Planning next steps

[Anonymous]

Hey folks,

Trying to plan out next steps in the chess game of credit rebuilding. I've been busy making calls and writing GW letters. Scores currently 601/584/596. Except them to come up soon as I had two new cards in December. Only 1 reported in January and they caught me off guard with high util (wasn't sure of cut date). I also have paid 5 medical collections spanning from 2012-2014 that will drop off once the CA updates on 2/15. They volunteered to delete them. Between them coming off, having the 2nd card report, and having one at 0 and the other at 5 dollars (after running plenty through both), hoping to see it pick up. 

Here's the issue:

Have 2 cards. Cap 1 secured (501 CL) and QS1 (500 CL). I know to optimize boosts I need 3 bank cards and store card. Eventually I'm hoping to get in with Barclays/Discover/Amex but know that it's early for such an app now.

I have a little more that ages off around the middle of the year (inquiry or two) and some old derogs. 

I want cards that will be of value to me. I don't want more than 1 store card, and none of the SCT cards appeal to me. I would want Amazon or Target as I would use them. I'm an MBA student and would use Amazon for books as well as my own interests. I don't want to just sit around when I don't need it.

Any suggestions on what to do? Part of me thinks that I should hang out in the garden until mid year or fall and then app for something like Barclays or an Amex charge card, assuming my cleanup continues and scores tick up at the right pace. Figured I would wait on the store card too as that would spend an inq and isn't something I need in the short run.

Thanks for your thoughts, sages. I'm just timid about making the "wrong" move. I don't want to add unnecessary INQ and wasn't sure if lowering AAoA/INQ hit was worth the benefit of the TL now. 

I have maybe 4 INQ across TU and EQ. Probably 8 or so on EXP but all but about 4 will fall off mid year. Figured my scores are low now so maybe see what things look like when the dust settles and have more months of reporting/things falling off. Sorry for the steam of consciousness styled post.

[Anonymous]

I know some people say you 'need three bank cards and a store card', but there are just as many people that rebuild just fine while bypassing the store cards entirely. The key, IMO, is to simply have multiple accounts - 3 to 5 revolving accounts - in order to demonstrate your ability to manage payments and balances across multiple accounts. There is no logical reason a store card would be treated any differently than a bank card.

I would suggest getting another secured card from a CU like SDFCU.

Do you have student loans and/or an auto loan reporting? If not, you're leaving points on the table there.

[Anonymous]

I'm a no store cards rebuilding success story...Scores were low 500s a year ago. 5 secured cards, 2 share secured loans later scores in my sig are accurate. well, except discover just updated TU to 731

[Anonymous]

Thanks, Norman. Sorry, I guess I wasn't thorough in explaining my situation. I have a small student loan around 6.7k and a car loan right around 15k. 

[Anonymous]

Nice, Pfarro! There's hope!  

Maybe I'll be a no store card success story too and follow in your footsteps

[gdale6]

While we usually say the 3 bankcards and 1 store card to help boost Fico, you in fact can bypass the few extra points a store card would provide and effect repair without one