topic Re: where to start?? in Credit Cards

where to start??

sunnie_321 — Sun, 22 Jul 2012 20:33:08 GMT

I am looking to add some cards to my wallet to increase my credit scores. My current scores are 615 eq 626 Tu and 641 exp. These are all lender pulled scores. Other information that might be helpful:

Current cards:

Macys - $200 limit

Best Buy Master card $750 limit

I have one auto loan that has $325 left on it and I had a bankruptcy in 2002 that will fall off my report in September. I also just closed on a house within the last few weeks. Which credit cards should I apply for?

Re: where to start??

OptimalFICO — Sun, 22 Jul 2012 20:47:36 GMT

IMHO

Wait to apply for more credit until the BK ages off your CR (this will also allow time for your mortgage payments to begin factoring into your FICO scores). Once you have verified the BK has fallen off, check your FICO scores again. If you think you'll qualify, apply for one credit card from a "national" bank or major credit card lender (i.e., AmEx, Capital One, Discover, Wells Fargo, BofA -- I prefer AmEx). The FICO algorithm gives more weight to these cards than those from say credit unions because they are typically harder to qualify for. If you feel you need more than one, wait for one year before opening the next.

As an aside, note that your auto (installment) loan has been helping your scores recover. Once you pay it off, it will only add benefit to your scores for the next 1-2 years. Not a reason to get another loan immediatly, but you might consider refinancing it or taking out a small personal loan (in about 12 months after you open the revolving credit card account).

Re: where to start??

Anonymous — Sun, 22 Jul 2012 21:10:40 GMT

i would def wait until after the bk falls off the reports. whats your aaoa?

Re: where to start??

sunnie_321 — Sun, 22 Jul 2012 21:16:51 GMT

Im not sure exactly what aaoa means but if it means average age of account, its 5 years..

Re: where to start??

jsucool76 — Sun, 22 Jul 2012 21:20:43 GMT

it is average age of accounts, so you're right

Re: where to start??

LS2982 — Sun, 22 Jul 2012 21:57:43 GMT

Like others have said, wait for BK to come off. Then go for AMEX or another prime card.

Re: where to start??

sunnie_321 — Sun, 22 Jul 2012 22:02:13 GMT

will Amex approve with scores so low?

Re: where to start??

LS2982 — Sun, 22 Jul 2012 22:04:47 GMT

They will once BK falls off and your scores increase nicely

Re: where to start??

sunnie_321 — Sun, 22 Jul 2012 22:09:11 GMT

ah gotcha.. i was not aware that my score would increase when the bankruptcy falls off, i thought it no longer effected my score since it was so long ago! good things to look forward to then!

Re: where to start??

LS2982 — Sun, 22 Jul 2012 22:39:17 GMT

It should increase, no guaranteed amount but hopefully it gets your EX FICO to 660 or above.

Re: where to start??

Open123 — Mon, 23 Jul 2012 03:01:30 GMT

Definitely wait for the BK to fall off your reports.

Double check and ensure the bk entry has been removed before applying. Starting with 3 or 4 cards would be ideal. You may or may not be approved for all of them, but I'd bunch the apps together to ensure the inquiries will fall off together while you age your new accounts.

I echo the recommendation to app for Amex (the most important one for various reasons when building/rebuilding), Chase, Discover, Citi, BofA etc...use prime national lenders.