When to apply for credit? Now??

[Candikane]

I have a very limited credit profile with mostly all (old) negative... 3-4 accounts in collections (4 on EX, 1 waiting to be deleted still), 4 neg closed (2 that show a balance), 1 judgement

3 closed paid/paying as agreed acounts (1 AU card, 1 auto loan, 1 student loans)

1 active (1 month old) Cap1 Platinum (secured) reporting to EX only.

Should I try to open another secured line or 2? If so, cards, or loans, or 1 of each? I do belong to a local credit union.

Or should I wait before trying to add more?

Adding would help rebuild my score, and also lower my current total utilization because of the 2 closed cards showing balances at HIGH util with their fees added (179% and 213% on EX)

IF I grab a card or loan, would you use it to pay off the closed w/bal acounts?

Please help! My scores SUCK! They're all around 535-545

[Candikane]

Note: I did PFDs for the 2 closed w/bal already, about 2 weeks ago.... kohls rejected, target no answer (email to CEO).

The 3 in collections (1 of which is the judgement, as well) are portfolio recovery and over 1k each, so I've done nothing with them and can't afford to. I'm on disability. 

The 4th collection (on EX only) is Midland, was paid a few weeks ago, said they'll delete. It came off TU already. 

I feel stalled which is why I feel like opening may be only option for further score improvement at this time. 

[Anonymous]

The two biggest spikes to your score will be current active accounts showing low uti and paying the charged offs down to get rid of their uti that's reporting over 100%. If you're planning a big purchase like a mortgage soon then try to pay in full. If not then work a settlement. It'll have the same impact on the score by zeroing out the uti for less money. However it doesn't look as good on a manual review.

After you've made progress with new accounts and the COs, the 3rd phase of your clean up can be taking care of the collections.

This overall theory on this forum is that 3 CCs are the best for fico as long as two show $0 when statements cut and the 3rd reports less than 10% uti, so a couple of cards would help.

[Anonymous]

What are the balances on the closed cards? 

I highly doubt you'll get other cards given you have two, closed card accounts that are over their limits (if I'm understanding you correctly). 

Work on paying those off or settling, use your Cap 1 secured card smartly for a good six months, and see where your scores are then. 

I wouldn't recommend other cards at this point because it's likely the only other cards you'll be approved for are from sub-prime/predatory lenders. 

[Candikane]

Small balances, I'm just poor. Kohls is $538/ $300 limit - Target is $426/ $200. I got approved for the Cap1 Platinum secured a month ago (though there's credit given, too, so semi-secured, I guess). $300 bal, I used $8 and paid it off + extra as soon as the statement cut. It reported immediately to EX.

[Candikane]

No big purchases planned but I am trying the move (rent) and finding it hard with my poor scores

[Anonymous]

Those UTILs are killing your scores. Find a way to pay them down/off or settle them. 

And I saw you edited the previous post to include a judgement and other collections items. 

This is going to sound harsh, but at this point, in your position, credit is not something you need more of (nor do I expect you'll get more of). You need to work on those baddied, use that Cap 1 Secured carefully and smartly and give it time. 

[Candikane]

Yeah I don't actually want credit, I just want to raise my scores however possible just so I can get approved to rent a dang apartment.

These are all from a head injury that left me disabled, and the short/long term disability through my employer at the time continuously denied me my benefits, leaving me with $0 income. It's honestly not even legit as far as my true credit worthiness as it was completely out of my control. Owell, I guess.