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Ready to Jump out of Garden...I think?

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Established Member

Ready to Jump out of Garden...I think?

Hello all,

Long time lurker, first time poster!  I've read a lot of helpful info on these boards, and for that, I thank you.

 

I think I'm ready to jump out of the garden, but I'm not positive if I should pull the trigger on a HP.  Anyway, about 4 years ago, I started running into credit issues.  To make a long story short, I had several credit cards closed, collections, etc.  I did not go into bankruptcy but am paying everything back through a Wisconsin Chapter 128 (kind of like a debt amortization, but not bankruptcy).  I have about 8-9 months left before everything is paid off.

 

I currently have a $300 secured card with Wells Fargo that I've had 100% positive payment history on since December 2015, and only 1-2 inquiries for each bureau.  Credit Karma/USAA show Vantage Scores of 678 Ex, 714 TU, Wells Fargo shows a BankCard Score 2 of 648, and Discover says FICO 8 is 604.  I've basically plateaued over the last 3 months and am ready to try something else.  I have multiple paid collections, a few of which are going to fall off in a 6-12 months, and one open collection that will be paid in the next month.  I have one closed credit card showing 49% utilization that is being paid on every month. 

 

I was thinking of applying for a Capital One card, since they're showing (and sending) me prequals for their Platinum and Quicksilver One cards, but I'm not sure if I should wait a little longer until the closed credit card has a better utilization rate?

Message 1 of 20
19 REPLIES
Established Member

Should I pull the trigger?

Hey all,

My last post disappeared, so I'll try again.

 

I've been actively working on repairing my credit since August 2015.  I started with a Vantage Score of 492 when I opened a Wells Fargo secured card with a limit of $300 in December 2015.  Since then, I have paid most of my collections/credit cards that were closed (with the exception of one closed card that has a utilization rate of 49%, being paid on every month), and my scores have risen to 678 Ex and 714 TU (Vantage Score), 648 (Wells Fargo FICO BankCard Score 2), and 604 (Discover FICO 8). I have 1-2 inquiries in each bureau, and a 100% positive payment history and very low utilization on the secured card, plus I am listed as an authorized user on my dad's Capital One Platinum card (100% positive history and low utilization since April 2012).

 

My scores have plateaued and I'm wondering where to go next.  Should I apply for my own Capital One card?  Their site says I'm prequalified for the Platinum and Quicksilver One cards.  Or should I wait until the closed card shows a lower utilization?

Message 2 of 20
Senior Contributor

Re: Should I pull the trigger?

The closed card is showing a maxed out utilization, not 49% -- if it reports a credit limit of $0, ANY balance is going to max it out and really ding your scores.

 

I recently had a new account post with a maxed out balance (surprise to me as I was expecting another month to report) and my scores dropped 20ish points across the board.  So paying that one tradeline to $0 will help you probably 15-20 points.

 

How many open credit card accounts are you reporting?

 

Do you have any installment loans reporting?

Message 3 of 20
Established Member

Re: Should I pull the trigger?

The closed credit card is still showing a $4750 credit limit, and it has been closed since 2014.  I'd like to get it paid off, it's currently part of a Wisconsin Chapter 128 plan (it's like a debt amortization, not a bankruptcy) that will be completed by next July.

 

So far, 2 open credit card accounts (one secured, one being an authorized user), no open installment loans, but 7 closed installment loans, 5 of which have perfect positive history, 1 with a couple of lates, and one was a charge-off that was paid.

Message 4 of 20
Established Contributor

Re: Ready to Jump out of Garden...I think?

I would work on your utilization first.

Message 5 of 20
Community Leader
Super Contributor

Re: Ready to Jump out of Garden...I think?


arabianobsession wrote:

Hello all,

Long time lurker, first time poster!  I've read a lot of helpful info on these boards, and for that, I thank you.

 

I think I'm ready to jump out of the garden, but I'm not positive if I should pull the trigger on a HP.  Anyway, about 4 years ago, I started running into credit issues.  To make a long story short, I had several credit cards closed, collections, etc.  I did not go into bankruptcy but am paying everything back through a Wisconsin Chapter 128 (kind of like a debt amortization, but not bankruptcy).  I have about 8-9 months left before everything is paid off.

 

I currently have a $300 secured card with Wells Fargo that I've had 100% positive payment history on since December 2015, and only 1-2 inquiries for each bureau.  Credit Karma/USAA show Vantage Scores of 678 Ex, 714 TU, Wells Fargo shows a BankCard Score 2 of 648, and Discover says FICO 8 is 604.  I've basically plateaued over the last 3 months and am ready to try something else.  I have multiple paid collections, a few of which are going to fall off in a 6-12 months, and one open collection that will be paid in the next month.  I have one closed credit card showing 49% utilization that is being paid on every month. 

 

I was thinking of applying for a Capital One card, since they're showing (and sending) me prequals for their Platinum and Quicksilver One cards, but I'm not sure if I should wait a little longer until the closed credit card has a better utilization rate?



Closed accts with a balance are hurting you. Get that paid off first, and get your scores up to at least a mid-600's range before thinking of any apps. Is there any way you could waut till your 128 is done in repayment, and your closed card with a balance is paid ?  Sounds like your scores will be in a better postiion, as well as your reports to apply for anything. 

 

Welcome to the fourmsSmiley Happy


Scores held down by umpteen INQ & New accounts, and a paid off loan and new loan reporting.
Message 6 of 20
Senior Contributor

Re: Ready to Jump out of Garden...I think?

Closed cards with balances always report maxed out utilization as the credit limit is actually $0, so any value over $0 = maxed out.

 

Pay it off, then jump out of the garden once you get your new FICO scores after your reports update.

Message 7 of 20
Established Member

Re: Ready to Jump out of Garden...I think?

The frustrating thing is, it's a part of the Chapter 128 that won't be completed until next July, and I can't "favor" one creditor over the other by paying it off first.  So I either have to wait until next July (way too long IMO), or take my savings and put it towards paying off the Chapter 128 (about $12,500 total left on it).

 

My scores have stalled out quite a bit since May, so I'm not sure how much it will change with the utilization going down (now showing 46% utilization, no change in scores).  I'll wait another month or two and see what happens.  I wish Wells Fargo would unsecure my card, but sadly I think I'm in the camp that will be paying that annual fee forever.

 

As for the utilization, it shows a specific percentage, and not maxed out, because the creditor didn't zero out my credit limit after closing the account (back in 2014).  It still shows as having a $4750 limit, thus the non-maxed out utilization.  So not sure what's up with that?

Message 8 of 20
Contributor

Re: Ready to Jump out of Garden...I think?

Utilization is a big deal, but I have found that people on this site seem to think that creditors will not give credit to people over 9% or 30% (different people have different numbers). I have consistently been approved with high utilization, and any denials I have gotten have cited other reasons. That being said, I have perfect payment history, baddies of any kind. At this point, I think it would be worth it to app for one of the cards you are prequalified for. If you're denied you can try again in 6 months, which is the exact spot you would be otherwise. And with so few INQs, I doubt 1 more is going to hurt you that drastically. 


Message 9 of 20
Established Member

Re: Ready to Jump out of Garden...I think?

Also interesting to note...I'll have to call the creditor because after just logging into Credit Karma they are all of a sudden reporting the card as open again?  That doesn't make any sense, it's been closed for years.  Well, I should say Equifax is now reporting it as open, TU is still saying it's closed.  *scratches head*

Message 10 of 20