than yours & AMEX just approved me about 2 weeks ago.

[Anonymous]

I think I'm going to stay with what I have for now. I have a bunch of inquiries from last year because I was getting a new car after totalling the last one. My credit then wasn't near what it was now and the dealer had like 4-5 hard pulls of my credit before getting in with the credit union that I had my previous loan with. Maybe next year I'll apply for the Amex once the inquiries fall off, and if approved, close one of my subprime cards. But happy for now! These boards are really inspiring - I never thought I'd have decent credit, but now I'm a believer!