New guy just getting started!

[Anonymous]

Hi guys, I found this site and it's perfect for me as I'm just getting started in rebuilding my credit.

Few things about me.

#1 Filed for bankruptcy in April 2012, Discharged July 2012.

#2 Opened up an auto-loan in 2013.

#3 Foolishly got in trouble with my credit cards again,

I'm beginning the road to repair my credit and I think this site will provide the confidence to keep me motivated. I have a mortgage with no dings and my auto loan payment has been perfect too so my credit has begun to repair a little bit.

However, I do have three cards right now.  About 6 months ago was near rock bottom and these were the utilization rates when I began turning it around.

Barclaycard Platinum 100% -  $1900 Limit, $1900 Balance

Capital One Journey 88% - $1250 Limit, $1102 Balance

Capital One Platinum 95% - $750 Limit, $711 Balance

$3900 Limit, $3713 Balance. 95%. Ugly.

In the past 6 months I chipped away at all these. My FICO (Barclay) was at 625 when I started and rose two measly points to 627 last month. A few weeks ago, I was able to COMPLETELY wipe out my Capital One Platinum.

The FICO jumped 8 points to 635 from this move and now I'm amped for more!  Just today I was able to throw another $250 down on the Barclaycard and here is where my current situation stands.

Barclaycard Platinum 77% - $1900 Limit, $1476 Balance

Capital One Journey 75% -  $1250 Limit, $937 Balance

Capital One Platinum 0% - $750 Limit, $0 Balance

$3900 Limit, $2413 Balance. 62%. Getting there!

For the first time (probably from that 8 point jump this month?), I began to receive a interesting offers in the mail. Just today I got a pre-qualified offer for a WalMart/Synchrony Bank credit card. There is no annual fee, 22.9% APR. Now should I try to get this card to lower my utilization or should I bide my time and wait? What's the best tactic going forward? The two cards with a remaining balance have the same APR, so I chip away both of them in unison or just try to crush one fast? Thankfully I have zero dings (no lates) since the bankruptcy so hopefully that starts showing through.

My short-term goal is to qualify for the Capital One Quicksilver and transfer these other high APR balances to it and enjoy the 0% APR for a while. I'm not quite sure when I should try to pull the trigger on that application.

Any advice is greatly appreaciated!

[Anonymous]

@Rick_J,

Welcome.. If I were in your shoes, I'd continue to work on paying the balances on the current cards down.  That alone will be a red flag and will cause a denial.  Also, paying it down helps in saving you money as the APRs on your current almost maxed out hards are horrendous... You have made the decision joining as there is a lot of gold on this forum.

[Pway]

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@Anonymous wrote:

Hi guys, I found this site and it's perfect for me as I'm just getting started in rebuilding my credit.

Few things about me.

#1 Filed for bankruptcy in April 2012, Discharged July 2012.

#2 Opened up an auto-loan in 2013.

#3 Foolishly got in trouble with my credit cards again,

I'm beginning the road to repair my credit and I think this site will provide the confidence to keep me motivated. I have a mortgage with no dings and my auto loan payment has been perfect too so my credit has begun to repair a little bit.

However, I do have three cards right now.  About 6 months ago was near rock bottom and these were the utilization rates when I began turning it around.

Barclaycard Platinum 100% -  $1900 Limit, $1900 Balance

Capital One Journey 88% - $1250 Limit, $1102 Balance

Capital One Platinum 95% - $750 Limit, $711 Balance

$3900 Limit, $3713 Balance. 95%. Ugly.

In the past 6 months I chipped away at all these. My FICO (Barclay) was at 625 when I started and rose two measly points to 627 last month. A few weeks ago, I was able to COMPLETELY wipe out my Capital One Platinum.

The FICO jumped 8 points to 635 from this move and now I'm amped for more!  Just today I was able to throw another $250 down on the Barclaycard and here is where my current situation stands.

Barclaycard Platinum 77% - $1900 Limit, $1476 Balance

Capital One Journey 75% -  $1250 Limit, $937 Balance

Capital One Platinum 0% - $750 Limit, $0 Balance

$3900 Limit, $2413 Balance. 62%. Getting there!

For the first time (probably from that 8 point jump this month?), I began to receive a interesting offers in the mail. Just today I got a pre-qualified offer for a WalMart/Synchrony Bank credit card. There is no annual fee, 22.9% APR. Now should I try to get this card to lower my utilization or should I bide my time and wait? What's the best tactic going forward? The two cards with a remaining balance have the same APR, so I chip away both of them in unison or just try to crush one fast? Thankfully I have zero dings (no lates) since the bankruptcy so hopefully that starts showing through.

My short-term goal is to qualify for the Capital One Quicksilver and transfer these other high APR balances to it and enjoy the 0% APR for a while. I'm not quite sure when I should try to pull the trigger on that application.

Any advice is greatly appreaciated!

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I personally would work on lowering your utilization on your cards by paying those balances down.  I would wait a while beofre applying for new credit.   

[Anonymous]

So getting this Walmart card (and just cutting it up) to lower utilization further is not a good route to the QuickSilver?  Would love to just pay those two off right now but not possibly, but doing the best I can under the circumstance. Was hoping for a path to a 0% APR Transferpromo card to help escape the high APRs.

[Pway]

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@Anonymous wrote:

So getting this Walmart card (and just cutting it up) to lower utilization further is not a good route to the QuickSilver?  Would love to just pay those two off right now but not possibly, but doing the best I can under the circumstance. Was hoping for a path to a 0% APR Transferpromo card to help escape the high APRs.  Looking at your current situation I would not apply.  You would not want a wasted inquiry.  Your credit profile with your high balances could make you look desperate for credit to credit card companies.  Getting that card could hurt you as well, depending on the limit you may receive.  What are you current credit scores?

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[Anonymous]

So how should I attack my credit cards?

Should I chip away at them evenly or attack one with gusto? If option 2, which one?

[Anonymous]

Get the ugly one down under 85 percent util, that card shows maxed and is penalizing you for it. Then it depends on what you are looking for. I would pound 1 at a time as much as you can. preferably the one withthe highest APR. The more cards that report a balance each month causes a score drop. SO when you get a second card down to 0, you will pick up points. Then you can throw everything at a 2nd card. minimum payments to the last one with a balance and hit the other one as hard as you can. Once there is only 1 card with a balance left you can throw everything you have at it.

[Anonymous]

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@Anonymous wrote:

So how should I attack my credit cards?

Should I chip away at them evenly or attack one with gusto? If option 2, which one?

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If you can get both under 60% you may see another score bump. The biggest score bump from UTI% will be getting two of them at 0% and one under 10%. If your hard inquiries are less than five or so (in the last 12 months), you could app for the QS card on the next score bump. If you have more than five, I'd wait till you have one balance under 30%, then app for it.

[newstart2010]

when looking at large credit card balances I want to pay down I stop looking at the score and focus on saving money.  All money goes towards the highest interest rate first.  And then the next, and then the next.  you do not want to add more available credit to a sinking ship or you will be filing again.  You want to pay double the minimums on the cards you have and putting all the rest of your payoff cash to the card with the highest apr.  Once paid off look at your cards and determine if you really need more credit right now or if you are fine with the cards you have and maybe request some CLIs and APR decreases from those you have build a history with.