Strategy for next applications for CC's

[atxtyson]

Hi,

So I close on my house next week and am starting to build a plan to go for my next credit card. 

Here's a rundown on my current report:

Credit Cards

Wells Fargo: 0/1700

Wells Fargo 0/2500 (was secured, just converted to unsecured, hasn't reflected on my report yet)

Capital one Platinum 0/1350

First Premier 0/800

First Premier 0/800

Credit One 0/650

Credit One 0/800

Citi AA (authorized user) 0/31,000

Auto Loans

Just paid off balance and its showing closed now on my credit report.

Another auto loan from 2018, that was sold when I bought the car I just paid off. It has 5 late payments (30 days) spread out over 2016 / 2017. This is the only account that I have late payments on in my entire report besides the charged off cards.

Installments

Affirm 800/1719 

Credit Union $10,000 secured loan opened may 2018, paid off Apr 2020. Account closed

Charge Offs

BOA 2000 CC charged off 2016, "Paid, was a charge-off" 4/2018

Chase 9000 CC charged off 2016, "Legally paid in full for less than the full balance" 4/2018

Chase 5000 CC charged off 2016, "Legally paid in full for less than the full balance" 4/2018

Citi Card 3500 CC charged off 2016, paid for less than balance 2018 (no longer on credit report)

Barclay Card 13500 CC charged off 2016, dropped off a credit report, no payments 2018 (no longer on credit report)

Discover Secured CC 200 charged off, paid in full 4/2018

I just opened a NFCU checking account and am thinking their cash rewards credit card is what I want to shoot for. I was wondering if anyone had any input as to what the best strategy to get a higher credit line credit card with good rewards should be. Should I apply to multiple cards at the same time?

My scores are set to go up quite I bit in the next month or two once the mortgage shows up and secured CC shows it's been converted. Or I could be wrong about the mortgage. 

Is my relationship with BOA, Chase, CITI and Barclay ruined? How long until they might take me back?

Thanks for your time.

[Anonymous]

Congrats on the new home!

As for obtaining credit cards from lenders you've had COs with, I wouldn't anticipate being approved by them until they've fallen off your CRs. Although they were either paid or settled, those lenders keep internal records beyond 7 years. I've heard BoA has a 10-year grudge, and I would not expect mercy from Chase. Discover would be the only one I would be inclined to try. I've heard of some exceptions to the aforementioned, but very few. 

I would suggest a local credit union as a good option, they seem to be somewhat more forgiving than the big banks. If your scores bump up some as you anticipate, NFCU will likely be a good choice too. However, many on here have much better SLs with their 2nd NFCU card than the 1st.

Whether your score improves with the mortgage is questionable. From what I've seen and read, you'll take an initial hit to your scores as it is a large, new debt. However, a mortgage also sends the message that you've shown someone an ability to handle the responsibility and have an ability to pay it off, so scores tend to rebound well and then surpass where you would have been without one in 6-12 months of on-time mortgage payments.

Personally, I obtained several new credit cards just after I closed on my house, but before the mortgage began reporting. I'm sure others will respond with their personal experiences and observations as well. 

As always, YMMV.  Good luck!

[BmoreBull]

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@atxtyson wrote:

Hi,

So I close on my house next week and am starting to build a plan to go for my next credit card. 

Here's a rundown on my current report:

Credit Cards

Wells Fargo: 0/1700

Wells Fargo 0/2500 (was secured, just converted to unsecured, hasn't reflected on my report yet)

Capital one Platinum 0/1350

First Premier 0/800

First Premier 0/800

Credit One 0/650

Credit One 0/800

Citi AA (authorized user) 0/31,000

Auto Loans

Just paid off balance and its showing closed now on my credit report.

Another auto loan from 2018, that was sold when I bought the car I just paid off. It has 5 late payments (30 days) spread out over 2016 / 2017. This is the only account that I have late payments on in my entire report besides the charged off cards.

Installments

Affirm 800/1719 

Credit Union $10,000 secured loan opened may 2018, paid off Apr 2020. Account closed

Charge Offs

BOA 2000 CC charged off 2016, "Paid, was a charge-off" 4/2018

Chase 9000 CC charged off 2016, "Legally paid in full for less than the full balance" 4/2018

Chase 5000 CC charged off 2016, "Legally paid in full for less than the full balance" 4/2018

Citi Card 3500 CC charged off 2016, paid for less than balance 2018 (no longer on credit report)

Barclay Card 13500 CC charged off 2016, dropped off a credit report, no payments 2018 (no longer on credit report)

Discover Secured CC 200 charged off, paid in full 4/2018

I just opened a NFCU checking account and am thinking their cash rewards credit card is what I want to shoot for. I was wondering if anyone had any input as to what the best strategy to get a higher credit line credit card with good rewards should be. Should I apply to multiple cards at the same time?

My scores are set to go up quite I bit in the next month or two once the mortgage shows up and secured CC shows it's been converted. Or I could be wrong about the mortgage. 

Is my relationship with BOA, Chase, CITI and Barclay ruined? How long until they might take me back?

Thanks for your time.

---

Just wanted to note that if all of your cards are reporting a zero balance, you’re likely losing points. This is due to the FICO all zero penalty. It can be anywhere from 10-20 points if I recall correctly. I had this happened one month and lost 20 points. Allow one of your bank cc to report a small balance of about 9% of the limit. Should give you those points back.

[atxtyson]

I actually realized after I had paid them off and statement rolled over that I should've left a balance on them. Only after reading someone else's post did I realize this. Man, the amount of information this forum has taught me.

Credit Karma just alerted me to a new score... bah bah bah bah! 714 Transunion!

WF reported 0 balances for both cards & capital one reported my $100 CLI and $0 balance.

I wonder if I had left a 5% or so balance on the WF and Cap 1 cards if the score would've been any hire.

I'm supposed to take the Credit Karma scores with a grain of salt though, right?