Need Help from Experienced Members UPDATE on Pg2

[takeshi74]

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@Anonymous wrote:

I was recently declined for a Barclaycard and Discover and on Recon both told me the Charge offs from 5.5 years ago from AMEX, Citi and Chase wasn't the main concern since I had paid all them back in full.  The concern both said was that I am not using my credit that is currently extended to me much.

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Your derogs definitely play a part.  Without them the creditors would be less concerned about your usage.  You do not need to let high utilization report.  You need to address your derogs.  Hit the Rebuilding subforum.

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@NRB525 wrote:

This is one area I don't understand the strategy of many others. 

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The "1 balance at 10% or less for optimal scoring" and "never exceed 30%" recommendations are based on how the scoring models work and how utilization is considered a major risk factor.

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@NRB525 wrote:

When building credit, I believe you need to use credit, otherwise, why bother looking to get credit?

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Many assume that to be a major factor.  Usage plays a part but it does not override one's credit and income.  I've received plenty of high limits and CLI's without much usage.

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

Let 30% utilization show 70% will be too much too fast.

Its good for debt purposes that you pay in full each month but they want to see how responsible you are with credit thats prob why they told you no, they cant see how you handle it because you pif it looks like you dont even use or need it.  Just take one card and let 30% keep reporting.

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+1

This is one area I don't understand the strategy of many others. If you want to build a relationship with an existing bank for your credit card, you need to let the statement publish with some amount on the statement, not pay in full prior to the statement.

The banks are justified: "Why should I offer you a $10,000 line of credit, when all I see you using is $100 in any one month? Where's the upside for my bank in swipe fees and potential interest on the no Annual Fee card I'm being asked to issue to you?" You have to look at it from the bank perspective.

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Not sure I understand what you mean here.   If you have a credit card with Bank X, and are trying to build the relationship with X, what shows for THEIR card on the credit report doesn't matter.   Bank X knows all your spending, whether you PIF before statement cut or after (or carry a balance).  They know that you are putting $Y on their card and don't rely on the CR for that.

The whole reporting thing is for OTHER creditors, "I see you are spending a lot with bank X, maybe if I make an attractive offer you will switch to me".

[Anonymous]

Hey I have an update with Chase which was one of the three lenders I had a charge off with 5.5 years ago (also AMEX and Citi).  I payed them all in full about four years ago.  

I went into my chase branch where I have a checking, savings and CD.  I talked to the banker and she was nice and pulled up my info and called into the CC center.  They told her to tell me I wasn't eligible to apply in branch for Slate or Freedom (my old two cards were Providian converted to Chase).  But I was eligible to apply for any others in branch.  I applied for the BP Visa or BP store card (same app I was told).  I go to BP all the time.  I received a pending message at the branch and told to call in.  I called in and the nice woman on the phone said they knew I paid off my CO from 2008 with them and needed documentation of AMEX and Citi being payed off since still on report.  I asked if that would approve me  and she said she couldn't comment.

I faxed the documents this morning of my payoff notice I received in 2009 from AMEX and Jan 09 from Citi.  I received a call an hour and a half ago when I was in the car and told me they received the documents and she was able to approve me for 500 for the BP Visa.  I asked to confirm if it was the Visa and she said yes, so I'm back in with Chase.  Guess it paid off that I paid them back!!!!!

I'm glad to have another big lender besides 4 cards with Cap One and 1 with Wells Fargo.  My parents keep going on and on with me all the time that it's real bad that I have most of my credit through one lender.  Which I thought that didn't matter to FICO.  I guess I need to keep doing more research on these boards.

I'm so so happy thank you everyone for your help.  Time to garden for a year and show responsible use of my lines of credit.

Thanks again!!!!!

[Anonymous]

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@Anonymous wrote:

Hey I have an update with Chase which was one of the three lenders I had a charge off with 5.5 years ago (also AMEX and Citi).  I payed them all in full about four years ago.  

I went into my chase branch where I have a checking, savings and CD.  I talked to the banker and she was nice and pulled up my info and called into the CC center.  They told her to tell me I wasn't eligible to apply in branch for Slate or Freedom (my old two cards were Providian converted to Chase).  But I was eligible to apply for any others in branch.  I applied for the BP Visa or BP store card (same app I was told).  I go to BP all the time.  I received a pending message at the branch and told to call in.  I called in and the nice woman on the phone said they knew I paid off my CO from 2008 with them and needed documentation of AMEX and Citi being payed off since still on report.  I asked if that would approve me  and she said she couldn't comment.

I faxed the documents this morning of my payoff notice I received in 2009 from AMEX and Jan 09 from Citi.  I received a call an hour and a half ago when I was in the car and told me they received the documents and she was able to approve me for 500 for the BP Visa.  I asked to confirm if it was the Visa and she said yes, so I'm back in with Chase.  Guess it paid off that I paid them back!!!!!

I'm glad to have another big lender besides 4 cards with Cap One and 1 with Wells Fargo.  My parents keep going on and on with me all the time that it's real bad that I have most of my credit through one lender.  Which I thought that didn't matter to FICO.  I guess I need to keep doing more research on these boards.

I'm so so happy thank you everyone for your help.  Time to garden for a year and show responsible use of my lines of credit.

Thanks again!!!!!

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Why wouldn't they allow to apply for the Freedom?

[Anonymous]

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@newhis wrote:

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@Anonymous wrote:

Contrary to conventional wisdom, I let the statement cut, then auto-PIF. Every card shows activity on the statements, and it seems to be working

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That should be the normal, only when you want to apply for something you can do the 1 card <10% others at 0%, to get a higher score. I think many people love to have the highest score possible every single month.

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Yes, but we do it not only for our competitive nature, competing against our own previous scores, but also to be 100% ready for any opportunity that pops up.  Suddenly, a bank doubles the sign-up bonus for a card, we can apply seconds latter.  Other people, may have to wait a month until they optimize their utilization or number of cards reporting OR they may apply anyway and risk terms not as good as they would have if they optimized all the time.

There is a plus and a minus to pretty much every strategy, you just have to be aware of the choices and then make a conscious choice.

[MarineVietVet]

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@newhis wrote:

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@Anonymous wrote:

Contrary to conventional wisdom, I let the statement cut, then auto-PIF. Every card shows activity on the statements, and it seems to be working

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That should be the normal, only when you want to apply for something you can do the 1 card <10% others at 0%, to get a higher score. I think many people love to have the highest score possible every single month.

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You're right and there is nothing wrong with that as long as you don't become obsessed with it.

After I reached about 760 or so it became a hobby to see just how high I could get my scores.

But it was always fun and seeking a "perfect score" was never what defined me as a person.

[Anonymous]

Why is this in the approval section?

[Anonymous]

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@Anonymous wrote:

Why is this in the approval section?

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Are you familiar with how moderators "think"?

[Anonymous]

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@Anonymous wrote:

Hey,

I am in the rebuilding stage still credit wise and I guess I have misunderstood what I've read on here.  I know there are many different opinions, so I guess maybe I got confused.

I was recently declined for a Barclaycard and Discover and on Recon both told me the Charge offs from 5.5 years ago from AMEX, Citi and Chase wasn't the main concern since I had paid all them back in full.  The concern both said was that I am not using my credit that is currently extended to me much.   I currently use my cards a lot each month, but I pay them in full before the statement cuts to always show low utilization because I thought that is what I was supposed to do.  My credit score has gone up a lot since I've kept it that way, but the lenders seem to be concerned since they can't see me using it by my reports.

So should I start using 70 percent or so of my credit cards each month for a few months and let the statement cut, then pay in full for two or three months to show I can handle the credit?  After that keep then back down at 0 for a couple months to let my score rebound and then reapply so I am then not declined for high utilization?

I currently have 2 personal cards and 2 business cards with Capital One, a Nordstrom card, CreditOne and Wells Fargo.  I also just completed my final student loan payment and never late.

I guess I messed up by always paying my balances before the statement generated.

(Wasn't sure if this was supposed to be under Credit Cards or Credit Card Applications)

Thank you for your help!

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