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How soon is too soon to apply again?

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Super Contributor

Re: How soon is too soon to apply again?


@Hut1 wrote:

@Brian_Earl_Spilner wrote:

@Hut1 wrote:

Thanks for validating how I was feeling. I see so many contributors, yourself included, who have a ton of cards. I have no idea how you guys handle them all! Is 3 CC's enough for my overall credit health? Especially if I can negotiate a CLI down the road?


You can get a perfect score with 1 card.


I have so many questions. Lol.


You're in the right place








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Message 11 of 34
Established Member

Re: How soon is too soon to apply again?

I keep thinking the best thing to do is chill. Let the late payments fall off and the CC's age, but hubs is a know-it-all and pushy. Kinda like, don't lose the momentum. My only worry is about the credit mix since that's the only thing I have control over. I can't make late payments fall of quicker or fast foward 4 yrs to age. Seems silly to penalize someone who doesn't need a loan of sorts.


FICO8 as of 09/2019
Message 12 of 34
Frequent Contributor

Re: How soon is too soon to apply again?

Congratulations on becoming a member with Navy Federal. They are an excellent credit union.

As mentioned up thread, take the methodical approach when you apply for a credit card. Research the card you want before you apply. See if it benefits you and your spend. Spread out your applications and let your accounts age.

It is good to diversify lenders. You will come to notice some members have multiple cards from the same lender. Navy, You're allowed 3 cards max.
Message 13 of 34
Frequent Contributor

Re: How soon is too soon to apply again?


@Hut1 wrote:

I keep thinking the best thing to do is chill. Let the late payments fall off and the CC's age, but hubs is a know-it-all and pushy. Kinda like, don't lose the momentum. My only worry is about the credit mix since that's the only thing I have control over. I can't make late payments fall of quicker or fast foward 4 yrs to age. Seems silly to penalize someone who doesn't need a loan of sorts.


Your credit mix is fine. You have revolving accounts(credit cards) and an installment loan (student loans) reporting.  All you need is time now. 

Personal Credit -
AMEX: Platinum, Green, Cash Magnet, Schwab Investor
PNC: Cash Rewards
NFCU: Flaghship Rewards, Cash Rewards, More Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
Store Cards: Target
AU Cards: Citi Rewards+

Business Credit-
AMEX: Blue Business Plus, Amazon Prime, Simply Cash Plus
Message 14 of 34
Valued Contributor

Re: How soon is too soon to apply again?

Ultimately, what a person needs to improve their FICO scores and build credit are three open credit cards (secured or unsecured) in good standing and one open installment loan in good standing such as a car, home, student, personal, share secured, or credit building loan. This combination is what the myFICO score theorists here have determined is what you need for optimal credit building and FICO score. You can have more CCs and more installment loans, however, this will not increase your FICO scores.

Next, (this is only important if you are attempting to purchase a large ticket item like a home or car) is paying in full all of the credit card balances each month, before the posting date, except one. This is called the All Zero Except One (AZEO) method. The one credit card you allow to post a balance needs to be less than 8.9% of the credit limit of the card. So using one card each month to buy lunch, letting it report and then paying in full will maximize FICO scoring. Keeping your utilization of your cards below 28.9% both individually and collectively will prevent you from incurring a FICO scoring penalty.

An installment loan will have its greatest impact on your FICO score when the amount owed is at 8.9% or less of the original amount owed which is usually in the final months before the loan is paid in full. If you don't have an installment loan you can check into Self Lender or a Share Secured Loan at a Credit Union.

Keep in mind, building credit is a marathon, not a sprint. It involves demonstrating to a potential creditor that you can handle credit responsibly. If you have open, active credit accounts that are being paid on time and pay all of your bills on time every time, apply for credit only when you actually need it and use credit cards sparingly maintaining low credit utilization, then you’re going to earn and maintain great credit scores. It would be impossible for you not to do so. This is the fastest way you can build good, solid credit.

 

Let your current tradelines age and increase your average age of accounts. No new hard inquiries which mean no new applications. Work on credit line increases that only require soft inquiries. Reduce the balances on your cards. Take care of any derogatories on your credit bureau files. Try to negotiate lower APRs on your credit cards. This is what credit gardening is all about.

 

When you are digging yourself out of debt, you need a buffer from getting deeper into debt. An emergency fund can keep you afloat in a time of need without having to rely on credit cards or high-interest loan.

An emergency fund is a savings account with money set aside to cover large, unexpected expenses such as an emergency room visit; home-appliance repair or replacement; major car repairs; and the most costly of all, unemployment.

How much should you put aside? The rule of thumb is to have enough cash to cover three to six months of living expenses. If you lose your job you can use this money to pay for necessities while looking for a new one or the cash could supplement your unemployment benefits.

To figure out how much you should have in your emergency fund, add up your monthly bills: rent or mortgage payment; utility payments such as gas, electric, water, garbage; phone, cable and internet; insurance payments such as car, health and home; transportation costs such as car payment, gas, public transit; debt payments such as minimum credit card and all loans except for mortgage; grocery expenses; and other recurring monthly expenses.

Having even $500 saved can get you out of many financial scrapes. Put something away now, and build your fund over time.

How to build up an emergency fund -
- Start a budget and set a monthly savings goal - set up direct deposit to an emergency savings account.

- If there is money left at the end of a pay period, move some into your emergency savings account.
- If there is no money left, cut your expenses. Don't eat out, save leftovers, bring lunch to work, bring coffee from home, spend evenings at home and carpool.
- Get a second job or sell unused belongings to build your emergency savings account.
- Continue to assess your financial situation and adjust accordingly.

Nearly 80 percent of American workers say they’re living paycheck to paycheck, according to a recent survey. Remember that credit is a tool and relying on credit cards for funding emergencies is no different than relying on a gun for when you need cash. Both can be dangerous if not used wisely.

 


















Your FICO credit scores are not just numbers, it’s a skill.

Message 15 of 34
Frequent Contributor

Re: How soon is too soon to apply again?

For bedtime reading, I would recommend Navy Federal Thread for CLI and Additional Cards

Message 16 of 34
Established Member

Re: How soon is too soon to apply again?


@AllZero wrote:
Congratulations on becoming a member with Navy Federal. They are an excellent credit union.

As mentioned up thread, take the methodical approach when you apply for a credit card. Research the card you want before you apply. See if it benefits you and your spend. Spread out your applications and let your accounts age.

It is good to diversify lenders. You will come to notice some members have multiple cards from the same lender. Navy, You're allowed 3 cards max.

I love NFCU. I've been banking with them for 4 yrs now and their CSR's are phenomenal. When I called in to ask about the CC options, the rep responded with, "we've been waiting for you to call in. This has been a suggestion on your profile for the last year. lol. I'm hoping I'll like Cap1 just as much. 


FICO8 as of 09/2019
Message 17 of 34
Established Member

Re: How soon is too soon to apply again?

You guys have been fantastic and I can't thank you enough! I will definitely be cruising these boards often. 


FICO8 as of 09/2019
Message 18 of 34
Established Member

Re: How soon is too soon to apply again?


@AllZero wrote:

For bedtime reading, I would recommend Navy Federal Thread for CLI and Additional Cards


*gasp* Bless you!


FICO8 as of 09/2019
Message 19 of 34
Frequent Contributor

Re: How soon is too soon to apply again?


@Hut1 wrote:
I love NFCU. I've been banking with them for 4 yrs now and their CSR's are phenomenal. When I called in to ask about the CC options, the rep responded with, "we've been waiting for you to call in. This has been a suggestion on your profile for the last year. lol. I'm hoping I'll like Cap1 just as much. 

Lol. The CSRs where probably thinking why it took you so long. Usually, new members join and apply for a card right away. It's good you waited. You were rewarded with a very healthy starting credit limit.

 

Capital One has a nice user interface. You can set up your alerts and it's real time.

 

If you haven't done so all ready, set up your autopay as backup to avoid any late payments.

Message 20 of 34
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