NEWBIE QUESTION RE: CCs PLEASE HELP!

[Anonymous]

Hi Everyone, I'm new to this forum and new to getting control of my score.  I have low, low scores (467 EQ, 495 TU, 526 EX).  My overall debt is not too bad, actually, but there are a few accts in collections (about 2/3 of which are aging out 2015/2016) and I havea state tax lien due to my ex not filing his taxes (trying to resolve this with the state) and a bad auto loan.  Both of these make up 7/8 of my bad debt. 

I have a CC showing up thru FPB, which I am honestly not sure I ever signed up for so I'm disputing it (it's a $395 debt, but it's killing me with a 195% CU ratio). The rest  of my total debt (excepting the tax lien and bad auto loan) total less than $500 (medical).That's the total sum of my debt. 

However, all the score sims are saying that getting a revolving acct is the way to go for a pretty good jump in pts.  My question is .... if I get a revolving acct (looking at CapOne secured), my score is simulated to jump about 25 pts.  Is there going to be a long term difference if I get, say, ten of these cards?  I realize amassing a lot of new credit will hurt my score initially, but really.... I mean, it's not like it can get much worse LOL.  I'm looking for the long term benefits of having a bunch of cards with a 10% or less CU over, say, 12-18 months.  If one card can bump me 25 pts, will 5 cards bump me 125? Or is it not that simple?  Thanks so much in advance for helping!

[Anonymous]

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@Anonymous wrote:

Hi Everyone, I'm new to this forum and new to getting control of my score.  I have low, low scores (467 EQ, 495 TU, 526 EX).  My overall debt is not too bad, actually, but there are a few accts in collections (about 2/3 of which are aging out 2015/2016) and I havea state tax lien due to my ex not filing his taxes (trying to resolve this with the state) and a bad auto loan.  Both of these make up 7/8 of my bad debt. 

I have a CC showing up thru FPB, which I am honestly not sure I ever signed up for so I'm disputing it (it's a $395 debt, but it's killing me with a 195% CU ratio). The rest  of my total debt (excepting the tax lien and bad auto loan) total less than $500 (medical).That's the total sum of my debt. 

However, all the score sims are saying that getting a revolving acct is the way to go for a pretty good jump in pts.  My question is .... if I get a revolving acct (looking at CapOne secured), my score is simulated to jump about 25 pts.  Is there going to be a long term difference if I get, say, ten of these cards?  I realize amassing a lot of new credit will hurt my score initially, but really.... I mean, it's not like it can get much worse LOL.  I'm looking for the long term benefits of having a bunch of cards with a 10% or less CU over, say, 12-18 months.  If one card can bump me 25 pts, will 5 cards bump me 125? Or is it not that simple?  Thanks so much in advance for helping!

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In short, ignore those simulators.  They are worthless.  To be honest, with your current scores you are going to have a difficult time being approved for any credit cards.  Only ones you would have a chance for all the secured ones.  I'd suggest you visit the credit rebuilding forum and ask for suggestions on how to improve your scores.  Do not start applying for a lot of credit cards as the inquiries will only hurt your score.  You aren't going to get a jump of 125 points by having 5 new cards even if you can get 5 secured ones

Welcome to the forums.  You will find a lot of useful info in the rebuilding section.  That's what you need to focus on right now.

[redbeard]

Don't believe the simulators.  In fairness, they tend to point you in the right direction, but don't just assume what they say will actually happen.  I learned this first hand, based on the simulator, I paid off my student loan, expecting a bump up of about 10 points, instead, my score went down 10 points.  Thats fine, my student loan is paid off which was more important to me.

Getting 1 card might give you a bump up, getting 2 cards won't help additional amounts, at least not worth mentioning.  Beyond that, you may be doing more harm then good.

Here is the problem though, the 25 points, by itself, isn't going to do much good.  You need to look at your report and start fixing the real problems, not trying to avoid them.  Pick a couple of debts that you are stuck with and see if you can do some pay for deletes.  Challenge some of the debts.  Make fixing your report your hobby for the next 6 to 12 months.  The good news is, you pretty much have nothing to lose and an easy 100 points to gain in that time with a little effort.

Dan

[Anonymous]

good luck friend on your credit path 

[Anonymous]

Good luck down the path of recovery!

I was in your shoes(minus the tax lien) in my 20's. Slow care and paying attention to what/when you get dropoffs and paying off as much as you can(NEVER complete a payoff unless they agree to remove from your credit bureau's IMHO) 

Patience and due diligence will get you back on track for your credit.

Never assume this will be a quick turn around, this will be years in the making to correct.

[Chris679]

The cards you are going to be approved for will likely be secured cards with low limits and you will outgrow them quickly. Start with 1-2 and add more accounts slowly as your scores come up and you can get approved for things that you want to keep long term. I agree that the rebuilding forum is where you wanna start.

[Anonymous]

Thanks to all for the advice.  I have been lurking around the forums for a while now, trying to learn as much as possible.  Correct me if I'm wrong, but my plan is to buy a house in about 24 months- so I figure I can slam the hell out of my credit with inquiries, new accounts (secured), fingerhut, crown jewelers, and a few CD loans.  I just got a new auto loan for $23,000.00, so that will be on there soon.  I'm thinking if I do all the damage at once, then I can ride it out for two years- and hope that good payment history and low util will boost me over 700, which is where I really want to be. 

[Chris679]

You don't want to open a bunch of crappy accounts. Car loan, a couple credit cards and maybe a line of credit will do just fine. Opening a bunch of crappy accounts does more harm than good.

[Anonymous]

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@Anonymous wrote:

Thanks to all for the advice.  I have been lurking around the forums for a while now, trying to learn as much as possible.  Correct me if I'm wrong, but my plan is to buy a house in about 24 months- so I figure I can slam the hell out of my credit with inquiries, new accounts (secured), fingerhut, crown jewelers, and a few CD loans.  I just got a new auto loan for $23,000.00, so that will be on there soon.  I'm thinking if I do all the damage at once, then I can ride it out for two years- and hope that good payment history and low util will boost me over 700, which is where I really want to be. 

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That's exactly what you don't want to do.  Really should visit the rebuilding forum and go over what's on your credit reports and ask for suggestions on how to make improvements.  Your scores are way below what you need for a mortgage and while 24 months seems like a long time from now, it really isn't and you need to focus on improving your scores to have any chance of getting an approval.  You won't accomplish that with "slam the hell out of my credit with inquiries, new accounts (secured), fingerhut, crown jewelers, and a few CD loans.  ".  Though in looking at that again, it's so far off of what you should do, I'm not sure you're serious.  If you are, reconsider and visit the rebuilding forum.