Need Advice Please - What's my next step?? Being inpatient

[irving_magik]

Hi Everybody,

   I could really use some advice on what step I should take now, been repairing my credit for the last (2) years and have done everything I can, now it's just a waiting game. But I would like to see if I can get a new/better CC. Something with good rewards, something like Chase Freedom, or along those lines. Here is my situation:

   I'm sitting at a TransUnion FICO score of 665. I also get my "vantage" scores, they are TransUnion 759, Expirian 742, Equifax 714 (if that even helps)

   7 years is my AAoA but have four pretty new accounts, here they are:

   GMAC Mortgage  of 179,000 opened 07/2011 (finally bought a house, yeah!!)

   Capital one Auto Finance 18,382 opened 01/2012

   Capital one "platinum" card, opened 04/2010   - CL of $1250, balance of $342 - Utl of ~27%

   Capital one "rewards" card, opened 02/2011    - CL of $750, balance of $190 - Utl of ~25%

    These are the only current/open lines of credit. Everything else on my report is closed.

    Now the negative stuff, I have a total of 9 delinquent accounts. 4 OC and 5 CA. All have been paid and show zero balance. All are around 7 years old and most are scheduled to fall off my CR this year.

    (2) will fall off in July

    (2) in August

    (1) in Sept

    (4) in November

    After this, the only negative thing left on my report is a public record that won't fall off till 2015.

    Please advice on what I should do next?? or what type of credit card would be the best to replace my Cap1 "platinum" card. I won't cancel this card, but will probably not use that often. Should I call Cap1 and see if they will give me a CLI on the rewards card? or apply for a better "prime" card? Or plain and simple, wait??

    My most recent late payment was 3years and 6months ago

[RobertEG]

How immediate is your need for new credit?  With two revolving, both apparently bank cards, you dont appear to have a compelling need for additional revolving.

If you can wait for the CR exclusion of those major derogs, you will be in a great position to app for solid cards with solid CLs and terms.

[irving_magik]

Thanks for the reply!

I guess there is no immidiate need for additional credit. Just would like to have better cards with rewards.... I also am under the impression having higher limits can help your score?? I would like to have a better score, I really want to get over 700 soon, and wish I could do more instead of just waiting... Just being inpatient.

[irving_magik]

Could I get some more input from other members?

Thank you so far for the advice.

[FrugalRican]

Here is my two cents, stop being impatient.

Right now you have two Citi CL's that you need to grow with 1/4 of the lines being utilized on both.

If you apply for anything else right now, you aren't going to get a high CL and you'll probably be stuck with something similar. CC Companies now love to HP for CLI's, so that's another thing to consider.

I'd use the time needed to grow those CL's, to better focus your efforts in getting those negatives off of your credit report or just letting them drop off, by the end of the year and then repull your scores and see where you stand.

This is a marathon, not a 100 meter dash.

[irving_magik]

Thank you, I keep telling me self that but to be honest, it's the hardest part. I will take your advice and wait it out......

Just hate waiting and not being able to do something now.... but you are right, I figured that was the best course of action, but thought maybe there was something else I could do to hurry it along.

[FrugalRican]

I know it's tough to just wait, but in this case, you benefit the most by doing so, specially if everything is coming off this year.

It'll go faster thank you think.

You can use this time to research what products would work better for you and very thoroughly.

By the time app time comes around, you'll already have all the info and be good to go.

Good luck.

[llecs]

Fortunately, higher CLs aren't needed for higher scores. A person with $1,000 in total CLs has an equal footing as someone with $100,000 in total CLs, with everything being equal (e.g.. util, # of CCs, history, etc.). Many think that higher CLs equals higher scores because those with higher scores and a longer history typically have higher CLs. Early on I saw a poster with a total of 3 CCs, and she had a combined CL of $1000. Her FICOs were 820+ with a very long history. That dispelled the myth in my mind as there were other posters with 6-figures in combined CLs and their scores were much lower.

Don't get in the trap of adding new cards to replace old ones. That'll kill your scores. Each time you add a new CC, your scores will drop as your AAoA lowers, and you are also dinged for having a new account. Most, if not all, of the impact goes away in a year, but if you keep adding new credit each year, your scores will remain stagnet and won't grow.

If I had your profile, I would add a new card. I'd add a new card to improve the mix of credit. IMO, and IME, a good mix would include at least 2 revolving CCs and a charge card (store or gas included). If a higher FICO is the goal, then I'd aim for a charge card. I would not close any of the CapOnes at this time.I'd wait a few years out. If your goal is a higher CL CC, then know that it will conflict, in part, with the goal of a higher FICO. YOu can't have both in the short-term, though in the long-term it'll become reality if you don't add any additional CCs.

To prep for adding a new CC for whatever your goal may be, get your CC balances down. It's too high. Get one to report $0 and the other to report a balance of under 9% of the CL. Get as much distance as you can away from your last app(s) and get some more time between your last account and when your app. Get the baddies off. Either wait for them to fall off or take steps to get them off early via GW letters. GW any lates too. CapOne isn't open to requested CLIs.

ETA...dang I'm a very slow typer.

[irving_magik]

Cool, thanks for all the advice.... Sometimes it's just hearing it from other experienced users that makes you understand it better.

I will be patient and wait for these to fall off, I may GW the ones in Novermber, maybe I get those (4) to fall off sooner. Paying down the CC isn't a problem, it's only ~$400 which I can pay down off in the next couple of weeks.

Then, when these are paid off and the negative info falls off, I will choose just (1) new card (most likely a charge card, would love an AMEX) and apply for it. That's all I really wanted, (2) CCs and (1) AMEX, a car loan, and a mortage should be a great mix of credit for me.

Ones again, thank you for all the advice.