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What have I done??

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Valued Contributor

What have I done??

Hey MyFICO fam, I’ve gone a little app happy and need some guidance. If you all remember I had a nice credit journey and acquired great cards with great limits, then it all came crashing down and I ended up $80K in debt and filing for BK. Here’s the cards I currently have:

Capital One QS (was Platinum) Opened 2/19 SL $750
Credit One opened 4/19 SL $700
Capital One QS1 opened 6/19 SL $600
Target opened 9/19 SL $500
Neiman Marcus 9/19 SL $1000
Indigo card 9/19 SL $300
Capital One Spark 9/19 SL $500

I have no idea why I applied for the Indigo card but I took the hard pull and they gave me no AF so I want to cut it up and never think about it. CapOne just PC’d my Platinum so I have both QS plus their Spark. I don’t plan on getting any more store cards. I’m just worried because these are the same exact habits I fell in before BK. Should I cancel anything with an AF? Just use a couple cards for daily spending? Or just cut everything up. Any advice and insight helps. I don’t carry a balance ever, APRs are through the roof
Currently awaiting BK discharge ?
Message 1 of 37
36 REPLIES 36
Super Contributor

Re: What have I done??

The Credit One may be something you want to close.

These limits look rather small, so that should limit how much risk you can get into.

 

If you are asking if you should continue applying for cards, no, definitely not. This is a lot of applications in a short time frame.

If you are asking if you should get credit limit increases, no, definitely not. Allow yourself some time to work with these limits, and get into more positive habits of watching spending ( not making spending easier ) and paying on time.

 

You are in process of rebuilding. Go slowly.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 2 of 37
Regular Contributor

Re: What have I done??

the app spree wasn't smart but now that you did it, just roll with it. if you can afford to pay the AF's your best course of action is to keep all these cards but don't add any more of them. garden for a year or two. if you cant afford the AF's get rid of them immediately.

 

so keep using all these cards but make sure util doesn't go above about 9% on any individual card. always pay in full, never carry a balance, and request CLI's on the cards as often as possible if they are a softpull, don't take a hard pull for a CLI on these.

 

having even one store card can lower your fico score a bit, having more than one must look pretty bad. closing them is going to hurt you worse than keeping them right now though because they pad your overall util. the best store card to get is probably a lowes card they give crazy high limits out.

 

looking on the bright side, you are able to get non-secured cards, it means you're doing good on the rebuild. time is what will help your score now.


Message 3 of 37
Valued Contributor

Re: What have I done??

The AFs aren’t unmanageable, they’re $39 on the credit one and QS1. I agree time will be the best bet and everyone else I burned isn’t that friendly so I don’t know expect to be back in any time soon
Currently awaiting BK discharge ?
Message 4 of 37
Valued Contributor

Re: What have I done??

Why do you think I should close the credit one? Should i keep indigo open? They’ll both be sick drawered so wondering the best thing
Currently awaiting BK discharge ?
Message 5 of 37
Community Leader
Super Contributor

Re: What have I done??


@icyhot wrote:
Hey MyFICO fam, I’ve gone a little app happy and need some guidance. If you all remember I had a nice credit journey and acquired great cards with great limits, then it all came crashing down and I ended up $80K in debt and filing for BK. Here’s the cards I currently have:

Capital One QS (was Platinum) Opened 2/19 SL $750
Credit One opened 4/19 SL $700
Capital One QS1 opened 6/19 SL $600
Target opened 9/19 SL $500
Neiman Marcus 9/19 SL $1000
Indigo card 9/19 SL $300
Capital One Spark 9/19 SL $500

I have no idea why I applied for the Indigo card but I took the hard pull and they gave me no AF so I want to cut it up and never think about it. CapOne just PC’d my Platinum so I have both QS plus their Spark. I don’t plan on getting any more store cards. I’m just worried because these are the same exact habits I fell in before BK. Should I cancel anything with an AF? Just use a couple cards for daily spending? Or just cut everything up. Any advice and insight helps. I don’t carry a balance ever, APRs are through the roof

When I joined MyFICO in 2016, I'll never forget this post I read and the poster was dead serious. Put CCs in a ziploc bag, fill with water, and throw in the back of the freezer.

 

If you feel like you're repeating old bad habits, just freeze your cards and revert to using debit cards/cash until you can control your impulses to spend. And, of course, stop applying for cards.

 

GL2U

GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 809
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 6 of 37
Community Leader
Mega Contributor

Re: What have I done??

That's up to you. If you're paying monthly fees, cancel. If AF was paid upfront (even if it can be refunded), write it off mentally, roll with it for a year and call it a yet another lesson. Do not use Credit One if it's the one without grace period, that's just more fees to pay. 

Also, without getting too preachy here, I think you need to go back to the drawing table and reevaluate how you're approaching your finances. 

Definitely close  both after a year 

Message 7 of 37
Regular Contributor

Re: What have I done??

i know your question was not directed at me, but i want to say: as bad as your credit is, you had lots of better options than the indigo card. that's one of the worst cards because of the high AF and penalty fees and etc. but now that you have it, i think you had might as well keep it. and creditOne isn't so bad for rebuilders, but if you can get capitalOne you should definitely avoid creditOne. You have 3 capitalOne cards... so getting a creditOne card was not helpful at all. but now that you have it, might as well keep it.

 

having lots of low limits is a trap for you because its easy to have high-util which will ruin your credit score. raising the limits is going to give you breathing room, but its also a temptation to spend more if you have bad spending habits.


Message 8 of 37
Valued Contributor

Re: What have I done??

The credit one card was the first card I got. The indigo card doesn’t have an AF on it but I agree I didn’t need it.
Currently awaiting BK discharge ?
Message 9 of 37
Valued Contributor

Re: What have I done??

How should i be approaching them? I save like crazy but I do spend a lot, most of my spending is on my debit card tho. I always pay my cards in full if I use them.
Currently awaiting BK discharge ?
Message 10 of 37
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