topic Re: Help. What am I missing? in Credit Card Applications

Help. What am I missing?

RobDub — Fri, 20 Dec 2024 18:44:17 GMT

I have been rebuilding my credit for about 2 years and have brought it up from the upper 500s to where all of my scores are between 700 - 740. For better context, I make around $72k a year and have about $40,000 in total debt (that is everything including vehicle, student loans, and house). I have not made a late payment in over 4 years, I have 1 inquiry (for the Cap One Quicksilver card) that will fall off in January, 1 derogatory from a $800 card that got charged off back in 2020, which is where the late payments stem from.

Credit Cards:

Credit One Platinum opened April 2021 currently w/$550 CL

Credit One Platinum opened June 2022 currently w/$850 CL

Credit One AMEX Wander opened Oct. 2024 currently w/$1200 CL (Good Rewards on Restaurants, Travel, and Gas)

Capital One Platinum opened Feb. 2022 currently w/$1300 CL (Good Cash back rewards)

Capital One Quicksilver opened Jan. currently 2023 w/$600 CL

My question is, considering all that, I have done a few suggested no ding credit card applications (Apple Card, Amazon, etc) and have been declined for every single one. What am I missing? I figured with my credit score being up, my usage being down, 1 inquiry that is about to fall off, and just the one new card in the last 23 months that I would be getting approved for some better cards, and it just hasn't happened. I am not in a huge rush, I am a very patient person, so I will give it more time. But just looking for some feedback and encouragement. Thanks in advance.

Re: Help. What am I missing?

JoeRockhead — Fri, 20 Dec 2024 19:51:15 GMT

What scores are you quoting Fico, or Vantage?

What's your DTI come out to? If your DTI ratio is above 35% that may be holding you back.

Re: Help. What am I missing?

RobDub — Fri, 20 Dec 2024 19:59:32 GMT

Debt to Income is about 23%

My Fico Score 9 is 743

Vantage Score 3.0 is 711

@JoeRockhead wrote:
What scores are you quoting Fico, or Vantage?

What's your DTI come out to? If your DTI ratio is above 35% that may be holding you back.

Re: Help. What am I missing?

Patient957 — Fri, 20 Dec 2024 20:05:39 GMT

@RobDub

What was your utilization % on each of your cards at the time of your application(s)?

I think you would want to be AZE1 to give yourself the best chance for approvals.

Re: Help. What am I missing?

RobDub — Fri, 20 Dec 2024 20:11:01 GMT

All cards are at zero and I keep them at zero, except 2 that are near zero. That could be the issue. Depending on what day my cards report, etc. I use 2 cards for daily purchases and pay off. 1 for gas and restaurants due to travel rewards and 1 for every day purchases due to cash back rewards.

Maybe that is what the issue is.

@Patient957 wrote:
@RobDub
What was your utilization % on each of your cards at the time of your application(s)?

I think you would want to be AZE1 to give yourself the best chance for approvals.

Re: Help. What am I missing?

FicoMike0 — Fri, 20 Dec 2024 20:20:20 GMT

First, the more info you give, the more help the wizards can give. They really know this stuff!

When giving scores, it's best to give everything, including where you got it. Example, since you're on myfico, you have access to your equifax fico8. Experian provides their fico8 for free as well.

You mention an $800 charge off, do you still owe the $800? If so, that balance is hurting your utilization and scores.

I think you're doing the right thing as far as preapprovals. Have you tried amex?

Re: Help. What am I missing?

RobDub — Fri, 20 Dec 2024 20:33:58 GMT

@FicoMike0 wrote:
First, the more info you give, the more help the wizards can give. They really know this stuff!
When giving scores, it's best to give everything, including where you got it. Example, since you're on myfico, you have access to your equifax fico8. Experian provides their fico8 for free as well.
You mention an $800 charge off, do you still owe the $800? If so, that balance is hurting your utilization and scores.
I think you're doing the right thing as far as preapprovals. Have you tried amex?

Thank you!!! I still have a lot to learn. This site along has helped me raise my credit score due to just learning how things are reported and utilization percentages, etc. I appreciate every person that responds and posts to help others!!!

It is still owed. I have considered paying it and requesting removal if paid, but I have also paid a debt collector back in the 2000's and they kept reporting and trying to collect even though I had already paid it. So I am hesitant to do it again, but I may do it and just see what happens. At this point in my life $800 is much less of a hurdle than it once was. LOL Thankfully!!!

I haven't tried AmEx. I am going to try them once my other inquiry falls off and I have had my Credit One AmEx card for at least 6 months, which is coming up real soon.

Experian Fico 8 Score is 727

Re: Help. What am I missing?

GreatLife — Fri, 20 Dec 2024 21:22:44 GMT

Please share details of the $800 so forum gurus can further assist.

Is it presently listed as a charge off or a collection? Who is the original creditor, what company currently holds the debt, what date did the account 1st go delinquent without any subsequent payments?

Re: Help. What am I missing?

GZG — Fri, 20 Dec 2024 21:39:48 GMT

is the charge off unpaid? or was it paid four years ago and the balance on it is now $0?

yeah you're going to need to pay in full/settle in full the charge off, that's why

you haven't been late since 4 years ago,

you're currently late

and that's what they see when they pull your report.

if you do it pay it and they do update your report (I imagine the $800 charge off isn't reporting monthly) it's going to ding your score, bad. regardless, it needs to be paid and it will still fall off 7 years from the DoFD

Re: Help. What am I missing?

RobDub — Fri, 20 Dec 2024 21:44:25 GMT

It is listed as a Charge Off/Collection. It was originally through Celtic Bank and Spring Oaks Capital is who owns it now and is reporting it. It was originally a $300 credit card debt, and the fees and what not ballooned it up to $833 which is what it currently is through Spring Oaks Capital. It looks like the last payment I made was in early 2020, I don't know the exact date and they closed the account and sold it to Spring Oaks Capital in Sept. 2021.

I did look at the options on the Spring Oaks Capital Website and they state that when the debt is paid in full they will request deletion from the file. This sounds like it may be my best option. And I'm good with that. It would pay a debt I legitimately owe, which is important to me, and it could potentially remove it from my credit profile. My fear is paying out money to a debt collector that doesn't show that its paid.

@GreatLife wrote:
Please share details of the $800 so forum gurus can further assist.
Is it presently listed as a charge off or a collection? Who is the original creditor, what company currently holds the debt, what date did the account 1st go delinquent without any subsequent payments?

Re: Help. What am I missing?

RobDub — Fri, 20 Dec 2024 21:48:57 GMT

@GZG wrote:
is the charge off unpaid? or was it paid four years ago and the balance on it is now $0?

yeah you're going to need to pay in full/settle in full the charge off, that's why

you haven't been late since 4 years ago,

you're currently late

and that's what they see when they pull your report.

if you do it pay it and they do update your report (I imagine the $800 charge off isn't reporting monthly) it's going to ding your score, bad. regardless, it needs to be paid and it will still fall off 7 years from the DoFD

Ooooooooooook This makes sense. I thought once an account was charged off, it showed as derogatory but not as late every month. Which means it showing as derogatory AND a late payment every month. I did not know that. I'm learning here. LOL

So how will paying it hurt my credit? If thats the case would hurt it for 7 years from the date paid, lets assume today. If I leave it and don't pay it, it should fall off in 3 since its been on their for 4 years already?

I'm not trying to be dense, just trying to understand. Thank you : )

Re: Help. What am I missing?

JoeRockhead — Fri, 20 Dec 2024 21:54:37 GMT

@RobDub wrote:
@GZG wrote:
is the charge off unpaid? or was it paid four years ago and the balance on it is now $0?

yeah you're going to need to pay in full/settle in full the charge off, that's why

you haven't been late since 4 years ago,

you're currently late

and that's what they see when they pull your report.

if you do it pay it and they do update your report (I imagine the $800 charge off isn't reporting monthly) it's going to ding your score, bad. regardless, it needs to be paid and it will still fall off 7 years from the DoFD
Ooooooooooook This makes sense. I thought once an account was charged off, it showed as derogatory but not as late every month. Which means it showing as derogatory AND a late payment every month. I did not know that. I'm learning here. LOL

So how will paying it hurt my credit? If thats the case would hurt it for 7 years from the date paid, lets assume today. If I leave it and don't pay it, it should fall off in 3 since its been on their for 4 years already?

I'm not trying to be dense, just trying to understand. Thank you : )

The CO balance is still factoring into your utilization and will continue to do so until it's paid off. The 7 years doesn't restart, it will still be based off the date the account first went delinquent (DOFD) that led to the CO status. Once you pay it off it will report zero balance and stop reporting monthly.

If you can pay it off all at once I'd ask the collection agency if they'll settle for less.

Re: Help. What am I missing?

RobDub — Fri, 20 Dec 2024 21:55:54 GMT

This is great!! Thank you so much!!!

Re: Help. What am I missing?

myscoresucks2 — Fri, 20 Dec 2024 22:37:27 GMT

So I would call the collector that you owe the money to, get something in writing that states that if you pay in full they will delete within 30 days. Once you have that, pay the debt, 30 days later it's cleared off your report or reports. Make sure you keep a copy of money order or check you used to pay it off.

do not settle in full unless they offer you the same deal, as it doesn't help your report.

Re: Help. What am I missing?

JoeRockhead — Fri, 20 Dec 2024 22:40:40 GMT

@RobDub wrote:
This is great!! Thank you so much!!!

You're welcome.... I should have added that when you pay/settle with the collection agency ask them for a pay for delete. If they do, that's great. In that case the collection would get deleted, but be aware that it has no bearing on the reporting of the CO from the original lender. For that you'd have to contact them and ask for a goodwill deletion. Some have luck with it, most don't, but doesn't cost much to try.

Re: Help. What am I missing?

RobDub — Tue, 01 Jul 2025 20:54:31 GMT

Ok. I finally got this account resolved today. The balance was $833 and they offered to settle the account for $433 and will delete within 30 days of the payment. Luckily, I have all of this in writing. We shall see if this helps my credit and if it does in fact get deleted. Here's hoping!!!!

Re: Help. What am I missing?

youngandcreditwrthy — Wed, 02 Jul 2025 00:47:08 GMT

You are at the point where it seems like your AAOA may be too low with credit cards specifically, youre DTI is also higher.

do you earn bonuses, or have any other members in your household whose income may be included on your apps (follow the directions as some lenders allow this and some do not); some also ask about Savings, etc.

Have you tried Discover?

I would go try prequalifying for some of the synchrony bank cards. Like Walgreens Mastercard (good rewards, gave me a 2k limit with 660 Vantage - four months later I'm at 4k)

Seems your utilization is low. Also 4 years is when the baddies start to really make the difference in approval. 6 years is when they kind of dont get mentioned on denials and then theyre removed (but you should always dispute to ensure proper removal)

something is not adding up here.

You need to focus on credit line building.

OH! Try pre qualifying for these cards!

Brooks Brothers World Elite Mastercard (I got 4500 with about a 700 FICO)

Saks World EMC (I got 3k with I think a 680 EQ fico)

Comenity Banks Amex 2% cash back and also Synchrony banks line up of Visas and MCs in general.

You must focus on LIMIT BUILDING.... CARE CREDIT is ALSO VERY VERY GENEROUS...I got 12k with a 640 vantage. higher limits beget higher limits.

Credit one cards are not known for growing... many times you will not pre qualify or be pre approved, but you still do qualify... so keep that in mind.

Depending on how many inquiries you have, test that theory out.

Go check the pre qual for Lowes( ALSO GENEROUS LIMITS)

Go check the pre qual for Home Depot card backed by citi, That's one I bet you could easily start out at 2-4k.

You need to focus on CREDIT LIMITS: GROWING THEM - credit one AINT IT. NO MORE CREIDT ONE FOR YOU! Their products are better now, but with a 680 score or higher, you shouldn't even be messing with them. go Check Living Spaces Prequalify, Mattress Firm Prequalify, - I prequalified for all of these and even Ashley Furniture for 10K+ with 690+ TU FICO scores.

Synch has gotten so sloppy they sometimes wont even pull your credit after an acceptance of a pre qual and if you do one or two accounts in the same day, they might even just pull your TU report once.

Im surprised youre at 740 with a baddie thats four years old, that's sus tbh. Ive barely been able to break 700 with a baddie. dont even try Chitibank with a baddie. wont work. TRY DISCOVER's pre qual too

Re: Help. What am I missing?

RobDub — Wed, 02 Jul 2025 13:06:54 GMT

I have increased my CL on my Capital One to $2800 and the other Capital One up to $1600, so that is a little bit of an improvement.

I definitely will not be touching any Credit One cards again, my Amex that I got through them though, has the best rewards of any card that I currently have. My capital one gives me 1% cash back on all purchases, and the AmEx Credit One Wander gives me 5x points on gas and food, so I use it only for food and gas and pay it off and have earned a LOT of good rewards on that one. The others I am just holding onto for AAOA purposes. I have not attempted any prequals recently, as I have just been waiting. Now that I have the outstanding debt paid off, I am going to wait until August or September to make sure it does in fact get deleted from my credit reports, before I try anything else as far as getting a new account. Hopefully by then maybe i'll see some change.

As far as my debt to income ratio, you stated it was higher. I was under the impression based on research that I'd done that 23% was actually a good debt to income ratio? Is that not the case, and if not, what percentage should I be looking at getting to?

Thank you

Re: Help. What am I missing?

RobDub — Tue, 08 Jul 2025 13:56:05 GMT

Good News!!! The collection has been removed from my reports, as promised. So the only thing that will show up is when the original creditor reported my account as delinquent. Which I will just have to let that one age off my account. It was in 2020, so we are getting closer to that falling off. But either way, I feel way better having paid that debt off and knowing I have no collections in play anymore. Now I will just let everything sit in the garden for awhile and see where things go! Thank you all for your help and suggestions. I definitely would NOT be where I am with my scores had it not been specifically for these forums.

Re: Help. What am I missing?

youngandcreditwrthy — Sat, 12 Jul 2025 18:02:32 GMT

@RobDub

i hate to say this, but I think some people here gave you bad advice.

#1 you should never deal with the collection agency except to tell them under FDCPA, they must stop contacting you

#2 you have the right under FDCPA to request ONLY to deal with the OC (original creditor)- this is how you get BOTH BAD or any other bad tradelines relating to the debt removed - so you got bad advice because youre still stuck with that bad tradeline.

#3 you were extremely close to the bad debt just aging off your credit report

#4 the CRAs will tell you they don't allow "pay for delete" any more so even if you did get it in writing from the collection agency, its kinda 50 50 as to whether or not the CRAs will remove it (AND TRUST ME, it CAN RE APPEAR even after getting it deleted - it happened to me and I had no recourse - they deleted it for a month and then continued reporting and this was when my identity was stolen - even worse)

again, I cant reiterate this enough.. do not deal with any third or fourth parties... only deal with the original creditor... you have that right, and it gets the tradeline removed.

You type and send any and all collection agencies a "Cease and Desist" letter, and I encourage you to write it yourself and spend 30 minutes researching which sections of the FCRA and FDCPA apply in your circumstance.

I think you wasted money.

I want to reiterate this again, you need to go try pre qualifiers for any Comenity CO Branded cards like the Saks WEMC and for Synchrony bank backed cards.. whether they are store cards or co branded Visas/MCs. I dont know your income, but I know that you're in the ripe spot for obtaining Cobranded Visas/MCs (Like the Bread Rewards Amex - I've been averaging 3.5% cashback).. and why dont you have a Quicksilver card from Cap One? They consider 670 FICO+ "great" credit, so you should be able to get your cashback up to at least 1.5%

also, the Synchrony World Premier Mastercard is a flat 2% and they pre approved me with a 697 TU FICO ( i have one baddie from 7 years ago where I cosigned a car loan and the insurance didn't pay all of it and my "friend" is no longer my friend" because of how they did me on that deal)

To someone elses point, if a creditor is reporting you are "currently late" when they've already charged off the account and send it to collections, they are breaking the law.

And this is from my attorney, TWO entities are not legally allowed to collect on the same debt. It's illegal. and this is why having the CFPB around to report to is so important. or even the Attorney General of your state and the state they were doing business out of.

Everything that I've stated is lawful, though I am not an attorney - I just have 20 years of building credit (with only one rebuild almost complete). This is not legal advice. One thing to always consider to is your state's SOL... if a debt is beyond the SOL, they can't sue you for it.. and have almost zero recourse other than trying to tank your credit score which is illegal if they do it the illegal way.