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ABCD2199's Eleven Rules to Credit Rebuilding

ABCD2199
Senior Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding

My private financial support group on Facebook has gotten hilarious because a lot of the regulars demand that people first do the math on a new card and prove why they think they should app for it.

 

We also have a mandate that people don't float anything on credit cards to the point of paying interest or fees, so typically we are a different kind of credit card customer.  Not churners, just reward-chasers.

 

I would say even there, after people have done the math, it's still 7/10 "No, don't app for that" answers from the choir.  On the flip side, I wasn't going to app Amex BCP this month because of no pre-quals but it was 9/10 saying "oh yeah, app, you'll get it" from everyone, and they were right.  But my math proofs were stronger than Einstein's relativity math, and mine were probably longer proofs, lol.

 

I really need to open a DCU account, that 5% on $1000 keeps screaming at me but for some reason I am exhausted with bank accounts.  Going to close Wells Fargo today or Friday finally, and thinking of closing a local community bank account I've had for 20+ years because they denied me a junky rebuilder card in July, thankfully without a hard inquiry.  Once those two are gone, I'll delete them from Mint in a few months and then consider a few new accounts, maybe there will be some good sign-up bonuses for checking/savings.

Message 21 of 156
Stormchaser08
Established Member

Re: ABCD2199's Eleven Rules to Credit Rebuilding

I used to have a Bank of America checking account back in college, but closed it cause they charged hefty fees every month and one time I didn't have enough funds and my account became overdrawn, and a creepy -88888 balance appeared, they said that it was a technical glitch, so I closed it and opened a TD Bank checking account, they charge minimal fees and don't bother you as much, only problem is that they don't give you free checks when you open a bank account with them, unless you get a checking account in the Tier 1 catergory, I think that is the checking account they offer, gotta double check that...
Cards I have now: Oldest to Newest

BofA Platinum Plus: (2008)(oldest)
BofA Cash Rewards
Chase Freedom Unlimited
Discover It
AMEX Everyday Preferred(Upgraded from Everyday)
AMEX BCE Preferred(Upgraded from BCE)

Cards planning on applying
Citibank Double Cash
Citibank Rewards
Chase Freedom
AMEX Gold
AMEX Platinum

EXP: 790 EQX: 720 TRNSUN: 717
Message 22 of 156
Porch
New Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding

So I've been reading a whole lot of what you post, ABCD2199, and it has me rethinking some things...

 

I always thought that as long as I PIF and don't pay any interest I was fine. I'm not rebuilding I'm building. My credit limits are not the best and I'm worried that AZEO will hurt me getting them increased, is that false? Also my scores are tanked right now because I'm carrying a balance on Discover, Chase, and Barclays due to 0% interest promos. I'm rewriting all my rules of what I thought was "okay" from reading all your post

Fico 8- EX: 710 TU: 731 EQ: 694
FICO 5, 4 & 2- EX: 701 TU: 725 EQ: 728


Cap1 QS1|BofA BBR|Discover IT|Chase FU|DCU Visa|Barclays Apple|AmEx BCE|AmEX E|NFCU VsGO|PenFed PCR
Message 23 of 156
Achieving
Frequent Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding

Private support group on Facebook = access to the credit Illuminati?  Don't hold out on us now Smiley Happy

Message 24 of 156
ABCD2199
Senior Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding


@Porch wrote:

So I've been reading a whole lot of what you post, ABCD2199, and it has me rethinking some things...

 

I always thought that as long as I PIF and don't pay any interest I was fine. I'm not rebuilding I'm building. My credit limits are not the best and I'm worried that AZEO will hurt me getting them increased, is that false? Also my scores are tanked right now because I'm carrying a balance on Discover, Chase, and Barclays due to 0% interest promos. I'm rewriting all my rules of what I thought was "okay" from reading all your post


There's a lot of data points on CLI out there but the most common one is "use a responsible portion of your credit limit and make payments well over the minimum."  I personally have NO history of CLI other than Amazon store card which is a useless card for me.  But I am going to switch my usage to about 30% of utilization on a card and let about 6-7% post before paying it off and see if that helps.

 

AZEO won't hurt you, it'll help in the long term, but if you manage a ton of credit cards, that may actually hurt you with CLI requests because chargeoffs are up and lenders are tightening and if they see you have a ton of exposure, it's probably hurting SOME of your chances.  The folks I know with the highest credit limits don't have 30 credit cards with a lot of $500 toy limits.  So I'd say if you have more than 12 credit cards and you don't use some of the smaller limit cards, close them.  If a lender offers the option to reallocate credit limits, take advantage of it over time!  I know lots of folks with $30,000 Chase CLs because they reallocated a new limit once a year and in 3-4 years they were at $30,000 or more on one card.

Message 25 of 156
ABCD2199
Senior Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding


@Achieving wrote:

Private support group on Facebook = access to the credit Illuminati?  Don't hold out on us now Smiley Happy


Lol something like that!

 

We actually shut down our financial mentorship group annually and create a new one and then word of mouth invite new folks who need help.

 

Even with tons of financial mentorship, the failure rate in the first 6 months is REALLY high.  It's unbelievable how many people dream of being rich but they only like the dream, they hate the idea of the reality.

Message 26 of 156
Porch
New Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding

All my cards are in my signature. I read what you said about 2-6 credit cards and then about 7+
Fico 8- EX: 710 TU: 731 EQ: 694
FICO 5, 4 & 2- EX: 701 TU: 725 EQ: 728


Cap1 QS1|BofA BBR|Discover IT|Chase FU|DCU Visa|Barclays Apple|AmEx BCE|AmEX E|NFCU VsGO|PenFed PCR
Message 27 of 156
ABCD2199
Senior Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding


@Porch wrote:
All my cards are in my signature. I read what you said about 2-6 credit cards and then about 7+

Those are great cards!  I'm not familiar with DCU Visa but credit unions tend to be pretty strong in service and limit.

 

I can't wait to chop 3-4 of my current cards I got in 2017.  Already have the closing dates in my forecast!

Message 28 of 156
Porch
New Contributor

Re: ABCD2199's Eleven Rules to Credit Rebuilding

DCU gave me $2000 which is my highest limit. The great thing about DCU Visa is they treat cash advances like just another purchase. I either transfer from it online directly to my checkings or go to an ATM and they don’t charge any fees and standard APR, not increased APR like other banks. Obviously a cash advance is a poor financial decision but it’s nice to have the option and not get charged $10 and $15 fees and increased interest.
Fico 8- EX: 710 TU: 731 EQ: 694
FICO 5, 4 & 2- EX: 701 TU: 725 EQ: 728


Cap1 QS1|BofA BBR|Discover IT|Chase FU|DCU Visa|Barclays Apple|AmEx BCE|AmEX E|NFCU VsGO|PenFed PCR
Message 29 of 156
mtditch
Established Member

Re: ABCD2199's Eleven Rules to Credit Rebuilding

What are your thoughts on my situations? I have 2 charge-off accounts, 5 open collection accounts and 5 late payments. All negative accounts were opened with in the last 6 months or less. I was in a car accident and shortly after I was laid off. This definitely wasn't my year, but I'm now in a place where I can star tackling this monster. Unfornately, I don't know where to start.  According to Credit Karma,  my payement history is 95%, my utilization is 73%, my average age of credit is 4 yrs. I have 4 open credit cards and 4 open loans. 

 

 

Message 30 of 156
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