@Anonymous wrote:Hi All,
Over the past week I've learned an important lesson that may be obvious to veterans of the game but less so to those who are new to rebuilding - it's not just about your score. Two months ago all my scores were in the 400s because I allowed my only credit card to go 90 days past due. I also had about 5 baddies on my file. Fast forward 6 weeks of aggressive rebuilding including pay for delete, good Will emails and letters etc I got all my baddies removed on TU and I expect them to be off EX and EQ in short order. The first score to improve was my EQ FICO 5 which shot up to 685 with just my recent lates and a charge off that will fall off this summer from 2013. I'm working on early deletion for the charge off since I live in NY but I thought with a score of 685 I might be eligible for an unsecured card somewhere. (I had gotten a 5k secured US bank card already last month which helped a little). Well I was wrong - denied at both AOD and another CU that pulls EQ FICO 5 due to the two remaining negative factors I just mentioned. Next thing to happen was my TU score shoots up to 737 after I get the chargeoff removed and get down to zero baddies on that file with their standard early deletion. I'm like wow 737 is pretty good I should be able to find someone to give me an unsecured line. Wrong, wrong again. Denials from all the TU pullers including synchrony who "couldn't verify my identity" for a paypal cash back card? Brutal and cost me inquiries of course. Only apps still pending are Uber Visa and a CU that pulls TU FICO 8. Mind you I'm carrying zero debt and have a 140k income which I thought might help with CUs. Nope. So basically between TU and EQ pulls I've racked up several denials trying to get that key third card. I also was denied for secured cards before anyone mentions that. The recent derog really has scared every creditor in addition to the thin file and old charge off. Lesson I've learned is getting the scores up isn't everything and banks are not willing to take chances. Unsecured credit is hard to get without patience in a rebuild which clearly I didn't have here. I also tried several recons and they did not work but helped me gain this insight which I've now shared. Hope this helps for future rebuilders. Also the simulations on myFICO say that if I just let my file age for 3 months my TU score will be 787 and I imagine if I can get the charge off removed from the others I should be in the 700s across the board. I'm benefiting from the fact that I have 15 yr age of oldest account and I didn't really screw up until the chase charge off in 2013.
TLDR: make sure you're removed a few months from most recent lates before you apply for new credit during a rebuild or you could be denied even with okay scores.
question: what should be the first unsecured card I go for in a few months to the fatten the file? I'd like to restart my relationship with Amex after they shut down my card for shoddy reasons (paid on time but high UTIL with little income in college) and I'm also interested in Chase.
thanks for reading!
I'd check the pre-qual sites for Amex and Discover before applying for anything.
Don't go to crazy looking or applying for new accounts if you're serious about Chase. Five new accounts in two years (5/24) puts Chase out of reach for most.
Amex won't do a hard pull if your "blacklisted" even if a pre-approval show's up.
@Anonymous wrote:Hi All,
Over the past week I've learned an important lesson that may be obvious to veterans of the game but less so to those who are new to rebuilding - it's not just about your score. Two months ago all my scores were in the 400s because I allowed my only credit card to go 90 days past due. I also had about 5 baddies on my file. Fast forward 6 weeks of aggressive rebuilding including pay for delete, good Will emails and letters etc I got all my baddies removed on TU and I expect them to be off EX and EQ in short order. The first score to improve was my EQ FICO 5 which shot up to 685 with just my recent lates and a charge off that will fall off this summer from 2013. I'm working on early deletion for the charge off since I live in NY but I thought with a score of 685 I might be eligible for an unsecured card somewhere. (I had gotten a 5k secured US bank card already last month which helped a little). Well I was wrong - denied at both AOD and another CU that pulls EQ FICO 5 due to the two remaining negative factors I just mentioned.
Next thing to happen was my TU score shoots up to 737 after I get the chargeoff removed and get down to zero baddies on that file with their standard early deletion. I'm like wow 737 is pretty good I should be able to find someone to give me an unsecured line. Wrong, wrong again. Denials from all the TU pullers including synchrony who "couldn't verify my identity" Since you can pull your annual credit report weekly now. Check TU and see whats not reporting correctly. Make sure you dont have a split file. for a paypal cash back card? Brutal and cost me inquiries of course. Only apps still pending are Uber Visa and a CU that pulls TU FICO 8. Mind you I'm carrying zero debt and have a 140k income which I thought might help with CUs. Nope. So basically between TU and EQ pulls I've racked up several denials trying to get that key third card. I also was denied for secured cards before anyone mentions that.
The recent derog really has scared every creditor in addition to the thin file and old charge off. Lesson I've learned is getting the scores up isn't everything and banks are not willing to take chances. Unsecured credit is hard to get without patience in a rebuild which clearly I didn't have here. I also tried several recons and they did not work but helped me gain this insight which I've now shared. Hope this helps for future rebuilders. Also the simulations on myFICO say that if I just let my file age for 3 months my TU score will be 787 and I imagine if I can get the charge off removed from the others I should be in the 700s across the board. I'm benefiting from the fact that I have 15 yr age of oldest account and I didn't really screw up until the chase charge off in 2013.
TLDR: make sure you're removed a few months from most recent lates before you apply for new credit during a rebuild or you could be denied even with okay scores.
question: what should be the first unsecured card I go for in a few months to the fatten the file? I'd like to restart my relationship with Amex after they shut down my card for shoddy reasons (paid on time but high UTIL with little income in college) and I'm also interested in Chase.
thanks for reading!
Have you paid everything back to AMEX? Its by invitation usually. If so you could call and see if they will let you have the Optima card to get back in for now. Hopefully EQ & TU will delete everything like TU did. Simulators arent accurate even on MyFICO. Nice job. You can get all your FICO scores for $1 at experian.com. Just cancel before the trial ends. And you'll still get monthly EX FICO score.
It wont be a recon. Maybe they want you to verify some things. If thats not it. Then you need to get your TU report as I said and see whats wrong with it. They cant get thru for some reason.
The changing credit climate due to Covid-19 is also a factor. Creditors are starting to be more conservative especially if there is a recent negative item in your history. Be patient and things will improve over time.
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I love that you were able to get all baddies off. I've been tirelessly working on it for MONTHS and I am fed up 
My scores have not budged because of it. Last attempt to pay for delete with chase but I am not hopeful. Not aure what else I can do aside wait a few years for them to fall off :-(
