Credit Review - I want your FICO expertise

[CreditSage]

Questions:

• Should I apply for the CSP now or wait?
• Should I apply for the Navy Federal Credit Union Platinum Card now or wait?
• Waiting vs. applying now, what are the impacts on FICO? What sequence would ensure approvals, highest CL, and least damage (in fact greatest benefit) to FICO long term.
• Any feedback to boost score, properly sequence my goals, or deploy best practices not apparent are greatly appreciated.

Overview:

• FICO9 710 (EQ)
• AAoA 10 months 
• 5 new accounts in past 24 months 
• Hard Inquiries past 24 months TU 5, EQ 14, EX 10
  • 7-10 will fall off in July

Credit Cards:

Open/Good Standing:

• Capital One Platinum Secured Card - $700 CL, 1 Year 8 months
• Capital One Quicksilver One Card - $1,200 CL, 1 Year 2 months
• Navy Federal Credit Union More Rewards Amex - $4,300 CL, 5 months

Closed/Charged Off "Legally settled in Full for Less Than Full Balance":

• Bank of America Credit Card - $1,000 CL, Falls of 2022
• Wells Fargo Credit Card - $3,000 CL, Falls of 2022

Installment Accounts:

Open Good Standing:

• Navy Federal Credit Union shared secure loan - $3,000 60mo, 1 month old <8.9% utilization

Closed Good Standing

• America Honda Finance - $15,600, 1 Year 9 months on time payments (closed a few months ago/paid in full)

Note:

• I pay balances prior to due date/reporting date except for $1-$3 on one card per recommendations.

Goals:

• Travel Credit Card - CSP, CSR, or Amex Platinum
• High limit low interest rate credit card - Navy Federal Credit Union Platinum 
• Really good credit score
  
  • Not sure how to quantify this...maybe FICO8 800? 

[Anonymous]

My advice would be to do two things:

(1)  Stop applying for any new accounts.  Stay in the garden until all inquiries and all accounts are > 13 months old.  (Note: a product change of one card to another doesn't count, as long as the issuer confirms for you that there will be no inquiry and no change to the Date Opened.)

(2)  While you do that, develop some extremely cheap methods for tracking your FICO 8 scores.  The $1 trial for Credit Check Total is probably the right choice in your case.  Be sure to read up on the simplest/fastest ways to cancel CCT as well.  Also add creditscore.com, since that will give you your full EX report and FICO 8 score each month.  The CCT pull can be done as rarely as every three months, since you are making a commitment to stay in the garden.

While you are in the garden, I would switch your CC balance strategy to allowing all cards to report a small positive balance ($5-$50) each month.  That way you are establishing use every month.  You can go back to AZEO the month before you leave the garden.

Circle back with the folks here or in the CC forum once you are about to leave the garden.  You will have true FICO 8 scores in hand by then and they will also be significantly better than they would be now.

Good news is that you have implemented the SSL Technique and you have three cards.  Best plan now is waiting.

[Anonymous]

PS.  I believe you have indicated elsewhere that you have tried getting your derogs removed without success.

A nice choice might be to give up on the derog-removal approach while you do the other things.  Just relax for the next couple months.  Then do a little research on methods that involve sending multiple letters every months.  If you think you could do that, you can explore that approach too.

[CreditSage]

CreditGuyinDixie - thanks for the feedback

(1)  Stop applying for any new accounts.  Stay in the garden until all inquiries and all accounts are > 13 months old.  (Note: a product change of one card to another doesn't count, as long as the issuer confirms for you that there will be no inquiry and no change to the Date Opened.) *What is the reasoning behind the >13 months for all inquiries and accounts? Is there a threshold there that will give me more points if I cross it? *If I do a product change from AMEX to Mastercard or Visa will that have any impact to FICO score (all other things being equal)?

(2)  While you do that, develop some extremely cheap methods for tracking your FICO 8 scores.  The $1 trial for Credit Check Total is probably the right choice in your case.  Be sure to read up on the simplest/fastest ways to cancel CCT as well.  Also add creditscore.com, since that will give you your full EX report and FICO 8 score each month.  The CCT pull can be done as rarely as every three months, since you are making a commitment to stay in the garden. *Will these work if my credit reports are frozen?

While you are in the garden, I would switch your CC balance strategy to allowing all cards to report a small positive balance ($5-$50) each month.  That way you are establishing use every month.  You can go back to AZEO the month before you leave the garden. *How does one method verse the other impact FICO (curious)?

Circle back with the folks here or in the CC forum once you are about to leave the garden.  You will have true FICO 8 scores in hand by then and they will also be significantly better than they would be now. *What do you mean by true FICO 8? Is my lack of FICO 8 currently hampering ability to make recommendations? Lastly, what areas of credit mix are we working on that you suggest would "significantly" increase my score? 

[CreditSage]

WF sent me an email that I am part of the class-action lawsuit regarding fake accounts since I previously disputed my credit card with them. I do not have to do much or prove anything other than fill out an online form. I wonder if this route may be a nice way to get this account deleted. Thoughts?

[Anonymous]

My comments in blue below.

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@CreditSage wrote:

CreditGuyinDixie - thanks for the feedback

(1)  Stop applying for any new accounts.  Stay in the garden until all inquiries and all accounts are > 13 months old.  (Note: a product change of one card to another doesn't count, as long as the issuer confirms for you that there will be no inquiry and no change to the Date Opened.) *What is the reasoning behind the >13 months for all inquiries and accounts? Is there a threshold there that will give me more points if I cross it? *If I do a product change from AMEX to Mastercard or Visa will that have any impact to FICO score (all other things being equal)?

There are several scoring factors involved.  (1) FICO ignores all inquiries after they are a year old.  Thus FICO would consider you to have zero inquiries if you did what I suggest.  (2) Your Age of Youngest Account would cross to be more than a year old.  FICO also likes this.  (3)  The percentage of your accounts that are "new" (< 12 months) would drop from a high number to zero.

As I indicated, a PC would not be a problem "as long as the issuer confirms for you that there will be no inquiry and no change to the Date Opened".

(2)  While you do that, develop some extremely cheap methods for tracking your FICO 8 scores.  The $1 trial for Credit Check Total is probably the right choice in your case.  Be sure to read up on the simplest/fastest ways to cancel CCT as well.  Also add creditscore.com, since that will give you your full EX report and FICO 8 score each month.  The CCT pull can be done as rarely as every three months, since you are making a commitment to stay in the garden. *Will these work if my credit reports are frozen?

I don't know how CCT and creditscore.com work on frozen reports.

While you are in the garden, I would switch your CC balance strategy to allowing all cards to report a small positive balance ($5-$50) each month.  That way you are establishing use every month.  You can go back to AZEO the month before you leave the garden. *How does one method verse the other impact FICO (curious)?

I don't know but creditors can see your use of cards over time.  Showing a history of small positive balances can only be good if you are asking a CC company to issue you a new card down the road.  I still would default back to AZEO shortly before the application.

Circle back with the folks here or in the CC forum once you are about to leave the garden.  You will have true FICO 8 scores in hand by then and they will also be significantly better than they would be now. *What do you mean by true FICO 8? Is my lack of FICO 8 currently hampering ability to make recommendations? Lastly, what areas of credit mix are we working on that you suggest would "significantly" increase my score? 

You have some FAKO scores and one FICO 9.  Most CC issuers use FICO 8 or FICO 8 Bankcard Enhanced.  The fact that you have no FICO 8 scores makes it difficult for you (or anyone else) to guess when you might be ready for a new card.  I do not think you are ready now regardless, but you would want to have those in hand when all cards and inquiries are 13 months old.

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[Anonymous]

What does having small balances reporting on each card do for you vs the AZEO method? Just curious.

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@Anonymous wrote:

My advice would be to do two things:

(1)  Stop applying for any new accounts.  Stay in the garden until all inquiries and all accounts are > 13 months old.  (Note: a product change of one card to another doesn't count, as long as the issuer confirms for you that there will be no inquiry and no change to the Date Opened.)

(2)  While you do that, develop some extremely cheap methods for tracking your FICO 8 scores.  The $1 trial for Credit Check Total is probably the right choice in your case.  Be sure to read up on the simplest/fastest ways to cancel CCT as well.  Also add creditscore.com, since that will give you your full EX report and FICO 8 score each month.  The CCT pull can be done as rarely as every three months, since you are making a commitment to stay in the garden.

While you are in the garden, I would switch your CC balance strategy to allowing all cards to report a small positive balance ($5-$50) each month.  That way you are establishing use every month.  You can go back to AZEO the month before you leave the garden.

Circle back with the folks here or in the CC forum once you are about to leave the garden.  You will have true FICO 8 scores in hand by then and they will also be significantly better than they would be now.

Good news is that you have implemented the SSL Technique and you have three cards.  Best plan now is waiting.

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[CreditSage]

Thanks for the feedback 

[Anonymous]

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@AnonymousWhat does having small balances reporting on each card do for you vs the AZEO method? Just curious.

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@Anonymous

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CGID addressed this in Post 6, basically stating that it allows your creditors to see monthly usage over time, which they like.