Feeling frustrated with stagnant credit. Waiting for NFCU secured card graduation

[Anonymous]

I am new to this forum, but MAN OH MAN do I wish I had known about it sooner. I did a lot of damage to my credit after a big break up a few years ago and just started living off the credit grid so to speak. I started rebuilding last year with scores in the high 400s (terrible, I know). My first step was to get with Navy and I applied for a secured card. I was astonished they even considered me for it based on my history but they came through and I was ecstatic. I paid off some of my baddies as well as disputed things that were incorrect and by July my scores were EQ 598 and TU 620! I decided to purchase a new car so I would have something reliable. Navy Federal approved me for my auto loan and I took a hit to my credit but I feel the ends justified the means there.

Fast forward to now, I've paid my secured card in full every week (I utilize it as much as possible and pay it off immediately) but no one had ever told me it was important to know your statement cut date so I have shown a balance for months without realizing why and how that negatively effects me. Now that I know this I'm being more mindful about it and won't let that happen again. I haven't graduated yet even though I've had my secured card for longer than a year. I spoke to a representative about the best route to take and she told me that they start reviewing after the 13th statement - at 6 months a rep had told me that they would do it on the 6th. Either way she said I should try for an additional card and I was declined.

I guess I'm a just trying to see what the credit gods here think my next step should be. I'm feeling frustrated that I can't seem to keep climbing even though I'm REALLY trying.

Thanks for the tips I've gotten so far everyone!

[AllZero]

Congratulations on your success so far!

I would address any other derogatories or delinquencies on your credit report. It'll hinder you from obtaining future credit as you've seen first hand with the Navy additional card denial.

[Anonymous]

6 or 12 months whatever they say.... the biggest thing is getting your score above their threshold and not miss payments.  That goes for any card really.  

In the meantime if you can afford to then maybe pick up 2 more secured cards to boost your foundation to 3 cards instead of 1.  If you report a balance it's hurting but, if you don't report a balance it hurts as well.  If you have 3 cards and report a balance you get extra points showing you can manage things like not putting a balance on the other 2 cards.  The key to this game is to let $5 report and pay the rest before the statement cuts.

Tons more info over here though if you want to dive into the ins/outs of points.... https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/bd-p/ficoscoring

[Anonymous]

Fuzzy on the timeline. You just started paying PIF every week? or you were PIF but had large UTL when statement cut each month? Keep in mind they blessed you with a Auto Loan while still in SCC mode so that may have eaten up some of your cookies on the table. They run an internal score so it may have dipped with the addition of the new whip Right now youre into them for a decent amount and anything short of low UTL on the SCC will give them pause on extending exposure. If you can, maybe PIF the Navy SCC and switch your spend to another card if you have one in case they were getting the jitters. Right now you have to maximize the potential of your new SL for card #2. I could be totally wrong but its just my .02 Congrats on the Auto Loan tho!!!

[M_Smart007]

Welcome To myFICO Forums!

First off, do not every be ashamed!  ..life Happens, and has happened to many of the forum posters.

Just read ..The rebuild section of myFICO.

Many of us wish that we had found myFICO sooner!   ..sure would have saved me some grief.

but at least we found it and are here. We can also learn some GREAT lessons from our past mistakes,

If we allow them to be our Teacher. Such great wisdom and Insight from so many people here,

and the willingness to help others. And a Special Thanks to The Moderator's who keep us in line. (Ya, I am guilty)..

[Anonymous]

Fuzzy on the timeline. You just started paying PIF every week? or you were PIF but had large UTL when statement cut each month?

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I was paying in full every week as soon as I received it but wasn't paying attention to the statement cut dates. I just figured if it was paid off I was good. 

thanks everyone for the tips! I really do appreciate it!

[CreditInspired]

Hi OP

What is your income and the monthly payment on that brand new car they just financed? I ask because NFCU is not going to give you another CC if your DTI is too high.

And don’t be frustrated. Fulfilling your goal of creating a great credit profile takes time and patience. And the payoff is phenomenal.

[Anonymous]

My monthly income is 2600 and my payment is 202. I bought a CPO and put money down so only financed 10k. I definitely am grateful for all they are doing for me. I just definitely want to undo some damage. I know I'm not anywhere near where I need to be but I want to get there.

[Anonymous]

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I just want to point out, it's not always a horrible thing to have a balance on the card. AmEx literally required me to carry a balance for six months to get my first CLI. You just generally want to avoid having ~high~ usage on it. Definitely stay below 30%. Most of the time there's a grace period between when your statement cuts and when interest gets charged. Just make sure you pay during the grace period.

Of course, I don't have an account with NFCU, so I have no experience with what they're specifically looking for. #grainofsalt. 

It wouldn't hurt your credit in the long run to get another couple of cards, even if they need to be secured or subprime. If you haven't burned Capital One in the past, their preapprovals page is generally very accurate. If it tells you you're preapproved for a card, you're very likely to get it. I'm not a huge fan of Cap1 in general (especially the fact that they pull all three bureaus on an app), but they've been a massively helpful crutch for me while rebuilding my credit. Failing that, they also have a secured card which requires as little as $49 for a deposit (which was my first card after wrecking my credit). I don't have experience with BB&T, but I'm given to understand that their preapprovals page is also very accurate. 

[ChessChik47]

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@Anonymous wrote:

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I just want to point out, it's not always a horrible thing to have a balance on the card. AmEx literally required me to carry a balance for six months to get my first CLI. You just generally want to avoid having ~high~ usage on it. Definitely stay below 30%. Most of the time there's a grace period between when your statement cuts and when interest gets charged. Just make sure you pay during the grace period.

Of course, I don't have an account with NFCU, so I have no experience with what they're specifically looking for. #grainofsalt. 

It wouldn't hurt your credit in the long run to get another couple of cards, even if they need to be secured or subprime. If you haven't burned Capital One in the past, their preapprovals page is generally very accurate. If it tells you you're preapproved for a card, you're very likely to get it. I'm not a huge fan of Cap1 in general (especially the fact that they pull all three bureaus on an app), but they've been a massively helpful crutch for me while rebuilding my credit. Failing that, they also have a secured card which requires as little as $49 for a deposit (which was my first card after wrecking my credit). I don't have experience with BB&T, but I'm given to understand that their preapprovals page is also very accurate. 

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Just want to clarify the bolded line...no company can force you to "carry" a balance (which implies paying interest).  AMEX wanted you to "report" a balance each month (which means you can pay it in full after it reports and pay no interest if you wanted to).