Need advice... Recently paid off a bunch of debt, now time to app!

[sterl1002]

Hello! 

I have a interesting history with the forums. Back in 2014 I discovered myFICO and lurked and lurked, then eventually posted a handful of times. I learned about scores and points and apps, even snagged my first Amex (then PRG) and BCP based on y'alls advice! I had a plan to pay off my debt, but fell off the wagon (and ended up accruing more :-( ). Fast forward a few years, and while Amex backdating and the value of the Barclay Arrival may have left forever, I'm back baby!

Regarding the aforementioned debt, I got into some bubbly water last summer and ended up missing some bills. The worst being a 60 day late on my CSP, which Chase chose to close immediately. Recently, I started a new job that's much higher paying and has allowed me to kill this CC debt. I've gone from a nadir of a 570 EQ score when I was hit with the 60 day late and ~$32k in debt with 95% util to a 702 and $11k with 20% util. In a few weeks I'll be at $0, below 8% util, and hopefully a score in the 720's-740s. I intend to maximize my scores before apping, so I'll wait until everything is paid off before the new app. I'm looking for a card that both earns points on travel, and has points that can be redeemed for travel. Below is my profile. 

Credit Cards: 

Chase Freedom: $3628/4000 (targeted for payoff in Aug)

CSP remaining balance $3826/0 (limit was $6k before closure, targeted payoff Sept.)

Synchrony Mattressfirm Financing $731/2500 (targeted for payoff in Aug)

Citi AA Platinum: $101/$3700 (recently was invited by citi to do a soft pull CLI which bought it up to $3700 from $2500)

Citi AA Financing Card $0/500

Capital One Platinum: $0/1500

Barclays Apple Financing Card $0/1500

JC Penny MasterCard $0/4000

Macys Store Card $0/1000

Synchrony Amazon: $0/1500 

Bank of America $0/4000 

Amex BCP $532/2000

First Financial Bank $0/$4800

Amex Gold NPSL (I had a cap put on by Amex after FR a few years ago. Two months ago after letting me go above the cap a few times and updating income they finally took it off and it became NPSL again.)

Installment loans: 

US Senate CU $912 /1000 (target payoff Sept)

Transportation CU $2022/4000 (target payoff Aug)

Student loans: 

Over $200k for undergrad and grad school. Next target after CC debt. 

Baddies: 

Chase Freedom 30 day late (12/2017)

CSP 30 day late 6/18, 7/18

CSP 60 day late 8/18

The CSP closure by Chase (but they kept my Freedom open) 

AAoA: 8 years, 11 months

Oldest account: 14 years 

Inquiries: 1 (the Transportation FCU loan) 

Most recent account age: 6 months (same loan)

Current CC util 24% (my Citi payoff and new CL hasn't hit the bureaus yet, Citi was at 95% util) 

Scores: 

myFico EQ 702 

Amex EX 683

Income: $130k 

Spending pattern: 

Most of my spend is at restaurants and on travel (Uber/Lyft/public transit). I use the Amex for restaurants and groceries (Amex works well because I have a corporate amex for work, thus can combine MR points), but I'm looking for something to fulfill the travel gap. I'd like to use the points towards airfare or hotels for my once annual vacation. 

Thoughts: 

My immediate thought was the CSR, however given I have an account Chase closed a year ago, I doubt I'd be approved for CSR (unless you think otherwise?). I also don't have any CLs above $10k, which adds to that being a stretch goal. Also doubt I could get the CSP again (even though it comes up for me in cardmatch). I tried for soft pull CLIs on most of these cards and were denied because the scores they were using were old (looking at the scores Synchrony was using a pull from early April!) Amex used a score from May so now the 90 day clock has been set. So I was thinking of doing one of the below, or maybe a combination of: 

A - Try for the Citi premier (despite the downgrade of benefits).

B - Once the Transportation FCU loan is paid off, trying for card from them and hoping for a limit over $10k since they're my primary bank, then trying for CSR down the road. 

C - wait a few more months for new softpulls. 

Welcome any thoughts you guys and gals have! 

[Anonymous]

A - Try for the Citi premier (despite the downgrade of benefits).

B - Once the Transportation FCU loan is paid off, trying for card from them and hoping for a limit over $10k since they're my primary bank, then trying for CSR down the road. 

C - wait a few more months for new softpulls. 

D. - put the brakes on and concentrate on growth of CL's pre-debt levels / RED FLAG on the CSP closure for the 3 LATE payments.

I wouldn't be applying for anything at all.  I would concentrate my efforts on CLI's at this point... the Late's are going to be a pain point until they age when it comes to approvals.

[sterl1002]

Thanks O-E. When the closure happened last year my util was at around 100% and my income about half of what it is now, which is probably what set them off. That being said, not apps until everything is paid of and I try growing what I have. Is there a way to figure out when companies do SPs? Like I mentioned in my original post, Synchrony last SP'd my report 3 months before the recent paydown and CLI request, therefore it was denied for high util (which then was in the 90s and as of this month is at 28% and falling). So far I've been relying on checking my FICO score from each lender and counting on that being their last pull. I want to avoid pulling the CLI trigger too soon, getting denied, then having to start a 90 day clock to wait and retry. 

Thanks again for your advice! 

[Meanmchine]

I suggest checking out the credit rebuillding area for more personalized responses.  A 60 day late is going to be a major obsticle for you credit wise for at least the next 2 years

Good luck

[Remedios]

Your derogs are very recent. I doubt you'll have much luck with any application at this time, plus the high utilization. 

I would wait till everything is paid off and more time passes since your last late. 

Not to sound rude, but I also doubt CSR is happening any time soon. They just closed it's little sister. I would not poke that bear any time soon unless you're willing to risk having Freedom yanked away, too.  I would put in every effort to pay it off as soon as possible to avoid balance chasing. You already have one late on it, and obviously, you're on their radar. 

Good luck with whatever you chose to do 

[jimmy2000]

Pay off the cards.  Continue using the ones you already have and pay in full each month and keep your utilization <10%.

Buckle down for a few years and tackle the student loans because they are very dangerous debt.

Applying for new cards and getting limit increases is like a fat person trying to lose weight buying a cake and saying they won't eat it.

[swpopham]

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@jimmy2000 wrote:

Pay off the cards.  Continue using the ones you already have and pay in full each month and keep your utilization <10%.

Buckle down for a few years and tackle the student loans because they are very dangerous debt.

Applying for new cards and getting limit increases is like a fat person trying to lose weight buying a cake and saying they won't eat it.

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Thats exactly right, pay off your cards first, installment loans 2nd and then start paying on your Student loans, You do not need to get any more credit. Use what you have and develop a positve relationship with your lenders. 

[sterl1002]

Thanks everyone. As I mentioned in the initial post I won’t be applying for anything once all the cards and installment loans are paid off, which will occur in the next two months. I am currently paying my student loans and only put living expenses I can’t avoid on cards (work expenses I’m reimbursed for, the occasional once a week dinner out, groceries, work lunch), which I then PIF every month in addition to paying off my existing card debt. I’d be doing the same with any new credit and won’t be carrying any new balances. I was looking what to do after cards and installment loans are paid off. I’ve established responsible spending habits in the years since the initial CC debt was acquired, so I’m not worried about falling back into the hole again.

I think I have a pretty established relationship with all my creditors. Except for the cap one and one installment loan, every card is from 2014 or earlier. AAoA is sitting at 9 years right now.

I’m working on the student loans, but that’ll take several years, even putting everything I have towards it.

I also realize this is drifting into a credit rebuilding thread, and that’s another forum. Thanks again for the advice. I’ll hold off on anything for the next few months until everything is paid off and see where my scores are at then.

[sjt]

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@sterl1002 wrote:
Thanks everyone. As I mentioned in the initial post I won’t be applying for anything once all the cards and installment loans are paid off, which will occur in the next two months. I am currently paying my student loans and only put living expenses I can’t avoid on cards (work expenses I’m reimbursed for, the occasional once a week dinner out, groceries, work lunch), which I then PIF every month in addition to paying off my existing card debt. I’d be doing the same with any new credit and won’t be carrying any new balances. I was looking what to do after cards and installment loans are paid off. I’ve established responsible spending habits in the years since the initial CC debt was acquired, so I’m not worried about falling back into the hole again.

I think I have a pretty established relationship with all my creditors. Except for the cap one and one installment loan, every card is from 2014 or earlier. AAoA is sitting at 9 years right now.

I’m working on the student loans, but that’ll take several years, even putting everything I have towards it.

I also realize this is drifting into a credit rebuilding thread, and that’s another forum. Thanks again for the advice. I’ll hold off on anything for the next few months until everything is paid off and see where my scores are at then.

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Congrats on paying off that debt. That is a huge accomplishment and that shows that you are handling your finances responsibility.

I would continue to hold off applying for any new cards for at least 6-12 months. Let your current accounts age and let those lates dimish its negative impact. My recommendation is to continue to focus on paying your student loans and try to find ways to make additional payments.