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Applying for credit after a removal

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Anonymous
Not applicable

Applying for credit after a removal

Hey,

 

I have some accounts that are set to drop off of my reports next month. Is there a rule of thumb on applying for new credit after said accounts are no longer shown on my report?

6 REPLIES 6
AllZero
Mega Contributor

Re: Applying for credit after a removal

Were those accounts in good standing or no?

 

If no, I'd recommend waiting to apply until your reports are a little bit cleaner.

Message 2 of 7
Anonymous
Not applicable

Re: Applying for credit after a removal

Yeah, 3 charge-offs. Paid off. 

Message 3 of 7
thornback
Senior Contributor

Re: Applying for credit after a removal

Will you have completely derogatory-free reports at that point? 

 

Clean reports are a bit more sensitive to new accounts - so you may want to limit the number of new accounts you get at once to minimize the score impact - and be prepared to Garden for a year afterwards so the new account penalties can fade (people fail to do this part all the time tho so...). 

 

Other than that, just research before you app.  Decide if you want travel rewards, cash back, or a low apr card (or one of each), if you're willing to pay an annual fee or not (and if so, will the fee be justified or offset by the rewards), and only apply for the cards that fit your spend and will be useful long term - avoid apping for the 'flavor of the month' if you can't make long term use of it. 

 

 

Personal Aphorism:"Forget What You Feel, Remember What You Deserve"
Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 04/2022: EX 796 ✦ EQ 793 ✦ TU 790
Current FICO 9s | 04/2022: EX 790 ✦ EQ 788 ✦ TU 782
2022 Goal Score | 800s

My AAoA:
4.6 years not incl. AU / 4.9 years incl. AU
My AoOA: 9.2 years not incl. AU / 11.2 years incl. AU
Inquiries: EX 0/12 ✦ EQ 0/12 ✦ TU 0/12
Report Status: Clean
Garden Status:  


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 4 of 7
OmarGB9
Community Leader
Super Contributor

Re: Applying for credit after a removal

Also keep in mind that if you want to get back in with those same creditors whose accounts were COd, you may have to wait a long time before they'll let you back in, if ever.


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 5 of 7
Anonymous
Not applicable

Re: Applying for credit after a removal

Yes completely derogatory free. Just waiting on those 3 to drop off so I can really get a better picture of my report. 

thank you for your time today

Message 6 of 7
thornback
Senior Contributor

Re: Applying for credit after a removal


@Anonymous wrote:

Yes completely derogatory free. Just waiting on those 3 to drop off so I can really get a better picture of my report. 

thank you for your time today


Congrats on your future clean reports! Enjoy. 

Personal Aphorism:"Forget What You Feel, Remember What You Deserve"
Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 04/2022: EX 796 ✦ EQ 793 ✦ TU 790
Current FICO 9s | 04/2022: EX 790 ✦ EQ 788 ✦ TU 782
2022 Goal Score | 800s

My AAoA:
4.6 years not incl. AU / 4.9 years incl. AU
My AoOA: 9.2 years not incl. AU / 11.2 years incl. AU
Inquiries: EX 0/12 ✦ EQ 0/12 ✦ TU 0/12
Report Status: Clean
Garden Status:  


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 7 of 7
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