Your annual income is great. You should just pay off the cards and your scores should go through the roof. I read it could rise even by 100 points within 6months. Anyway, GL. Pay the cards you have, then go look for new cards with a higher score and better utilization. Stay away from that bad habbit you have of running the utilization so high. Credit is not extra income, but I also know stuff happens in life and sometimes you end up at this point. Here is a guide I made. No offense in advance and I hope you do well in the future.
This is copied from another thread I posted on and some may not be directed towards you and I apologize.
- STOP APPLYING after 2-3 cards! Look at the reason for declines. Probably, seeking credit in a short period of time and too many new accounts, credit score does not meet minimum requirements, too many inquiries. This is a huge red flag or white (Credit card companies running away) to the credit card companies. You may look like you are headed down the same path you were before and you wont get approved this way or if you do, your starting limits will be "toy limits"
- Stick with a couple of subprime cards but don't try to add all of them to your portfolio. This will be looked upon negatively when you try to add the Major credit cards to your wallet: Amex, Chase etc..One to three cards are sufficient to build your credit score/history.
- Unless your portfolio (file/CR) supports an app spree, Limit your inquiries or cards to 1-2 per year or 6months.. You may be able to obtain 3-4 every 6months to a year with a thicker file or even more but not recommended. Spread out your applications, unless your portfolio supports it..
- Credit cards are not extra income, use them as cash. Pay everything on credit that can be paid. Can Max your cards but pay before closing date (closing and due dates are different).
- For instance, you have 300 dollars cash and was going to pay your phone/cable bill or buy something from the store. Instead, use your credit card and pay that 300 in cash to the credit card bill. Eventually, when you gain reward cards, this will benefit you.
- Know your closing/ reporting dates on each card for highest score obtainment possible. Don't use your card between closing date and reporting date, due to utilization manipulation. Example, I get a card and the closing date (statement) is generated on the 3rd of this Month. The due date will be on the 28th. I want to pay before the closing date to manipulate reported balance for highest score. I would pay on the 1st (payment posted on account that day, even if money isn't pulled from your bank yet,) Reporting is on the 6, so I can't use my card till the 7th.
- Always pay in full (PIF) (recommended before closing date for no interest charges are applied, also, so balance does not report) and only let one card report 1-3% utilization (not overall utilization,) just on that card limit ( for highest score) and the other cards report a zero balance. Reporting 4-10% will decrease your score by 3-5points (I may be 1% off). This is only if you are applying for something or just like to maintain highest scores at all times for best CLI's. If not, it is alright to let the balance report, but still PIF (after closing, by due date). If you can't PIF, the overall utilization that is recommended across all accounts is 30%, also, on individual card CL. As you bring the balances down to the above suggested 1-3% and only let that get reported when applying, your score will return to the highest possible when apping. For instance,
- 300 Credit limit (CL) 30 dollars would equal 10% utilization for this card. Example calculation, credit reported (used)/ credit limit x 100 = % used. 30/300x100=10%
- Overall used, would be, credit reported on all cards / total credit limit of all cards (add all CL) x100 = Overall total % used.
- Never let a payment be returned! make sure you have a sufficient balance in your bank to cover the cards. Return payments can cause AA (Frozen account, closure, no CLI) Some companies will not give you CLI and this may follow you over 1 year making your account stagnant :/
- Track your Fico scores/reports (This should be the first but will be listed here). You gain alerts every time your card or loan reports (usually monthly) to the credit bureau. ontime payments are a huge part of your score. I recommend CCT, 1 dollar for 7d and you can get half off full price for 1 year when you call to cancel. Also, use CK and Capital One, to view your progress.
- Pull your free annualcreditreport once a year to maintain a healthy credit profile.
- Don't Rush, it isn't a race. As you gain more payment history, you will gain higher credit scores.
That is for maintaining Credit cards,
I know this isn't your question but to build credit, I suggest you may want to add installment loans to your profile (unless you have positive installments already,) as I do not know your profile. Recommended is 20+ positive accounts, including credit cards/ closed accounts that are positive. Secured installment loans with your local credit union will suffice. Make sure they report to all three Bureaus'.
Hope this guideline helps and goodluck with everything.
