Partway Through Repair, Whats the Next Step

[Anonymous]

Ok, a few years back, my credit was in the toilet, but I have been able to improve it significantly.

I paid off a charge off 5 years ago.  I made enough ontime payments on my student loans to get them all out of default.  I got a secured credit card from orchard bank with a 1500 limit.  I have made all of my payments on time for 2 years.  I also had a few small collection accounts PFD'd.  My scores are now 686, 656, and 628.  I thought this might be enough to squeek by and get a second credit card from Amex, but the application was denied.  I have a secured card in good standing, and about 35,000 of student loans, all in good standing. 

My question is, what should my next step be?  Should I just continue making payments and wait?  Should I add money and increase the limit on the secured card?  Should I try to get some other kind of loan going?  Is there something I am missing?  I feel like the scores should be higher than they are. 

[RobertEG]

When you say you have collections PFD'd, do you mean you have sent offers and received no reply?

Maybe a call to them would give some specific terms or insight into their position?

[Anonymous]

I had some stuff pay for deleted.  I paid it, and they took it off my credit report. 

[rckstrscott]

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@Anonymous wrote:

Ok, a few years back, my credit was in the toilet, but I have been able to improve it significantly.

I paid off a charge off 5 years ago.  I made enough ontime payments on my student loans to get them all out of default.  I got a secured credit card from orchard bank with a 1500 limit.  I have made all of my payments on time for 2 years.  I also had a few small collection accounts PFD'd.  My scores are now 686, 656, and 628.  I thought this might be enough to squeek by and get a second credit card from Amex, but the application was denied.  I have a secured card in good standing, and about 35,000 of student loans, all in good standing. 

My question is, what should my next step be?  Should I just continue making payments and wait?  Should I add money and increase the limit on the secured card?  Should I try to get some other kind of loan going?  Is there something I am missing?  I feel like the scores should be higher than they are. 

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AMEX is probably the last place you wanna go for a second credit card.. they are much more difficult than most.

You need to try for something unsecured for rebuilders first... maybe start with an unsecured Orchard? Maybe Cap1? Credit One? AMEX denies peole with much much better profiles than you or I.

-scott

[Anonymous]

Thanks Scott.  I think my train of thought was that in the future, I don't want to open and close many cards, so I wanted to get something decent that I would keep for a long time.  As it is, I have been told that although orchard bank usually automatically "graduates" secured accounts to unsecured accounts, I called in and after being given the run around for a bit, was told that they are not graduating any cards to unsecured right now. 

As it is, I have one crappy secured low limit card, so I was hoping to get something decent for a second card, but it sounds like it may be too early for that.  Do you think I should try to get a lesser card, or wait until I can get something good and do other things to repair my score in the meantime?

Thanks again for the thoughtful reply.

[injustifiiable]

I'd try for one of CapOne Average Credit cards, like Cash Rewards, Platinum, etc. After that, garden for awhile and see where your profile is in around 6 months or so. Keep working on all of the baddies you can in the meantime.

[rckstrscott]

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@Anonymous wrote:

Thanks Scott.  I think my train of thought was that in the future, I don't want to open and close many cards, so I wanted to get something decent that I would keep for a long time.  As it is, I have been told that although orchard bank usually automatically "graduates" secured accounts to unsecured accounts, I called in and after being given the run around for a bit, was told that they are not graduating any cards to unsecured right now. 

As it is, I have one crappy secured low limit card, so I was hoping to get something decent for a second card, but it sounds like it may be too early for that.  Do you think I should try to get a lesser card, or wait until I can get something good and do other things to repair my score in the meantime?

Thanks again for the thoughtful reply.

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Well, almost all of us paid our dues with crap cards before getting our first 'real' one -- I would do what the last poster said.. Go for a Cap1 Rewards card.. pretty easy approval in general, decent limits (I got 1500 to start) and a semi-okay interest rate (I got 16%)

Credit Card companys like to see credit cards in the portfolio.. I would go that route.. I think you'd probably get approved for a Cap1 Rewards.. the green one.. the one with the AF seems to have better approval odds...

It isn't the best card, but its not the worst either

-scott

[Anonymous]

THANK YOU ALL!!! I took your advice and applied for a capital one Cash Rewards card, the gree on listed under average credit.  I was approved with a $2,000 limit and a 17.9% variable APR.  Hopefully a year or so of using this card will push my score up a bit. 

[injustifiiable]

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@Anonymous wrote:

THANK YOU ALL!!! I took your advice and applied for a capital one Cash Rewards card, the gree on listed under average credit.  I was approved with a $2,000 limit and a 17.9% variable APR.  Hopefully a year or so of using this card will push my score up a bit. 

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NICE! Looks like you're heading on the right track.

Time to garden!

[Anonymous]

Yup, looks like I'll spend the next 6 months making payments on time and flooding Sears with goodwill remove letters.  Thanks again!