topic Re: Subprime to Prime the next step before AF? in Credit Cards

Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 15:48:59 GMT

So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps $500 - CLI to $750

2. Household $300

3. Discover through HSBC $400

4. Mobil Gas card through Citi went from $300 -CLI to $1200

5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card

2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here? Keep in mind everything is PIF- on time. A little advice is needed I suppose. I can't seem to get to the next level. I'm not buying a house or car for the next 5 years btw.

Re: Subprime to Prime the next step before AF?

StartingOver10 — Sun, 08 Jan 2012 15:56:01 GMT

So glad you asked this question! i want to know too!

Re: Subprime to Prime the next step before AF?

LS2982 — Sun, 08 Jan 2012 16:09:06 GMT

@Anonymous wrote:
So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps $500 - CLI to $750
2. Household $300
3. Discover through HSBC $400
4. Mobil Gas card through Citi went from $300 -CLI to $1200
5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card
2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here? Keep in mind everything is PIF- on time. A little advice is needed I suppose. I can't seem to get to the next level. I'm not buying a house or car for the next 5 years btw.

Which of thesecards have AF??

Do you have any older cards from before 5/11??

Youmay want to consider keeping these cards and gaining history with them. If these are the only cards you have you don't have a year of history on any of these. I would keep them.

Re: Subprime to Prime the next step before AF?

haulingthescoreup — Sun, 08 Jan 2012 16:11:56 GMT

@Anonymous wrote:
So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps $500 - CLI to $750
2. Household $300
3. Discover through HSBC $400
4. Mobil Gas card through Citi went from $300 -CLI to $1200
5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card
2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here? Keep in mind everything is PIF- on time. A little advice is needed I suppose. I can't seem to get to the next level. I'm not buying a house or car for the next 5 years btw.

Hi, welcome to the forums!

Smart job PIF'ing. But do you wait until after the statement posts to pay, or do you pay beforehand? If you wait until the statement posts, the balance due is reported to the credit bureaus, and you're scored off of that. If you pay off all but one before each statement posts, and pay off all but $10-20 on that one card, letting the balance report (and THEN pay it off), you can probably scramble up some more points.

Balances on AmEx charge cards like the Gold are ignored for FICO scoring purposes except by the semi-obsolete TU score that you pull here. (The newer TU score excludes them.)

Re: Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 16:13:56 GMT

@Anonymous wrote:
So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps $500 - CLI to $750
2. Household $300
3. Discover through HSBC $400
4. Mobil Gas card through Citi went from $300 -CLI to $1200
5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card
2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here? Keep in mind everything is PIF- on time. A little advice is needed I suppose. I can't seem to get to the next level. I'm not buying a house or car for the next 5 years btw.

So you opened 7 new TL's in 2011.........

Did you have any other TL's prior to opening these new accounts?

If you keep every single CC paid to 0 and that's how they are reporting to the CRA's you will lose a few points for that, FICO likes to see a little util of 1-9% (best case scenario)

In order to "Max" your scores you would need to pay each CC to 0 before the statement date, but let one CC report a small balance, best case is 1-9% of it's CL.

I would imagine your scores dove because of the 7 new TL's (killing your AAoA's) and the subsequent inq's, give it about 6/12 months and your scores should start rebounding and then some.

Re: Subprime to Prime the next step before AF?

LS2982 — Sun, 08 Jan 2012 16:14:51 GMT

@Anonymous wrote:
@Anonymous wrote:
So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps $500 - CLI to $750
2. Household $300
3. Discover through HSBC $400
4. Mobil Gas card through Citi went from $300 -CLI to $1200
5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card
2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here? Keep in mind everything is PIF- on time. A little advice is needed I suppose. I can't seem to get to the next level. I'm not buying a house or car for the next 5 years btw.

So you opened 7 new TL's in 2011.........

Did you have any other TL's prior to opening these new accounts?

If you keep every single CC paid to 0 and that's how they are reporting to the CRA's you will lose a few points for that, FICO likes to see a little util of 1-9% (best case scenario)

In order to "Max" your scores you would need to pay each CC to 0 before the statement date, but let one CC report a small balance, best case is 1-9% of it's CL.

I would imagine your scores dove because of the 7 new TL's (killing your AAoA's) and the subsequent inq's, give it about 6/12 months and your scores should start rebounding and then some.

I would keep the new accounts open.

Re: Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 16:32:50 GMT

I had a truck loan recently but paid that off, thats really it.

Re: Subprime to Prime the next step before AF?

LS2982 — Sun, 08 Jan 2012 16:36:04 GMT

@Anonymous wrote:
I had a truck loan recently but paid that off, thats really it.

It would be wise to at least pay the AF's for this year and get some good history on your current cards. Try not to app for anything this year (As hard as it can be ) and your FICO's will be very nice!

Re: Subprime to Prime the next step before AF?

Revelate — Sun, 08 Jan 2012 16:50:58 GMT

You did the smart thing for building credit: get a bunch of tradelines opened ASAP as you did in May/June, that's one mistake so many people make is to not establish enough right from the get go. You've got a very good start; however, you just need to be patient. Scores build with time, and if you can afford the AF's, pay them: the reason as everyone so far as mentioned, the important AAoA and a few other things which might get picked up on manual review. Whenever you take on a new trade line and/or new debt, your FICO score is going to take a hit for sixish months.

The current FICO model isn't designed for instant gratification (nor should it be) though I know that runs counter to the cultural "progress" we've had here in the States over the last two decades. Don't sweat the temporary ups and downs, FICO scores can change every day, and it's really not a big deal because unless we're actually applying for credit, or a loan of some sort (or a job / insurance / anything else where a credit check is used) it doesn't really matter.

Keep working your plan to build scores for the 5 year time horizon where you may be pulling the trigger on a car or a mortgage. You're doing fine, it's just a process that's impossible to rush.

Edit: FWIW, and I know it can be hard, just ignore the posts about "I got approved for this pure sex card!" or "dump that card with the AF, now!" They're not at the same stage of the process that either you or I are, just keep focusing on what's right for you in this case and don't get distracted by the glitter of the gold-plated people.

Re: Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 16:47:34 GMT

Don't put the cart before the horse - make sure you get new, better, prime cards before you ditch the subprimes. Just apply every so often until you get a prime card, then you can start to close the subprimes in order of the one you like/use the least every time you get a better a card until you have at least a few primes, when you can ditch the rest of them.

Re: Subprime to Prime the next step before AF?

LS2982 — Sun, 08 Jan 2012 16:51:03 GMT

@Anonymous wrote:
Don't put the cart before the horse - make sure you get new, better, prime cards before you ditch the subprimes. Just apply every so often until you get a prime card, then you can start to close the subprimes in order of the one you like/use the least every time you get a better a card until you have at least a few primes, when you can ditch the rest of them.

Unless it is an FP rebuilder, there is no valid reason to keep them past 12 months

Re: Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 17:20:41 GMT

I suppose I can wait but I really want to get another prime (ish) card. I like the Amex Gold but of course its a charge card. I want to try and app for Blue but don't really want to take a risk with the only prime card I have. I also am leary of getting an inquirey without actually getting the card. I am hoping for a card with a limit around $3000 that will grow. My plan was to try for CLI on the Household and BS Discover card and see what happens after 6 months. If they do nothing I'll threaten to cancel. I plan on keeping the oldest which is Capital One. I also like the Kohls card and Mobil card so they'll stick around.

Its funny before I couldn't see any redeeming value in a credit card because I pay as I go and put away money. Now everything I buy goes through a credit card. I keep thinking about all the rewards I missed out on.

Re: Subprime to Prime the next step before AF?

CreditMuppet — Sun, 08 Jan 2012 17:31:25 GMT

@Anonymous wrote:
I suppose I can wait but I really want to get another prime (ish) card. I like the Amex Gold but of course its a charge card. I want to try and app for Blue but don't really want to take a risk with the only prime card I have. I also am leary of getting an inquirey without actually getting the card. I am hoping for a card with a limit around $3000 that will grow. My plan was to try for CLI on the Household and BS Discover card and see what happens after 6 months. If they do nothing I'll threaten to cancel. I plan on keeping the oldest which is Capital One. I also like the Kohls card and Mobil card so they'll stick around.

Its funny before I couldn't see any redeeming value in a credit card because I pay as I go and put away money. Now everything I buy goes through a credit card. I keep thinking about all the rewards I missed out on.

Keep doing what your doing, only time will yeild the results your looking for. I wouldn't be looking at the Amex Blue cards yet, unfortunately with your current scores, it most likely would be a denial IMHO.

Re: Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 17:44:59 GMT

@Anonymous wrote:

Its funny before I couldn't see any redeeming value in a credit card because I pay as I go and put away money. Now everything I buy goes through a credit card. I keep thinking about all the rewards I missed out on.

Wiser words could not be said in this regard, I was the same way up until about 9 months ago, now I'll use a certain card for certain purchases because of the rewards that card offers for that type of purchase, like my AmEx BCP, 6% groceries and 3% gas (gas now with my Discover because its 5% right now) and etc........

I've got some good cashback I've earned, between my BoA, AmEx's and Discover alone I have over 300 bucks (and that's just from the past 4 months) just sitting there accumulating every month as I use and pay the card. My plan is to not touch any of my cashback until Dec of this year and that will be my Christmas shopping money

Gotta love taking money from the CCC's

Re: Subprime to Prime the next step before AF?

LS2982 — Sun, 08 Jan 2012 17:51:05 GMT

@Anonymous wrote:
I suppose I can wait but I really want to get another prime (ish) card. I like the Amex Gold but of course its a charge card. I want to try and app for Blue but don't really want to take a risk with the only prime card I have. I also am leary of getting an inquirey without actually getting the card. I am hoping for a card with a limit around $3000 that will grow. My plan was to try for CLI on the Household and BS Discover card and see what happens after 6 months. If they do nothing I'll threaten to cancel. I plan on keeping the oldest which is Capital One. I also like the Kohls card and Mobil card so they'll stick around.

Its funny before I couldn't see any redeeming value in a credit card because I pay as I go and put away money. Now everything I buy goes through a credit card. I keep thinking about all the rewards I missed out on.

Your probably not going to be looked at for a prime card $3k range until you aquire some good history with the current cards. Patience, it is hard to have but it pays bigtime down the road!

Re: Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 18:03:46 GMT

Hmm so how long should I wait? What about hitting up HSBC and Household for some CLI. I've had those cards for about 6 months or more. $300 credit limit is just silly. I actually don't even carry that card anymore because once I fill up my truck with it a couple times its all used up until I pay it down.

Re: Subprime to Prime the next step before AF?

Anonymous — Sun, 08 Jan 2012 18:26:26 GMT

I had an HSBC card (from Guitar Center) with a 2000 limit. I used it to buy some musical gear that let me take 12 months to pay with no interest. After a few months I got tired of carrying that balance so I paid in faull before even 6 months went by. Then just after 6 months, I hit the "luv" button to ask for an increase (to help my utiliziation really) - immediately declined, no reason given.

I immediately closed the account and figured they must not want my business. They were happy to close it, didn't even do like Cap 1 and try to talk me into keeping it. They truly do NOT want your business from what I've seen.

Re: Subprime to Prime the next step before AF?

LS2982 — Sun, 08 Jan 2012 20:33:54 GMT

@Anonymous wrote:
Hmm so how long should I wait? What about hitting up HSBC and Household for some CLI. I've had those cards for about 6 months or more. $300 credit limit is just silly. I actually don't even carry that card anymore because once I fill up my truck with it a couple times its all used up until I pay it down.

Get at least a year with all new TL's and in the meantime make sure your overall util % between 1-9% and try for some CLI's. Applying for new credit is only going to hurt your already young AAoA.

Re: Subprime to Prime the next step before AF?

CS800 — Sun, 08 Jan 2012 21:06:06 GMT

@Anonymous wrote:
So I started out in May/June of 2011 with...

1. CapitalOne Credit Steps $500 - CLI to $750
2. Household $300
3. Discover through HSBC $400
4. Mobil Gas card through Citi went from $300 -CLI to $1200
5. Kohls card at $300

I kept everything paid off and got a 680-700

1. American Express Gold Premier Rewards Charge card
2. Paypal GEMB not the card but the line of credit because I was denied for the mastercard at $800 (never used)

Then it seemed like my credit score dove because I used the Amex to the 650 range because of apps and usage even though it was paid off.

I want to start ditching subprime before AF comes up so how do I get there from here? Keep in mind everything is PIF- on time. A little advice is needed I suppose. I can't seem to get to the next level. I'm not buying a house or car for the next 5 years btw.

While rebuilding, I think it's wise to keep the current cards for at least 2 years even if they have an AF. I kept mine for 4 years (still have two of them) but it helped with the positive history.

Re: Subprime to Prime the next step before AF?

SevenNEW — Sun, 08 Jan 2012 22:53:05 GMT

@LS2982 wrote:
@Anonymous wrote:
Hmm so how long should I wait? What about hitting up HSBC and Household for some CLI. I've had those cards for about 6 months or more. $300 credit limit is just silly. I actually don't even carry that card anymore because once I fill up my truck with it a couple times its all used up until I pay it down.

Get at least a year with all new TL's and in the meantime make sure your overall util % between 1-9% and try for some CLI's. Applying for new credit is only going to hurt your already young AAoA.

+1. Getting more inq's right now and shortening your AAoA is not a good idea. Patience, and you will be rewarded (literally). Remember that any mistake at this point will get you further away from primeland. One does not stand still in the credit game -- it's either forward or backward...