COSTCO TrueEarnings Card: should I apply now?

[brother7]

I'm repairing my credit.  FICO scores are in my signature.

I have 1 credit card.  About 6 months ago, there was one 30-day late payment; otherwise I'm on time for the past 2 years. I'm at 70% utilization, 3-month goal of paying it off completely.

I have one deragatory public record, a federal tax lien.  However, I have the Release of Federal Tax Lien document, filed it with my local recording office, and filed a dispute with all 3 CRAs.  Still waiting to hear back from them.

I heard I should have 3-5 lines of credit to boost my credit score. Therefore, I'm looking to apply for 2-4 more credit cards.

My questions are:

1.  With my current scores and financial picture, is it safe to apply now without fear of rejection?  Or should I wait till the deragatory public record gets removed and/or my credit utilization declines?

2.  If I need to wait till my credit utilization declines, at what level would it be safe to apply?

3.  If I apply for 2-4 more credit cards, should I do it all at once, or spread it out over time?  I understand the more credit inquiries, the lower my credit score will go.

Thanks in advance for all responses and advice.

[cobaltnv]

Especially with AMEX I would wait until the lien is removed AND you have paid off your current balance. 70% utilization is high and AMEX will not like that. I would also try to get the 30 day late removed. SOmetimes if you have a good payment history the credit card company will remove the 30 lates with a phone call. If they will not start sending some GW letters.

[cobaltnv]

By the way--Welcome to the forums!

If you have not already done so I would recommend reading some of the threads found in teh "helpful threads" post at teh top of  the main page. Specifically "Credit scoring 101". 

Message Edited by cobaltnv on 02-13-2009 01:32 PM

[oracles]

Hi brother and welcome to the forums

First-

I hope you understand the truecredit score you have in your signature is not a fico score. It is a fako score.

Please read the threads located in helpful threads link located in my signature. It will discuss fico vs. fako.

If you want a fico TU score, you can purchase it here or go to Transunioncs.com

If you purchase it here, Google myfico discount and you can receive a code to use for a % off.

Second-

Definitely wait to get the tax lien off your report. That is a major killer to your report. Not many CCC will approve due to this. Also definitely get your util% down to at least under 10%. This will increase your score.

You should try for a store card to give you extra points for a mix of credit. Macy's is a very good card but get one that you would shop from.

I agree with Cobalt, you should also try to goodwill that 30 day late off your report. You never know unless you ask.

Put yourself in a proper position to apply and by doing these things, you will be a greater position to apply.

As far as applying all together, maybe you should apply for 2 once you have done the above and then maybe 6 months later apply for 2 more, however you don't need that many for scoring purposes.

As long as you keep util% low and payment history good, you are golden.

Hope this helps and keep us updated

[haulingthescoreup]

I wouldn't even think of apping at this point.

Your util is still waaaaaay too high, you have a 6-month-old late, and the lien is still displaying. And you're looking at a notoriously tough card to get.

I wouldn't try for this particular card until your late is 12 months old and your util at 9% or less, and the lien is gone from all three reports. You might try someone else like Bank of America when the late hits 9 months old, but frankly, I'd still wait. Not only are the chances of approval increased by waiting for the 12 month mark, but you'll get better deals by waiting --higher CL, lower APR, better rewards.

As for timing your apps, I did mine all at once, 5 on one day. (They all hit 1 year old in a couple of days. ) The moment you hit "apply" for a card, that inq goes on your records, but the actual account will probably be delayed a day or more. And remember that the inq only shows on the report(s) that they pulled, so be strategic about your choices. Spread your apps out among the bureaus, and if you're going for a card that hates inqs (think PenFed), app that one first, so that they won't be scared off. Research, research, research, and plan it all out before you get rolling. hth