How Many Tradelines Can I Apply For, Without Looking "Desperate", in a Short Time Frame?

[thornback]

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@CreditInspired wrote:

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Since you’re a NFCU Member, have you tried applying for a card through them?

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Yesss to NFCU.   You should  absolutely app if you have not already. 

[myfavoritehue]

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@CreditInspired wrote:

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@myfavoritehue wrote:

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@CreditInspired wrote:

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@thornback wrote:

Welcome to the forums!

Your brother is right -- but I'd go a step further and say not to apply to any of those tradelines you've listed.   Stick to bank-issued cards.  Start off with secured if necessary, wait 6 months to build a solid, positive payment history, then apply for an unsecured card.    You need bank-issued credit cards on your reports; I'm not sure how the tradelines you've mentioned code - whether as store cards or consumer finance accounts - but neither reflect as well on both your scores and to lenders as bank-issue cards.    You can save the money you'd spend on all the fees involved with those types of accounts and instead open one or a few decent limit secured cards -  at least that way you'll eventually get your money back instead of essentially throwing it away. 

3 credit cards and an installment loan is all you need to begin (re)buiilding.   And credit limits mean nothing as far as FICO scoring; a $200 credit limit will have the same effect on your scores as a $20K limit provided utilization remains low and under control.   Creditors will issue higher limits if your income, debt-to-income ratio (DTI), and overall credit profile supports it -- in other words, just because you have a few random $15K limits on your reports doesn't mean a bankcard issuer will match or exceed that amount.  

And as stated by the previous poster,  you should get your FICO scores if you have not already done so.    Also - what negatives are currently on your reports?  You stated you were in the process of disputing several items -- and inquiries (?) - is there fraudulent info on your reports?  Why are you disputing inquiries? 

EDIT:  Just saw one of your replies.   So you only have one negative on your reports?  An unpaid charge-off?    If you can take care of that charge-off (either have it removed or pay / settle it), then you may be able to obtain an unsecured card without going the secured route at all.  

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+100

OP, please just forget about all those tradeline you listed. The way to create a

great profile is to go the traditional route as stated in @thornnack post. 

Slow and steady wins the race. 

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Since that has been established, let's say I spread $600 across 3 secured cards from reputable banks. Use them on and off, keeping the utilization extremely low for about 3-4 months. Should I apply for authorized users when it comes time to apply for funding from say, Navy Federal (I am a member)?

This statement is a bit of a contradiction: I understand that credit is a long game but I am looking the quickest way, and correct way, to build my credit so that I can obtain business credit without a personal guarantee when the time comes (hopefully within the next 6 months). 

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Since you’re a NFCU Member, have you tried applying for a card through them?

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No, not yet. The main reason I haven't is because I wanted to, and was told it'd be better if, clean my report first before applying.

[Anonymous]

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@myfavoritehue wrote:

There are several credit forums/groups I am apart of and this practice has worked well for others. Reading this confuses me as to what the correct answer is.

I understand your reasoning behind a bank not offering a specific limit of credit strictly based off the limit on my report. That makes sense. What I don't understand is, if these tools are available, why shouldn't I be using them?

I have seen multiple people use the tradelines I listed above as a way to increase their utilization, which in turn improved their scores, somewhat significantly, then receive better interest rates or higher limits of credit, from banks, not long after those tradelines posted.

All of my scores are in the 520-530 range. This is before my car loan will post, which is through Chase.

I am currently disputing the charge off and the collection now. Neither creditor has been able to provide evidence that the account is mine which deems it removable by law.

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OP, I'm curious about the highlighted portion of your comment.  Charge off and collections don't just happen overnight.  They occur after an account has been delinquent for a significant amount of time (typically 180 days for a charge off), and during that period the creditor will make attempts to contact you by phone and/or by letter.  Are you saying that none of this occurred and the charge off and collection just suddenly appeared on your credit report, that the accounts were never yours, and you were never aware of the delinquent status of these accounts?

Also, can you cite the law which states that an original creditor must verify a debt when requested?

[myfavoritehue]

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@thornback wrote:

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@myfavoritehue wrote:

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@CreditInspired wrote:

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@thornback wrote:

Welcome to the forums!

Your brother is right -- but I'd go a step further and say not to apply to any of those tradelines you've listed.   Stick to bank-issued cards.  Start off with secured if necessary, wait 6 months to build a solid, positive payment history, then apply for an unsecured card.    You need bank-issued credit cards on your reports; I'm not sure how the tradelines you've mentioned code - whether as store cards or consumer finance accounts - but neither reflect as well on both your scores and to lenders as bank-issue cards.    You can save the money you'd spend on all the fees involved with those types of accounts and instead open one or a few decent limit secured cards -  at least that way you'll eventually get your money back instead of essentially throwing it away. 

3 credit cards and an installment loan is all you need to begin (re)buiilding.   And credit limits mean nothing as far as FICO scoring; a $200 credit limit will have the same effect on your scores as a $20K limit provided utilization remains low and under control.   Creditors will issue higher limits if your income, debt-to-income ratio (DTI), and overall credit profile supports it -- in other words, just because you have a few random $15K limits on your reports doesn't mean a bankcard issuer will match or exceed that amount.  

And as stated by the previous poster,  you should get your FICO scores if you have not already done so.    Also - what negatives are currently on your reports?  You stated you were in the process of disputing several items -- and inquiries (?) - is there fraudulent info on your reports?  Why are you disputing inquiries? 

EDIT:  Just saw one of your replies.   So you only have one negative on your reports?  An unpaid charge-off?    If you can take care of that charge-off (either have it removed or pay / settle it), then you may be able to obtain an unsecured card without going the secured route at all.  

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+100

OP, please just forget about all those tradeline you listed. The way to create a

great profile is to go the traditional route as stated in @thornnack post. 

Slow and steady wins the race. 

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Since that has been established, let's say I spread $600 across 3 secured cards from reputable banks. Use them on and off, keeping the utilization extremely low for about 3-4 months. Should I apply for authorized users when it comes time to apply for funding from say, Navy Federal (I am a member)?

This statement is a bit of a contradiction: I understand that credit is a long game but I am looking the quickest way, and correct way, to build my credit so that I can obtain business credit without a personal guarantee when the time comes (hopefully within the next 6 months). 

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You cannot speed up time.  Either way -- whether you obtain all those other random tradelines or a few secured lines -- you still have to age those accounts for 6+ months for them to be considered as 'history'.     

I suggest you do the secured cards, but look for cards that will eventually unsecure, like Discover and/or Cap One.  This way, after showing responsible use, they will return your deposit and switch the secured line to an unsecured line -- without opening a new account.  This will allow those cards to grow while keeping the age / history. 

AU cards with a long, excellent history, decent limits, and low utilization will help your FICO scores,  but please understand that they are generally ignored by lenders when considering your application because you are not legally responsible for the debt / payments.    They're pretty much just a score booster - especially for young / thin files. 

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Yeah, I do understand that AU files are really a short thing and don't hold the same weight as primary tradelines. That's why I asked if it'd be smart to get AU's right before applying for unsecured lines.

My credit history isn't "thin" though. My oldest account is a student loan, in good standing, that's over 7 years old. 

I'm definitely going to take your advice and get a few secured cards. If am able to be approved, how many are recommended to apply for, in a one to three month window? Again, I understand its a long game, just seeking clarity.

[myfavoritehue]

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@Anonymous wrote:

Unfortunately, your car loan added to the diversity (mix) of your trade lines.  Your score may drop even though the loan was paid in full.

Get a Lowes card.  Watch it climb to $25k in no time with minimal purchases.  Other than Lowes, stick to major bank cards with the lowest APRs you can get.

Don't go buying crap you really don't need.

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Isn't the Lowe's card a store card?

[Anonymous]

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@myfavoritehue wrote:

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@Anonymous wrote:

Unfortunately, your car loan added to the diversity (mix) of your trade lines.  Your score may drop even though the loan was paid in full.

Get a Lowes card.  Watch it climb to $25k in no time with minimal purchases.  Other than Lowes, stick to major bank cards with the lowest APRs you can get.

Don't go buying crap you really don't need.

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Isn't the Lowe's card a store card?

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Lowes is a store card.  Are you trying to build your credit or get a large amount of cash at your disposal quickly?  Fortunately, credit is a marathon and not a sprint.  The marathon gets even longer when you mess up.

[myfavoritehue]

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@Anonymous wrote:

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@myfavoritehue wrote:

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@Anonymous wrote:

Unfortunately, your car loan added to the diversity (mix) of your trade lines.  Your score may drop even though the loan was paid in full.

Get a Lowes card.  Watch it climb to $25k in no time with minimal purchases.  Other than Lowes, stick to major bank cards with the lowest APRs you can get.

Don't go buying crap you really don't need.

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Isn't the Lowe's card a store card?

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Lowes is a store card.  Are you trying to build your credit or get a large amount of cash at your disposal quickly?  Fortunately, credit is a marathon and not a sprint.  The marathon gets even longer when you mess up.

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Build credit. I don't need the cash. I'm guessing that was why you suggested it.

[thornback]

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@myfavoritehue wrote:

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Yeah, I do understand that AU files are really a short thing and don't hold the same weight as primary tradelines. That's why I asked if it'd be smart to get AU's right before applying for unsecured lines.

My credit history isn't "thin" though. My oldest account is a student loan, in good standing, that's over 7 years old. 

I'm definitely going to take your advice and get a few secured cards. If am able to be approved, how many are recommended to apply for, in a one to three month window? Again, I understand its a long game, just seeking clarity.

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Your student loans, assuming they are in good standing with no negatives, are a huge help as far as history goes.   So good you have them. 

I would suggest apping for Navy first -- you don't need a squeaky clean report to be approved by them (search the forums for NFCU approvals, you'll see).   If you do not qualify for an unsecured card, then open a secured card with them becuase that will set you up nicely for an unsecured card with them - potentially in as little as 91 days - if they don't unsecure your secured card first.  

Take care of that charge-off account (I'd be interested in seeing your reponses to the Qs posed by @MaizeandBlue in a previous post).   

Once you have that charge-off taken care of, either paid or removed depending on the circumstances, then you can check prequals for unsecured cards from short / thin history friendly lenders like Discover, Cap One and Amex.  Granted, the limits may be a bit low at first but they will grow - especially Disco and Amex.  If you still don't prequalify for unsecured at this point, then seek another secured with Disco or Cap One.   Wait 6 months before adding a 3rd card so your chance of obtaining an unsecured card will be greater. 

Not that any two profiles are the same, but just as an anecdote:  I was in a similar situation when I began my rebuild.   I had 11 student loans, 1 charge-off, and no open revolving credit.   I paid the charge-off and opened one $500 secured card.   After 1 month of having the secured card, I apped for an unsecured card with my bank (TD Bank) and was approved for a $5.3K limit (shocker).   A couple of days later, I apped for an Amex revolver and was approved for a $500 limit.     I didn't app for anything else for a year, I just let those three cards age.   After the first year, I apped for a few more cards and closed my secured card (it was a secured card through USAA that would never become unsecured) -- having that secured card for a year set me up to app for an unsecured card through USAA and I was instantly approved for 8K.   

[thornback]

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@myfavoritehue wrote:

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@Anonymous wrote:

Unfortunately, your car loan added to the diversity (mix) of your trade lines.  Your score may drop even though the loan was paid in full.

Get a Lowes card.  Watch it climb to $25k in no time with minimal purchases.  Other than Lowes, stick to major bank cards with the lowest APRs you can get.

Don't go buying crap you really don't need.

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Isn't the Lowe's card a store card?

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Yes, Lowe's is a store card, but, unlike the tradelines you were considering, it's a store card for which you actually have to qualify - they don't just hand them out like candy to anyone with a pulse - AND you don't have to pay nonsense fees and buy useless crap to get one -- that's the difference.  You still have to show some level of creditworthiness to meet their underwriting criteria.   A bank-issued card is still preferred, but a couple of store cards that actually serve a purpose to the consumer (places you would actually shop regularly) are fine.  Just don't go overboard. 

[hawkins]

Op there is not much I can say as it has been already said several times. I implore you to listen to all the advice given this far. People on this forum have a lot of experience credit wise. You say 6 months I won’t auger coat it and that is. Not going to happen. This is a slow marathon not a race. If you pursue these useless jewelry lines, etc.. it won’t really help not to mention as has been already said not look so good in the eyes of many lenders. Slow and easy and in time you will see real results assuming you keep your util low, etc... I wish you luck whatever you decide.