New to the Forum and to repairing my credit

Anonymous · ‎01-14-2016

First, I'd like to say thanks to everyone on this board. This is my first post but I've been searching and reading for a few weeks now. I have a few questions. First, what do i do next? Second, how much is too much?

So here is what my profile currently looks like according to MyFico.com

TU: 618 I have 2 open collections that I am in the process of handling and 5 that were paid in full back in November 2015

EX: 619 I have no open collections on this one. It does show the 5 paid in full in November 2015

EQ: 618 I have 1 open collection being worked on and it shows the 5 paid in full November 2015

Equifax has about 12 Inq. the other two are at 3.

I have 3 credit cards

Capital One Quicksilver 1900/2500 opened in January of 2015

Capital One Platinum 450/800 opened in February 2011

FirstPremier 100/300 opened in 2009

Best Buy Visa 0/1000 opened last week

I had late payements on Capital One Platinum and FirstPremier 14 months ago of 30, 60, and 90 days late. I had surgery with no insurance at the time and had to use these cards without being able to pay them back right away. Both were paid off in full the month i got back to work.

I was recently approved teir 2 with Chrysler Capital to lease my new Jeep.

I also applied for a Chase Freedom card and got the 7-10 day waiting message so I'm sure thats a denial.

I applied for my 6 month CLI for my Quicksilver and was declined due to my score being too low ( EQ 531). There is a dispute being processed on that right now.

Ive been employed for 7 years in the same field. I make $50,000 a year.

Now thats all done. My questions are, how often should I apply for new credit and whats my next step to get my scores to climb? I'd like to buy a house as soon as I can. I was denied last summer for a mortgage. Should I try to get as much credit approved while I can or just be happy with what I have and wait it out for awhile? Thanks so much!

Anonymous · ‎01-14-2016

Couple of steps. Send GW letters to the paid accounts asking for deletion from the reports. Same for the lates. Might take several tries. Pay down your cards asap. 2 are at ~80% utilization and one is at 33%. Overall ~50%. Pay off the first premier first, will be quickest as it is only 100. That'll give you a bump with less cards reporting. Get the other 2 as low as possible, preferably with only 1 reporting less than 10% utilization. Make sure you make on time payments. Then garden for a bit. Your Fico 08 scores will rise, don't know about mortgage enhanced scores.

Anonymous · ‎01-14-2016

Ok thanks! I did forget to mention I know my utilization is high right now. That should all be mostly paid off in the next four to six weeks. I used my cards to get into my apartment.

I hate my FP card and rarely use it. I was thinking about closing it but it's my oldest account. Is that a good or bad idea?

Anonymous · ‎01-14-2016

Go ahead and close it. It'll stay on your reports for another 10 years. By that time your other cards will age another 10 years. Might take a small hit to your score by closing it but you can get that back. Just make sure there's no finance/annual fee charges when you close it. Maybe pay it off then wait a month to make sure.

Anonymous · ‎01-14-2016

@Anonymous wrote:
Ok thanks! I did forget to mention I know my utilization is high right now. That should all be mostly paid off in the next four to six weeks. I used my cards to get into my apartment.

I hate my FP card and rarely use it. I was thinking about closing it but it's my oldest account. Is that a good or bad idea?

Close it, but get another account to replace it. You might try Barclays Reward MC, they are pretty easy to get if you've got a couple of years of good CC payment history.

Anonymous · ‎01-14-2016

would you recommend barclays rewards or barclays apple card? is one harder to get than the other?

Anonymous · ‎01-14-2016

@Anonymous wrote:
would you recommend barclays rewards or barclays apple card? is one harder to get than the other?

Depends on which one is more appropriate for your spending habits.

Anonymous · ‎01-14-2016

i dont use them a whole lot but would be in the market for some new apple stuff in a few months. if one is harder than the other id just go for the easier one.

Anonymous · ‎01-14-2016

Not sure but I think both of those are about the same.

Anonymous · ‎01-14-2016

Well it doesnt matter much. The Barclay Rewards Mastercard denied me. I guess ill just give it some time.