topic UPDATED: Rebuilding credit; next steps in Rebuilding Your Credit

UPDATED: Rebuilding credit; next steps

Binbinimiwi — Fri, 06 May 2022 01:39:07 GMT

I'm hoping for input and stories from experience please and very much appreciate helpful information. So, I'm 2 years post divorce and finally got a new job paying enough to cover bills and save as well. I am rebuilding my savings and damaged credit (mostly student loan late payments). I pay one payment, but the servicer reports 9 different times on my credit for each loan; completely unfair IMO. My FICO had dropped down to 545 and it's up now to 663. I've been paying bills on time since last January. I opened a secured credit card account ($1200) in May2021 and only use it monthly for small charges ($100 or less) and switch regularly from paying it off monthly to carrying about a $50 balance and then paying it off the next month. I want to improve my score to reach the "Good" category, but can't figure out the magic elixir to make that happen. My end goal is to be able to refinance the mortgage and also obtain 3 unsecured credit cards (1 being primarily for travel) so that I can pad my file and become less of a credit risk, but getting there is a long hard road apparently. Any nuggets of wisdom would be greatly appreciated.

Re: Rebuilding credit; next steps

FireMedic1 — Tue, 08 Feb 2022 18:46:01 GMT

Welcome @Binbinimiwi

Your answer is in your question. FICO likes 3 revolvers and 1 loan for the rebuild bonus. You can try Cap1 pre-qual and see if you are offered a card. Stay away from the QS1. They been handing out a lot of 3000 SL's lately. Once you get to 3 cards. Only have 1 report every month and then PIF before the due date. You already have the loans covered with your SL's. So 2 more cards and let the rebuild begin. If approved. Give Disco secured a shot. They graduate. Good luck!

Re: Rebuilding credit; next steps

Binbinimiwi — Tue, 08 Feb 2022 19:34:50 GMT

Thank you so much for the recommendation. I did the pre-qual on Discover's website about 20 mins ago and and it came back with 2 different Discover It options and also AmEx and it came back with 3 options (Blue Cash Everyday, Blue Cash Preferred, AmEx Gold). I'm deathly afraid of submitting an application b/c I don't want a hard pull and then be denied and lose hard earned points. I don't know how susccesful getting a card is in relation to the prequalification process and am very uncertain about trusting it based on the language they use on their websites. I may just need to apply for the Discover secured and give myself another year of low usage and reporting; bad idea? Also, I just realized that I didn't advise that I do have a Best Buy credit card with a $3K limit and zero usage that is about 5 yrs old. I plan to close the account once I have established other lines of credit for a reasonable amount of time. Unfortunately, no one can predict the likelihood of being approved after being prequalified; it's a scary unknown when so much is at risk.

Re: Rebuilding credit; next steps

FireMedic1 — Tue, 08 Feb 2022 23:52:28 GMT

Discover is pretty solid offer. Its only 1 HP and a great card. I'd go with Disco over AMEX with rebuilding in progress. Ive been approved twice with Disco and then combined the 2 couple yrs back to the 1 card below. Yeah theres some fear I'll be rejected. But I researched each card I got from here before I pulled the trigger. Only 1 denial. AMEX for too many new checking accounts. 1 account in 5yrs with NFCU when I joined.LOL!

Re: Rebuilding credit; next steps

Binbinimiwi — Wed, 09 Feb 2022 19:07:05 GMT

Thanks so much for the feedback. I've heard Discover is a bit more forgiving than others. I think I may give it a shot and see what happens; probably will need a a little mental encouragement (hype myself up) and then do the app

@FireMedic1 wrote:
Discover is pretty solid offer. Its only 1 HP and a great card. I'd go with Disco over AMEX with rebuilding in progress. Ive been approved twice with Disco and then combined the 2 couple yrs back to the 1 card below. Yeah theres some fear I'll be rejected. But I researched each card I got from here before I pulled the trigger. Only 1 denial. AMEX for too many new checking accounts. 1 account in 5yrs with NFCU when I joined.LOL!

Re: Rebuilding credit; next steps

Binbinimiwi — Fri, 18 Feb 2022 07:19:40 GMT

Welp, I took my shot and Discover approved me for $10K and I also got the AmEx Blue Preferred with an $8K limit. I thought about it and decided to do AmEx also b/c of the benefits of having their card. I guess once I released my fear, nothing was stopping me from giving it a shot to get out of this thin credit file lifestyle. With my high salary, I feel confident about having the card and know not to spend more than I'm able to pay back in any given month. Plus, I hope to one day get a second AMEx with at least 4-5 times my current limit. My plan is to keep utilization between 5-8% on both and next year around this time try for a good travel rewards card, with a hopefully higher limit. I plan to close the secured card after I've obtained the travel card next year. Once I get the money back, I'm going to put it towards a new account at NFCU and transfer some of my $$ from USAA to NFCU so I can start working on getting a high limit card with NFCU. Thanks so much for the encouragement and feedback!

Re: Rebuilding credit; next steps

FireMedic1 — Fri, 18 Feb 2022 10:38:08 GMT

Booyah! There ya go! Congrats on the masive SL. Abuse Miss Disco for the cash back match. Now that you got a couple cards in a short period. Wait at least 6 months until the next app. Prove yourself with what you got. Dont go app crazy justy because you got approved. Each 6 months. Slow and steady wins the race.

Re: Rebuilding credit; next steps

Binbinimiwi — Fri, 18 Feb 2022 11:53:33 GMT

Thank you so much for the additional advice. I was planning to wait a full year before applying for anything new, but if 6 months works, I might try it and see what happens.

Re: Rebuilding credit; next steps

FireMedic1 — Fri, 18 Feb 2022 12:30:17 GMT

@Binbinimiwi wrote:
Thank you so much for the additional advice. I was planning to wait a full year before applying for anything new, but if 6 months works, I might try it and see what happens.

Your welcome. Should have said a year. LOL!!!!!!!!!!!!!!!!!!!!! J/K. Rushing a rebuild doesnt work too good. Take your time. Took me 5 yrs, but you didnt have to deal with a BK. Nice job.

Re: Rebuilding credit; next steps

HowDoesThisAllWork — Sat, 19 Feb 2022 15:11:47 GMT

@FireMedic1 wrote:
Welcome @Binbinimiwi
Your answer is in your question. FICO likes 3 revolvers and 1 loan for the rebuild bonus. You can try Cap1 pre-qual and see if you are offered a card. Stay away from the QS1. They been handing out a lot of 3000 SL's lately. Once you get to 3 cards. Only have 1 report every month and then PIF before the due date. You already have the loans covered with your SL's. So 2 more cards and let the rebuild begin. If approved. Give Disco secured a shot. They graduate. Good luck!

@FireMedic1

Curious what is behind this advice?????? And what it means!

Thanks, as always!

Re: Rebuilding credit; next steps

EAJuggalo — Sat, 19 Feb 2022 15:54:21 GMT

@HowDoesThisAllWork wrote:
@FireMedic1 wrote:
Welcome @Binbinimiwi
Your answer is in your question. FICO likes 3 revolvers and 1 loan for the rebuild bonus. You can try Cap1 pre-qual and see if you are offered a card. Stay away from the QS1. They been handing out a lot of 3000 SL's lately. Once you get to 3 cards. Only have 1 report every month and then PIF before the due date. You already have the loans covered with your SL's. So 2 more cards and let the rebuild begin. If approved. Give Disco secured a shot. They graduate. Good luck!
@FireMedic1

Curious what is behind this advice?????? And what it means!

Thanks, as always!

I believe PP is referring to the very annoying Capital One habit of never letting you get away from an annual fee. If you have a card with an annual fee like the QS1, you will never be able to PC it to something without one. You're better off starting with a Platinum, giving it six months then PC that to a standard QS. You might miss the CB for those six months but it is more than made up for by the AF you're not paying for a 1.5% CB card. Cap1 did this to me when I started with them a few years ago, thankfully at that time they were allowing account combinations so I was able to combine my QS1 into my QS. My understanding is that is no longer an option.

Re: Rebuilding credit; next steps

HowDoesThisAllWork — Sat, 19 Feb 2022 16:01:05 GMT

@EAJuggalo wrote:
@HowDoesThisAllWork wrote:
@FireMedic1 wrote:
Welcome @Binbinimiwi
Your answer is in your question. FICO likes 3 revolvers and 1 loan for the rebuild bonus. You can try Cap1 pre-qual and see if you are offered a card. Stay away from the QS1. They been handing out a lot of 3000 SL's lately. Once you get to 3 cards. Only have 1 report every month and then PIF before the due date. You already have the loans covered with your SL's. So 2 more cards and let the rebuild begin. If approved. Give Disco secured a shot. They graduate. Good luck!
@FireMedic1

Curious what is behind this advice?????? And what it means!

Thanks, as always!
I believe PP is referring to the very annoying Capital One habit of never letting you get away from an annual fee. If you have a card with an annual fee like the QS1, you will never be able to PC it to something without one. You're better off starting with a Platinum, giving it six months then PC that to a standard QS. You might miss the CB for those six months but it is more than made up for by the AF you're not paying for a 1.5% CB card. Cap1 did this to me when I started with them a few years ago, thankfully at that time they were allowing account combinations so I was able to combine my QS1 into my QS. My understanding is that is no longer an option.

@EAJuggalo

Got it! Thank you. I wanted to specifically ask that question so that everyone would see that @FireMedic1 was specifically talking about the QuickSilver One (aka, QS1) - which has an Annual Fee of $95 - and ***NOT*** talking about the QuickSilver (aka, QS) - which does not have an Annual Fee.

It is easy to overlook the difference between the QS1 and QS.......

Thank you!

Re: Rebuilding credit; next steps

EAJuggalo — Sat, 19 Feb 2022 16:03:12 GMT

@HowDoesThisAllWork wrote:
@EAJuggalo wrote:
@HowDoesThisAllWork wrote:
@FireMedic1 wrote:
Welcome @Binbinimiwi
Your answer is in your question. FICO likes 3 revolvers and 1 loan for the rebuild bonus. You can try Cap1 pre-qual and see if you are offered a card. Stay away from the QS1. They been handing out a lot of 3000 SL's lately. Once you get to 3 cards. Only have 1 report every month and then PIF before the due date. You already have the loans covered with your SL's. So 2 more cards and let the rebuild begin. If approved. Give Disco secured a shot. They graduate. Good luck!
@FireMedic1

Curious what is behind this advice?????? And what it means!

Thanks, as always!
I believe PP is referring to the very annoying Capital One habit of never letting you get away from an annual fee. If you have a card with an annual fee like the QS1, you will never be able to PC it to something without one. You're better off starting with a Platinum, giving it six months then PC that to a standard QS. You might miss the CB for those six months but it is more than made up for by the AF you're not paying for a 1.5% CB card. Cap1 did this to me when I started with them a few years ago, thankfully at that time they were allowing account combinations so I was able to combine my QS1 into my QS. My understanding is that is no longer an option.
@EAJuggalo

Got it! Thank you. I wanted to specifically ask that question so that everyone would see that @FireMedic1 was specifically talking about the QuickSilver One (aka, QS1) - which has an Annual Fee of $95 - and ***NOT*** talking about the QuickSilver (aka, QS) - which does not have an Annual Fee.

It is easy to overlook the difference between the QS1 and QS.......

Thank you!

$95 now? I thought it was bad enought at $39 and was glad to be rid of it.

Re: Rebuilding credit; next steps

HowDoesThisAllWork — Sat, 19 Feb 2022 16:06:10 GMT

@EAJuggalo wrote:
@HowDoesThisAllWork wrote:
@EAJuggalo wrote:
@HowDoesThisAllWork wrote:
@FireMedic1 wrote:
Welcome @Binbinimiwi
Your answer is in your question. FICO likes 3 revolvers and 1 loan for the rebuild bonus. You can try Cap1 pre-qual and see if you are offered a card. Stay away from the QS1. They been handing out a lot of 3000 SL's lately. Once you get to 3 cards. Only have 1 report every month and then PIF before the due date. You already have the loans covered with your SL's. So 2 more cards and let the rebuild begin. If approved. Give Disco secured a shot. They graduate. Good luck!
@FireMedic1

Curious what is behind this advice?????? And what it means!

Thanks, as always!
I believe PP is referring to the very annoying Capital One habit of never letting you get away from an annual fee. If you have a card with an annual fee like the QS1, you will never be able to PC it to something without one. You're better off starting with a Platinum, giving it six months then PC that to a standard QS. You might miss the CB for those six months but it is more than made up for by the AF you're not paying for a 1.5% CB card. Cap1 did this to me when I started with them a few years ago, thankfully at that time they were allowing account combinations so I was able to combine my QS1 into my QS. My understanding is that is no longer an option.
@EAJuggalo

Got it! Thank you. I wanted to specifically ask that question so that everyone would see that @FireMedic1 was specifically talking about the QuickSilver One (aka, QS1) - which has an Annual Fee of $95 - and ***NOT*** talking about the QuickSilver (aka, QS) - which does not have an Annual Fee.

It is easy to overlook the difference between the QS1 and QS.......

Thank you!
$95 now? I thought it was bad enought at $39 and was glad to be rid of it.

No, my bad! Still at $39. Brain fart moment!

Re: Rebuilding credit; next steps

FireMedic1 — Sun, 20 Feb 2022 07:46:56 GMT

@HowDoesThisAllWorkThe QS1 is a brick as I used to call it. Doesnt go anywhere. Hard to PC. The Plat is easier to go to a QS than the QS1. See below. Didnt last long. RIP.

Re: Rebuilding credit; next steps

Binbinimiwi — Sun, 20 Feb 2022 09:39:25 GMT

And wonder of all wonders .... my score is only showing a 3point drop for both HP's on Experian. I'll have to see next month what TU & EQ look like, but I'm absolutely stunned!!

Re: Rebuilding credit; next steps

HowDoesThisAllWork — Sun, 20 Feb 2022 16:45:43 GMT

@FireMedic1 wrote:
@HowDoesThisAllWorkThe QS1 is a brick as I used to call it. Doesnt go anywhere. Hard to PC. The Plat is easier to go to a QS than the QS1. See below. Didnt last long. RIP.

Agreed! I PC'd from the Platnium to the QS.....I was wise on that front (because of this Forum). RIP indeed!

Re: Rebuilding credit; next steps

Binbinimiwi — Mon, 21 Feb 2022 00:33:16 GMT

I've been researching the forum a bit and lots of people recommended Cap1 for a lot of reasons. I figured out I would like 5 cards total, so I'm looking at the AmEx Gold, NFCU Platinum, and the Cap1 Venture. I was thinking of getting the Platinum and then attempting a PC to the Venture or just doing an app for the Venture. I've received 2 pre-approved mailers for the Platinum from Cap1 in the past 3 months, but ignored it b/c I was afraid to apply for anything at the time. Why is the Platinum a bad idea? What was your experience with it?

Re: Rebuilding credit; next steps

EAJuggalo — Mon, 21 Feb 2022 01:47:50 GMT

The CapOne platinum is not a bad idea. What PP was talking about is that most people who pre-qual on CapOne with low scores are offered the platinum with no AF and the QS1 with a $39 AF. Many people take the QS1 to get the rewards, when if they would have taken the platinum they could have had a QS with no AF in three months.

The platinum does not PC to the Venture, it is or was possible to PC to a Venture One. I would recommend not applying for a Venture until you're scores are at least 720 with an average age of accounts of two years. Unless you prequal for it.

It's not normally the pulls that kill your score it is the new accounts, when those start reporting you'll see a bigger dip.

Re: Rebuilding credit; next steps

Binbinimiwi — Tue, 22 Feb 2022 22:34:56 GMT

Got it! Thanks so much for the explanation about the score drop and the Cap1 cc's. There's so much to understand and learn about it all, which is why I am here. I hope to be able to pay it forward one day by sharing what I've learned with someone else who needs help,