topic Re: Wowser I think I really screwed up... in Credit Cards

Wowser I think I really screwed up...

Anonymous — Tue, 06 Mar 2012 05:55:05 GMT

Im in the process of rebuilding I have two capital one secured cards limit of 500 and 251. 500 limit opened in October of 2010 and the smaller limit in November of 2011.

So I should have read these threads before my major mess up. Apparently I went on a app spree (found out what an app spree was after I did this). A little information can be a bad thing. I applied for the capital one green card and got declined. I did some research saw that dillards was an easy card to get got declined. Then tried Eddie Bauer Approved. Here is where it gets bad.

Capital One Green Card Declined

Dillards Declined

Eddie Bauer Approved WFNB $250

The Buckle WFNB $300

Pottery Barn (I don't even know where the nearest pottery barn is) 7-10 day message

JC Penny GE $150

American Eagle $150

Walmart $500

Chevron 7-10 day message

Macy's didn't give any message not even sure if app went through

Kohl's 7-10 message

So now after this I read up on how bad it is to apply for so many new accounts possibly getting aa or cld. DO you think I will be OK? What should my next step be should I close some of them? I really wish I would have stopped. Being instantly approved was addictive. Trans Union was 620 and Equifax 589 not sure on experian. Also on the GE cards should I try for the CLI after 4 months or just leave that alone and see if they auto cli. Or maybe I don't even have to worry about that because they will get closed. Can't believe I did this. Thanks for the info

Re: Wowser I think I really screwed up...

improvingmycredit — Tue, 06 Mar 2012 05:50:24 GMT

HEY!!! Welcome to the forums!

Well, the damage is done. I don't recommend closing any accounts since you've already taken the hit for them. Definitely straight to the garden with you! It's not the end of the world. You will see a dip in your FICOs for sure but they will rebound with time and no more apping. You may even see some AA from GE but I doubt it. Garden these new accounts and go app free for a good long while so that you can get the credit you really want in the end. Good Luck and Congrats on your new accounts!!!

Re: Wowser I think I really screwed up...

Anonymous — Tue, 06 Mar 2012 05:53:49 GMT

It takes a while for the smoke to clear.

You did what I did, basically.

I figured since it does take some time for the hits to fall off that Id apply for all of the cards I wanted immediately then not have to worry about getting any others later.

The last two hard inquiries I have are set to fall off soon.

I can see how it is a bad thing to do it like we did...and maybe a good thing if you are ok with waiting for 2 years or whatever for the inquiries to all fall off at the same time.

Re: Wowser I think I really screwed up...

CreditScholar — Tue, 06 Mar 2012 05:58:04 GMT

@improvingmycredit wrote:
HEY!!! Welcome to the forums!
Well, the damage is done. I don't recommend closing any accounts since you've already taken the hit for them. Definitely straight to the garden with you! It's not the end of the world. You will see a dip in your FICOs for sure but they will rebound with time and no more apping. You may even see some AA from GE but I doubt it. Garden these new accounts and go app free for a good long while so that you can get the credit you really want in the end. Good Luck and Congrats on your new accounts!!!

+1. The damage is done and it's a fair bit of damage, but not the end of the world. You need to:

1. Stop applying for ANY new forms of credit. Let what you have age.

2. Choose 1-2 cards that you like, and then start using them. Charge on them every month and then PIF.

3. After 12 months the inqs will stop affecting your FICO, and within 24 months they'll fall off. You might try and ask for a CLI on the cards you're currently using.

4. After 24 months you might want to start thinking about applying for new cards. This is pretty much replacing your current crop with a better set.

Be very careful that you don't apply for anything else. If you don't start using a few cards regularly and garden, you'll end up in "low-limit-hell." Once you're in there it's not so easy to get out. From where you are currently I'd say you're 2-3 years away from being "prime", as long as you do the correct things from here forward.

Re: Wowser I think I really screwed up...

haulingthescoreup — Tue, 06 Mar 2012 06:04:15 GMT

@Anonymous wrote:
Im in the process of rebuilding I have two capital one secured cards limit of 500 and 251. 500 limit opened in October of 2010 and the smaller limit in November of 2011.
So I should have read these threads before my major mess up. Apparently I went on a app spree (found out what an app spree was after I did this). A little information can be a bad thing. I applied for the capital one green card and got declined. I did some research saw that dillards was an easy card to get got declined. Then tried Eddie Bauer Approved. Here is where it gets bad.

Capital One Green Card Declined
Dillards Declined
Eddie Bauer Approved WFNB $250
The Buckle WFNB $300
Pottery Barn (I don't even know where the nearest pottery barn is) 7-10 day message
JC Penny GE $150
American Eagle $150
Walmart $500
Chevron 7-10 day message
Macy's didn't give any message not even sure if app went through
Kohl's 7-10 message

So now after this I read up on how bad it is to apply for so many new accounts possibly getting aa or cld. DO you think I will be OK? What should my next step be should I close some of them? I really wish I would have stopped. Being instantly approved was addictive. Trans Union was 620 and Equifax 589 not sure on experian. Also on the GE cards should I try for the CLI after 4 months or just leave that alone and see if they auto cli. Or maybe I don't even have to worry about that because they will get closed. Can't believe I did this. Thanks for the info

The trick is that before you start apping, figure out where you want to be in six months, in a year, in two years. Then think about why you want to be there --what will you be able to do that you can't now with the better scores? Write that down. (mortgage, rewards cards, 0.9% car loan) Then figure out what it will take to get you there, and app strategically.

Unfortunately, getting 5 or more low-limit store cards won't do all that much for your overall credit profile for now. You'll have the usual dings for inqs, lowered AAoA, and presence of new account(s). On the other hand, cheer up: these will all add positive tradelines to your credit history, as long as you don't screw up, and that does help in the long run.

So you might have set yourself back, but if you'll push away from the table now, and do some research on potential targets, and pick a few as goals, and exercise some self-discipline , you'll back back in the race in a year or two.

The most important thing is to keep your credit usage absolutely spotless in the interim. A single 30-day late will be much, much worse for your credit than an excessive number of low CL store cards.

Re: Wowser I think I really screwed up...

Anonymous — Tue, 06 Mar 2012 06:08:22 GMT

Thanks for the info everyone, I feel better. The information on this site is great! Now no more apping

Re: Wowser I think I really screwed up...

LS2982 — Tue, 06 Mar 2012 10:42:13 GMT

@improvingmycredit wrote:
HEY!!! Welcome to the forums!
Well, the damage is done. I don't recommend closing any accounts since you've already taken the hit for them. Definitely straight to the garden with you! It's not the end of the world. You will see a dip in your FICOs for sure but they will rebound with time and no more apping. You may even see some AA from GE but I doubt it. Garden these new accounts and go app free for a good long while so that you can get the credit you really want in the end. Good Luck and Congrats on your new accounts!!!

Re: Wowser I think I really screwed up...

boomhower — Tue, 06 Mar 2012 11:11:51 GMT

Don't sweat it. You needed positive trade lines and now you have them. Granted, I would only get cards you are actually going ot use but what is done is done. I wouldn't apply for anything for at least a year. In the meantine work on cleaning up your reports. Now, use the cards. Show activity of charging and paying, just pay before they report. It will take a couple months for you to figure out exactly when they report so don't get to worked up over it. Your damage is not nearly as bad as you think but certainly don't app for anything else for atleast a year.

Re: Wowser I think I really screwed up...

LS2982 — Tue, 06 Mar 2012 11:14:19 GMT

Best advice for the OP:

GARDEN!!!! 1 YEAR!!

Gives your accounts time to age and same for your INQ's.

Re: Wowser I think I really screwed up...

jamesdwi — Tue, 06 Mar 2012 11:24:53 GMT

@CreditScholar wrote:
@improvingmycredit wrote:
HEY!!! Welcome to the forums!
Well, the damage is done. I don't recommend closing any accounts since you've already taken the hit for them. Definitely straight to the garden with you! It's not the end of the world. You will see a dip in your FICOs for sure but they will rebound with time and no more apping. You may even see some AA from GE but I doubt it. Garden these new accounts and go app free for a good long while so that you can get the credit you really want in the end. Good Luck and Congrats on your new accounts!!!
+1. The damage is done and it's a fair bit of damage, but not the end of the world. You need to:

1. Stop applying for ANY new forms of credit. Let what you have age.
2. Choose 1-2 cards that you like, and then start using them. Charge on them every month and then PIF.
3. After 12 months the inqs will stop affecting your FICO, and within 24 months they'll fall off. You might try and ask for a CLI on the cards you're currently using.
4. After 24 months you might want to start thinking about applying for new cards. This is pretty much replacing your current crop with a better set.

Be very careful that you don't apply for anything else. If you don't start using a few cards regularly and garden, you'll end up in "low-limit-hell." Once you're in there it's not so easy to get out. From where you are currently I'd say you're 2-3 years away from being "prime", as long as you do the correct things from here forward.

Make at least the minimum payment on any card you are carying a balance on but more is better. And never late,

also don't request any CLI's for at least 4 months, 6 months is better.

never use more than 50% of any card, and don't let more than 10% of any card report for 6 months as well.

You want to fly below the radar, if you don't get any additional red flags you will be fine.

After 6 months you should be ok, They probably won't ding you for stuff you did 6 months ago if don't have any lates or problems. Stay away from Barclays, so that new Apple computer is out of the question for a year, they have been known for closing your account if they notice any new cards even after they approved you while having them.

if you use them right some of the cards will give you auto CLI's especially the walmart and other GE backed cards.

Re: Wowser I think I really screwed up...

LS2982 — Tue, 06 Mar 2012 11:58:57 GMT

@jamesdwi wrote:
@CreditScholar wrote:
@improvingmycredit wrote:
HEY!!! Welcome to the forums!
Well, the damage is done. I don't recommend closing any accounts since you've already taken the hit for them. Definitely straight to the garden with you! It's not the end of the world. You will see a dip in your FICOs for sure but they will rebound with time and no more apping. You may even see some AA from GE but I doubt it. Garden these new accounts and go app free for a good long while so that you can get the credit you really want in the end. Good Luck and Congrats on your new accounts!!!
+1. The damage is done and it's a fair bit of damage, but not the end of the world. You need to:

1. Stop applying for ANY new forms of credit. Let what you have age.
2. Choose 1-2 cards that you like, and then start using them. Charge on them every month and then PIF.
3. After 12 months the inqs will stop affecting your FICO, and within 24 months they'll fall off. You might try and ask for a CLI on the cards you're currently using.
4. After 24 months you might want to start thinking about applying for new cards. This is pretty much replacing your current crop with a better set.

Be very careful that you don't apply for anything else. If you don't start using a few cards regularly and garden, you'll end up in "low-limit-hell." Once you're in there it's not so easy to get out. From where you are currently I'd say you're 2-3 years away from being "prime", as long as you do the correct things from here forward.
+1

Make at least the minimum payment on any card you are carying a balance on but more is better. And never late,

also don't request any CLI's for at least 4 months, 6 months is better.
never use more than 50% of any card, and don't let more than 10% of any card report for 6 months as well.

You want to fly below the radar, if you don't get any additional red flags you will be fine.

After 6 months you should be ok, They probably won't ding you for stuff you did 6 months ago if don't have any lates or problems. Stay away from Barclays, so that new Apple computer is out of the question for a year, they have been known for closing your account if they notice any new cards even after they approved you while having them.

if you use them right some of the cards will give you auto CLI's especially the walmart and other GE backed cards.

6 months is a good wait time for CLI's, I personally had better results doing that.

Re: Wowser I think I really screwed up...

Anonymous — Tue, 06 Mar 2012 13:54:22 GMT

And please, please, please... don't carry a balance on any of those store cards.

If you want to throw away money like that, I can PM you my address and you can send it to me instead.

Re: Wowser I think I really screwed up...

the_jan_b — Tue, 06 Mar 2012 16:21:13 GMT

@Anonymous wrote:
And please, please, please... don't carry a balance on any of those store cards.
If you want to throw away money like that, I can PM you my address and you can send it to me instead.

Re: Wowser I think I really screwed up...

Anonymous — Tue, 06 Mar 2012 16:26:00 GMT

"Make at least the minimum payment on any card you are carying a balance on but more is better. And never late,"

Definitely agree with 'more is better'.

Somewhere when I was looking at my credit reports I saw where it said "pays more than minumum payment"....or something to that effect.

I always make sure that if I cant pay entirely in full that I pay well over the minimum payment.

I think I read somewhere that persistent minimum payments 'may' send a red flag that one is in financial distress.

Re: Wowser I think I really screwed up...

FicoTron — Tue, 06 Mar 2012 16:51:40 GMT

Yeah, that's a lt of new accounts with low limits. I took the conservative approach and got a secured card and another revolver nearly 2 years ago, always pif on both...it's taken a lot of patience but it's about to pay off. BTW did you even need these cards?

Re: Wowser I think I really screwed up...

Anonymous — Tue, 06 Mar 2012 17:09:04 GMT

@FicoTron wrote:
Yeah, that's a lt of new accounts with low limits. I took the conservative approach and got a secured card and another revolver nearly 2 years ago, always pif on both...it's taken a lot of patience but it's about to pay off. BTW did you even need these cards?

Well I do shop t Walmart and American eagle frequently, so instead of using my debit card I'll put those charges on the card and then pif each month. The other 3 places I shop at, but not nearly as frequent. Once again I appreciate all the info no more apps for a long time.