New approval but I have questions! I'm trying to rebuild my credit.

[VILF81]

Long story short 

2 years ago I got divorced.  She got the house and defaulted on it.  My credit went down in the mid 500s.  It's been slow getting it back because I only used debit cards for the longest.  Currently I have:

Cap one plat 601 cl

Kay jewelers 2k cl

Quicksilver 2k cl

BJ'S one + 1k cl

My credit scores are 

Ex 632

Tr 617

Eq 626 

I applied for a NFCU card and got approved for a 25k cash rewards. I only have balances on kay and QS because they are 0% for now.  What should I do to start increasing my points? Is it just a waiting game for now? I'm so tired of having to worry about things like high interest on auto loans or things like if I'll even get approved.  

Thanks in advance. 

[Snook_on_the_Line]

First of all congrats on your new navy card with a healthy limit.     

as far as increasing your scores 

the keys to that are going to be making sure to keep your utilization low and make sure you make 100% on time payments.    

there will be a ceiling to how high your scores will go until the negative info from the default age off your reports tho.   

For me with ab unpaid collection it seemed to be around 700.    

[FicoMike0]

Managing utilization will help. The new $25k limit should help aggregate a lot. You don't say how much you have on the two 0% cards. I think you will see points as those are reduced to less than 29% each. With five accounts, you will want to have only two report nonzero. That means pay the others right before they post, is they are zero.

Utilization has no memory, you can run a high balance on the 0% cards until a month or two before you need a better score, then pay both less than 29%.  The next billing period, you'll see the score gain.

[FicoMike0]

Oh, if you're desperate enough, look up ssl on here. If you have no installment loan on your report, it can get you 30 to 40 points. Worked for me.

[VILF81]

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@FicoMike0 wrote:

Managing utilization will help. The new $25k limit should help aggregate a lot. You don't say how much you have on the two 0% cards. I think you will see points as those are reduced to less than 29% each. With five accounts, you will want to have only two report nonzero. That means pay the others right before they post, is they are zero.

Utilization has no memory, you can run a high balance on the 0% cards until a month or two before you need a better score, then pay both less than 29%.  The next billing period, you'll see the score gain.

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Right around 1k on both so they are around 50%  I just didn't want to pay a bunch on them while it was 0% Apr. Had to pay for a wedding ring and they aren't cheap.  

[VILF81]

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@FicoMike0 wrote:

Oh, if you're desperate enough, look up ssl on here. If you have no installment loan on your report, it can get you 30 to 40 points. Worked for me.

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Only other debt I have is a 24 mustang but it was bought at 3.9% for 60

[FicoMike0]

your car loan fills the installment loan slot, forget the ssl. You're loseing points on the 50% accounts, but no point in giving up 0% until you need the points. Maybe start putting money in a high rate savings to pay down those accounts if and when you need to. Capone and amex both have 4.25% savings. You already have accounts with capone, probably already have the app and log on creds. Just add another account.  Btw, if you don't have their checking, they'll bribe you with $250.

https://www.capitalone.com/bank/reward250/

[Rdbeetle]

Congrats on your NFCU approval and great SL!!!

[keekers]

Congrats.

[Snook_on_the_Line]

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@FicoMike0 wrote:

your car loan fills the installment loan slot, forget the ssl. You're loseing points on the 50% accounts, but no point in giving up 0% until you need the points. Maybe start putting money in a high rate savings to pay down those accounts if and when you need to. Capone and amex both have 4.25% savings. You already have accounts with capone, probably already have the app and log on creds. Just add another account.  Btw, if you don't have their checking, they'll bribe you with $250.

https://www.capitalone.com/bank/reward250/

i just opened an Amex high yield savings it was super easy to open online and fund by linking my checking account at Wells Fargo.     

one thing to keep in mind tho is that these accounts are true savings accounts.     That means you're limited to six withdrawals per month.

also you  get no atm access, transfers to and from external accounts take 4-5 business days to clear, and there are no physical branches.   

so keep in mind that if you open this kind of account to save money in to pay your 0% cards before the 0% expires that you will need an extra week to get your money into your  checking to make the payments. 

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