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Starting over, help

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Ddub
Established Member

Starting over, help

I am in early 30s with a blegh credit history. During my 20s I had a mostly cash economy as a musician/teacher. Made low income, between 15-20K/yr (one year of 30k which was about 80 hrs of work a week, yikes) though I was fairly content with my lot. I did open 2 credit cards (Discover student card, and Cap one student I think) in former grad school. At one point I had maxed out discover, but paid it off and stopped using it 5 yrs ago. I didn't know you should keep accounts active. They eventually closed the account. Cap one had gone up and down, but at one point a few yrs ago, economy fell, I lost all my work, was unemployed, homeless. I maxed out the Cap One card and ran away basically. This has not appeared on my credit report, well, at least not yet. It appears they closed this account also. I used ING bank for a few yrs and they were recently bought out by Cap One so I am nervous to apply for CC w/my bank as is often recommended.

Enrolled in grad school again in a medical profession where I've been the last 3 yrs (I graduate in another year and a half), doing the student loan thing (my other degrees were full rides). Hoping to finally have financial security after I finish. I am someone who has always worked super hard but I guess the wrong professions, and not good at having connections to get other gigs/work (I've literally applied for 1,000s of jobs in last few yrs, everything from secretarial to fast food to janitor, especially during unemployed/homeless time. I don't want to go into everything but I just want to say I really, really did try.)

Anyhoots. Right now I am ok with working as much work-study as I can grab, occasional music gigs when I can get them, and studying hard/doing well in school. I applied recently for some cards because I will be travelling internationally for volunteer opportunity I got (I fundraised and got a grant to pay for it), want to have backup or be able to rent a car, and also want to get credit on track. My score has been 650 +/-, and I have gotten rejected for everything, including student and secured cards. They say I have not long enough credit history, too few accounts, and too low income. I really don't know where to start with everything. I found I still have a Macy's card that is still open though only $100 credit limit. I asked for a new card and have been buying 1 pair of socks a month with it just to have something show up but am skeptical anything will result of this.

What advice is out there for someone like me?
CapOne Journey Student ($3500) DiscoverIt Student ($500) Citi Classic Secured ($300) Macy's Charge ($200) Vic Secret ($500)
Message 1 of 11
10 REPLIES 10
Iorek
Contributor

Re: Starting over, help

Have you tried to get a credit line increase on your Macy's card?

 

In particular, what cards did you apply for? How many inquiries do you have on your accounts now?

 

What income amount are you putting down on your applications?

 

In any case, I wish you good luck with your schooling and volunteer opportunity. Be patient and don't lose sight of your goals, and things WILL improve, I promise Smiley Happy

Amex BCE ($15k), TE ($5k), BoA BBR ($600), Cash Rewards ($600), Barclays Sallie Mae ($6k), CapOne Quicksilver ($4k), Chase Freedom ($5.8k), CSP ($11k), Marriott (9k), IHG (12k), DCU ($6k), Discover IT ($6.5k)
TU - 4 INQ, EX - 7 INQ, EQ - 3 INQ
Gardening since 06/25/14.
Message 2 of 11
Ddub
Established Member

Re: Starting over, help

My credit line was actually DECREASED by $100 this summer, to a $100 limit. This is how I knew I actually still had it. I called and they said it was because I wasn't using it. I have been using it since July again. sorta annoying since I really don't need anything from Macy's. I guess I can try again?

I have 4 hard inquiries on my accounts...applied for Discover IT student card, US Bank secured card, Wells Fargo secured (I used to have account there), Citi student card, USAA.. All were denied. I also applied for savings/checking account at an online credit union, hoping to get CC from them after opening, and my application was denied. I didn't know you could get denied for opening a bank account!!

Last CC app (Discover) I put 24K since I read I could include student loan amount as "income". Others I listed it at 9,000 which is about actual. I did list that I was a med student when it asked what my job was.
CapOne Journey Student ($3500) DiscoverIt Student ($500) Citi Classic Secured ($300) Macy's Charge ($200) Vic Secret ($500)
Message 3 of 11
Ddub
Established Member

Re: Starting over, help

Only neg things on my report actually are late payments (2 months each) on Cap One and Macy's card, that were from about 4-5 yrs ago. If that helps.
CapOne Journey Student ($3500) DiscoverIt Student ($500) Citi Classic Secured ($300) Macy's Charge ($200) Vic Secret ($500)
Message 4 of 11
Iorek
Contributor

Re: Starting over, help


@Ddub wrote:
My credit line was actually DECREASED by $100 this summer, to a $100 limit. This is how I knew I actually still had it. I called and they said it was because I wasn't using it. I have been using it since July again. sorta annoying since I really don't need anything from Macy's. I guess I can try again?

I have 4 hard inquiries on my accounts...applied for Discover IT student card, US Bank secured card, Wells Fargo secured (I used to have account there), Citi student card, USAA.. All were denied. I also applied for savings/checking account at an online credit union, hoping to get CC from them after opening, and my application was denied. I didn't know you could get denied for opening a bank account!!

Last CC app (Discover) I put 24K since I read I could include student loan amount as "income". Others I listed it at 9,000 which is about actual. I did list that I was a med student when it asked what my job was.

I don't have any experience with a Macy's card so I would wait for others to chime in, but I don't see why you couldn't call in and ask for an increase.

 

Have you called to try and get those applications reconsidered? Discover and Citi are not recon friendly from what I've seen here, not sure on the others. Worst they can tell you is no. As for the credit union, they generally pull your credit and probably didn't like what they saw. Strange, but so it goes. It's too bad you burned Capital One, their Journey student card is pretty easy to get.

 

$9k is probably going to be too low to qualify for much, if any, credit. Would you lend $500 to someone whose pre-tax monthly income was $750? =/

 

Overall, I think your best best is going to be trying to bump up your Macy's card and establishing more history with it. Once you graduate and have a larger income, you'll have a solid credit base to leverage into getting better cards.

Amex BCE ($15k), TE ($5k), BoA BBR ($600), Cash Rewards ($600), Barclays Sallie Mae ($6k), CapOne Quicksilver ($4k), Chase Freedom ($5.8k), CSP ($11k), Marriott (9k), IHG (12k), DCU ($6k), Discover IT ($6.5k)
TU - 4 INQ, EX - 7 INQ, EQ - 3 INQ
Gardening since 06/25/14.
Message 5 of 11
Iorek
Contributor

Re: Starting over, help


@Ddub wrote:
Only neg things on my report actually are late payments (2 months each) on Cap One and Macy's card, that were from about 4-5 yrs ago. If that helps.

Yeah, that does help a lot. That's probably what is hurting you along with the low income. Giving a complete credit history is crucial to getting advice, since if we can't see everything that your creditors do our advice will not be the best it can be!

Amex BCE ($15k), TE ($5k), BoA BBR ($600), Cash Rewards ($600), Barclays Sallie Mae ($6k), CapOne Quicksilver ($4k), Chase Freedom ($5.8k), CSP ($11k), Marriott (9k), IHG (12k), DCU ($6k), Discover IT ($6.5k)
TU - 4 INQ, EX - 7 INQ, EQ - 3 INQ
Gardening since 06/25/14.
Message 6 of 11
Ddub
Established Member

Re: Starting over, help

So 2 late payments 5 years ago is preventing me from getting any CC's, even most basic ones? That's so annoying! I know people who miss payments fairly often and make marginally more than I do (maybe like 12-15k a year) and they are getting approved for airline and hotel cards. My one friend had her first credit card be an airline card which seem harder to get.

Is there nothing to be done then? It just seems incredible to me.
CapOne Journey Student ($3500) DiscoverIt Student ($500) Citi Classic Secured ($300) Macy's Charge ($200) Vic Secret ($500)
Message 7 of 11
phoenix_one
Contributor

Re: Starting over, help

There is work to be done here.

 

First work on Macy's try to get that CLI, use, PIF, repeat for leat two months and call them.

 

Join a Credit Union and get a secured card with them, if necessary change Direct Deposit with them.

 

See if you can get those lates removed, if not then wait until they fall off in two years.

 

If you are patient with your strategy it will payoff much better when you try again.

 

My advice is not apply blindly but to choose carefully and work smartly with what you can get.

 

Whatever card you get approved, no matter the limit, you work on increasing those limits.

Do not add more cards unless is absolutely necessary. It will kill AAOA and keep your score low. 

 

This has worked for me but it took patience, self control and time.

 

Good Luck


Starting Score: 660 - 2010
Current Score: Experian 758, Equifax 767, TransUnion 754
Goal Score: 800


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Message 8 of 11
Revelate
Moderator Emeritus

Re: Starting over, help

Try a local CU as someone suggested: you have a good story, they may well listen to it actually and be willing to help you.

 

The second one I would suggest is probably a secured card from Capital One: $99 gets you a $300 limit to start (or if you can afford more cash wise, you can get a larger limit), it's a Visa which does acceptably internationally for your volunteer activity, and there's no foreign exchange fee either.  It's going to be hard for you to do better where you're at now.

 

They have a prequalification page, you may be able to qualify for an unsecured card there as well though their secured product has a solid degree of flexibility if you can afford more than the minimum.

 

In any event, if the Macy's card is still reporting that's enough from a FICO perspective with an additional credit card to put you in pretty good shape though likely if you can arrange two cards without depleting your financial reserves that would likely be better.  Sounds like you've disclosed pretty much everything, what's holding you back is income and a lack of recent history, the Macy's card may well even be flagged as Inactive on your credit report, have you checked it / charged anything to it recently?

 

So pickup a card or two, make sure your Macy's account is in good standing and if it's not, fix it, wait for a year, and then be qualified for the real versions of the student cards you were applying for.  It's not instant, but it's a decent starter plan I think for your situation.




        
Message 9 of 11
Revelate
Moderator Emeritus

Re: Starting over, help

Oh one which might be better depending where you go, look into SDFCU (state department federal credit union): there's no credit check for membership, and no credit check for their Secured card either, and honestly it's one of the top 5 secured products available in my opinion: even has an EMV Chip/PIN combo which is unheard of for a secured card anywhere else, in addition to not having a foreign transaction fee, and that's as good as it gets for international use these days depending where you're headed.

 

Also under more advanced building topics, if you have some positive cash flow I'd suggest getting a secured installment loan too: some places will even lend you the money like this one as an example of what you're looking for: https://www.dcu.org/loans/credit-builder.html

 




        
Message 10 of 11
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