Ready to cry!

[Anonymous]

I thought I was doing everything right but I am doing it ALL wrong.  Look at what has happened over the past 2 weeks.  All I did was pay off small balances from VS and my cap 1 card.  Walmart had a balance (I am an AU though).  Then hubby closed this Credit One card (which I was an AU on because of the AAoA to get me started).  That dropped me even further today.  They reported it as a PAID LOAN when they closed it grrrrrr  I have one 5 year old medical collection ($150).  No other negatives.    I haven't opened anything new.  Cap 1 increase ($1k to $3k)  hasn't hit yet and I am afraid that will drop me further.  I am an AU on DH's new Cap 1 venture but it hasn't reported.  If it weren't for the fact we want to buy a house this year and hoped to start soon, I wouldn't stress like this.  I just need to know what I need to do to stop the bleeding???

[Gunnar419]

Boy, that's painful! Can't blame you for feeling discouraged.

Without seeing more details about your profile, it's hard to know how to help you stop the bleeding. Getting that closed Credit One card reporting properly would be a beginning.

[Anonymous]

My profile is short and sweet lol  Closed accounts:  1 that is 11 years old (TU, EQ, EX); 1 that is 18 years old (EX).    Credit one - AU 2 yrs old and just closed/reported as a Paid Loan - score drop 14 pts.  1 medical collection from 2010. ($150) 

New accounts:  

October - Conn's (installment loan but it was a 12 mo same as cash for washer and dryer will be paid off in 4 months)  

November:  Cap 1 QS (started at 1k, now 3k) - pd off $128 balance in January & it reported in February, VS ($750)  - pd off $43 balance in January and it reported in February.   score drop 10-15 pts for paying these 2 off  AU:  walmart (opened in November $1k, increased in Feb to $1,200) - score drop 2 pts for increase; - Balance is $44.

December:  Overstock ($1,200) - haven't used it yet - score drop 4 pts which I understand

Feb:  AU Cap 1 venture ( $10k).

 I normally PIF and will leave a small balance on one card each month.  Utilization is 1%.  The next thing to report will be my cap 1 CLI from $1k to $3k, then the cap 1 venture AU account.  I am sure I will lose more points for those lol  Total inquiries: 2.

What should I do next?  Since I am already down, whatever I need to get card wise, I will get so they can all grow together

[tonyjones]

You definitely need more credit cards and/or loan in the mix.

[Anonymous]

I would try a secured small loan at a local credit union and try Chase prequalified or other prequalified credit card websites. Your scores are not that bad even with the bleeding. What happened all at once, was that you closed an installment loan, and then let everything report to 0. I dropped 20 points this month just for letting that happen to my report. I know it hurts now.. but time is your friend!

[NRB525]

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@Anonymous wrote:

My profile is short and sweet lol  Closed accounts:  1 that is 11 years old (TU, EQ, EX); 1 that is 18 years old (EX).    Credit one - AU 2 yrs old and just closed/reported as a Paid Loan - score drop 14 pts.  1 medical collection from 2010. ($150) 

New accounts:  

October - Conn's (installment loan but it was a 12 mo same as cash for washer and dryer will be paid off in 4 months)  

November:  Cap 1 QS (started at 1k, now 3k) - pd off $128 balance in January & it reported in February, VS ($750)  - pd off $43 balance in January and it reported in February.   score drop 10-15 pts for paying these 2 off  AU:  walmart (opened in November $1k, increased in Feb to $1,200) - score drop 2 pts for increase; - Balance is $44.

December:  Overstock ($1,200) - haven't used it yet - score drop 4 pts which I understand

Feb:  AU Cap 1 venture ( $10k).

 I normally PIF and will leave a small balance on one card each month.  Utilization is 1%.  The next thing to report will be my cap 1 CLI from $1k to $3k, then the cap 1 venture AU account.  I am sure I will lose more points for those lol  Total inquiries: 2.

What should I do next?  Since I am already down, whatever I need to get card wise, I will get so they can all grow together

---

I don't think you need more CC. There are a lot of moving pieces in the last few weeks, but you have some CC that are active. If you are trying to stabilize your score, more HP on new cards isn't the answer right now.

You could try the CU small credit line, but even that is marginal use, probably not worth the HP short term.

Mostly I think you just need to cease with all the changes to the accounts, except SP CLI and the AU that is on the way. Stabilize the amounts reporting and let the score catch up.

Good luck!

[Anonymous]

I keep seeing that the "prime" scenario is 3 credit cards, a store card and an installment loan.  I have 1 credit card in my name and 1 in DH's name that I am AU.  I have the store card and installment loan.  I can get a chase freedom card but was holding off at least until Cap 1 reports my new $3k limit.  I don't want a small starting limit with another card which is why I didn't apply.  If that 3rd card will round out my credit portfolo, I can do it.  

[NRB525]

Three cards is something of an urban legend, a "seems about right" count.

How soon are you looking for a mortgage?

[Anonymous]

I have been the hold up on getting a mortgage loan.  I had to establish credit.  My file is extremely thin because I have been old school.  If you don't have the cash to pay for it, you don't get it.  Lucky for me, I make good money lol  I have been on these boards for HOURSSSSSSS since November to understand what I need to do and how things work.

Since my scores were climbing in the right direction, we had hoped to start the process in the next couple months.  Our lease is up the end of April and the condo owner has agreed to let us go month to month after that.  Our scores were both going to be in the 680 - 700 range.  April would be 6 months of re-established credit for me which is what the minimum our credit union said I would need to improve our results.  Getting a mortgage isn't an issue.  Getting a good rate will be.  I am just baffled at how my scores are dropping.  I thought I was doing everything correctly.  Thought is the key word.  I just really want to cry when I look at how much I have dropped for doing nothing wrong.  

[Imperfectfuture]

Want quick boost? Pay for delete that medical collection. I was successful with those. It is so old, they will probably agree.