Hello! New here...my story...

[Anonymous]

Hello everyone!

I have been lurking for some time now.  I will try to make this post as short as possible.  Got divorced and 2008/2009 I took a huge hit finacially.  As a result my credit went to the dumps.  Since then and up until this January I have been a cash paying person, saving like a mad woman, and finally back to a healthy and stable financial position! I had sold my home so I have been renting for the past 7 years.  As a single mom of two, it is my big goal to get back to being a home owner.  I wanted to make sure that I was back to being financially stable to start the process. 

In December 2014 I started to monitor my credit score via EQ and checking for anything I needed to dispute.  There were a few things I was able to dispute.  But I still have about 3 ugly baddies that are in the process of being cleared.  On top of that since I have not had a credit card in years it affected my score.  I have been with BoA for 16 years so I went to my local branch to get a credit card.  They offerend me the 99/500 secured card which I took.  Havebeen using it for my usual budgeted groceries and gas and have been paying it in full each time.  The cash rewards is awesome!  And they waived the $39 annual fee.  This new card made my score go up, so that was nice.  It was a soft pull, too. 

I wanted to wait three months before I checked to see my FICO 3B report and this is what I just got recently: 

626 Equifax, 615 TransUnion, 627 Experian.  

On Equifax it says I have 6 1/2 years average account. 

I have 0 inquiries on Equifax and 2 inquiries on TransUnion

I applied at Sears and got a big NO.  I called to recon and nope, they would not budge.  Their score for me 639 and the baddies on there were the reasons.  A little down about that, but that is ok, not the end of the world.   Fair enough.

So after reading this board multiple times I got a wild hair and tried two things:  shopping cart trick and the Chase preapproval site.  Why did I do this?  My goal is to carry few cards (no more than 3 to be honest) and continue to build my credit history in better standing before I try for mortgage. 

Shopping cart trick only worked for Victoria Secret and for $500.  Last night I did the Chase pre approval site and they offered me the Chase Freedom for $2200!  To be honest, after the 500 cards, and big no from Sears, I was ecstatic to see this. 

For now I am ok with my BofA, VS and Chase Freedom Card. 

Now I shared this with you all in hopes that you can give me any advice or pointers as to how to maximize this re building credit phase of my life.  I am excited and extremely grateful to be back on much better postion than I was years ago.  I am not looking to get plethora of credit or extremely high limits.  I am a huge saver and conservative with my money. 

Thank you for reading this!

Bananas1

[Shelly13]

Congrats on your steps of rebuilding your credit.  It sounds like you are taking all the right steps to have healthy credit again.  Really I would just keep making on time payments and in a year or so see where your at to take the next step. 

[Shelly13]

Oh and Welcome to the MyFico Community!! 

[CreditDunce]

Do you have an open auto loan or other installment loan?   If not, I would think about a small shared secured loan.  FICO likes to see both installment loans and revolving aka credit cards.   There are several threads floating around for the details on shared secured loans.

If you have ever had an American Express card (or been an AU on one), it would also be worth while applying for one of their cards.  But only if you have a decent member since date (MSD). 

PS.  Sears may have done you a favor by not approving you.  You really want credit cards that you can keep for the long term.  Sears may not be around in 10-20 years.

pps. If possible, chart your FICO progress with the old FICO 04/98 scores.   Most mortgages do not use FICO 08 scores.  Different FICO versions can have very different scores.

[IgnatiusReilly]

First off, congratulations on all of your hard work. In the words of the Rolling Stones, time is on your side. Let your new cards age and increase the average age of accounts. Also, wait for your credit report to clear up. That should give your scores a nice boost.

I would avoid any more store cards. Check preapprovals at bank websites, and be patient! Good luck.

[Anonymous]

Thank you, Shelly13! 

[Anonymous]

@Creditdunce,

I was afraid someone would suggest car loan. That's one thing I refuse. All my cars are paid in cash  and I drive them till the wheels fall off.  

Re American Express card....I was an authorized user in my ex husband 's account and it was closed in good standing. It's my only history with them and that was over seven years ago. Should I still try? 

Duly noted on the store cards!  I will try to increase the BoA card or graduate it to unsecured card. 

How do I got about the old chart FICO 98 score??? 

Thank you! 

[Anonymous]

Its usually the 04 score used for mortgages.  If you buy the three bureau report from here (which you have done!) it now contains all sorts of other scores,  Look for something like "All Industry Version (used in Mortgage Lending)"

[LuckyBird]

If I were in your position, I would definitely apply for an Amex because the back-dating could give your scores a serious boost.  My personal recommendation since you're a single mom would be the BCP.  Even though it has a $75 annual fee, that 6% on grocery is hard to beat.  Also 3% on gas all the time, and at most department stores you'd probably be shopping at.  Definitely my best "mom" card, lol!

[Anonymous]

Congratulations on your steps to rebuild!