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Stop making this common mistake during your Credit Repair journey!

Remedios
Moderator

Re: Stop making this common mistake during your Credit Repair journey!

I think Lithium is having issues at the moment 

 

 

Message 31 of 38
BallBounces
Established Contributor

Re: Stop making this common mistake during your Credit Repair journey!


@Boisvert wrote:

@BallBounces wrote:

I'd like to re-read the OP when I get a few minutes, to allow a more thorough response.  

 

For now I want to say that the OP makes some great points, and attempts, I think,  to set the tone that seeking subprime credit is not actually a proper habit of building good credit and is not optimal repair strategy.    Cleanliness and Time are the most important factors.   I agree with those general assertions.  I do wish many builders and rebuilders would take that to heart.

 

Like everything, however, absolutes are rare and there is a nuance to each situation.


That's a great and valid observation. There are no absolutes in credit, the model varies, YMMV, and nothing is concrete. But there are factors that we know, and those are evident and are acceptable as truth by most and that is that:  Adding new revolving accounts will:

 

Some posible negatives are:

- Inquiry

- Will drop your AAoA

- Will reset your AoYA

- Might change rating in "Amount of new Credit" from Good to Fair.

 

Some positives might be a very good increase when your first revolving is added but that's normally limited to profiles with no derogs, and since we are dealing with a credit repair we are assuming derogs are present so that's not the case here.

 

As with everything, your mileage may vary, but more likely than not, adding new accounts during rebuild is not a good idea. 


But that's all we are saying, be careful with absolutes. Be careful.

 

During my rebuild, in which I have gone from 570 to 686 in 100 days, I ADDED seven new tradelines.  I ADDED 15 total INQs.  MY AoYA has perpetually been 0 months.   There is definitely a (valid IMO) reason I have done this, but I would certainly not give it as absolute recommendation.   

 

Again, I am not trying to "give you a hard time" for the OP.  I agree with amost all of it factually and philosophically.   As much as it pains me to read about another person opening an MJC line thinking it is the way forward, we just need to be cafeful when we speak in absolutes.

 

050719:     
020321:     



Current scores are in see - saw mode. Going to be choppy for a couple years, but hoping to break above 700 across all three and stay there in 2021.
Message 32 of 38
Boisvert
Frequent Contributor

Re: Stop making this common mistake during your Credit Repair journey!


@BallBounces wrote:

@Boisvert wrote:

@BallBounces wrote:

I'd like to re-read the OP when I get a few minutes, to allow a more thorough response.  

 

For now I want to say that the OP makes some great points, and attempts, I think,  to set the tone that seeking subprime credit is not actually a proper habit of building good credit and is not optimal repair strategy.    Cleanliness and Time are the most important factors.   I agree with those general assertions.  I do wish many builders and rebuilders would take that to heart.

 

Like everything, however, absolutes are rare and there is a nuance to each situation.


That's a great and valid observation. There are no absolutes in credit, the model varies, YMMV, and nothing is concrete. But there are factors that we know, and those are evident and are acceptable as truth by most and that is that:  Adding new revolving accounts will:

 

Some posible negatives are:

- Inquiry

- Will drop your AAoA

- Will reset your AoYA

- Might change rating in "Amount of new Credit" from Good to Fair.

 

Some positives might be a very good increase when your first revolving is added but that's normally limited to profiles with no derogs, and since we are dealing with a credit repair we are assuming derogs are present so that's not the case here.

 

As with everything, your mileage may vary, but more likely than not, adding new accounts during rebuild is not a good idea. 


But that's all we are saying, be careful with absolutes. Be careful.

 

During my rebuild, in which I have gone from 570 to 686 in 100 days, I ADDED seven new tradelines.  I ADDED 15 total INQs.  MY AoYA has perpetually been 0 months.   There is definitely a (valid IMO) reason I have done this, but I would certainly not give it as absolute recommendation.   

 

Again, I am not trying to "give you a hard time" for the OP.  I agree with amost all of it factually and philosophically.   As much as it pains me to read about another person opening an MJC line thinking it is the way forward, we just need to be cafeful when we speak in absolutes.

 


Definitely agree. And this board has been nothing but GREAT advice. My post is mostly as an initial warning for anything starting this journey and induce patience in them. Think about your strategy, plan it well. Actually most of the responds on this thread and very good knowledge and feedback for anyone starting this process.

My signature is only for inspiration.
  
  
Credit Repair Tracker: Don't get discouraged: 220pts gained to 800!


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Message 33 of 38
Morpho
Valued Contributor

Re: Stop making this common mistake during your Credit Repair journey!

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Message 34 of 38
Chaotic_Good
Established Member

Re: Stop making this common mistake during your Credit Repair journey!

@CreditNoob - This is some great advice.  While there is no one-size-fits-all situation in regards to rebuilding, I think having a plan/goals in mind first can definitely steer a person toward their intended destination.  However, I'm sure everyone in a rebuild has experienced the anxiety, frustration and impatience that comes along with seeing horrible scores and it's easy to want to try and find quick fixes.  Especially when comparing one's situation to other's on this forum with over $100k in open credit lines (Or $1mil **Faints**) and thinking, "I want to go there."

 

However, as others have said in this thread, each person's situation is different and a person should consider that and know that there will be variables that work for some and not for others.  I'm just glad this forum exists so people know that there is light at the end of the tunnel and can receive proper guidance.  I definitely made some missteps while starting my rebuild and there are some things I wish I did differently and had been more patient about, but "Credit" has become so addicting that I don't mind making mistakes because they provide great learning opportunities.  Ultimately, I would think that having the ability to take a step back and tweak one's rebuild as necessary is paramount to achieving one's goals.

Amex Gold NPSL || NFCU More Rewards Amex $10K || NFCU GoRewards $2400 || Discover It Chrome $2000 || Cap One QS $500 || Cap One QS1 $500 || NFCU Secured Visa $600 || Avant Card $ 750 || Amazon Store Card $700
Message 35 of 38
Acc-Risk
New Contributor

Re: Stop making this common mistake during your Credit Repair journey!

Even missteps can be positive, as long as they're in a positive direction. I still have all of my starter cards, even Credit One. When I was rebuilding I knew that 2 years out, my AAoA would be good and inquiries would be dropping off the same time that any derogs would be dropping as well. Proper planning, patience and execution were key. 

 

My two years here have been very educational, but I do listen to select people. 

Message 36 of 38
tenaya
Frequent Contributor

Re: Stop making this common mistake during your Credit Repair journey!

There's lots to learn from these forums, lots to learn from others' mistakes, and yes, there are no absolutes.

 

I am in the middle of my credit rebuilding journey (FICOs are in 650-660 range currently) and there are things I know now I did wrong and wish I did differently.

 

  • If I had known how badly a 90-day-late would haunt me for years to come, I would have tried to staunch the bleeding when it was just a 60-day-late.
  • If I had known about "preapproval" sites, I would have used them first and not wasted those hard pulls.
  • If I had known that just waiting a month (until after my big baddie debt was settled and the account was reporting as paid off), I could have applied for that Walmart card and gotten approved. Another wasted hard pull. 

Some things that were unique to my profile and (I think) went against the "conventional thinking." Like, being approved for cards even with abysmally high utilization. A lot of people would think my odds were low. Applying was a risky move but I guess my profile is unique (since my debt-to-income ratio is still pretty low and my debt and utilization goes down steadily each month). Don't get me wrong—high utilization is a major baddie and makes things harder and I don't recommend it!

 

I just got approved for a 17K limit card with Navy Fed and I have two other credit cards from good banks (a Discover It and another Navy Federal card). If I wanted to stop applying for a good year or two, I could do that and consider myself a winner. (I won't be doing that, however, because I am addicted to credit! LOL.) I'm in a really good place, credit-wise, compared to less than a year ago. Even with all my mistakes, and even with my crappy utilization. 

 

I got a lot of help from MyFICO and it helped me avoid more mistakes. But if I had followed all the generalized "rules" I would have missed out on some good opportunities, so I'm glad I didn't do that. 

 

The bottom line is, MyFICO has some great advice and a lot of personal stories from people who have unique profiles and therefore unique experiences. You can glean a lot of wisdom and help from all of this. 


Overstock $9,750, Walmart $2.5K, Discover IT Cash Back $2.4K, NFCU Flagship $5K (formerly CashRewards), Shell (Citi) $800, NFCU More Rewards $17K, AMEX Cash Magnet $1K, Citizens Cash Back $2.8K, Amazon Store Card $4.2K, Cap1 QS $1.1K, FBNO Visa $1.6K, AMEX Blue Cash Preferred, $8K, eBay MC $800 (RIP Green Dot Platinum Secured)
Current FICO8: EQ 700, TU 700, EX 688   Current FICO9: EQ 715, EX 714
Goal for December 2019: FICO8 640-700 (reached! Fico 681!) | Goal for December 2020: FICO8 685-700 (Reached! 690!) | Goal for December 2021: FICO8 700-740
Starting Score: 539  Current Score: 690  Goal Score: 760
My credit recovery journal

Message 37 of 38
GApeachy
Super Contributor

Re: Stop making this common mistake during your Credit Repair journey!


@tenaya wrote:
  • If I had known that just waiting a month (until after my big baddie debt was settled and the account was reporting as paid off), I could have applied for that Walmart card and gotten approved. Another wasted hard pull. 

That's what still bothers me today with my Discover card.  If I would have come here first; waited just a short period of time I would probably have a nice card like dh.  I was declined by Walmart the same day I was approved for my secured Discover.  Yep, another wasted hp til. Oct. 2020.  

"My Take Home Pay Don't Take Me Home"
Message 38 of 38
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