Debt Questions when applying for new credit cards

[Anonymous]

I am considering to apply for a new credit card and I will provide my dp's before I apply. Need some pointers and personal experiance help.

I have 6 major credit cards, no store cards. My credit Average age of account is 5 years 3 months. I always pay off my credit cards in full each month and allow only one to report with a balance that leaves me with 4-5 percent utilization per month. Last month a made a very large purchase and maxed out one one of my cards. I was going to pay it off, but made a mistake on the date while I was away from my home and computer. So it reported. I am now at about 15% utilzation instead of my normal 4-5 percent.

How will companies look at me if one of my cards are maxed out and I have used up 15 percent of my available credit?  I only have a total of 8 credit pulls. Ex 2/24 TU 4/24/ EQ 2/24. I only 3 credit pulls total in the last 6 months. Total CL 40k

Fico 8 Eq 659 TU 651 EX 680

Fico 9 EQ 738 TU 644 EX 717

I have one suprime card that was my secure starter card that I received over a year and three months ago.

I have not burned any major companies. What kind of credit card can i get if any at all?

[OmarGB9]

You may raise an eyebrow or 2 with ONE maxed out card but still only 15% utilization overall, however it shouldn't lead to any AA from lenders. That said, your scores are still a bit low. Is that where they usually are? Or is that where they dropped to because of the maxed out card?

[Anonymous]

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@OmarGB9 wrote:

You may raise an eyebrow or 2 with ONE maxed out card but still only 15% utilization overall, however it shouldn't lead to any AA from lenders. That said, your scores are still a bit low. Is that where they usually are? Or is that where they dropped to because of the maxed out card?

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Thanks for the response. I am typically about 10 points higher of the fico 8 for TU & EQ. Fico 9 rally does not ajust much other than my TU. TU for fico 9 goes up and down some months 30 points higher but this month pretty low.

My scores did not change suprisingly from the maxed out card. they dropped two months ago from paying of a 5yr old C/O that for some reason now reports as a C/O slash collection. However my EX went from a 668 to a 680 when I maxed out the card. Very strange huh?

[OmarGB9]

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@Anonymous wrote:

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@OmarGB9 wrote:

You may raise an eyebrow or 2 with ONE maxed out card but still only 15% utilization overall, however it shouldn't lead to any AA from lenders. That said, your scores are still a bit low. Is that where they usually are? Or is that where they dropped to because of the maxed out card?

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Thanks for the response. I am typically about 10 points higher of the fico 8 for TU & EQ. Fico 9 rally does not ajust much other than my TU. TU for fico 9 goes up and down some months 30 points higher but this month pretty low.

My scores did not change suprisingly from the maxed out card. they dropped two months ago from paying of a 5yr old C/O that for some reason now reports as a C/O slash collection. However my EX went from a 668 to a 680 when I maxed out the card. Very strange huh?

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That is strange, but I definitely don't think maxing out a card would *increase* your score. That was due to something else that just happened to coincide with the maxed out card.

Anyway, as far as what cards you qualify for, it really depends what you're looking for first and foremost.

[SoCalGardener]

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@Anonymous wrote:

Last month a made a very large purchase and maxed out one one of my cards. I was going to pay it off, but made a mistake on the date while I was away from my home and computer. So it reported. I am now at about 15% utilzation instead of my normal 4-5 percent.

...

How will companies look at me if one of my cards are maxed out and I have used up 15 percent of my available credit? 

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Unless I'm just missing something, the solution seems pretty easy to me: just wait until after you've paid off that card, it gets reported, your utilization goes back down, and THEN apply for new cards.

[Anonymous]

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@SoCalGardener wrote:

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@Anonymous wrote:

Last month a made a very large purchase and maxed out one one of my cards. I was going to pay it off, but made a mistake on the date while I was away from my home and computer. So it reported. I am now at about 15% utilzation instead of my normal 4-5 percent.

...

How will companies look at me if one of my cards are maxed out and I have used up 15 percent of my available credit? 

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Unless I'm just missing something, the solution seems pretty easy to me: just wait until after you've paid off that card, it gets reported, your utilization goes back down, and THEN apply for new cards.

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no big deal I can easily do that It will just be over another month and I hoping I would not be dinged too much since my utiliztion is still not that bad. Also weird that my EX credit score went up with more utilization. I wonder if that happen because I usually have no more than a couple of hundred dollars show up on my credit usage at any time. They might say wow you are finally using  your credit.

[Anonymous]

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@OmarGB9 wrote:

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@Anonymous wrote:

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@OmarGB9 wrote:

You may raise an eyebrow or 2 with ONE maxed out card but still only 15% utilization overall, however it shouldn't lead to any AA from lenders. That said, your scores are still a bit low. Is that where they usually are? Or is that where they dropped to because of the maxed out card?

---

Thanks for the response. I am typically about 10 points higher of the fico 8 for TU & EQ. Fico 9 rally does not ajust much other than my TU. TU for fico 9 goes up and down some months 30 points higher but this month pretty low.

My scores did not change suprisingly from the maxed out card. they dropped two months ago from paying of a 5yr old C/O that for some reason now reports as a C/O slash collection. However my EX went from a 668 to a 680 when I maxed out the card. Very strange huh?

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That is strange, but I definitely don't think maxing out a card would *increase* your score. That was due to something else that just happened to coincide with the maxed out card.

Anyway, as far as what cards you qualify for, it really depends what you're looking for first and foremost.

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I am looking for non subprime majors. I would hope for a reward but it is not a must. I already have some decent cards.

NFCU x2

Amex

Discover

local CU visa

and one secure card visa.

Just do not know where to go from here. I was going to try for Costco Visa or Amazon Visa.

There has been nothing that has changed on my credit report for almost three months. The only change was my cc balance going from 50 dollars to over 6k. Then strangely the score increase. Literally everything else was the same and all of my other balances remained at zero as normal.

[lgtwriter]

@Anonymous Your scores are lower than what I would expect for 4.5% utilization across the board (except for the one maxed out card for one month. Do you have any baddies reporting? Do you have a lot of inquiries?

I think the paid charge off is lowering your scores for now. You will get better offers if you dispute the chargeoff off of your report, or ask for a delete from the creditor, etc.

In my personal experience, I was able to get approved for cards when my credit scores were in the high 600's, but I got much better credit lines when my scores were over 720. (I am now in the 750s on all three bureaus). 

[Anonymous]

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@lgtwriter wrote:

@Anonymous Your scores are lower than what I would expect for 4.5% utilization across the board (except for the one maxed out card for one month. Do you have any baddies reporting? Do you have a lot of inquiries?

I think the paid charge off is lowering your scores for now. You will get better offers if you dispute the chargeoff off of your report, or ask for a delete from the creditor, etc.

In my personal experience, I was able to get approved for cards when my credit scores were in the high 600's, but I got much better credit lines when my scores were over 720. (I am now in the 750s on all three bureaus). 

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Yes my credit score is low and its really capped off at this point. 1yr 4 months ago I had no credit card and a 453  credit score. I had 15 baddies. Today on my credit I only have two baddies, 1 collection account four years old that I paid 8 months ago. I have the charge off that was reporting a new 90 day late every month until I paid it off in August. They will not delete, nor will the 1 collection so I must ride those two out. The CO will age on dec 2022 while the collection will age of oct 2023.

Since  June of  2020 I added 9 credit cards and canceled two of them I added a loan. I only have 8 inquries in that time frame 4/tu, 2 eq, 2 ex.

So a lot of new credit accounts in a short period of time. My oldes active cc is only 1yr 4 months old. So I am being penalized for maybe too much movement. I have never been late on my credit cards or loans, its just the two baddies and all the movement that is now hurting me.

on the to review part of my credit reports it states. 1 account has 30 day late. But then it states I have not been late in more than 5 years.  It is acknowledging the CO as the lates. However I had old accounts that reported 120 lates up to 2017 and then I paid that account in 2017 to complete it. It was never a collection account, just no payment.

But in the last 1yr 4 months no lates at all. I just need to let me accounts age more and the scores will adjust.

I just need  one more major credit card to give me 7 open credit cards.

I do not want a store credit card just a visa or mastercard.

I would like to apply now even though my scores are not the highest, but I want to do this asap so that I can be done. Then I will more than likey only apply for CL's for the next two years to mature my cards and solify my relationships.

just  need a little advice from those that have a  lot of experience.

Thanks for your help in advance.

[Jordan23ww]

Is it possible for you to just delay applying for the new card until after next month when the maxed out card reports again with lower utilization?  That way you present your best credit self! I do know sometimes it's hard to be patient. It could be worth it though.