Interested In Getting Feedback On Credit Building Strategy!

For just about anything you want to get off your chest about credit cards.
3 posts
jcoltonlv
 
Posts: 1
Joined: Mon Nov 10, 2014 10:29 pm
Location: Las Vegas, NV

Interested In Getting Feedback On Credit Building Strategy!

Postby jcoltonlv » Mon Nov 10, 2014 10:59 pm

Have been taking a somewhat unorthodox approach and wanted to reach out and get some feedback on my credit building strategy.

Quick Background: Back in 2006, I regrettably let a $2,000 card balloon to a $4,400 charge off and had a couple of other smaller cards go into collections (that were later settled and paid for less). My average credit score hung out around 530 - 550 until early 2013 when I started working on it and finally taking it all seriously.

Was able to get a lot of random missed payments from my irresponsible days removed, the stuff from 2006 fell off naturally due to the 7 year mark, and I paid off all the junk that had collected on there over time (gym memberships, etc).

In 2013 I got two secured cards as the first step towards real cards, one from Capital One for 1400 and one from (then) New Millenium bank for $400.

The Actual Strategy:
As of now, my car lease goes until Jan 2017, I'm not in the home market for a bit, not looking for loans of any kind and the only thing my credit is being used for at this point is credit cards.

Given that I've got a couple of years to play with, my thinking is I might as well open as many new accounts as possible as to start the clock on the average account age, relationships with the various credit card companies, total number of accounts, and work to get the credit limits where they need to be over time. Any dings I take in having so many hard credit inquiries will fall off by the time I will care about them.

New Credit Card Accounts I've opened in the past 8 months:

- American Express Blue Cash: $800 Limit
- American Express Gold Card: No Preset Limit
- Best Buy Reward Zone: $1,500 Limit
- Discover IT: $1,500 Limit
- USAA: $1,500 Limit
- Barclay Card: $500 Limit
- Capital One Quicksilver: $2,000 Limit
- Amazon Store Card: $800 Limit

Declined Applications: Citibank (due to credit inquires), Chase (due to average age of accounts, credit inquiries).

Recently Closed Accounts: As of today, I closed both of my original secured accounts. I know this lowers my average account age, but they served their purpose and I'd rather not have secured accounts on my credit. Plus, you can only have two accounts with Capital One and this frees one up.

Current Credit Status: 15 - 20 inquiries this year, Bureau Scores 630 / 660 / 665.

Payment Status: I always pay all the accounts off within weeks of charging anything to them, never have a balance over 30% of limit.

Current Plan Going Forward: Don't much care to open any more accounts, but will request credit limit increases on any account with less than $1,500 limit.

Questions:

1) Was this a good move or was there a better way?

2) Are there any accounts I should look into opening while I'm in the opening spree?

3) Any recommendations for what to do / not do in the next 12 months?


takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Tue Nov 11, 2014 10:38 am

Doesn't sound unorthodox at all. Derogs are major problems so they need to get addressed. Lots of people fix their credit, apply for new accounts and then build their credit with their new accounts.

jcoltonlv wrote:Any dings I take in having so many hard credit inquiries will fall off by the time I will care about them.

It's not just the inquiries. You're also dropping your AAoA with every new account.

jcoltonlv wrote:As of today, I closed both of my original secured accounts. I know this lowers my average account age

Closing does not reduce AAoA. Opening accounts does. Closed accounts in good standing typically continue to show up on your reports and factor into AAoA for ~10 years.

jcoltonlv wrote:Was this a good move or was there a better way?

Too late for that now. All you can do at this point is responsibly manage what you have and build.

jcoltonlv wrote:Are there any accounts I should look into opening while I'm in the opening spree?

Without any info it's impossible to give any meaningful recommendations. You need to tell us what you're looking for. You need to tell us what you think is lacking with your lineup.

User avatar
Xorand
Platinum Member
Platinum Member
 
Posts: 94
Joined: Thu Feb 06, 2014 11:01 am
Location: TX

Postby Xorand » Tue Nov 11, 2014 10:56 am

Looks like at this point you just responsibly use your existing cards. Charge everyday expenses to one or more of them and pay them off like you've been doing. You might rotate around from one card to the next so they all see some usage. Over the next few months, your FICO scores will start recovering after the high number of inquiries. I suspect you'll start seeing some automatic credit limit increases over the next several months if you just keep steadily using and paying the cards off.
AmEx - Platinum (NPSL) , Blue Cash Preferred ($19,000), Gold Delta Skymiles ($8,500)
Chase - Sapphire Preferred ($14,000), Disney ($11,500), Amazon.com ($9,000), Freedom ($8,000)
CapOne - QuickSilver ($7,250) / Platinum Rewards ($7,250)



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests