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So I have no score on TU or EX right now, and EQ popped up at 598 for the first time today on Credit Karma.
I have:
I'm concerned about credit scores, but only because my first goal with the credit score is to set up a bunch of 0% B/T fee credit cards for when life takes a downturn (income loss). I have had downturns before where I'd end up in a credit rut to (barely) stay afloat, with high utilization on CCs, high APR on them as well as on personal loans. With just 1-2 CCs, obviously further credit became unobtainable.
So to create a more stable situation just in case the next time happens, I figure I'll first need to join a bunch of credit unions with the non-intro low-fee, low-APR cards I want. Of 27 potential CUs to join, I've already joined 3 and have membership applications pending at 8 others.
Anyway, here is what I'm wondering:
1) Should I just go all out and apply to another 10 CUs or so ASAP? I figure that the HPs will negatively impact my score while payments on the secured CC and installment loan (I plan to make another as the DCU one is short-term) will positively impact it, leaving me at some dismal score like 600-630 for the first year until the INQs no longer have effect. But my scores will probably bounce up after that.
2) If I am able to get a few unsecured cards that have a floor APR of 8.5% in the first year but am only granted them at 18% due to low scores, would the CUs accept requests for APR adjustment in 2 years or so (hopefully) when my scores are in the 700s?
3) After I stabilize my scores and the number of cards I have (like 15-20 cards?), maybe at Year 3 or 4, would it be reasonably easy to keep the accounts open?
Any opinions and partial input are welcome. I've juggled a few cards before, but never en masse. Thanks in advance!
EDIT: This is all assuming that I am able to keep like 1% utilization on these cards the whole time.
Well I’m far from being an expert as I’m digging my way out of the hole I got in, but I’m having trouble following the goal. This sounds like you want a lot of available credit just in case you lose income. I personally would not take that approach. I would use the time while you have income to save up a rainy day fund and build enough credit to get scores up. Just my opinion and others may have other insight.
the Eleven Rules for rebuilding credit is a good read. http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/ABCD2199-s-Eleven-Rules-to-Credit-Rebuilding/...
Hey, thanks for that link! I didn't know about the 3 cards to start or the AZEO method. That's good info to know.
Savings are great but can't be my only net, because the last time I got trapped in limbo/stuck in Korea where I don't have a job or home (insert harsh rant about DHS and Dept. of State here), I used all my savings plus $35k in debt to not go BK. Was sheer luck to get $25k of that as an 8% personal loan. CC debt is all paid for but there's still $20k in installments. Money goes out fast when you have 3 dependents.
So I'm definitely not trying to get the credit to live above my means. I just need a safety net that's sturdy enough not to drop me as soon as I fall in, which with 1-2 cards and a total CL of $10k -- you'll get dropped in a few months and have to go through many more problems than just making debt payments for some years. Last few times poop happened, I had a great credit score in Korea from years of sending money there to build it. I don't have that now.