topic Re: New here need some insight in General Credit Topics

New here need some insight

Shmike — Sat, 25 Nov 2023 06:00:40 GMT

My credit scores are pretty good, but i can't seem to get decent CLs.

I have 8 cards currently QS $600, Savor one $1000, Cap one Walmart $300, Mercury Visa $1750, Credit One (blue) $650, (black) $1200, Avant $600, Merrick $1300.

I recently closed Milestone $700, Indigo $300, First Premiers $700 & $600. Id ultimately like to close my other annual fee cards, for obvious reason. Should I? My CUR is 0 I can't seem to get approved for substantial credit limit increases. Capital One. almost all but refuses to, save for the occasional $100 increase.

My oldest card is the QS formerly the Capital One Platinum it's 2 years and 8 months old my newest card is savor one, Aug. Average age of credit one year three months. I used to carry how I balances now everything is paid off in full. I'm able to spend a decent amount about $1,000 a week for work on my personal cards and then I'm reimbursed and pay the cards off in full before they report any balance. I heard this is wrong is that the case? Should I let them report a balance?

My scores are Ex 777 Tu 772 Eq 781 these are all up from the mid 500s in about a year. I'm still not sure how that happened like I said I used to carry pretty heavy balances then I paid them all off within about 2 months my scores were in the mid- 700s now I'm kicking 800 in the butt. I'd appreciate any insight you guys can give me I think my total credit limit of under $8,000 is not proportionate with my credit scores thanks very much

Re: New here need some insight

SouthJamaica — Sat, 25 Nov 2023 16:02:54 GMT

@Shmike wrote:
My credit scores are pretty good, but i can't seem to get decent CLs.
I have 8 cards currently QS $600, Savor one $1000, Cap one Walmart $300, Mercury Visa $1750, Credit One (blue) $650, (black) $1200, Avant $600, Merrick $1300.
I recently closed Milestone $700, Indigo $300, First Premiers $700 & $600. Id ultimately like to close my other annual fee cards, for obvious reason. Should I? My CUR is 0 I can't seem to get approved for substantial credit limit increases. Capital One. almost all but refuses to, save for the occasional $100 increase.
My oldest card is the QS formerly the Capital One Platinum it's 2 years and 8 months old my newest card is savor one, Aug. Average age of credit one year three months. I used to carry how I balances now everything is paid off in full. I'm able to spend a decent amount about $1,000 a week for work on my personal cards and then I'm reimbursed and pay the cards off in full before they report any balance. I heard this is wrong is that the case? Should I let them report a balance?
My scores are Ex 777 Tu 772 Eq 781 these are all up from the mid 500s in about a year. I'm still not sure how that happened like I said I used to carry pretty heavy balances then I paid them all off within about 2 months my scores were in the mid- 700s now I'm kicking 800 in the butt. I'd appreciate any insight you guys can give me I think my total credit limit of under $8,000 is not proportionate with my credit scores thanks very much

1. Welcome to the forum.

2. FICO scoring has an "all zero penalty". If all of your revolving accounts report zero balances, you get penalized, typically 15-20 points, so it is a better practice to let one of the bank cards report a small balance, then you can pay it off the next day after the statement has cut.

3. Yes it's ok for you to close annual fee sub prime cards.

4. You should refrain from making too many new credit applications. Just do it once in a while, and only for a quality card -- no more sub prime cards for you.

5. Capital One probably has your cards bucketed, and getting CLI's will be very difficult, so put that out of your mind.

6. You've got enough Capital One cards for now, so start looking elsewhere for your next addition.

Re: New here need some insight

Shmike — Sat, 25 Nov 2023 18:32:42 GMT

Thanks very much for the information, I really appreciate it. I'm relatively new to this I just stumbled across this forum because I wanted to I have a better understanding of intricacies of credit I was on Reddit forums someone made a comment that people there were dumb and they should go over to my FICO for obvious reason I also like the comprehensive data in my fico's app and the fact that it's from the FICO company itself so adventure to Guess that they're accurate scores is that the case? As I said I'm relatively new at this but I would like to grow my credit limit but not at the detriment to my scores is that going to be a contributing factor? I think I left out pertinent information on my first question I do have quite a few inquiries 7 EQ 8 TU & 16 EX I was just recently offered VIA mail the bread card on the AmEx Network is this a viable card should I take the offer? I've read some places that it's an SP not an HP. Can I take another HP? Perhaps just this last one and then fall back for a little while perhaps a long while and let my garden grow so to speak I'm sorry I'm just trying to answer questions that I wasn't able to find myself in the forums I don't mean to take you hostage but again any insight you can offer I'd appreciate greatly. Thanks very much once again! I apologize for my punctuation or lack thereof as I dictate my messages

Re: New here need some insight

Anonymalous — Sat, 25 Nov 2023 23:14:59 GMT

Your credit limits are only partially based on your scores. They're also based on your income, and your other credit limits. Most lenders look at the limits on your other cards, and base what they offer on those. You have low limits right now, so your goal should be to gradually get higher limits.

Also, those are a lot of subprime issuers. It looks like you may be rebuilding. In that case, they're probably looking closely at your payment history. Do you have any negatives, like lates, collections, or even a BK on your file? (That 200+ point jump could be from something dropping off.) Scores are nice, but lenders care more about your overall profile than a single number. Also, subprime lenders tend to not offer real CLIs. They're small, and often cost $.

Not to mention that's.... (counts) 11 cards in 32 months? That's a lot. One thing you'll notice as you apply for a lot of cards in a relatively short time frame is the limits they offer (if you're even approved) will get lower and lower.

My first card was also a Cap1 Platinum, and I have an even shorter credit history than you (by a couple months), but within 2 years I had a total credit limit over $55K. And I started with just about the lowest possible CL ($300), and a very negative score (I was unscoreable). But since I started with such a low limit, I prioritized getting high limits. So I didn't apply for a new card every couple of months. I waited 6 months for my second card, and then spread the rest about 6 months apart. I also targeted lenders known for giving out high credit limits (Navy, FNBO, etc), and my limits gradually grew. My cards now range from just over $3K to just under $25K, and my last card had a SL of about $9K.

If I were you, I'd wait at least 6 months, if not a year, before applying for any new cards. But in the meantime, I'd find a prime lender known for high limits, and start to build a relationship with them. You have more than 2 years of credit history, which seems to be an important threshold. But your velocity is too high.

Re: New here need some insight

Zoostation1 — Sun, 26 Nov 2023 00:08:36 GMT

@ShmikeI'm going to agree with what others have said and add that in regards to Capital One, the reason they are likely in a low "bucket" very likely is tied to what your credit profile was at the time you opened them. Cap One is one of the more welcoming lenders to those who are rebuilding (and to those pretty new to their credit journey), however if you get multiple cards with them while your scores are still depressed those cards may not grow much. The linked post from a number of years ago has a nice explanation regarding asset backed securities in regards to Capital One.

https://ficoforums.myfico.com/t5/General-Credit-Topics/Credit-Card-Asset-Backed-Securities-ABS-and-why-some-subprime/m-p/5083619#M251646

There are exceptions but it gives a good general idea of what happens with many Cap One cards. That being said, for those who are past the beginning stages of the rebuild or are relatively new to credit (but not brand new), there is potential with them to get decent cards with solid limits. Since you already have multiple Cap One cards fully agree with the others about not applying for anything else with them (or anything in the near term given your number of inquiries), just wanted to point out some info related to them.

Re: New here need some insight

Shmike — Sun, 26 Nov 2023 00:21:14 GMT

Hey thanks so much for the reply and the information! It's just really a new build I did write a letter to First Premier Bank because I had a 30 day late missed payment I was able to get it changed to closed by grantor with no missed payment it did raise my score substantially but I was well on my way even before this was removed. I know I have quite a few cards in a short period of time that was kind of my plan only because I knew I needed the diversity to raise my score substantially in such a short period of time and it worked out the only detrimental effect that had was the amount of my inquiries I'm really kind of itching to accept the offer to this bread card on the AmEx Network only because I want to start to build a relationship with them I know it's not a true Amex card however it is on their Network so I'm considering it my last hard pull for at least a year what would you do? I have seven hard pulls for TransUnion 8 hard pulls for Equifax and 16 hard pulls for Experian two should be coming off Experian by December. Any more insight you could offer I'd greatly appreciate thanks very much!

Re: New here need some insight

Shmike — Sun, 26 Nov 2023 00:25:47 GMT

Hey thanks so much for the information I really appreciate you taking the time! I will absolutely scrutinize that link when I get a chance. As I mentioned earlier in the thread I just recently got an offer from the bread card on the AmEx Network I really want to begin to build a relationship with Amex I know it's not an actual AmEx card however it is on their Network so perhaps this last one? It's basically a give me and I've heard it's a soft pull maybe a hard pull on the credit limit increase? At least that's what someone mentioned in one of the forums specifically for that card. Do you think I can get away with one more card to add to my garden? I really would like to reflect some Amex! They mailed me the offer there's no annual fee and I've just closed two annual fee cards from First Premier as I mentioned above and I have two more annual fee cards from credit one that I'd like to get rid of but I haven't "exceptional" credit diversity as per my FICO and I want to keep that so do you think adding that one last card would be okay and then fall back for about a year? Again thanks so much for taking the time out to answer my questions I'd appreciate any further Insight thanks very much!

Re: New here need some insight

Anonymalous — Sun, 26 Nov 2023 01:39:45 GMT

Credit diversity is about different types of credit, like installment vs. revolving (cf the SSL technique). You don't need more than 2 cards (3 for AZEO) to build a strong profile.

Bread is the issuer of that card. You won't be building a relationship with Amex. And even if you do get it, your SL will probably be very low.

Set your cards on autopay, change the due dates to align, set up alerts, develop a routine, whatever it takes. Lates are terrible.

Re: New here need some insight

Shmike — Sun, 26 Nov 2023 02:13:33 GMT

Yeah it was a couple years ago it was a total miscommunication during covid anyway I got it taken off but I absolutely agree I really scrutinize all my accounts and I also have them on autopay currently so it won't be an issue again so you think the bread card would be a no-go? I'm sure when applying for AMEX they will see it's an Amex networked card so that might work in my favor right? Or do you think I should just fall back and wait to apply for anything new at all?

Re: New here need some insight

Anonymalous — Sun, 26 Nov 2023 03:00:21 GMT

You do you, but I think you should wait.

Re: New here need some insight

markbeiser — Sun, 26 Nov 2023 04:40:02 GMT

As others have said, go ahead and cancel any cards with an annual fee, and chill out on new cards for a year or so.
The only exception I would make would be to check the pre-qualification for an AmEx Blue Cash Everyday card, and go ahead with the application if you are pre-qualified.
IMO, there is a pretty strong chance of approval, most likely with only a $1k to $2k starting limit, but it can grow very quickly.

I had something like 12 new accounts, 9 TU inquiries, 690ish FICO scores, and still had a few late payments on my report when I was approved in October 2022 for one, but with only a $1k limit.
It grew to $27k in just over 9 months.

Re: New here need some insight

Shmike — Sun, 26 Nov 2023 04:48:37 GMT

WOW! Our scores are so similar! Eq 784 Ex 777 Tu 772 I really don't think they'll give me that, but it's definitely worth a try, for the pre-qualification. Thanks man, I appreciate you taking the time out.

Re: New here need some insight

SouthJamaica — Sun, 26 Nov 2023 05:04:25 GMT

@Shmike wrote:
Thanks very much for the information, I really appreciate it. I'm relatively new to this I just stumbled across this forum because I wanted to I have a better understanding of intricacies of credit I was on Reddit forums someone made a comment that people there were dumb and they should go over to my FICO for obvious reason I also like the comprehensive data in my fico's app and the fact that it's from the FICO company itself so adventure to Guess that they're accurate scores is that the case?

Yes of course the scores are accurate.

As I said I'm relatively new at this but I would like to grow my credit limit but not at the detriment to my scores is that going to be a contributing factor?

Soft pull credit limit increase requests will not hurt your scores. Hard pull credit limit increase requests will hurt your score.

I think I left out pertinent information on my first question I do have quite a few inquiries 7 EQ 8 TU & 16 EX

I assumed you had a ton of inquiries, since you acquired so many new accounts in so short a time. Which is why I'm advising you to slow down.

I was just recently offered VIA mail the bread card on the AmEx Network is this a viable card should I take the offer?

Yes it's a viable card but you should not apply for it now. You have too many new accounts and inquiries.

I've read some places that it's an SP not an HP. Can I take another HP? Perhaps just this last one

No.

and then fall back for a little while perhaps a long while and let my garden grow so to speak I'm sorry I'm just trying to answer questions that I wasn't able to find myself in the forums I don't mean to take you hostage but again any insight you can offer I'd appreciate greatly. Thanks very much once again! I apologize for my punctuation

No excuses. Next time use paragraphs and punctuation.

or lack thereof as I dictate my messages

Re: New here need some insight

markbeiser — Sun, 26 Nov 2023 05:11:06 GMT

@Shmike wrote:
WOW! Our scores are so similar! Eq 784 Ex 777 Tu 772 I really don't think they'll give me that, but it's definitely worth a try, for the pre-qualification. Thanks man, I appreciate you taking the time out.

Your scores are much higher than mine were when I got my AmEx BCE card, and I had as many or more new accounts, and a few late payments on my report.
The starting limit may not be great, but it should grow quickly, just have to request a CLI every time they will let you.
Pretty good gas, groceries, and online shopping card too, with a nice sign up bonus.

If you do go for it and get it, lock all of your credit reports, and don't even think about applying for anything else for at least a year!

Re: New here need some insight

Shmike — Sun, 26 Nov 2023 13:00:02 GMT

Haha! Okay, I'll try & clean it up a bit - thanks!

Re: New here need some insight

Shmike — Sun, 26 Nov 2023 21:28:14 GMT

Denied for the AmEx blue unfortunately. So the bread card is out? The way I look at it is maybe I'll lose 10 points tops for opening another card. I'm above 750 on all scores...

Re: New here need some insight

markbeiser — Mon, 27 Nov 2023 01:18:02 GMT

@Shmike wrote:
Denied for the AmEx blue unfortunately. So the bread card is out? The way I look at it is maybe I'll lose 10 points tops for opening another card. I'm above 750 on all scores...

You just need to chill and let some of your inquiries and new accounts age past 12 months.

Re: New here need some insight

MikeyMagic — Mon, 27 Nov 2023 08:38:02 GMT

@markbeiser wrote:
As others have said, go ahead and cancel any cards with an annual fee, and chill out on new cards for a year or so.
The only exception I would make would be to check the pre-qualification for an AmEx Blue Cash Everyday card, and go ahead with the application if you are pre-qualified.
IMO, there is a pretty strong chance of approval, most likely with only a $1k to $2k starting limit, but it can grow very quickly.

I had something like 12 new accounts, 9 TU inquiries, 690ish FICO scores, and still had a few late payments on my report when I was approved in October 2022 for one, but with only a $1k limit.
It grew to $27k in just over 9 months.

Woe that's awesome! Question, I heard Amex is known for 1 of the few credit card companies that does income verification a fair amount. Would you mind explaining how you went from 1k to 27k in 9 months. Did they automatically give you increases and how long before each one? Or did you keep asking for CL increases? Also did you put a high income/salary on the application? Did Amex do any income verification on you during those 9 months and if so what triggered it? Thanks so much!!

Re: New here need some insight

markbeiser — Tue, 28 Nov 2023 00:14:02 GMT

@MikeyMagic wrote:
@markbeiser wrote:
As others have said, go ahead and cancel any cards with an annual fee, and chill out on new cards for a year or so.
The only exception I would make would be to check the pre-qualification for an AmEx Blue Cash Everyday card, and go ahead with the application if you are pre-qualified.
IMO, there is a pretty strong chance of approval, most likely with only a $1k to $2k starting limit, but it can grow very quickly.

I had something like 12 new accounts, 9 TU inquiries, 690ish FICO scores, and still had a few late payments on my report when I was approved in October 2022 for one, but with only a $1k limit.
It grew to $27k in just over 9 months.
Woe that's awesome! Question, I heard Amex is known for 1 of the few credit card companies that does income verification a fair amount. Would you mind explaining how you went from 1k to 27k in 9 months. Did they automatically give you increases and how long before each one? Or did you keep asking for CL increases? Also did you put a high income/salary on the application? Did Amex do any income verification on you during those 9 months and if so what triggered it? Thanks so much!!

No income verification checks, supposedly they don't trigger unless you are asking for >$34k CL.
I have a 6 figure gross compensation(barely), but only claimed $87k.
I requested a 3x CLI every 92 to 95 days after opening the account and got them the first 3 times. $1k->$3k->$9k->$27k.
I requested a CLI to $50k just after the one year mark, but was denied. I'll try for $34k next time I'm elligible to request one.

Re: New here need some insight

MikeyMagic — Tue, 28 Nov 2023 00:59:10 GMT

@markbeiser wrote:
@MikeyMagic wrote:
@markbeiser wrote:
As others have said, go ahead and cancel any cards with an annual fee, and chill out on new cards for a year or so.
The only exception I would make would be to check the pre-qualification for an AmEx Blue Cash Everyday card, and go ahead with the application if you are pre-qualified.
IMO, there is a pretty strong chance of approval, most likely with only a $1k to $2k starting limit, but it can grow very quickly.

I had something like 12 new accounts, 9 TU inquiries, 690ish FICO scores, and still had a few late payments on my report when I was approved in October 2022 for one, but with only a $1k limit.
It grew to $27k in just over 9 months.
Woe that's awesome! Question, I heard Amex is known for 1 of the few credit card companies that does income verification a fair amount. Would you mind explaining how you went from 1k to 27k in 9 months. Did they automatically give you increases and how long before each one? Or did you keep asking for CL increases? Also did you put a high income/salary on the application? Did Amex do any income verification on you during those 9 months and if so what triggered it? Thanks so much!!
No income verification checks, supposedly they don't trigger unless you are asking for >$34k CL.
I have a 6 figure gross compensation(barely), but only claimed $87k.
I requested a 3x CLI every 92 to 95 days after opening the account and got them the first 3 times. $1k->$3k->$9k->$27k.
I requested a CLI to $50k just after the one year mark, but was denied. I'll try for $34k next time I'm elligible to request one.

Thanks Mark! And you did this all on the Amex Blue Cash Everyday Card? I thought that only the Green or Gold or Platinum give those kinds of CL's(27k). Also for my curiousity what are you allowed to take out as a cash advance?

Thanks.