What low end card to try next?

[Anonymous]

Gemini, you bring up another point of interest to me and I would like to know something.  You're right I have right at $1750 in real credit (Cap 1 MC and Merrick Visa)  I also applied for and got a Wawa Gas card (CL $300)...I use this to cover fuel costs on my long commute, and like the rest I pay this down every 2 weeks (I'm enjoying the $.20/gallon rebate right now too).  i went way overboard when I learned the SCT and I added another $3000 CL on a handful of Comenity Bank store cards...so my overall available credit is a little over $5000,  all less than 2 months old. 

Back in May when starting out I foolishly applied for a few accounts without success in total I show 7 HP on TU, 4 on Equifax, and 7 on Experian...I know, no more hard pulls for now!  One of these HP's was from the Credit Builder Loan, One was Cap 1, One Merrick, and three from Comenity cards that I asked for before realizing one could get their cards without the HP.

I've had solid success, the Experian is up to 622 from the mid 500's in like 60 days, TU and Equifax are both up on Credit Karma...and were up on my last report pull (waiting 14 more days to see that for sure form my monitoring company).

Seeing where I am is there anything you would ad, take awat, or structure into your re-build?

[Anonymous]

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@Anonymous wrote:

Gemini, you bring up another point of interest to me and I would like to know something.  You're right I have right at $1750 in real credit (Cap 1 MC and Merrick Visa)  I also applied for and got a Wawa Gas card (CL $300)...I use this to cover fuel costs on my long commute, and like the rest I pay this down every 2 weeks (I'm enjoying the $.20/gallon rebate right now too).  i went way overboard when I learned the SCT and I added another $3000 CL on a handful of Comenity Bank store cards...so my overall available credit is a little over $5000,  all less than 2 months old. 

Back in May when starting out I foolishly applied for a few accounts without success in total I show 7 HP on TU, 4 on Equifax, and 7 on Experian...I know, no more hard pulls for now!  One of these HP's was from the Credit Builder Loan, One was Cap 1, One Merrick, and three from Comenity cards that I asked for before realizing one could get their cards without the HP.

I've had solid success, the Experian is up to 622 from the mid 500's in like 60 days, TU and Equifax are both up on Credit Karma...and were up on my last report pull (waiting 14 more days to see that for sure form my monitoring company).

Seeing where I am is there anything you would ad, take awat, or structure into your re-build?

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Wow, I poured my heart into a long answer and it got erased, so here’s a quick down n durty.. re-do.

Those other accounts are ‘real’ enough to pad your credit profile, so their fine.

Your HP’s for what, you have obtained are just fine..you’re gonna take HP’s it’s part of the process…your numbers are fine, no problem.

We obsess over HP’s in relation to where one is along the journey…at this pivot point your fine, that’s why gardening now works….you broke the eggs but you made breakfast, that’s the only way to eat, you’re good!

*A word of caution, for others with regard to the SCT …it’s true one isn't burning HPs but adding accounts is still adding ‘new credit’ and the RISK model still evaluates the potential trap door of having the ability to run up debt + let’s remember the more accounts there are the more there are to divide up regarding AAoA

ie if you have 5 accounts…yes you can SCT yourself 5 new accounts w/o a HP …however your AAoA has to adjust to the age of now all 10 of your accounts 5 of which are 0 months old, right?

Again, not a big deal when growing new credit profiles but might be important depending on where one is within the process.

Paying bi-weekly is 100% fantastic

And paying regular ole basic no PLANNING required gotta pay anyway stuff…fits my definition of NO PLAN NEEDED….K.I.S.S. ‘best practice’  

I feel at least you understood where I was coming from, simply responding in a fav Uncle kinda way regarding ‘wants’ and ‘plans’ vs just gittin ‘her dunn

No fancy stuff needed at this juncture….of course as TIME and your experience add up…both your confidence and competency level will raise, to the point where you’re COMFORTABLE enough your ‘wants’ won’t take you places your pocketbook and know-how can’t save you.

I believe you ‘get’ it wasn’t my intention to ‘overstep’ but to provide some guidance to staying out of trouble….I or any ‘old head’ on here could tell you what I do NOW but that’s like telling a college freshmen all about AARP benefits (just an example, not that old yet folks!)

My calling, with friendly suggestions is based upon where I ‘see’ the asker.

And now that the OP has shared more info regarding having a few more accounts, then initially disclosed, even better.

I still stand by my ‘cooking with grease’ prediction but with more confidence, knowing your revolving ratios will look that much better with the additional cards AND the bi-weekly pay down.

*Remember to KNOW, which day your vendors report to CB and manipulate your payment dates accordingly…even if you need to move your due dates ( most companies will allow you to change them….Cap-1 normally does due dates by zip code but will adjust if requested)….just set it up so that you look your best on PICTURE DAYS (the day, they send the snap-shot to the CB)

You’re doing great…I love the fact that you pay often and your usage is just common normal can’t get around it spend.

Best of Luck!

[Anonymous]

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@Anonymous wrote:

No, I didn't miss your point, I was addressing a point that you should not be making with your advice. 

I agree he should stop applying for credit and focus elsewhere. But telling people not to plan any detail of their life is not your place; it's overstepping the OP's request for advice.

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Don't 'get' what your issue is here....

i simply said to a person CONCRENED about a bunch of nuisances that no BIG PLAN was needed

that THE PLAN was to keep the spend DOWN......Simple Simon stuff

I'm failing to see how this is going over your head as an 'issue' of me overstepping

The OP seemed to fret over an issue I gave advice ....that's what we DO here, right?

No offense, you seem to take offense as if I were taking away YOUR ability to chose how YOU do things, which wasn't at issue

the OP sought input he/she got mine and everybody else is welcome to give theirs, so I thought...

You even said 'some ppl operate better with a PLAN, correct?...well that 'plan' can be as simple as no plan needed stay below 20%...the end

I think you're getting lost in my translation that a newbie or recovering person needn't over-think an elaborate 'plan'...when the simply

plan

advice

mantra

suggestion

easy stop -gap

is just don't go over THIS AMOUNT...the end, is all that's required.

I was only trying to HELP the kid understand and see that at that level of spend it ain't THAT HARD...it's 2 0r 3 hundred freaking dollars....my point was

it doesn't take and isn't worth a bunch of mental gymnastics to just keep a $1000 CL at a decent debt level....frankly i'm perplexed at the push back on this issue,

and I'm sorry it rubbed you so offensively, as we tend to agree normally...no biggie, I'm done on the subject, the OP seemed to follow me, so i'm content.

Lest we remember this is a rebuild area, so ppl are ASKING for advice....not necessarily what I'm currently doing or how I handle things TODAY at my level (not that I'm at a certain level vs anyone...just that I'm a grown as man whereas my 2 young adult children are at a different level or point credit wise so my advice to them or a current rebuilder would be different than a mid-life heading towards an AARP card such as myself...even a rebuilder after a BK is different than a relatively thin file prior rebuilder)

Advice IMHO has to be different based upon which fork in the road the asker is at, some i know good, some I know great and IME simple is better for newbies, we disagree no big deal but to imply I'm oversteppping by pitching a suggestion i believe in is a bit surprising but it's water and I'm a duck

[Anonymous]

I think lowkeyorka has been following my other posts, she has been really helpful to me getting started. She had the color of my back story and might have been coming from that more familiar vantage point.

Gemini, I oappreciat your well reasoned response. I'm not shopping AARP cards just yet....but closer to that than anyone I would call a "kid" 😁 but thanks! My situation is the result of my bad choices and indifference.....but I'm all in now!

[Anonymous]

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@Anonymous wrote:

You guys are awesome...and I do get it.  Lolacat kinda tripped over what my actual question should have been.  I was hoping for instant gratification (and sort of got it with the Cap 1 transition to a new card) , but really looking to set the next goal.  I am hearing though that I've largely done what can be done for the moment.

Since Gemini asked, my spending on the card(s) is almost wholly on recurring expenses.  My utilities, car insurance, netflix, etc. are the stuff that I cycle through.  By PLAN I meant that I want this to be automated for two reasons.  Fist I never want to be late with the power company again, putting that automatically on a CC does this.  Second, I want this paid off as quickly as possible, so I have to plan for the autopay either upstream as a request from Cap 1 or downstream as an auto pay from my bank.  Either way the spending never exceeds the 30% mentioned and even that is paid completely or almost completely every two weeks...SO even if I have $300 on the card for a week this should get averaged out when I get paid and pay the card off....right?  

So far it seems that way.  In the two months I've been doing this the utilization has appeared to be single digit (where I plan to keep it) and for the first time in a long time I have eliminated overdrafting my debit account (checking) and been able to actually SAVE a nice chunk of paycheck....I do indeed want the maximum big Daddy/Momma credit, but these other ancillary benefits have proven valuable as well.  I'm starting to see where careful planning can result not just in a very strong credit score, but in significant actual savings...I do need both to accomplish my goals.

Finally, I still don't know what I don't know.  That's the real genesis of my post's like this one.  For example by asking my genuine, though apparently naive, question I learned that I could upgrade my Cap 1, and that I have probably done all I can do for now.  I would have been equally happy to learn some hidden way to use what I have to better effect...probably all that plan do study act (PDSA) I got fed in college! .  So forgive me if the questions seem simple...I just crave to know not just "the way" but the 'best" way to do all of this.

I'm overwhelmed by all the great advice...thanks for taking the time, all or you...I really appreciate it!!!

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First of all - congrats on getting control over your spending habits. Something that has helped me has been Mint, it showed me where I was spending and sends me balance alerts. I was able to see that I was actually going crazy with take out and eating out and set a budget that I now refuse to go over and budgeted towards groceries instead. It's also nice having a picture of all of my accounts, investments, loans, credit cards and checking/savings. I use an application called Prism that keeps track of my bill due dates by connecting directly to the billers. I can set up autopay on the accounts through the app, but I like paying them myself. The notification is enough to keep me on track and seeing the money come out when I pay it makes it real for me so I don't forget about it. I also started using an app called Qapital that rounds my purchases up and puts the money into a savings account. 

Next goal probably is to learn to respect the growth cycle. Much like learning with an actual garden how fruitful patience can be. I think you should set a score goal and focus your energy on having a really clear mental picture of your finances that you find easy to keep organized. If Auto-pay helps that, awesome. If you're like me and also forget about auto-pay, try some applications, I'm sure there are plenty of others than the ones I mentioned, but the reminders and the trends of how I spend are basically the two key pieces for me. The data visualization hits the nail on the head for me and I have fun seeing where I can save and beating my budget goals.

It's really hard for me to wait in the lulls of disputes and I imagine once I'm done with that, I'll be where you are, trying to find peace with the gardening. I'll shift my focus to my financial health and continuing to organize it all until I have such a great grip on my balances and forecasted spending that I never have to check my account to see where I'm at, because I'll just know inherently. I can see you benefitting from doing that as well. Set savings goals for yourself! Maybe get into investment finance - Motif is great for starting out. I just play with my managed portfolios right now for my retirement, but it could be a fun game to play, too!

Maybe become a wise mentor like Robert and Norman by learning more financial law - it will also put you in a great position to protect yourself in the future if things ever go awry again.

Okay, I'm done rambling. ^_^ Have fun planning your next move, but just remember, financial health is about more than your credit, so you have MANY branches you can explore while your garden is growing healthy.

- C

[Anonymous]

😂 @Rebel
My apologies

1) Lots a times when I say 'kid' (my bad) I really mean 'young-at-this' rather than actual age

And two

2) Even in person I always find a way to call anybody under 80 a young whipper snapper😂

True story, I took my 2 sons 14 & 20 to lunch last week and we're walking out of Co Co's and a elderly couple (never liked that term) is walking in

She walks in, my boys walk out the old dude stands there holding the door for ME (my Dad, turns 70 today..this guy is older than my Pops)

As, I walk out I say ' Thank you young man' ...my kids Die...they thought it was funny as hell
I'm like what?
Later in the afternoon my 14 y.o. is like Dad..Did you really call THAT guy 'young man's...

I told once we're old enough to know it's a lie, is just your Pops being cute throwing some virtual hugs no biggie😂

[Anonymous]

Lowkeyorka, I appreciate your reply as always.  I tried a couple of the budgeting tools but haven't discovered one I actually like.  In the end I put it into a self made spreadsheet and essentially handle it there.  I think my focus needs to shift towards putting away cash.  Investing (the need for good credit related to realestate) is what brought me back around to concern over my scores.  The one-two punch of playing in that game is credt/cash.  So, I need to find more hidden cash to stash!

Eating out can KILL a budget, my family lives a profoundly frugal lifestyle.  paid for cars, debt free college education, most grocery shopping completed at Aldi/Save -a-Lot, we buy work/school clothes mostly from the discount rack...expenses are mostly controlled but dining out has always worked counter to our goals.  It remains a work in progress, but I'm getting there.

I love that your goal is full control.  I beliefe your money should work for you not the other way around.  I will check out mint (again) and Motif at your suggestion....thanks!

[Anonymous]

LOL, Gemini, I wasn't looking for an apology, just setting the record straight. 

I really appreciate you taking the time to answer my silly question, and I think your suggestions were spot on. 

I think I just needed to hear that htere was nothing more I should be doing. 

Thanks again!

[Anonymous]

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@Anonymous wrote:

Lowkeyorka, I appreciate your reply as always.  I tried a couple of the budgeting tools but haven't discovered one I actually like.  In the end I put it into a self made spreadsheet and essentially handle it there.  I think my focus needs to shift towards putting away cash.  Investing (the need for good credit related to realestate) is what brought me back around to concern over my scores.  The one-two punch of playing in that game is credt/cash.  So, I need to find more hidden cash to stash!

Eating out can KILL a budget, my family lives a profoundly frugal lifestyle.  paid for cars, debt free college education, most grocery shopping completed at Aldi/Save -a-Lot, we buy work/school clothes mostly from the discount rack...expenses are mostly controlled but dining out has always worked counter to our goals.  It remains a work in progress, but I'm getting there.

I love that your goal is full control.  I beliefe your money should work for you not the other way around.  I will check out mint (again) and Motif at your suggestion....thanks!

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I didn't realize how fast it was adding up. When I saw what I spent in a month... I was sick to my stomach! I'm good with numbers, it just never crossed my mind.

Mint was annoying to set up. I don't think I used it properly for months. Once I got a handle on the categories and tags, it felt like it worked for me. If speadsheets work for you, then awesome! I use a spreadsheet for keeping track of pending ACH charges so I don't forget about them, too. Hopefully someday I won't have to 

Sounds like the savings and investment market are your next places to play the game, too. 

[Anonymous]

Yes, I may just sell everything that isn't nailed down and either pay down the student loan (my ONLY real debt) or go and flip a house (then pay off the student loans).

My goal is realestate.  I narrowly missed an opportunity a few months back, need to find more.