Re: Hit a wall. What to do?

Anonymous · ‎08-09-2016

Hello, long time lurker/ first time posting.

I feel like I've hit a proverbial wall currently. I started rebuilding my credit last year with my scores in averaging in the 560's. I'm currently sitting at 697(EQ)683(TU)688(EX). I have three neg's on my account and two that I have recently sent PFD/GW letters. I only have 4 cards, two of which are store cards(Amazon & Carsons). Other two are Capital one(QS & Platinum). Started out with $300 limits on all except Amazon($1000). Now, after a year, none of the cards are above $1500. I PIF everything every month.

I feel like I'm not getting anywhere. I tried for a CLI on one of the CapitalOne cards and amazon recently and have been denied. I make in the high 5 digits and have low rent and car payment. I am trying to get a card with a better limit but am afraid to apply for anything for fear of taking a hit on my credit score from a HP and not getting approved. I travel a decent amount and do a good bit of work on my vehicles. With my limits, I'm running into limitations to my spending ability and it's quite frustrating.

Basically, I'm asking those of you wiser than myself, what my next step should be and how to get something a bit more substantial in my wallet.

Looking forward to reading your responses and will reply with any further information requested. Thank you in advance for your time.

Anonymous · ‎08-09-2016

When I first started out (4 years ago) with Cap 1 they only gave me a $500 limit. I know a lot of people wont like this, but if you have the income to support it, I use to max out my card until it got denied. Then I would go home that same night and PIF. I was spending $3k/month on a $500 limit card. I always knew when my statment was ending, so I would PIF 3 days before and wait for my statment to cut. But after a couple months they auto CLId me. It has some high risks, like if you max out your card and your statment cuts, your scores will drop hard... But it worked for me.

baller4life · ‎08-09-2016

First of all great job on your rebuild. Your next step should be joining a CU. One that will give you that substantial limit that will be a pry bar so to speak for your current and future cards. I strongly suggest Navy Federal which is now available for all to join thru the Navy League San Diego. They absolutely changed my entire rebuild for the better! Once BOA saw that I had a $10k card(with scores much lower than yours) they were happy to match. And the rest is history. Now 95% of my cards are 5 figures.

Once you obtain that high limit card, continue to work on getting rid of any baddies that you have. As the last 3 fall off, your options will increase even further. Good luck.

Here's the link to how to join NFCU if you or your immediate family are not active or retired military:

http://ficoforums.myfico.com/t5/Personal-Finance/Navy-Federal-CU-The-REAL-way-in-for-those-that-dont...

kdm31091 · ‎08-09-2016

If you want a revolver that can often grow quickly, maybe an Amex Blue Cash or Everyday? I've written many times that I don't feel the reward structure is the best, but you can often get a decent limit easily to use as that "prybar" with the advantage of just one EX pull. Navy is going to do several pulls, and with your more fragile profile, more pulls are a bigger problem and you still only get one card out of it.

Weigh your options. You do not want to end up with a ton of hard pulls before you have really built anything because it will make it difficult to get more approvals right now.

Credit unions can definitely be valuable, but maybe at a time when pulls will cause less problems for you.

baller4life · ‎08-09-2016

@kdm31091 wrote:
If you want a revolver that can often grow quickly, maybe an Amex Blue Cash or Everyday? I've written many times that I don't feel the reward structure is the best, but you can often get a decent limit easily to use as that "prybar" with the advantage of just one EX pull. Navy is going to do several pulls, and with your more fragile profile, more pulls are a bigger problem and you still only get one card out of it.

Weigh your options. You do not want to end up with a ton of hard pulls before you have really built anything because it will make it difficult to get more approvals right now.

Navy Federal will do two pulls. One for membership(TU) and one for the card(EQ or TU). Hardly equates to a "ton" and well worth it!!

Anonymous · ‎08-09-2016

@baller4life wrote:
First of all great job on your rebuild. Your next step should be joining a CU. One that will give you that substantial limit that will be a pry bar so to speak for your current and future cards. I strongly suggest Navy Federal which is now available for all to join thru the Navy League San Diego. They absolutely changed my entire rebuild for the better! Once BOA saw that I had a $10k card(with scores much lower than yours) they were happy to match. And the rest is history. Now 95% of my cards are 5 figures.

Once you obtain that high limit card, continue to work on getting rid of any baddies that you have. As the last 3 fall off, your options will increase even further. Good luck.

Here's the link to how to join NFCU if you or your immediate family are not active or retired military:

http://ficoforums.myfico.com/t5/Personal-Finance/Navy-Federal-CU-The-REAL-way-in-for-those-that-dont...

+1

driftless · ‎08-09-2016

@Anonymous wrote:
When I first started out (4 years ago) with Cap 1 they only gave me a $500 limit. I know a lot of people wont like this, but if you have the income to support it, I use to max out my card until it got denied. Then I would go home that same night and PIF. I was spending $3k/month on a $500 limit card. I always knew when my statment was ending, so I would PIF 3 days before and wait for my statment to cut. But after a couple months they auto CLId me. It has some high risks, like if you max out your card and your statment cuts, your scores will drop hard... But it worked for me.

+ 1 I did my rebuild with Cap One as well. I started out with a secured card and then closed it when I a received a Platinum and QS1 card. Like X-pat did, I used my cards hard. I would also use the chat module once a month after my statements cut to ask if there were any offers for me. I hit the luv button at every appropriate interval. Finally I was prequalified for a QS Visa afterwards things progressed quickly. I would recommend checking the Amex, Cap One, Chase (for Freedom), Discover, etc., pre-qualified sites monthly. I would not apply for any of those cards until you show up as prequalified. I think that your checking to see if you are pre-qualified puts you into the banks' system.

Things will really improve for you once once your last baddies fall off or are removed. A word: of caution do not rack up inquiries which resulted in app declines. Wait.

CSR | Amex Platinum | EDP | QS (2)
Amex Blue Business Plus

Aduke1122 · ‎08-09-2016

I agree with Baller4life. .join Navy Fed . With you scores you will get a nice SL I'm sure . And as always pay off any debts , this could be a factor in not getting the CLI that you are looking for.

Anonymous · ‎08-09-2016

Your credit profile and income are very similar to mine. I think your chances of approval are high for both NFCU and Amex. NFCU typically gives higher starting limits than the big banks - I didn't have anything over a $2400 limit until I joined them recently through the Navy League.

Since you PIF, an Amex charge card would be a good fit if you don't mind paying an annual fee. The PRG card is fee-waived the first year.

SouthJamaica · ‎08-09-2016

@Anonymous wrote:
Hello, long time lurker/ first time posting.

I feel like I've hit a proverbial wall currently. I started rebuilding my credit last year with my scores in averaging in the 560's. I'm currently sitting at 697(EQ)683(TU)688(EX). I have three neg's on my account and two that I have recently sent PFD/GW letters. I only have 4 cards, two of which are store cards(Amazon & Carsons). Other two are Capital one(QS & Platinum). Started out with $300 limits on all except Amazon($1000). Now, after a year, none of the cards are above $1500. I PIF everything every month.

I feel like I'm not getting anywhere. I tried for a CLI on one of the CapitalOne cards and amazon recently and have been denied. I make in the high 5 digits and have low rent and car payment. I am trying to get a card with a better limit but am afraid to apply for anything for fear of taking a hit on my credit score from a HP and not getting approved. I travel a decent amount and do a good bit of work on my vehicles. With my limits, I'm running into limitations to my spending ability and it's quite frustrating.

Basically, I'm asking those of you wiser than myself, what my next step should be and how to get something a bit more substantial in my wallet.

Looking forward to reading your responses and will reply with any further information requested. Thank you in advance for your time.

1. I guess I'm a minority voice, but my advice would be not to apply for anything for awhile. Passage of time + no inquiries + no new accounts = constant score increases.

2. Let all cards but one report a zero balance, with the one card reporting have a balance of less than 10%.

3. Work to get rid of the negatives.

4. Pay down the car loan to below 10%, but not to zero.