topic Re: Greetings, newbie, questions. in Credit Cards

Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 17:17:04 GMT

I stumbled upon this website through a GOOG search although I watch the Suze Orman show whenever I get a chance so I'm well aware of it. In the past year I've been attempting to rebuild my credit. My beacons were never horrible (in the mid-low 500s) but they were definitely sub-par. In fact, they still are. My problem has been a mixture of lack of credit-lines and charge-offs amongst other negative strikes for negligence. When I was 19 I had a first time credit card with a $600 line of credit. I ended up defaulting on that and a charge-off still exists with a high of around $1400 after interest, late-fees, etc. I also made a poor decision regarding choosing a trustworthy roommate. I left the apartment and failed to sign my name off the lease. He was evicted and as a result, we both have that strike on our reports. I still haven't been able to track him down but you live and learn. I also had little strikes here and there, most are paid off but there are still around 3 that I'm currently in the process of paying. 4 months ago I created an Orchard secured credit card with a limit of $200. For the most part, I've been charging around 30-35% and paying in full. I did, however, learn the hard way that my pay date and statement end dates due not end on the same day. Basically I've been using the card for my gas and that's it. I would pay the balance off in full and then charge a tank of gas 4-5 days later not realizing that the tank of gas was actually on my previous month resulting in a balance. I caught that pretty quick though. The secured credit line instantly boosted my credit on all three companies around 10 points and has actually increased it 20 or more points on TU and EQ. Now I'm at the point where my TU and EQ are both above 620. The EX is still struggling (575sh) and I'm guessing that's due to the charged off credit card transferring from TU. I would like to receive more credit in order to boost my scores but am unsure on which approach to take. Should I stick with Orchard and request an unsecured card? If so, how long should I wait? Or, should I just avoid them all around and go through another provider. Any help is appreciated and I'm definitely open to feedback regarding the other issues and advice. Thank you all in advance, Matt

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 18:34:51 GMT

hello myficomatt and welcome!

You stumbled into the best place possible, and any admirer of Suze is a friend of mine.

Please read these 3 threads stickied over in General Credit Issues and refer to them well and often, most especially the 101.

Credit Scoring 101 Start Here: http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Frequently Requested Threads: http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=6834

Guide to Common Abbreviations: http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=52625

Instead of getting more credit to boost your scores, you need to do the reverse right now. This means doing your repair work (disputes, DVs,GWs, PFDs), asking current accounts to increase your CL without hard INQs, not getting hard INQs by app'ing for anything new just yet and, timing payments to optimize UTI (and reducing your UTI as well). Call companies that you had old accounts with and see if they can re-open them without a new app, then consider the potential effects if so.

If you are still within SOL for small claims... start a suit against your former roommate while you can.

Many creditors will change your payment date to something that suits you better if you just call and ask.

What accounts do you currently have aside from the Orchard cc?

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 18:37:45 GMT

Thanks for the advice. I have a car loan for around 10k that I've been paying off and I have my Orchard account. I have a bank account but it doesn't show up on my report. That's really it which is what is severely hindering me.

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 18:42:53 GMT

myficomatt wrote:
Thanks for the advice. I have a car loan for around 10k that I've been paying off and I have my Orchard account. I have a bank account but it doesn't show up on my report. That's really it which is what is severely hindering me.

Ok car loan is good!

If we can figure out a card you will get approved on now (and I have a suggestion that I will get to) that has no AF, I think that under these circumstances it would be good to apply for 1 card now to still build age as you repair.

You do not have enough revolving TLs to be considered for many cards though. Typically you need at least 2 depending on the company. How many hard INQs do you have each with TU, EX, and EQ?

Who is sending you pre-approval offers in the mail currently, if anyone?

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 19:04:24 GMT

I would need to read through the junk mail to see if I can find the names of the pre-approved credit cards I'm getting in the mail. I usually do a good job at shredding them though. I want to say first premier bank but I'm not 100% on that. As far as inquiries, my report says 5 with EX, 1 with TU, and 4 with EQ. I'm not sure if that's considered hard inquires though. One is Comcast, another is my cell-provider, and the last one is for my broker accounts.

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 19:12:58 GMT

myficomatt wrote:
I would need to read through the junk mail to see if I can find the names of the pre-approved credit cards I'm getting in the mail. I usually do a good job at shredding them though. I want to say first premier bank but I'm not 100% on that. As far as inquiries, my report says 5 with EX, 1 with TU, and 4 with EQ. I'm not sure if that's considered hard inquires though. One is Comcast, another is my cell-provider, and the last one is for my broker accounts.

How long ago did you pull your FICOs? INQs are probably hard... where did you get your reports from? You can continue to shred First Premier, you can get a better card with your scores.

I am thinking you should app with Cap1. Check out their pre-qual web thing (not the card builder link) on their site and see what it tells you. This is only a soft INQ and is fine. Do not continue the app once it tells you what you qualify for. Rate yourself as 'needs some improvement'.

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 19:17:36 GMT

I haven't pulled my FICO as of yet. I use truecredit every couple of months to pull my credit-report. Do you know which agency Cap1 pulls from to base their decision? Also, I was reading on the GW FAQ. Do you think once I pay this off, the collection agency would be willing to completely retract it from my statement?

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 19:27:47 GMT

You probably got 1 FICO in the mix... you mentioned Beacon.

I would start by pulling all 3 reports and FICOs here at myfico. PM me if you choose to and want a discount code.

Cap1 pulls all 3 unfortunately but if the situation calls for it... it is so worth it.

With the defaulted cc.... if you have not yet, call the OC and ask them if they still own the account or if they have sold it to that CA. Briefly, if they own it, you negotiate and PFD to them. If not, you get a DV out to the CA before you deal with a PFD to them. PFD is more powerful than GW when it is an option.

So for right now, find out if OC still owns the debt... and consider getting your reports and real FICOs.

GW letter for anything already paid and derogatory.

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 19:28:07 GMT

I'm on Cap1's website and I'm not sure if I'm in the right place. I'm at the "Submit Application" screen and haven't found any notice of my approval. Do I need to continue through this point?

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 19:32:15 GMT

Nope... back out of that!

Just see what this shows you and don't proceed after it displays the cards. Pay attention to what it says up top as to if you are pre-qualed or if they cannot find offers but are merely suggesting the cards.

https://cardfinder.capitalone.com/CapOne/findMyOffer.do

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 19:37:12 GMT

I found it right as you were replying.

Thanks!

Congratulations!

Your pre-qualified card offers are below. Apply now for the one that matches you best, and if approved, you’ll enjoy the benefits listed with your card.

Capital One® No Hassle
Cash™ Rewards

$29 Annual Fee

Capital One® Platinum Max™

$19 Annual Fee

Capital One®Classic Platinum card

$19 Annual Fee

Capital One®Classic Platinum card

$0 Annual Fee

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 19:40:43 GMT

Also, I forgot to mention in the previous post that the debt is definitely with a collection agency. I called a while back and have actually spoken with the agency as well.

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 19:41:56 GMT

Excellent.

The only card you want right now is that $0 AF card. If approved... and I would say you've got a 90% chance though I would like to know your FICOs first... you will probably start out with a $300 credit line BUT you will get 'credit steps' and should be at 2k before the 1st anniversary of the card if you keep a PERFECT history with them.

The card itself probably won't ever go above a 2.5k limit but you need this for age and the doors it will open as another positive revolving TL for you when you app with other ccc's in the future.

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 19:50:04 GMT

myficomatt wrote:
Also, I forgot to mention in the previous post that the debt is definitely with a collection agency. I called a while back and have actually spoken with the agency as well.

Do not speak with CAs.

Though the debt is 'with' them, this does not necessarily mean they have purchased it. I would double check with OC no matter what OC and CA are reporting.

Message Edited by SmartCookie on 01-03-2008 02:50 PM

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 20:08:32 GMT

Here are the results. Quite varied from Truecredit. Experian was actually the lowest on their site. TransUnion 630 1/3/2008 Equifax 617 1/3/2008 Experian 659 1/3/2008

Message Edited by myficomatt on 01-03-2008 12:08 PM

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 20:41:20 GMT

Absolutely awesome!

If you don't get approved with Cap1 I will eat a worm.

My gameplan for you would be to:

Go ahead and apply for that $0 AF Cap1 card now and let us know the results (which should be good).

Do not even consider applying for anything else until you have made some headway with any disputes, GWs, DVs, and PFDs.

Never be late, learn how to play the UTI game and also pay down what you can.

Once Cap1 is reporting to all 3 bureaus you will now have 2 revolving TLs and can begin to apply for other new cards as needed. Again, the more cleanup you do first... the better cards and terms you will be able to get. It's not about getting all the cards you can... it's about getting a few really good ones.

I would suggest that your next card after Cap1 be a good store card... meaning no AF, decent limit, discounts or other perks, and at a place you actually shop at. After you have that 3rd card, consider dropping the Orchard card you have now if it has any fees...or seeing if they will unsecure it and the new terms will not have any fee, annual or otherwise. You then will still have 2 rev TLs and you'll be ready to app for another and more prime card. Hooters will probably give you a $0 AF and a good CL... $5k or more.... but you need something like a Citibank or BoA.... maybe an AMEX farther down the line.

Message Edited by SmartCookie on 01-03-2008 03:41 PM

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 20:28:52 GMT

Approved for $300!

Re: Greetings, newbie, questions.

SmartCookie — Thu, 03 Jan 2008 20:34:42 GMT

Congrats!!!!!!!!!!!!!!!

I was not looking forward to eating that worm.....

You have to celebrate by reading the Credit 101 thread again though.

I hope this is a happy start for you since there is legwork ahead... good to start with something encouraging.

Good work!

Re: Greetings, newbie, questions.

myficomatt — Thu, 03 Jan 2008 20:43:29 GMT

I appreciate all of your contributions. I want to first wipe the little marks off because that's easier. After that, the large 2 chunks will be left. Do you think I should focus on the eviction or the charged-off card first?

Re: Greetings, newbie, questions.

octavia — Thu, 03 Jan 2008 20:48:10 GMT

Congratulation on the Cap1 CC approval!!!

Octavia.