FUTURE AMEX APPROVAL GOAL

[thatnursegirl51]

Good evening everyone! I just wanted some general advice on what time frame I should have before applyiny to an AMEX. I am 22 years old and am in the process of rebuilding my credit score. 
TU: 580

Experian : 554

Equifax: 569

Now, I am aware these are not the best scores but I am working smart and responsible now during my credit increase journey. 

I have one opened credit card account:

Comenity Sephora: $500 limit

I have two charged off accounts:

Discover: $1080

Comenity VS: $700

These accounts never went into collections and I called , made a payment plan for both that finishes 01/17/24, and  opted to pay both balances in full instead of agreeing to the settlement ( my conscience would not met me pay a settlement so low to what i owed and its my fault i owe it in the first place).

I have no collections on my Credit Report. I have an Auto Loan since 08/2021 which I owe ($14,000) but have 1 late payment (already have paid $21,440 on the loan). My goal after my charge off accounts are payed in full in january is to utilize the VARO believe card I have (secured card) and opening a Navy federal secured card ( already pre approved) to raise my credit and honestly use my credit more responsibly while learning . I plan to apply to the AMEX gold card by June 2026, if, no WHEN, my credit gets over 680? Is this a good plan?

[thatnursegirl51]

ALSO, I am also asking because are people approved for and AMEX with previous closed off accounts paid in full?

[BudC2]

Sometimes creditors will remove charge off accounts from your credit report after they are paid in full if you call and ask them. I did this when I was forced to file bankruptcy decades ago. Even if they don't there is no harm in asking.

[thatnursegirl51]

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@BudC2 wrote:

Sometimes creditors will remove charge off accounts from your credit report after they are paid in full if you call and ask them. I did this when I was forced to file bankruptcy decades ago. Even if they don't there is no harm in asking.

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have you heard of that happening with DISCOVER or comenity bank?

[JoeRockhead]

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@thatnursegirl51 wrote:

Good evening everyone! I just wanted some general advice on what time frame I should have before applyiny to an AMEX. I am 22 years old and am in the process of rebuilding my credit score. 
TU: 580

Experian : 554

Equifax: 569

Now, I am aware these are not the best scores but I am working smart and responsible now during my credit increase journey. 

I have one opened credit card account:

Comenity Sephora: $500 limit

I have two charged off accounts:

Discover: $1080

Comenity VS: $700

These accounts never went into collections and I called , made a payment plan for both that finishes 01/17/24, and  opted to pay both balances in full instead of agreeing to the settlement ( my conscience would not met me pay a settlement so low to what i owed and its my fault i owe it in the first place).

I have no collections on my Credit Report. I have an Auto Loan since 08/2021 which I owe ($14,000) but have 1 late payment (already have paid $21,440 on the loan). My goal after my charge off accounts are payed in full in january is to utilize the VARO believe card I have (secured card) and opening a Navy federal secured card ( already pre approved) to raise my credit and honestly use my credit more responsibly while learning . I plan to apply to the AMEX gold card by June 2026, if, no WHEN, my credit gets over 680? Is this a good plan?

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I assume the quoted payoff date of your plans is a typo and you meant 1/17/25... This is good as it will stop the COs reporting monthly and them showing a zero balance will greatly help reduce your aggregate reported utilization, both of which should be a big help to your scores. I'm just not a fan of gimmicky credit builder programs like Varo, CK etc... It's just my opinion that you'd be better off with secured cards from mainstream lenders like, Capital One, US Bank, Discover, NFCU, etc...  or perhaps even look into some of the sub prime cards out there for rebuilding. Nothing wrong with your plan but as your score climbs, I'd caution you against trying to add too many additional accounts beyond a total of 3 (preferred), or 4 (max) total accounts for the time being (Comenity is 1 already). 

Once you do add them, your focus should be on responsible use of your credit as you mentioned, and practicing AZEO to help optimize your scores. 

While you can certainly ask your lenders for a goodwill deletion of the COs once they're PIF, don't get your hopes up. The occurrences of it happening are extremely rare when it comes to mainstream lenders. People who have been successful at it had to make a high volume of repeated requests. 

As for when to apply with Amex? While they do have a soft pull "apply with confidence" tool that will tell you if you're approved or not before making a hard pull on your credit (if you accept), I'd stay away until you can get your scores up to 680+.    

[RaeRae1226]

Honestly I think you're year(s) off with your score in the 500's. What you should do in the meantime is better understand how cards work and how they don't work. Most people who play "the credit card game" don't carry balances on their cards. We pay them off every month in full. That said it also important to understand the difference between a credit card and a charge card. The Amex Gold is a CHARGE card and comes with a $325 fee. If you're rebuilding your credit you should start off by learning how to use cards to maximize their value. Based on the information you provided I don't think you're there yet and I don't think you'd be able to maximize the value of the gold card. 

I'll ask you this: WHY do you want the Gold card?  The Gold card is a very niche card that is meant for only certain types of purchases to maximize its value. 

you should be looking for a no fee card that provides rewards while you learn how to use credit/charge cards. 

[thatnursegirl51]

To be honest, the reason why i fell behind on payments was because it was my last and hasrdest year of nursing school. I had school monday- friday and had to quit my full time job and get a part time job. I used the money from my part time job to pay my car note and car insurance since it was my main priority. After school was completed, I started paying the Sephora again but the victoria secret and discover cards were already charged off. I now make 85k a year since graduating and i pay my sephora card on time . I dine out and go grocery shopping alot . I also take atleast two vacations a year , which i feel like i can benifit and utilize the cards points system in a positive way.

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@RaeRae1226 wrote:

Homestly I think you're a year(s) off with your score in the 500's. What you should do in the meantime is better understand how cards work and how they don't work. Most people who play "the credit card game" don't carry balances on their cards. We pay them off every month in full. That said it also important to understand the difference between a credit card and a charge card. The Amex Gold is a CHARGE card and comes with a $325 fee. If you're rebuilding your credit you should start off by learning how to use cards to maximize their value. Based on the information you provided I don't think you're there yet and I don't think you'd be able to maximize the value of the gold card. 

I'll ask you this: WHY do you want the Gold card?  The Gold card is a very niche card that is meant for only certain types of purchases to maximize its value. 

you should be looking for a no fee card that provides rewards while you learn how to use credit/charge cards. 

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[RaeRae1226]

@thatnursegirl51 

i get it. I've been there. Trust me. I was also in the 500's years ago and have built my score up and actually got the Amex gold a month ago. I'm also in a much better position than I was years ago when I was in that place. That said, it sounds like you have the right mind set in treating credit cards like debit cards. If you don't have the money then you don't buy it. However, it's important to not carry a balance each month for a number of reasons and with a car payment that will make it harder. I paid off my Honda Fit before getting a card and I really think it made a difference in allowing me to pay my cards off so well. 

I'd also keep in mind that credit cards are far more strategic than a lot of people realize. For example just knowing that you buy groceries and dine out and that you like to travel doesn't necessarily help you justify the $325 fee. There is a lot more that goes into it to ensure that you actually make money off of the card vs lose money. There's a lot of strategic work that goes into making that happen with the gold. I'd reccommmend the Amex Blue Cash Everyday before the gold to most people. Or even the Chase Feedom Flex or Capital One Savor. 

there are a number of YouTubers whose channel revolve around the credit card game. I highly recommend you start following them to better understand how you can and should strategize. 

[KatzNDawgs]

Amex has a pretty good pre-approval tool that won't do a HP unless you truly will be approved for the card. Have you checked for pre-approvals? Judging by your current score and derogs, you likely won't be approved, but it won't hurt to check with their site.

For the two charge-offs you have payment plans on, you may want to negotiate for a pay for delete once you have completed payment. That may save you 7 years for it to drop off without that. If that is a no-go, then I would work on building your credit and looking into a no-AF secured card that will graduate and practice good credit habits without letting anything have to charge interest. Low utlization at statement cut and AZEO will help, but that really only affects score on a month-to-month basis, so at this point I would not worry to much about letting something post, but practice paying all cards off in full before statement cut in order to ingrain those habits.

You are young and mistakes happen, unfortunately it can take the harsh repercussion of years to recover to enforce how important good credit habits can be. It takes time yes, but take this time to work on your spending and repayment habits so that this does not occur again in your future, and you will be able to have many doors open to you as far as credit goes.

[thatnursegirl51]

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@JoeRockhead wrote:

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@thatnursegirl51 wrote:

Good evening everyone! I just wanted some general advice on what time frame I should have before applyiny to an AMEX. I am 22 years old and am in the process of rebuilding my credit score. 
TU: 580

Experian : 554

Equifax: 569

Now, I am aware these are not the best scores but I am working smart and responsible now during my credit increase journey. 

I have one opened credit card account:

Comenity Sephora: $500 limit

I have two charged off accounts:

Discover: $1080

Comenity VS: $700

These accounts never went into collections and I called , made a payment plan for both that finishes 01/17/24, and  opted to pay both balances in full instead of agreeing to the settlement ( my conscience would not met me pay a settlement so low to what i owed and its my fault i owe it in the first place).

I have no collections on my Credit Report. I have an Auto Loan since 08/2021 which I owe ($14,000) but have 1 late payment (already have paid $21,440 on the loan). My goal after my charge off accounts are payed in full in january is to utilize the VARO believe card I have (secured card) and opening a Navy federal secured card ( already pre approved) to raise my credit and honestly use my credit more responsibly while learning . I plan to apply to the AMEX gold card by June 2026, if, no WHEN, my credit gets over 680? Is this a good plan?

---

I assume the quoted payoff date of your plans is a typo and you meant 1/17/25... This is good as it will stop the COs reporting monthly and them showing a zero balance will greatly help reduce your aggregate reported utilization, both of which should be a big help to your scores. I'm just not a fan of gimmicky credit builder programs like Varo, CK etc... It's just my opinion that you'd be better off with secured cards from mainstream lenders like, Capital One, US Bank, Discover, NFCU, etc...  or perhaps even look into some of the sub prime cards out there for rebuilding. Nothing wrong with your plan but as your score climbs, I'd caution you against trying to add too many additional accounts beyond a total of 3 (preferred), or 4 (max) total accounts for the time being (Comenity is 1 already). 

Once you do add them, your focus should be on responsible use of your credit as you mentioned, and practicing AZEO to help optimize your scores. 

While you can certainly ask your lenders for a goodwill deletion of the COs once they're PIF, don't get your hopes up. The occurrences of it happening are extremely rare when it comes to mainstream lenders. People who have been successful at it had to make a high volume of repeated requests. 

As for when to apply with Amex? While they do have a soft pull "apply with confidence" tool that will tell you if you're approved or not before making a hard pull on your credit (if you accept), I'd stay away until you can get your scores up to 680+.    

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thank you very much for your insight ! I plan on only opening the NFCU secured card to help build my credit limit and strive to get that card changed to the unsecured after I show positive payment history. After really educating myself about credit, I only want the sephora, the nfcu, the amex, and a chase cc. Other than that, i dont even want to try for any inquiries with other cards since those cards are my goal for now. I am not sure if discover or comenity will do a deletion of the CO since they are the original lender but I am planning to try.