I need advice - This is my story

[Anonymous]

Hello to all, my name is Victor.

After reading lots of inspiring (and fantastic) stories about ppl getting credit cards with certain scores, I was encouraged and felt inspired to step forwards and write my own. My current situation is that in 2006 I was charged-off a credit card account because I had no money to pay for it. Now 6 yrs later, I am in this position: my current scores are TU:633 EX:679 EQ:669. Given that, I have a mortgage and a car with never-late payments. Both are pretty new which takes my utilization to sky-high 91%. However, I have a pretty good job, (US Govt) with a decent salary (70k). So I am very worried about applying for a new cc, right now I have none and I know applying for one is going to help my utilization a little bit, providing I don't max it out of course. I don't want to have a sitting, worthless inquiry for a denial because I only have 2 inquiries in the past 2 yrs.

So given that, what do you believe my chances are of getting approved for a cc? Which one do you suggest? Should I apply at all? Thanks for your help, it greatly inspires me to see such a supportive forum members here, which drew me to actually write in the first place.

[seattletravels]

Installment loans are included in overall utilization but have a very low weight.  Revolving accounts are weighted much higher - so if you don't have any I wouldn't worry too much about what your utilization looks like. 

[pizzadude]

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@Anonymous wrote:

Hello to all, my name is Victor.

After reading lots of inspiring (and fantastic) stories about ppl getting credit cards with certain scores, I was encouraged and felt inspired to step forwards and write my own. My current situation is that in 2006 I was charged-off a credit card account because I had no money to pay for it. Now 6 yrs later, I am in this position: my current scores are TU:633 EX:679 EQ:669. Given that, I have a mortgage and a car with never-late payments. Both are pretty new which takes my utilization to sky-high 91%. However, I have a pretty good job, (US Govt) with a decent salary (70k). So I am very worried about applying for a new cc, right now I have none and I know applying for one is going to help my utilization a little bit, providing I don't max it out of course. I don't want to have a sitting, worthless inquiry for a denial because I only have 2 inquiries in the past 2 yrs.

So given that, what do you believe my chances are of getting approved for a cc? Which one do you suggest? Should I apply at all? Thanks for your help, it greatly inspires me to see such a supportive forum members here, which drew me to actually write in the first place.

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Hi !  Welcome to the forums !

First, don't worry about your installment loan utilization, it is a very minor component of your FICO score.    If you don't have any credit cards open right now, I would advise opening one or two.  You could start with a rebuilder card from Cap1 or HSBC.    If you don't get approved then try going the secured card route.

Is the Charged-Off CC account from 2006 still unpaid, and how does it show on your credit reports now ?

[Anonymous]

Hello again and thanks for the so-fast response!

My Charged off acount shows as "payment amount due each month: $150" which is what I agreed to pay it off. I've never been late on this plan because I wanted to get out of debt still it shows a balance. I also had a 1st premier card but had it like a year and closed it due to the fact that they only approved me for a 300 CL which I considered a joke comparing to the 10k I previously had (Yeah I know big mistake).  What I'd like to know is, based on what's being said in these forums, is there any other (decent) cc that I might apply AND be approved that's not Cap1 or Orchard? What I'm hoping for is a decent CL, say 2k or even 1k? If not I would be bothered to do it.

[LS2982]

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@Anonymous wrote:

Hello to all, my name is Victor.

After reading lots of inspiring (and fantastic) stories about ppl getting credit cards with certain scores, I was encouraged and felt inspired to step forwards and write my own. My current situation is that in 2006 I was charged-off a credit card account because I had no money to pay for it. Now 6 yrs later, I am in this position: my current scores are TU:633 EX:679 EQ:669. Given that, I have a mortgage and a car with never-late payments. Both are pretty new which takes my utilization to sky-high 91%. This is called Debit to Credit Ratio, and does not involve revolving card utilization. Since you have no CC's your revolving util. is 0%.  However, I have a pretty good job, (US Govt) with a decent salary (70k). So I am very worried about applying for a new cc, Are you a member of any Credit Unions? You may have a good shot at getting an unsecured card from them. If not, I would try Cap1.  right now I have none and I know applying for one is going to help my utilization a little bit, providing I don't max it out of course. I don't want to have a sitting, worthless inquiry for a denial because I only have 2 inquiries in the past 2 yrs.

So given that, what do you believe my chances are of getting approved for a cc? Unsecured - possible. Secured you would be just fine. Which one do you suggest? CU or Cap1. Should I apply at all? Yes, you need at least 2 credit cards (preferably Visa/MC to make your FICO scores rise.  Thanks for your help, it greatly inspires me to see such a supportive forum members here, which drew me to actually write in the first place.

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[Datx]

Are you a member of any credit unions? And if its not too personal, is your government position anywhere in the DoD area? Just curious if you are able to join NFCU or not. They are pretty generous with credit limits and are more lenient with baddies when it comes to loans/CCs.

[pizzadude]

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@Anonymous wrote:

Hello again and thanks for the so-fast response!

My Charged off acount shows as "payment amount due each month: $150" which is what I agreed to pay it off. I've never been late on this plan because I wanted to get out of debt still it shows a balance. I also had a 1st premier card but had it like a year and closed it due to the fact that they only approved me for a 300 CL which I considered a joke comparing to the 10k I previously had (Yeah I know big mistake).  What I'd like to know is, based on what's being said in these forums, is there any other (decent) cc that I might apply AND be approved that's not Cap1 or Orchard? What I'm hoping for is a decent CL, say 2k or even 1k? If not I would be bothered to do it.

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Ok, what is the payment schedule for the charged~off account ?  How much longer do you have to pay and what is the remaining balance ?

Good call on dropping First Preemie, they are one of the worst creditors with outrageous fees.  

To be honest, you are at the point where you are going to have to start small and grow from there.   You have no open credit cards, so it will be difficult to get a lender to approve you with a large initial credit limit, but it is really hard to know how much until you apply.

If you have $1K or $2K that you can throw into a secured card then you could arrange a larger limit.

[Juan123]

Since your a government worker i would suggest seeking membership into a credit union, usually they have much more lenient restrictions on approving people for credit cards and usually dole out larger limits. good luck!

[Anonymous]

Thanks for the replies!

Right now, as I said, I am on a $150/mo. plan. I know I will pay it off with a lump sum , but not right now. And I work for U.S. Customs and Border Protection Bureau, which is part of the Dept. of Homeland Security Cabinet, not the DoD / Military, so I have no access/qualifications/eligibility for an NFCU account, unfortunately. Special thanks to

LS2982.

[Anonymous]

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@Anonymous wrote:

Thanks for the replies!

Right now, as I said, I am on a $150/mo. plan. I know I will pay it off with a lump sum , but not right now. And I work for U.S. Customs and Border Protection Bureau, which is part of the Dept. of Homeland Security Cabinet, not the DoD / Military, so I have no access/qualifications/eligibility for an NFCU account, unfortunately. Special thanks to

LS2982.

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You don't have to be DoD to get in NFCU.  According to their membership wizard, Non DoD US Goverment Civilians qualify for membership too.