topic Re: Next Step in the Rebuilding Process? in Credit Cards

Next Step in the Rebuilding Process?

Justforgrins222 — Thu, 17 Aug 2023 11:46:08 GMT

So I have been trying to open some new credit lines and I'm just not sure at this point if it's worth the extra inquiry to get an extra maybe 10% of total credit limit increase to open that credit line to rebuild my credit?

I have about 7 cards now, some of them aren't great. But I'm less than 2yrs post Bk7, and I'm trying to push some of those baddies down the pile.

But I was interested in the Merrick Double Your Limit card (1k-2k after 6mos). No annual fee. High limit.

BUT my scores are getting much better than they were, around 680, and I also think if I wait a few months, I could get a better card.

When is a new account worth the HP?

Re: Next Step in the Rebuilding Process?

Horseshoez — Thu, 17 Aug 2023 11:45:46 GMT

@Justforgrins222, you have more than enough credit cards at this point, a new card giving you a higher total limit won't really help your scores unless you're running high utilization, and even then, paying down your current cards will benefit your scores more than a new card. As for how much the new HP might hurt you, if you have only a few over the last year, then not much, if you have a lot, then that new HP might sting a bit.

Re: Next Step in the Rebuilding Process?

Justforgrins222 — Thu, 17 Aug 2023 11:48:35 GMT

That makes sense, and I just had a 7k line open so my total utilization should be around 18-20%. I'm gonna save the HP. I've kind of went crazy after bk, and now I know I'd never get a 5/24 card.

Re: Next Step in the Rebuilding Process?

Horseshoez — Thu, 17 Aug 2023 11:58:13 GMT

@Justforgrins222 wrote:
That makes sense, and I just had a 7k line open so my total utilization should be around 18-20%. I'm gonna save the HP. I've kind of went crazy after bk, and now I know I'd never get a 5/24 card.

Understood, I did the same thing and racked up something like 18 HPs in the first 9 months following my discharge; then I found this site...

In the end I started with the following:

2020-07: TDBank secured card with a $5,000 limit
2020-12: CapOne Quicksilver with a $3,000 limit
2021-04: PenFed Platinum Rewards with a $6,000 limit
2021-04: PenFed SSL for $3,000

From there I let things ride for 18-months before applying for anything else, the HPs started falling off, my secured card graduated after only 6-months (and granted me a $3,500 CLI after another year), and now I have scores and a total limit way higher than I need.

One adage you'll see on this site, over and over and over, is, "Credit is a marathon, not a sprint", in your case, time will take care of your scores, just hang in there and "garden".

Re: Next Step in the Rebuilding Process?

SouthJamaica — Thu, 17 Aug 2023 14:20:58 GMT

@Justforgrins222 wrote:
So I have been trying to open some new credit lines and I'm just not sure at this point if it's worth the extra inquiry to get an extra maybe 10% of total credit limit increase to open that credit line to rebuild my credit?

I have about 7 cards now, some of them aren't great. But I'm less than 2yrs post Bk7, and I'm trying to push some of those baddies down the pile.

But I was interested in the Merrick Double Your Limit card (1k-2k after 6mos). No annual fee. High limit.

BUT my scores are getting much better than they were, around 680, and I also think if I wait a few months, I could get a better card.

When is a new account worth the HP?

IMHO you'd be better off waiting until your FICO 8 scores get to 700+.

I think you can do better than Merrick when the time comes.

As to when a new account is worth the HP, that's a totally individual reckoning.

Re: Next Step in the Rebuilding Process?

FireMedic1 — Thu, 17 Aug 2023 19:16:57 GMT

See above. Keep applying in the 600's. You'll stay in the 600's. Wait till your in the 700 club. Things change a lot then.

Re: Next Step in the Rebuilding Process?

Webspry — Sun, 20 Aug 2023 16:48:20 GMT

Personally I'd would focus on your current cards and getting CLIs on the better ones. Don't waste Hard Pulls on cards just to have another card. In short order your scores will jump up another level then think about a new card.