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Did I make a mistake getting a rebuilder?

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Anonymous
Not applicable

Did I make a mistake getting a rebuilder?

Here is a brief rundown of my recent credit experience. Got my credit score high enough to obtain a mortgage 06/2014, was offered to refi at a lower rate in April 2015, prior to my knowledge of this site. Saw my score "shoot up" to the low 600's and got excited and went on a (mostly Comenity/Synch) app spree. I would have done things differently if I would have read these forums thuroughly! So I got excited when I got a pre-approval in the mail from First National Bank (not FNBO, even though I thought it was) for the Legacy Visa with a credit limit of up to $1500 for a $75 annual fee.  So I bit and was approved for $500. Should I have not done this? Will it hurt my chances with other prime lenders? I do know I have a ton of store cards and I shot my AAOA.

 

Current Scores: Walmart - 674, Cap 1 - 620, CK - TU 672 & EQ 658

 

So here is my current line up with open dates & limits:

 

Cap 1 QS1 - $2000 - 03/11

Cap 1 QS1 -$570 - 05/11 (was Orchard Bank)

Barclay Rewards - $1500 - 05/15 (had to recon)

Matrix Discover - $300 - 03/13

 

Crate & Barrel - $8500 - 05/15

Express - $500 - 05/15

J. Crew - $900 - 05/15

Pier 1 - $2000  - 05/15

Pottery Barn - $6400 - 05/15

West Elm - $5600 - 05/15

Z Gallerie $4000 - 05/15

Overstock - $1800 - 05/15

Macy's - $600 - 06/15

Kay Jewelers - $4000 - 02/14

Kohls - $1500 - 06/14

Amazon Store - $3500 - 05/15

Walmart Store - $3500 - 05/15

Banana Republic Store Card - $5000 - 05/15

Gap Store Card - $5000 - 05/15

Old Navy Store Card -$5000 - 05/15

Message 1 of 18
17 REPLIES 17
Anonymous
Not applicable

Re: Did I make a mistake getting a rebuilder?

i would say yes you made a mistake but is too late to think twice about it now.  just garden til your scores are mid to high 600 and go for some prime cards and close the crap one. 

Message 2 of 18
jim44
Established Contributor

Re: Did I make a mistake getting a rebuilder?

+1.  In your case it might have been overkill.  However I recieved an offer and I've had this card since 2010.  Except for the high interest rate... I PIF...and the annual fee of $75, it's been a great card. Regular CLIs that are offered, and a grace period on purchases. No set up fees etc... and they report to all three.

 

Message 3 of 18
ceejx
Established Contributor

Re: Did I make a mistake getting a rebuilder?

I wouldn't call it a mistake.. I got a capital one rebuilder with an AF when I first hit 600s and I'm glad I did, got a start on an active positive tradeline then closed it when the AF hit after I got better cards
Message 4 of 18
Anonymous
Not applicable

Re: Did I make a mistake getting a rebuilder?

These are way too many store cards. But the damage is already done. Don't apply for anything new until you age these for 6 months and your scores are higher. Put some spend on your QS and Barclay's cards. Cap 1 especially rewards spend with good CLI every 6 months.
Message 5 of 18
Anonymous
Not applicable

Re: Did I make a mistake getting a rebuilder?

Maybe I should reword that. Am I going "backwards" after being approved for Barclay Rewards and getting better CLIs from Cap 1?

Message 6 of 18
Anonymous
Not applicable

Re: Did I make a mistake getting a rebuilder?

Thanks Jim! I appreciate the feedback. I looked on here for info on the Legacy Card and there was not much.

Message 7 of 18
Anonymous
Not applicable

Re: Did I make a mistake getting a rebuilder?

These are way too many store cards. But the damage is already done. Don't apply for anything new until you age these for 6 months atleast and your scores are higher. Put some spend on your QS and Barclay's cards. Cap 1 especially rewards spend with good CLI every 6 months.
Message 8 of 18
CH-7-Mission-Accomplished
Valued Contributor

Re: Did I make a mistake getting a rebuilder?

FNBO is conservative but they give nice high credit limits over time.  Have you contacted them about waiving the annual fee or doing a product change to a better product?

 

They just gave you a basic card because that's what your profile supported.  I don't think it had anything to do with your store cards.  It likely had most to do with your FICO score at the time you applied.

 

Sometimes the only way to get beyond these crappy rewards/high fee cards is to apply for a better card with that same lender if they won't PC the old one or waive the fees.  I don't think at this point I would pay them $75/year when you don't have to.  But call them first.  And consider applying for one of their different cards if they won't PC it -- if you have had that card for two years when you apply for a new one.

Message 9 of 18
CH-7-Mission-Accomplished
Valued Contributor

Re: Did I make a mistake getting a rebuilder?

I would dump that Matrix Discover card.  That is the worst card in your whole portfolio!

Message 10 of 18
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