topic Re: Next move? in Credit Cards

Next move?

Binner — Fri, 25 Jun 2021 20:36:08 GMT

Hi all. Long time reader, third time poster.....

I'm trying to build my credit. Fico 8 EQ 609, TU 611, EX 617. The only one that differs tremendously is my bankcard score 9, which has a TU of 572.

I'm trying to garden but its difficult. I'm thinking I should get a discover secured. I told my friend to and now she has a $1500 unsecured card after 8-9 months. I'm also considering an amazon secured card. I'd put $500-$1000 down.

I pay off all my cards, or at worst leave a super low balance. I have a Self secured for $1000, Cap 1 QS for $500, Avant for $500, Mission Lane for $500, and credit one AMEX for $500. Most of these I've gotten in the last 3-5 months. I am also considering cancelling the Self card and putting that towards Discover secured.

I also have 5 collections. I'm negotiating one and the rest are falling off shortly.

Any thoughts on what my next move should be?

Re: Next move?

simplynoir — Fri, 25 Jun 2021 20:45:49 GMT

@Binner wrote:
Hi all. Long time reader, third time poster.....
I'm trying to build my credit. Fico 8 EQ 609, TU 611, EX 617. The only one that differs tremendously is my bankcard score 9, which has a TU of 572.
I'm trying to garden but its difficult. I'm thinking I should get a discover secured. I told my friend to and now she has a $1500 unsecured card after 8-9 months. I'm also considering an amazon secured card. I'd put $500-$1000 down.
I pay off all my cards, or at worst leave a super low balance. I have a Self secured for $1000, Cap 1 QS for $500, Avant for $500, Mission Lane for $500, and credit one AMEX for $500. Most of these I've gotten in the last 3-5 months. I am also considering cancelling the Self card and putting that towards Discover secured.
I also have 5 collections. I'm negotiating one and the rest are falling off shortly.

Any thoughts on what my next move should be?

Based on the bolded portion I made if I were you I'd try to garden a bit longer. Assuming you're succesful in negotiating a PFD on the one collection you're working on and the rest will fall off on their own soon enough, waiting will allow you to max your scores and start targeting non-secure products that fit your spending needs. You will also be able to close out cards that no longer serve a purpose such as the Credit One card and so on. I'd tough it out and keep gardening; think of the long term picture and you'll be sitting better for it

Re: Next move?

Anonymous — Fri, 25 Jun 2021 20:51:55 GMT

@simplynoir wrote:
Based on the bolded portion I made if I were you I'd try to garden a bit longer. Assuming you're succesful in negotiating a PFD on the one collection you're working on and the rest will fall off on their own soon enough, waiting will allow you to max your scores and start targeting non-secure products that fit your spending needs. You will also be able to close out cards that no longer serve a purpose such as the Credit One card and so on. I'd tough it out and keep gardening; think of the long term picture and you'll be sitting better for it

Ditto.

Also if you aren't already familiar with EE, make yourself familiar. That is a good next step.

Good luck!

Re: Next move?

Yasselife — Fri, 25 Jun 2021 21:09:58 GMT

Priority should be trying to remove the collection. You have enough cards to build 6-12mo history before applying for prime unsecured cards. You could take 6 months to focus on cleaning your profile; you can do it yourself, there are some letters examples of how to negotiate with Co agencies. If you keep applying you'll be extending the wait time another 2yrs to get your scores up and that's if you have removed your negatives.
if for some reason you don't want to deal with the agencies, see if you can find a credit repair office in your area, somewhere you could go in person and has good reputation. I would not recommend you doing online.

my suggestion since that's what I went through. You'll get in the 700s I promise; keep moving and don't give up.

Re: Next move?

Binner — Sat, 26 Jun 2021 05:39:41 GMT

Appreciate all the helpful info. I will keep you posted.....

Re: Next move?

Binner — Sun, 27 Jun 2021 01:48:11 GMT

Does anyone see a reason I should switch from Self secured to Discover secured? or just wait until the collections are taken care of?

Re: Next move?

SOGGIE — Sun, 27 Jun 2021 02:27:07 GMT

@Binner wrote:
Does anyone see a reason I should switch from Self secured to Discover secured? or just wait until the collections are taken care of?

Yes Too many newly opened accounts can harm your chance. Please consider all of the excellent advice offered to you on this thread. Good luck!

Re: Next move?

Yasselife — Sun, 27 Jun 2021 03:04:14 GMT

Hello;

Having more than 3 cards won't improve your scores, actually hurts it the first year, and reduces your chances to get better cards. In the future try to aim for banks you can build a relationship for years. You said you have an unsecured Capital one QS, that's a good card to keep and looks solid in your profile; secured Discover is also good because it will graduate in a yr and you will get your money back while keeping the same acct/history. I personally put $1000 in a Discover secured and it automatically returned my money and increased the line to $1'800, also has a soft pull CL button on the app. Those two cards will put you in the zone where prime lenders will want to do business with you. So yes; I'd go for the Discover if you can get in while working on the baddies, stay in the garden for at least a year. Also, try not to close your new accounts in less than a year.

In a year you'll have better options, even with 2-3 old CO I was approved by amex, chase, usaa... low limits of course but they can grow especially Amex.

Re: Next move?

Binner — Sun, 27 Jun 2021 22:02:31 GMT

Thanks again...I appreciate the help.