App spree...what next?

Anonymous · ‎09-23-2011

I am in the process of repairing both mine and my dh's credit. Mine still stinks, but his is getting better by the day.

He only had a $320 limit Orchard Bank. I know...I know. Will cancel this one before the next annual fee is due.

Regardless...FAKO scores (USAA) are EX 711 EQ 624 TU 684

So today I (he) applied for an received:

Walmart $800
Barclays Apple $1200 (actually like $1158 or something like that...weird)
Kohls $600
Amazon $900

Not too shabby considering scores were hovering around 500 before I started repairing a little over a year ago.

So what should we do next? Just let these garden for a while (how long?). He needs a rewards card.

Anonymous · ‎09-23-2011

The reward cards are harder to get in general.

The inquiries stay on your report for 2 years, but are no longer taken into account for scoring purposes after 1 year.

I would wait 1 year and then apply for a rewards card.

Try to make sure your overall utilization is kept at less than 10% each month. I pay all of my cards in full and then only leave1 card reporting 1-2% utilization for reporting purposes. Thus, you almost want to pay off the entire balance before the statement cuts, and leave less than 10% reporting. Reporting a low utilization is key for rebuilding as it shows that you are using the cards yet are being responsible with payments. And of course, never be late. This should improve scores even more, and hopefully set you up for a rewards card next year!

Guava · ‎09-23-2011

I would garden for at least 6 months and buy FICO scores to see where I stand then

Starting Score (08/11/11): TU08: 643
Current Score: TU08: 741
Goal Score: Stay in the 700s; keep reports clean

Take the FICO Fitness Challenge

xlr8d · ‎09-24-2011

^ like he said

garden for a year

Starting Score: EQ 515 TU 490 EXfaco 510
Current Score: EQ 660 TU 665 EXplus 661
Goal Score: 700

Take the FICO Fitness Challenge

Anonymous · ‎09-24-2011

Thanks all...I will definately be gardening now!

KIPPIE12 · ‎09-24-2011

I would wait at least 6 months, preferably a year before next app. Applying for multiple credit cards all at once is called bust out, and would likely trigger AA from other creditors if you keep going. Let your new accounts age with some strong payment history.

mxp114 · ‎09-25-2011

I just went on an app spree and have four new approvals that have yet to report. I hope none of my lenders decide to take AA