Seeking Help Building Credit & Increasing Score

[AlilThisAlilThat]

I'm new to this credit game. I have a decent file: student loans, personal loan, credit cards, etc. but my utilization is sky high (86%). I recently paid down from about 98%. I have 5 cards: Chase Freedom Unlimited $2k CL, Apple Card $4k (new, hasn't been reported), CapOne Platinum $7300, Macys $3k (recent $1000 CLI, was $2k CL) and Express(ComityBank) $750. CS is low 620s per credit karma, Fico8 673. My hope was to lower utilization via new cards, however I did preapprovals for AMEX & Discover - No offers. What should be my next steps? I need to purchase a vehicle in the next 2-3 months. My goal cards: AMEX BlueCash Everyday, Citi Custom Cash, Chase Bonvoy Bold.

[FinStar]

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@AlilThisAlilThat wrote:

I'm new to this credit game. I have a decent file: student loans, personal loan, credit cards, etc. but my utilization is sky high (86%). I recently paid down from about 98%. I have 5 cards: Chase Freedom Unlimited $2k CL, Apple Card $4k (new, hasn't been reported), CapOne Platinum $7300, Macys $3k (recent $1000 CLI, was $2k CL) and Express(ComityBank) $750. CS is low 620s per credit karma, Fico8 673. My hope was to lower utilization via new cards, however I did preapprovals for AMEX & Discover - No offers. What should be my next steps? I need to purchase a vehicle in the next 2-3 months. My goal cards: AMEX BlueCash Everyday, Citi Custom Cash, Chase Bonvoy Bold.

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Hi @AlilThisAlilThat, welcome to the forums.

Based on what you've shared so far, the first thing that I would tackle or focus is your current utilization to acceptable thresholds in order to improve your FICO scores and overall credit picture. Since you're in the market for a vehicle, hold off on applying for anything else at this point.

If the vehicle purchase wasn't on the short horizon and you were to apply for the 3 cards you mentioned, it is likely 2 of those would be declined and the other one would likely start off at a very low limit, if approved -- all things considered.

[AlilThisAlilThat]

Thank you for your response @FinStar , no way around utilization! 

[IgnatiusReilly]

Not judging here, but that util suggests you might be spending money you don't have.  As someone who did that in my early 20's, I can say without hesitation learning to stop that was hard but worth it.  Best of luck on getting your util down and your scores up!

[CreditInspired]

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@AlilThisAlilThat wrote:

I'm new to this credit game. I have a decent file: student loans, personal loan, credit cards, etc. but my utilization is sky high (86%). I recently paid down from about 98%. I have 5 cards: Chase Freedom Unlimited $2k CL, Apple Card $4k (new, hasn't been reported), CapOne Platinum $7300, Macys $3k (recent $1000 CLI, was $2k CL) and Express(ComityBank) $750. CS is low 620s per credit karma, Fico8 673. My hope was to lower utilization via new cards, however I did preapprovals for AMEX & Discover - No offers. What should be my next steps? I need to purchase a vehicle in the next 2-3 months. My goal cards: AMEX BlueCash Everyday, Citi Custom Cash, Chase Bonvoy Bold.

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Hi there and welcome to myFICO

GARDEN! Garden! garden for at least 12 months.

I agree with FinStar; you probably would not be approved for AmX or Disco based on your UT regardless of the preapproval. And, I strongly recommend holding off on purchasing a vehicle. You may be approved but the interest rate, more than likely, would cause you to go screaming into the night. Well, it is Halloween afterall. 😆

Now seriously, you may want to "slow your roll" and not apply for anything else for a while. The last thing you want or your portfolio needs is adverse action (AA), i.e., credit limit decreases (CLD). 

GL2U

[Raisondetre]

I agree with others. Keep paying to lower your utilization and don't apply for any new cards at all, no matter how tempting it is. You can think about applying for cards later, AFTER you get the car. Also, I wouldn't think about trying to buy a car yet, that interest rate will most likely be awful.

[FishingGuy]

I agree, with all of the above...... get your utilization way down from where it is.   Eighty six / 86 % is way too high..... get it under 50% quickly.... but your goals should be under 30%...... and really UNDER 8.9 %.  At 86 % you have to hope you don't get CL decreases.  Even if you do get approved for a car loan..... your interest will be mucher higher than if your utilization was lower & your score higher.  The difference can mean thousands of dollars over the term of the loan.     Pay down balances & and try to use cards less....

Another thing I would do is rotate your card usage, pay down the cards as much as possible right before the statement cuts..... and only use cards after they cut, so as to give you more time to pay, and pay down the balance again..... that may help a bit to get your scores up.

[Anonymous]

I don't disagree with everything else said, however, if there some next steps that you are looking to consider, then here's a couple of key points.

1. Pay your UTil down on the cards, but it's best to tackle the lower limit cards first.

2. If you find that you absolutely NEED to get a vehicle and the rate is less than desirable, then remember that auto loans can be refinanced. Give it 6-8 months of good payments, then you can typically refi at a lower rate. (Or get preapproved with a CU)

Just my 2 cents but hope eerything works out!

[AlilThisAlilThat]

I'm not offended @IgnatiusReilly  you are correct. I had no idea what i was doing with my credit, i racked em up and paid only the minimums. I just recently began educating myself and now I'm working on getting to where I need to be.

[AlilThisAlilThat]

So scary I waited till after Halloween :-) @CreditInspired Let's hope i have a "green thumb".