Rebuilding from non-use of credit

[Anonymous]

Apologies for length...
Current:
*Commerce bank $9k cl @ 62% util (paying 500 mo - lawyer for grandkid custody fight)
*PNC $4k cl @ 80% util, 0% apr (same as above, paying 250 mo)
*Chase $4k cl @ 25% util
*Discover $5200 cl @ 35% util
*Cap 1 $1200 cl @ 25% util
*Citi $2800 cl @ 35% util
*Hsbc $750 cl @ 65% util 0% apr
*Care Credit $3500 cl @ 8% util 0% apr
*Samsung $3300 cl @ 18% util 0% apr
*Cap 1 Menards $500 cl @ 50% util 0% apr
*Target $2k cl @ 0 utilization

Paying down approx $1000 in next 10 days. Working toward 30% or lower util across board primary goal, secondary paying down/off based on interest rate

House paid in full 9 years ago, no mortgage (purchased contract for deed, post REO - I made off like a bandit in recession)
Last car loan paid in full 2006, purchased cash only since then (mercedes & bmw)
Held no debt at all approx 9 years until 2016
No derrogatory marks
CCs only, no loans/mortgage

Rebuilding from this over last 2 years, moving into gardening stage. Depending on bureau 4-8 inquiries in past 2 years showing.

Scores were low 700s, utilization dinged me after charging atty fees. Last week scores 643-645-684, should be 660s-690 range after impending paydowns. Wont be applying until those paydowns show on reports for score bump.

Looking for advice on two things:
True chip & pin card to target next, as I spend 10 wks a year in 2nd european residence. No FTF a plus.

Most likely high limit card for approval to target to balance overall utilization, $150 annual fee max

[CreditInspired]

Hi and welcome to MyFICO

I’m confused by title because your balances tell a different story.

IMHO, I think you should hold off on applying for anything until you can get the majority of your cards to $0 balance. Your scores are being dinged for both high UT and for all cards carrying balances.

And I’m scared to ask what you are paying in interest every month 😳

So to work on this, I suggest to get started pay as many cards as you can to $0 balance and then work on paying down all the other cards to less than 30%.

This will increase your scores as long as there’s nothing negative on your account.

GL2U

[HeavenOhio]

Welcome, @Anonymous.

Aim to get your cards to 28.9% or below. That's where the scoring threshold is. "30% or below" would be incorrect advice because you wouldn't get the scoring benefit. "Under 30%" is technically correct, but it's confusing. That's because 29.00000001 rounds up to 30% and is no longer "under 30%." So we've found over time that the easiest and clearest way to explain this is "28.9% or below."

If you're paying interest on a card, aim for 27%. That's to prevent the next month's interest charge from bumping you back over the threshold. For reference, thresholds exist at 8.9% (optimum), 28.9% (responsible), 48.9%, 68.9%, and 88.9% (maxed). If interest is involved, pay to 7%, 27%, 47%, 67%, or 87%.

As suggested above, I'd wait to apply. You'll end up with a lot of points on your score after you bring your balances down. But certainly investigate cards you might be interested in so you're ready when the time is right.

[Anonymous]

Paying very little interest actually, under $120 total from those not at 0 interest. Until July this year, all were 0 interest save cap 1. Im paying far more than minimum on all accounts, and splitting it to weekly auto payments on each. Rates 14%-20% on those with interest currently. No sub prime cards.

I had emergency situation with my missing granddaughter & her addict mom being found after 7 months MIA with a wanted sex offender. I put 8k+ on cards to facilitate emergency attorney hire so my son could fight state for custody. That is why I have high balances on two cards. At time, i split between 0% card & 0% cheque. Thus, low monthly interest, and my rush to pay much more than minimum. I loathe paying interest, but a 3 year old little girls safety trumped that aversion.

[SBR249]

Your requirement for true chip & pin really narrows down the selection here. Off the top of my head, there are only 3 issuers of chip & pin priority cards that I can think of:

1. First Tech FCU 

2. SDFCU

3. UNFCU

I think TD Bank's MC Target card is also chip & pin but you can't app for that. You have to get a store card and pray you'll be upgraded eventually. Plus it has essentially no rewards if you don't shop at Target. 

Otherwise, you can look for cards that offer chip & pin as a fallback authentication option like cards from Barclays. It may be hit and miss as to whether it'll actually work though. 

To be honest, you might be better off just getting a decent rewards card for traveling from a US issuer and then having a European chip & pin debit or credit card as backup. Signing receipts isn't as foreign to people in Europe as some travelers think. While living in the UK until recently I've never had anyone look at me funny when the POS asked for a signature. 

[Anonymous]

Ive found that while you are correct, signing in UK is not uncommon, in the Netherlands where I live, its pretty much impossible. A few of the touristy shops and restaurants are viable, but thats not where I need to use card. Train tickets with exception of the machines at centraal or schipol are a no go, and grocery shopping or buying at Bazaar are out as well. Since I dont live in Amsterdam, i'm extremely limited.. basically cash only.. which is inconvienient at best.

The other hangup, is Dutch banking is impossible to set up without residency permit (ive tried). Thus no local debit/credit card viability. I wont be half time for another 5 years or so, thus no permit until I go full expat... so I cant open a local account. So, my search for chip & pin continues... lol.

Thanks for the info on the few that are available. I'll start my way down that list in January.

[SBR249]

If a Dutch bank account is not possible, perhaps you can try looking in other countries in the Eurozone with more lax regulations. I had a UK friend who was able to open a German bank account without ever stepping foot in Germany and he didn't even have indefinite leave to remain in the UK. 

[Anonymous]

Does the Cap 1 not meet the requirements? (Although you didnt list what cards you have, only the companies)

Ive taken my Cap 1 QS around the world with me and never had any issue with it. No FTF, no yearly fee. (Not the best cash back, but not horrible - I used my CSR now instead, but thats another topic)

As far as a new card with a higher limit - not sure what your limit goal is, but I would start by asking for CLI's on every card you have that puts CLI's through as soft pulls(maybe wait for a round or two of payments first). This will help reduce usage %, and should you pursue another card - will potentially increase its startling CL.

[Anonymous]

Quick update.. Im now sitting at 686, 712, 727

Total CC debt 10,300
Total avail 47,600

CLIs (soft pulls) approved on several accounts, total of 5k on accts I requested on. 2 cards spontaneously granted CLIs without my requesting (about 4k worth)..

1 new CC account, 2500 limit, 0 interest 18 mo. Transferred portion of highest balance interest charging acct over to finesse utilizations.

Only 3 accts over 27%. Will be down to 2 within the month. Of those, only paying interest on one. 5 cards 0 balance.

New car (used, but one Ive been chasing for years) only financed $5064 at 9.6 for 36 mo, bank dropped to 7.6 before 1st payment. Paid 1st pmt & 200 principal day I got pmt book (29 days early) down to 91% balance owed. 1st payment still not due for another 2 weeks, lol. Intend to pay off in 15 months or less.

Will be holding off on any new apps til July, after a few more inquiries drop off. I anticipate my scores at 760+ across the board by then, and I'll resume my hunt for a true chip & pin.

Thanks for advice all. Clearly, helped a ton.