07-28-2012 08:39 PM
Hi Everyone - I'm sorta confused on when to try and open a new credit card as part of the credit rebuilding process. I'm not especially in need of credit at the moment, but I would like to get approved for a mortgage one of these days, and need help to point myself in that direction and get my scores up.
I realize that this is a very particular question, so I'll provide some of my data below. Any input or advice will be greatly appreciated.
My most recent scores are TU = 652; EQ = 607. AAoA = 10 years.
Currently, I have 7 baddies which include:
1 student loan with late payments but is current now
3 credit card accounts which are paid off & closed but have 90+ day late payments associated to them (Citi, Chase, Shell/Citi)
3 credit card accounts which I am paying off but 90+ day late payments associated to them (Bof A x2, Discover). These accounts are also closed.
All accounts are current - no late payments in over a year. I only have one open line of credit for $500 which is basically overdraft protection tied to my checking account, but it lists as revolving credit on the credit reports. Currently it has 0 due, 0 late payments. I expect to have all lines (except the student loan) paid off by May 2013.
I also have 2 collections on my reports:
1 paid collection for less than $100 (due to age off 12/2013)
1 collection that the CA has agreed to delete - not sure of the score bump this will give me
Thanks to anyone reading this long message
07-28-2012 08:56 PM
It will help to have around 3 active revolving credit lines, one of which reports a balance greater than $0 but less than 10% credit limit. I think you will see an immediate increase in your FICO score as soon as you open two secured cards and they report, one with small balance.