topic Re: Direction needed after initial credit improvement (which/how many credit cards to apply for) in Credit Cards

Direction needed after initial credit improvement (which/how many credit cards to apply for)

Anonymous — Fri, 11 Nov 2016 17:43:41 GMT

Thanks in advance for those who take the time to read and respond. (looking for advice on how to proceed from here/which credit cards & how many)

You guys have not steered me wrong yet. Lurking on these forums for the past 8 months has allowed me to improve my scores from 580 to over 700's in a time period I didn't think was possible.

I am closing on a house on Monday. Got the clear to close and the final credit check.

My goal is to get to the 800's someday. Before my score drops from the house, I want to know what the best stratgegy is. From what I've read, I should apply for as many cards as possible, taking the hit for inquiries and my credit length for the long-term benefits.

Assuming that's correct, I'd like to know if anyone has any recommendations.

Here's my current scores:

Fico 8
Eq - 667
Tu - 758
Ex - 768

Fico 4 - Tu - 744
Fico 2 - Ex - 703
Fico 5 - Eq - 649

The Equifax scores are lower due to a public record for a tax lien (released) they won't remove (yet. Working on that). Average of 4 inquiries showing up (two secured credit cards, mortgage company & paypal (mistake). 100% payment history and average age of credit history is 1 year, 4 months.

I can provide any other information that helps the cause.

What should be my course of action to get to the goal of an 800 score someday? Which credit cards should I apply for? How many? Advice and direction is welcome and needed. You guys haven't steered me wrong yet!

Eternal thank you to all who post here,

-Felix

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

Pway — Fri, 11 Nov 2016 17:49:21 GMT

Please just don't go apping for cards. You will regret it later. Look at what cards are going to benefit you the most. Rewards, CB, Miles etc.

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

SouthJamaica — Fri, 11 Nov 2016 17:51:19 GMT

@Anonymous wrote:
Thanks in advance for those who take the time to read and respond. (looking for advice on how to proceed from here/which credit cards & how many)

You guys have not steered me wrong yet. Lurking on these forums for the past 8 months has allowed me to improve my scores from 580 to over 700's in a time period I didn't think was possible.

I am closing on a house on Monday. Got the clear to close and the final credit check.

My goal is to get to the 800's someday. Before my score drops from the house, I want to know what the best stratgegy is. From what I've read, I should apply for as many cards as possible, taking the hit for inquiries and my credit length for the long-term benefits.

Assuming that's correct, I'd like to know if anyone has any recommendations.

Here's my current scores:
Fico 8
Eq - 667
Tu - 758
Ex - 768

Fico 4 - Tu - 744
Fico 2 - Ex - 703
Fico 5 - Eq - 649

The Equifax scores are lower due to a public record for a tax lien (released) they won't remove (yet. Working on that). Average of 4 inquiries showing up (two secured credit cards, mortgage company & paypal (mistake). 100% payment history and average age of credit history is 1 year, 4 months.

I can provide any other information that helps the cause.

What should be my course of action to get to the goal of an 800 score someday? Which credit cards should I apply for? How many? Advice and direction is welcome and needed. You guys haven't steered me wrong yet!

Eternal thank you to all who post here,

-Felix

1. I don't agree that applying for a lot of cards will help your score. You can get just as high a score with 3 cards as with 20 cards. And the more you add, the worse your average age of accounts will be. You haven't mentioned how many you have at present.

2. Pay everything promptly.

3. Try to maintain most of your credit cards at zero balance on the statement dates, and with the others at low overall utilization and per-card utilization.

4. Send verification letters from time to time to the credit bureaus, trying to get your negatives deleted.

5. Pay the mortgage down as fast as possible.

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

Anonymous — Fri, 11 Nov 2016 17:58:07 GMT

I have two credit cards right now that are at $500 (secured) and I never use more than 9%.

I have no negatives left other than 1 public record for Equifax that I am working on getting removed.

Thanks for the responses so far!

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

rmduhon — Fri, 11 Nov 2016 18:02:38 GMT

Be aware of Chase's 5/24 rule if you are interested in one of their cards.just thought I'd mention that. And Lowe's/Home Depot can be a good one to have since you are buying a house

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

SouthJamaica — Fri, 11 Nov 2016 18:05:12 GMT

@Anonymous wrote:
I have two credit cards right now that are at $500 (secured) and I never use more than 9%.

I have no negatives left other than 1 public record for Equifax that I am working on getting removed.

Thanks for the responses so far!

OK you're off to a great start.

I would recommend adding no more than 3 unsecured cards, and when you do closing out the secured cards you have.

As to which cards to get, it really depends on what you're looking for.

Some people like cash back, some people like low interest and low fees, some like maximum travel rewards.

If it were me, with my personal preferences, I would apply for the Barclay Ring card (low fees and low interest, and pulls TU, one of your strongest), and Capital One Quicksilver (good cashback card).

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

Anonymous — Fri, 11 Nov 2016 18:05:22 GMT

I'll second whats been said.. dont app just to app. Determine what cards make sense for you. Do you want a flat rewards card? I like my Citi Double Cash. You mentioned a mortgage, does a home improvement store with financing make sense? Do you travel? Consider a travel/miles card. If you've got an idea what makes sense for you, a lot of people can give advice on card products and your likelyhood of approval. If there indeed are cards that would help you, then yes- now wouldn't be a bad time to add them.

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

Anonymous — Fri, 11 Nov 2016 18:19:34 GMT

I will continue to educate myself based on the feedback. I knew posting up was a good idea. I don't want to make any mistakes. Thank you all who've taken the time to post.

Re: Direction needed after initial credit improvement (which/how many credit cards to apply for)

Gollum — Sun, 13 Nov 2016 08:58:47 GMT

@Anonymous wrote:
Thanks in advance for those who take the time to read and respond. (looking for advice on how to proceed from here/which credit cards & how many)

You guys have not steered me wrong yet. Lurking on these forums for the past 8 months has allowed me to improve my scores from 580 to over 700's in a time period I didn't think was possible.

I am closing on a house on Monday. Got the clear to close and the final credit check.

My goal is to get to the 800's someday. Before my score drops from the house, I want to know what the best stratgegy is. From what I've read, I should apply for as many cards as possible, taking the hit for inquiries and my credit length for the long-term benefits.

Assuming that's correct, I'd like to know if anyone has any recommendations.

Here's my current scores:
Fico 8
Eq - 667
Tu - 758
Ex - 768

Fico 4 - Tu - 744
Fico 2 - Ex - 703
Fico 5 - Eq - 649

The Equifax scores are lower due to a public record for a tax lien (released) they won't remove (yet. Working on that). Average of 4 inquiries showing up (two secured credit cards, mortgage company & paypal (mistake). 100% payment history and average age of credit history is 1 year, 4 months.

I can provide any other information that helps the cause.

What should be my course of action to get to the goal of an 800 score someday? Which credit cards should I apply for? How many? Advice and direction is welcome and needed. You guys haven't steered me wrong yet!

Eternal thank you to all who post here,

-Felix

I think the biggest step is your purchase of the house. Many banks will be tripping over themselves to sign you up for a credit card, because you qualified for the mortgage based on your creditworthiness, and the mortgage is secured by your house: it's not unsecured debt, like a credit card is. But you've already proven yourself to be a good credit risk by qualifying for the mortgage, so many banks will be happy to sign you up for a credit card.

Slow and steady wins the race.