First Timer here, To Garden or one more CC?

Anonymous · ‎11-23-2016

Hey everyone!

It's my first time posting, but I have been coming here and reading all your guy's great input. It has helped me alot. So I'll cut to the chase:

A little background; When I was younger, 19 through early 20's (2006ish) I got my fisrt job and was making money figured I could buy some stuff on credit. Bought a 30K truck, opened like 4 credit cards, personal loans... you name it I got it. Long story short, I overextended, was still in college party mode was wreckless and by late 2010 I burned all but one, a Credit one CC account that Is now closed. I should of known better. But what is past is prolouge.

Flash forward to present; Up until January 2016 I was getting by with paying cash, driving a family hand-me-down. I knew it would take 7 years for the repo, all the others baddies to go away so I laid low. So at the begining of this year I started the journey of the Rebuild. The first thing I did was got a car, Thankfully got approved by C1 @17.42% My Experian score at the time was 598.

In March I opened a C1 platnium with a 300 SL. Don't recall what my scores were in march I was too happy with the approval. And that was about the time I found you guys at MyFico. Since then I hit the love button, got $100 icrease at month 3, upgraded it to a QS in month 4, and after the 6th statement they gave me a CLI to $750.

My Credit profile now: All scores are acording to MyFico and CCT:

EX Fico8:636

TU:663

Eq:624

UTIL: 0%

CL:$750

Oldest Acct:10yrs

AAoa:8 months

Current Accts:2

Chargeoffs/DEL: 3 ( 1 Repo; 1 Personal Loan; 1 Utility Bill)

INQ: (varies from each reporting agency, EX shows 9, TU shows 3 EQ shows 4)

The Chargeoffs will fall off November 2017. So my question is. Should I garden until those fall off and try to get my C1 QS limit as high as possible. I figure I can get 2 CLI's in by that time, or should I try to open another C1 CC or app with some other company. I have been getting Wal-mart and Chevron pre-approvals. But I'm thinking of passing on those. And I got a Nationwide auto refinance pre-approval in the last couple weeks. When should I refinance?

My end game goal would be scores of 775 neighborhood with a nice profile of an AMEX card and a CSP or a CSPR( but that fee!) LOL

Let me know what you guys think! Any and All input would be appricated! Thank You!!

PS; for anyone curious or in a similar situation. My FAKO scores are 699 TU and 692 EQ thats thru credit karma and creditwise. LOL

Credit_hawk · ‎11-23-2016

@Anonymous wrote:
Hey everyone!

It's my first time posting, but I have been coming here and reading all your guy's great input. It has helped me alot. So I'll cut to the chase:

A little background; When I was younger, 19 through early 20's (2006ish) I got my fisrt job and was making money figured I could buy some stuff on credit. Bought a 30K truck, opened like 4 credit cards, personal loans... you name it I got it. Long story short, I overextended, was still in college party mode was wreckless and by late 2010 I burned all but one, a Credit one CC account that Is now closed. I should of known better. But what is past is prolouge.

@Anonymous forward to present; Up until January 2016 I was getting by with paying cash, driving a family hand-me-down. I knew it would take 7 years for the repo, all the others baddies to go away so I laid low. So at the begining of this year I started the journey of the Rebuild. The first thing I did was got a car, Thankfully got approved by C1 @17.42% My Experian score at the time was 598.

In March I opened a C1 platnium with a 300 SL. Don't recall what my scores were in march I was too happy with the approval. And that was about the time I found you guys at MyFico. Since then I hit the love button, got $100 icrease at month 3, upgraded it to a QS in month 4, and after the 6th statement they gave me a CLI to $750.

My Credit profile now: All scores are acording to MyFico and CCT:
EX Fico8:636
TU:663
Eq:624

UTIL: 0%
CL:$750
Oldest Acct:10yrs
AAoa:8 months
Current Accts:2
Chargeoffs/DEL: 3 ( 1 Repo; 1 Personal Loan; 1 Utility Bill)
INQ: (varies from each reporting agency, EX shows 9, TU shows 3 EQ shows 4)

The Chargeoffs will fall off November 2017. So my question is. Should I garden until those fall off and try to get my C1 QS limit as high as possible. I figure I can get 2 CLI's in by that time, or should I try to open another C1 CC or app with some other company. I have been getting Wal-mart and Chevron pre-approvals. But I'm thinking of passing on those. And I got a Nationwide auto refinance pre-approval in the last couple weeks. When should I refinance?

My end game goal would be scores of 775 neighborhood with a nice profile of an AMEX card and a CSP or a CSPR( but that fee!) LOL

Let me know what you guys think! Any and All input would be appricated! Thank You!!

PS; for anyone curious or in a similar situation. My FAKO scores are 699 TU and 692 EQ thats thru credit karma and creditwise. LOL

I saw that nobody had commented and I didn't want to see you left hanging on your first post. Welcome! Well, given your past history I think you've done everything the right way thus far. At this point, with your charge offs ready to fall off soon I'd nurse and grow what you have. You can call around August for early deletion. In the mean time, wait a few months and apply for a Discover if you must apply for something. They love to grab people in the beginning of their credit journey in hopes of earning their loyalty for life.

If you practice patience now it will pay off next fall. Do not app now. You'll end up with a bunch of low limit high APR cards that will take far longer than next November to grow and lower the APR if they'll even allow it. Next year refinance that auto loan.

FICO- Experian: 797, TransUnion: 781, Equifax: 804 (Updated Monthly)

go_FICO_self · ‎11-23-2016

when will the baddies fall off?

Anonymous · ‎11-23-2016

Thanks! That is great advice. I think i will do that and just garden until those fall off and then I can app for something really good. I agree patience would pay off way better in the long run. Thanks again for your input!

Anonymous · ‎11-23-2016

All fall off Novemeber 2017. Give or take a month.

austinguy907 · ‎11-23-2016

Tyler -

First thing to do would be get away from that high APR on your vehicle. With your current scores you should be fine to refi for probably somewhere in the 4-6% range which will save you quite a bit in the long run. As for the CC side... I would wait until you refi the vehicle to reduce your min payments due number on your CR. Once that updates then I would probably target a couple of offers that you've been getting the in mail and check some of the pre-qual sites for what else might be out there. Then reassess after the dirt falls off your reports 11/2017.

go_FICO_self · ‎11-23-2016

@austinguy907 wrote:
Tyler -

First thing to do would be get away from that high APR on your vehicle. With your current scores you should be fine to refi for probably somewhere in the 4-6% range which will save you quite a bit in the long run. As for the CC side... I would wait until you refi the vehicle to reduce your min payments due number on your CR. Once that updates then I would probably target a couple of offers that you've been getting the in mail and check some of the pre-qual sites for what else might be out there. Then reassess after the dirt falls off your reports 11/2017.

austin's a wise guy, listen to him. also, given your current scores and current needs - you don't really need a new card, and you won't get too far if you try to get more now. i know hanging around this forums makes you feel....inadequate... to not app for anything, but at this point i'd focus on improving on what I have, than getting more.

Anonymous · ‎11-23-2016

Yeah, reading these forums, and seeing everyone getting 25k AMEX and Chase cards and seeing thier portfolios with 790 ficos does make one feel envious. It makes me want this journey just to go faster And you guys are all very wise. I'm glad i joined for the advice, which I really appreciate it. .It seems as though my pathis getting more clear. The patience game is gonna be the right way. There is no point in getting more CC's if I get more low limit high APR cards Thanks Austin and Ficoself

austinguy907 · ‎11-23-2016

Good things are to come your way if you play your cards right. Toy limits and store cards don't really benefit you but, if that's all you can get right now try to keep it limited to just a couple of them and aim for the ones that can convert to V/MC potentially down the road with time. Otherwise just refi and knock that rate down to size and maybe in 6 months start looking at some other cards that will fit your long term goals. Cap1 will do a new CC every 6 months if that's who you choose to go after. Once your scores bump to 700 or so things will open up more for you when apping or hunting down CLIs. Once the dirt shakes out and falls off though I would say you should be sitting around 730-740 and ready for maybe 2 more cards and then sit and wait for another year as they age and your scores go up even more.

Anonymous · ‎11-24-2016

@Anonymous wrote:
Yeah, reading these forums, and seeing everyone getting 25k AMEX and Chase cards and seeing thier portfolios with 790 ficos does make one feel envious. It makes me want this journey just to go faster And you guys are all very wise. I'm glad i joined for the advice, which I really appreciate it. .It seems as though my pathis getting more clear. The patience game is gonna be the right way. There is no point in getting more CC's if I get more low limit high APR cards Thanks Austin and Ficoself

I understand the feeling. As one of those people you are referring to, I can assure you it took a long time to get to that level. After my divorce at age 23, my credit was in the low 500s with very many charge offs and collections accounts. It took tremendous courage for me to call those organizations and face the music - doesn't matter at this point, but I paid off every one without having to declare BK.

Due to this, the first 7 years of my 2nd marriage we lived in a trailer that was in my wife's name, because my credit was too bad to be on it (talk about an ego buster). After the magic 7 years passed, and due to discipline of not getting lots of credit cards/loans/new cars, we were able to buy a house at age 31. Fast forward almost 6 years from there of making every single payment every month, never being late, paying extra on mortgage/car payments, etc....after all that.........finally at 36 I have Ficos in the 800 range, with 25k starting limits on new cards and the ability to walk into any car dealership I want and get approved. Earlier this year I bought a used car, I was treated so nice, it was very strange....

So yes, it does take a long time to get there, and yes, in my opinion it was worth it. Once you get there, it is relatively easy to stay there because in order to get there, you have to have discipline, restraint, and responsibility.

Credit is a necessity in today's economy, not just for rewards, but for living a comfortable life. So many hidden things depend on a good credit score......it is one of the most important things a young person can learn to manage. I wish they provided more education on this in high school.

Keep being smart and patient. Use the hell out of your current cards and keep paying them on time and in full. Your CC company will notice and will give you more limits over time. Remember, UTI is the single highest category that determines your score (35%) - keep those balances low.