Credit card question

[hopeagain]

Hi Everyone,

I'm new to the boards. I have a long sad credit history that I will share with you all someday. I have been doing so much better and again have some credit cards and a auto loan.

I called hhb to see if I could get a CI and was denied. I have 2 cards with them. One has a $900 limit & the other has $950. They are both PIF. The letter said I didn't use the account enough. 

Then I tried capt 1. I was also denied. The current limit is $500 and I just pay the $3.00 monthly fee. I'm wondering why I can't get an increase. 

Here is a brief rundown:

Capt one  $500 limit  0 balance

HHB         $900 limit 0 balance

HHB         $950 limit 0 balance

BOA      $2500 limit  $20.00 balance

Sams        $500        PIF every month

My auto loan is with BOA @ 4.99 intrest rate

I pulled my FICO scores today

Equifax  714

Experian 808

Trans Union 761

I had one collections (returned check 8/03) that I paid 10/08. When I paid it it really dinged my equifax (faco score).

Thanks for sharing your stories with me.

[Anonymous]

1. Are your scores FICOs or FAKOs?
2. Do you actually have a need or practical use for more credit?
3. How many INQs do you have

The reason that I ask the questions is because it's a terrible time to NOT be using credit and requesting CLIs. Lenders are trying to reduce their exposure to risk, and one of the easiest ways to do that is to reduce the size of unused credit lines. If you're not using the credit lines you're not going to have a whole lot of bargaining power (in current credit environment) to convince the CCCs to put that risk on their books.

Another issue is your high scores (assuming those are actual FICOs). Unless you actually need higher credit lines for purchases, your utilization isn't going to be helped, because you have no balances, practically. You've already maximized on that aspect of FICO scoring.

If purchasing power is an issue leading to your wanting higher credit lines, then my suggestion would be to pick a solid credit union, IF your current ccs aren't less than a year old, and IF you have no (or nor more than 1 or 2) INQs in the last year.

Now, if you want higher lines for bragging rights, and don't really have a practical need or use for higher lines or different cards, I'd say wait until the current credit storm blows over, as you're only likely to get CLD'd eventually for not using the lines... which would negate your bragging rights, LOL! Some people feel very differently about this last point, so please note that this is only my personal opinion.

My only other thought is to congratulate you on having great scores!  

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@hopeagain wrote:

Hi Everyone,

I'm new to the boards. I have a long sad credit history that I will share with you all someday. I have been doing so much better and again have some credit cards and a auto loan.

I called hhb to see if I could get a CI and was denied. I have 2 cards with them. One has a $900 limit & the other has $950. They are both PIF. The letter said I didn't use the account enough. 

Then I tried capt 1. I was also denied. The current limit is $500 and I just pay the $3.00 monthly fee. I'm wondering why I can't get an increase. 

Here is a brief rundown:

Capt one  $500 limit  0 balance

HHB         $900 limit 0 balance

HHB         $950 limit 0 balance

BOA      $2500 limit  $20.00 balance

Sams        $500        PIF every month

@Anonymous auto loan is with BOA @ 4.99 intrest rate

I pulled my FICO scores today

Equifax  714

Experian 808

Trans Union 761

I had one collections (returned check 8/03) that I paid 10/08. When I paid it it really dinged my equifax (faco score).

Thanks for sharing your stories with me.

---

[Anonymous]

Hi hopeagain, welcome to the forums!

Do you have a BK on file? Your scores are very, very good, so you shouldn't have any real problems getting a new account with a respectable CL if you want. When did you start rebuilding?

[Creditaddict]

I would get a citi, discover or amex card.

Your BofA will grow with you if you charge on it and pay it monthly for 6 months or so.

Once you get a few other good prime cards, I would ditch your HHB and Capital one, your scores are far to good for these small little cards.

[hopeagain]

Hi Lil,

Thanks so much for the reply. You are 100% right about not really needing a CLI. I really don't. I guess I'm just trying so hard to improve my score. I have been through a repo/ foreclosure/ unpaid cc's and my life was a nightmare! Now 10 years later I'm coming up from the ashes.

I've been getting faco scores for about a year from privy assist. Today I did my FICO report:

 FACO 1/3/09                         FICO 1/8/09

eq- 704                                    eq 714

ex- 776                                    ex 808

tu- 748                                     tu 761

At some point I would like to get a home again & I thought it may be a way to improve the numbers.

I  do use the cards "sparingly" & keep them paid as I go. I have 3 inquiries from April/08 for a car loan. I got the loan thru BOA  @ 4.99%. A big improvement from 2005 with cap1 auto @ 11.00%.

I thought my credit limits were low for the scores. One thing I didn't think of was my income. I get a small retirement & disability. That may be a factor. I will take your advice and  just keep what I have.

Thanks again for your help.

[hopeagain]

I couldn' afford to go bankrupt at the time. Pretty sad uh?

After 2005 things were removed from my report for SOL. At that time BOA offered me a card with $500. limit, they've increased it from time to time and now it's $2500.

Thanks for your reply

[hopeagain]

"I would get a citi, discover or amex card.

Your BofA will grow with you if you charge on it and pay it monthly for 6 months or so.

Once you get a few other good prime cards, I would ditch your HHB and Capital one, your scores are far to good for these small little cards."

Citi & discover were 2 of my past defaults. I'm afraid to ask them. I have been offered cards with them since by mail offers but I didn't want the credit then.

The BofA has grown since 2005 when I got it.

Thanks

[Creditaddict]

Another poster was able to get 2 citi cards once the old accounts were more than 10 years old.

[Anonymous]

I think that any potential lender for a home loan would see you as a very low/no risk borrower. Your scores (middle score specifically) would net you the best rates available. That you haven't applied for credit, save for car loan shopping almost a year ago, puts you in a great position. And, your credit lines, while low by some people's standards (certainly not all!), wouldn't make the prime lenders nervous about your ability and liklihood of running up tens (or heaven forbid, 100s) of thousands of dollars worth of debt after the purchase of your new home, leading to default and foreclosure.

I think that you should stay the course. You're perfectly positioned, and your BoA card will grow with you. I wouldn't apply for any more credit (that would require a hard inquiry) until after you purchase your home. You're a FICO high achiever, and a huge inspiration. Congrats!

[Anonymous]

I was in a situation where I severely damaged my credit...I was young, given a lot of credit,(but not taught to properly manage it) and then I found myself divorced with a small child and no child support, working 2 jobs and going to school...I had to choose food or pay my credit cards and feeding my child won...10 years later I have managed to rebuild my credit in what really has been a relatively short time...Discover was one of the first credit cards I received back in the day and one of the first that I could no longer afford to pay and eventually defaulted...I applied just this past September online and was denied, but I called the recon number found here and was approved...actually of all my 5 CC, I was only automatically aproved for 2 and was recon on the rest (reason because of lack of revolving credit)...So once you get your mortgage and that stuff sorted, I say apply for that Discover card if you want it, I bet you would get it.