Where do I go from here? (part 2?)

[The_Rooster]

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@RSX wrote:

Hmmm. This seems like you are 1 month behind...

the payment is due on the 28th. If you pay it, then the statement cut on the 4th should reflect your zero balance

if you are thinking the statement is cutting 24 days Before a payment, you are looking at it all wrong

it is actually cutting 5-7 days After your expected payment

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100% on-time payments.

Closing date 7/3 and payment due 7/28.

[RSX]

Ok. Glad you have never been late

i am just saying you should pay it off before the statement is cut.  Then you have the low util and a zero reporting.  

you can wait until the payment date and not be late.  But it will obviously then show a large balance all the time.  

whatever works for you.  

[jamie123]

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Hi there.

Agreed that the lates are uncalled for. No more lates in the last 36+ months.

The $10k on my Amex Gold is mostly personal spending. I run everything through it to get the points.

Usually around $9k to $10k shows on my Credit because the statement cuts on the 4th but payment isn't due until the 28th. I always PIF ... just not before the statement date. I always assumed it didn't matter because charge cards don't affect utilization?

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Okay, it seems you have a bit of an unusual situation. You had a bad stretch which caused some baddies but you have recovered and have been flying straight for the past 3 years. You are trying to rebuild your credit lines. Hope that sums it up?

You need your credit reports to reflect you in the best possible light to the lenders until you have all the cards that you want with high credit lines. Sure, as long as you follow the rules and pay your balances by the due date your credit will be okay and you won't get any baddies, but you know what you won't get either? More credit with high credit lines!

Your credit cards:

• AMEX Gold Charge Card - $9K monthly reporting
• Discover IT - $600 balance/2400CL
• Cap1 - Restricted (Don't use.)

Lenders don't like to see large balances being reported on credit cards when they are looking at your report and trying to decide if they should issue you one of their cards whether it is a charge card or not. (I'm sure AMEX loves you though!) You were even reporting $600 on your Discover card which was 50% UTI until your recent CLI. It is still $25% after your recent CLI!

You are here to learn how to play the game and we are here to help you play the game. Perhaps others here can chime in with their advice and/or critique my advice.

My advice:

• Wait until your AMEX Gold and Discover cards are at least 1 year old before making any other credit moves.
• Once those cards are 1 year old, call Discover and ask for a CLI to $5000. Yes, call them, don't try it online.
• Pay the Discover to less than $100 before it reports from now on, then go back and pay it to $0 after the new statement cuts.
• Keep the reporting balance on the AMEX Gold to below $1000 from here on out. You are spooking lenders when they see large balances on this card. Most normal people don't/can't put that much spend on a card per month and you want to look NORMAL right now.
• Wait until the next statement after Discover gives you that $5000 CL before apping for your next card.

You want to appear to lenders that you don't need their credit and they will push it on you. If you appear that you need credit they won't give it to you. Really.

The next choice is which 2 credit cards that you should app for once your Discover and AMEX are about 13 months old. Perhaps some other posters could chime in here?

My suggestions:

• AMEX Blue Cash Everyday or their Cash Magnet. You already have a relationship with AMEX so they should give you one of these cards I would imagine.
• Bank of America Cash Rewards card. BoA will eventually give you some really high credit lines if you deserve them. You seem to have a big monthly spend and BoA will take care of you once you have some history with them. Call for a CLI every 6 months with BoA and you might be pleasantly surprised. (Always ask for double whatever your current CL is and they will give you what they can.)

I think that if you get your reporting balances down and wait until your cards are 13 months old you will have a good shot at picking up 2 more cards. Then wait a year and get another 2 cards.

Good luck!

[The_Rooster]

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@jamie123 wrote:

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Hi there.

Agreed that the lates are uncalled for. No more lates in the last 36+ months.

The $10k on my Amex Gold is mostly personal spending. I run everything through it to get the points.

Usually around $9k to $10k shows on my Credit because the statement cuts on the 4th but payment isn't due until the 28th. I always PIF ... just not before the statement date. I always assumed it didn't matter because charge cards don't affect utilization?

---

Okay, it seems you have a bit of an unusual situation. You had a bad stretch which caused some baddies but you have recovered and have been flying straight for the past 3 years. You are trying to rebuild your credit lines. Hope that sums it up?

You need your credit reports to reflect you in the best possible light to the lenders until you have all the cards that you want with high credit lines. Sure, as long as you follow the rules and pay your balances by the due date your credit will be okay and you won't get any baddies, but you know what you won't get either? More credit with high credit lines!

Your credit cards:

• AMEX Gold Charge Card - $9K monthly reporting
• Discover IT - $600 balance/2400CL
• Cap1 - Restricted (Don't use.)

Lenders don't like to see large balances being reported on credit cards when they are looking at your report and trying to decide if they should issue you one of their cards whether it is a charge card or not. (I'm sure AMEX loves you though!) You were even reporting $600 on your Discover card which was 50% UTI until your recent CLI. It is still $25% after your recent CLI!

You are here to learn how to play the game and we are here to help you play the game. Perhaps others here can chime in with their advice and/or critique my advice.

My advice:

• Wait until your AMEX Gold and Discover cards are at least 1 year old before making any other credit moves.
• Once those cards are 1 year old, call Discover and ask for a CLI to $5000. Yes, call them, don't try it online.
• Pay the Discover to less than $100 before it reports from now on, then go back and pay it to $0 after the new statement cuts.
• Keep the reporting balance on the AMEX Gold to below $1000 from here on out. You are spooking lenders when they see large balances on this card. Most normal people don't/can't put that much spend on a card per month and you want to look NORMAL right now.
• Wait until the next statement after Discover gives you that $5000 CL before apping for your next card.

You want to appear to lenders that you don't need their credit and they will push it on you. If you appear that you need credit they won't give it to you. Really.

The next choice is which 2 credit cards that you should app for once your Discover and AMEX are about 13 months old. Perhaps some other posters could chime in here?

My suggestions:

• AMEX Blue Cash Everyday or their Cash Magnet. You already have a relationship with AMEX so they should give you one of these cards I would imagine.
• Bank of America Cash Rewards card. BoA will eventually give you some really high credit lines if you deserve them. You seem to have a big monthly spend and BoA will take care of you once you have some history with them. Call for a CLI every 6 months with BoA and you might be pleasantly surprised. (Always ask for double whatever your current CL is and they will give you what they can.)

I think that if you get your reporting balances down and wait until your cards are 13 months old you will have a good shot at picking up 2 more cards. Then wait a year and get another 2 cards.

Good luck!

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This is gold! Thank you!

Im going to follow this formula you laid out. Only deviation is that I had already applied for a FNBO credit card (it's been pending manual review for a while). I was bummed out by the recent denials and applied for a secured card with a $3k limit. I heard they graduate to non-secured in 11 months. Looking back, I shouldn't have, but it's too late now.

[The_Rooster]

Just an update.

I was finally approved for the First Bank of Omaha secured card with a $3,500 limit.

After 11 months (with on-time payments), they graduate to a non-secured card with the same (or higher) limit.

Now I'm going to follow the plan prescribed by Jamie123 above.

[Anonymous]

Excellent congratulations! That’s terrific and sounds like a solid plan from solid advice.

[Anonymous]

That’s great you got that secured card tho, that’s terrific!! That’s a tremendous benefit congratulations again!!

[Anonymous]

Another thing you could do is join some credit unions or institutions that you want to get a card with that are relationship oriented like US Bank for instance. You have a better chance if you’ve got an existing account with them in my opinion.

But if you start relationships now, you’ll be better positioned when your youngest Card turns 12 months old.

[The_Rooster]

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@Anonymous wrote:
That’s great you got that secured card tho, that’s terrific!! That’s a tremendous benefit congratulations again!!

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Thank you. Disco gave me a $500 CLI too, so things are looking up!

[Anonymous]

Congrats!