10 years ago I had to declare bankruptcy after losing my job to the Great Recession. Having been stung badly by irresponsible use of credit cards, I decided to swear them off entirely. This decision hurt me when I tried to get a car loan last year. I got approved, but had to pay a high interest rate (15%.) So I began working towards improving my credit by getting a secured credit card with my local credit union.
This paid off last month when I was approved for an auto refi at a much more palatable 8.5%. Shortly thereafter some old credit cards with good histories fell off my credit reports, doing moderate damage to my scores. I've since been approved for a Capital One Platinum MC with a $500 CL. Not much, but its a start.
So what should I focus on next? My short term goal is to get out of my disaster of a house and get a comfortable apartment. Of course that most likely means getting my scores up to 700+. Long term, I need to start saving for retirement which is only 15 - 20 years off. (I've been through a number of layoffs and extended periods of unemployment which wiped out the little bit of savings I had.)
Welcome to the forum.I take it you have 1 secured card and 1 unsecured now. You could try Disco pre-qual and see whats offered. The Plat you can upgrade to a QS to get cash back. I assume you have a mortgage when you say house. Go to Crdit Check Total and get your 3 FICO's for a buck and then cancel before the trial ends.
Funny, I got a Discover "It" offer in the mail today. It may have been sent out before that old AMEX fell off my report, but I may still qualify. Any particular reason I should get a Discover card? I thought a lot of merchants don't accept it.
EDIT: The 'offer' wasn't a pre-approval, or even a pre-qualification, it was simply an invitation to apply. I went ahead and filled it out, and got a message that they'll let me know in 5-7 days.
I also got a pre-approved offer from Merrick Bank for a $700 Visa. Never heard of them; should I try to snag this CC?
Got the updated scores from the site you mentioned. Experian 701, Equifax 672, and the dud of the bunch 644 for TransUnion. Oddly enough, their credit card finder matched me with an Amex Blue and Platinum. If I had been drinking a glass of milk, it would've come out through my nose! LOL.
My best score is Experian, and it seems that's what Amex pulls, so maybe that explains it.
On a lark, I decided to take Experian's advice and apply for the Amex Blue.
HOLY BAT GUANO, BATMAN!
I was approved, and got an $8K CL. The fly in the ointment is the 25% APR. But hey, looks like I'm off to a good start.
I wonder why Cap 1 would only give me $500. Maybe it's because they pulled TU, maybe Amex was happy because I had a (positive) history with them pre-BK7. Whatever, I'm a happy camper...
Dang dude. Congrats!!!!!!! Forget Merrick now. If your approved for the Disco. Then you can follow the AZEO method to start building history. With AMEX, Cap1 and soon Disco. Your set for a while. Let htem age. You do have some sort of installment loannlike a mortgage or car payments? If yes. You wont need any loans.....
Thanks. Not sure about the Discover application. Just tried to check the status online and got an unhelpful error message. But we'll see.
Can you explain the "AZEO method" or post a link? I'm very new to this...
As you saw in my other thread, I'm nervous about the high CL and APR on the AMEX card. But the neat thing is that it gives 3% cashback on groceries and 2% on gas. I might have to make it my 'daily driver' and PIF, at least until the intro APR of 0% goes away in Dec. 2020.
Until Discover responds to my application, I'm in a holding pattern...
Got some updated info this morning. There were 2 hard pulls (Amex + Disco) on Experian, which dropped my score from 704 to 689. There was one hard pull on Equifax which had no effect at all (holding steady at 672.) So I got kicked out of the 700 club entirely, but I got an $8000 CL on AMEX. Hmmm.
What's likely to happen to my scores when the auto refi, Cap 1 and AMEX cards hit the CRAs?
So I got my official rejection from Disco today. It seems most folks say that three credit cards is ideal for rebuilding credit. I've got 2 "real" CCs now, the AMEX Blue and Cap1 MC, and also a secured Visa from my local CU. Should I apply for another, or just move forward with what I've got?
P.S. Disco rejected me, but I got approved by AMEX??? ROTFLMAO!
@8bitmachinegun wrote:So I got my official rejection from Disco today. It seems most folks say that three credit cards is ideal for rebuilding credit. I've got 2 "real" CCs now, the AMEX Blue and Cap1 MC, and also a secured Visa from my local CU. Should I apply for another, or just move forward with what I've got?
P.S. Disco rejected me, but I got approved by AMEX??? ROTFLMAO!
You got the 3 cards. They are revolving credit accounts in the eyes of FICO. Now its time to play the game. Use your cards. Pay 2 of them in full each month. And pick one to report say 2-4% each month. Or as we call it AZEO. All zero except 1. Let time do its thing now and let those puppies grow. In a year you can try for Disco again and then you can close out the secured card unless the CU graduates their crads. You should be in good shape in a year and then you can apply for better cards that would support your lifestyle. So your good for now. Enjoy your cards and time will do its thing. Good Luck!