Please review my action plan

Anonymous · ‎05-18-2012

All, thank you very much for your help in the past. I think this is the best current plan moving forward. Any thoughts are appreciated.

Credit Cards
HSBC (now capital One): $300 CL / 0% utilized
PNC Bank Secured Card: $250 CL / 0% utilized

Credit Scores
All 3 between 600 - 650

Other Open Credit
none

Negatives on Report
University of Pittsburgh
120 days late on November 2006
“KD” on February 2007
Paid September 2008

Verizon Pennsylvania
“KD” on October 2007
Paid September 2008

Question: Am I correct that these items will come off my account in 7 years from the FIRST negative month?

My action plan is as follows:
1. Increase CL

1.1 Increase credit limit by receiving CLI from HSBC.
Failed! HSBC / Cap1 denied CLI and when I called the executive #, they were not helpful.

1.2 Apply for other non-secured cards.

Failed! PenFed failure, Walmart failure

Question: Does it make sense to put a couple thousand dollars in the secured card and remove after a couple months? This assumes I will be able to get a new card in a few months based on increased CLI.

Question: CreditKarma recommends this card, http://www.capitalone.com/creditcards/journey-student-rewards-credit-card/a/12356/9/?linkid=WWW_1010..., thoughts?

Remove negatives from Account

2.1 Send GW letters to University of Pittsburgh and Verizon. Due by this Friday.

Thanks!
wim

RobertEG · ‎05-18-2012

First and foremost, getting new CCs at good terms and limits requires a solid score.

New cards provide flexibility, but wont add much to your mix since you already have multiple revolving. Your % util seems under control, so you are taking care of % util without the need for higher CLs. FICO does not directly score CL, so you can get the same %util results by maintaining balances low until such time as you can clearly qualify for better cards.

I would concentrate on the central issue that is apparently hurting the most.... the presence of the old derogs.

GW the heck out of them until you can get them deleted. Then some doors will open.

llecs · ‎05-19-2012

I wouldn't recommend any new CCs until the baddies are taken care of.