Next steps for rebuilding my credit

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7 posts
creditguyone
 
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Next steps for rebuilding my credit

Postby creditguyone » Mon Dec 14, 2015 12:53 pm

Won't make this drawn out but quick question for anyone that has been in this situation......i've had credit for 20 years, past several years i've had issues and lots of baddies. I've sucessfully had all baddies removed but in doing so they also removed the good ones. In the beginning of this year i began to rebuild. Between then and now i've taken out 12 credit cards all with pretty low CLs. never been late on anything but i have accumulated 18 inq.

My scores are roughly 600 trans and 565 exp. with a 30 point fluctuation monthly. some cards have balances due to some christmas purchases, but i pay them off or down considerably every couple weeks.

Average length of credit is 1.2 yrs for trans and 6 months for exp. i took out an installment loan to get one on my report as well. how long until i can expect to get a nice high limit card, and also get some credit respect? cant get approved for anything substantial. my cards are:

2 capital one quicksilverone's
banana rep
walmart
express
wells fargo/ ashley furniture
first premier
victoria secret
a wells fargo cc from 2006 closed
an AU account with chase that has no bearing
one main fin installment loan
barclays bank
kay jewlers
a closed zales that turned from a credid line to an installment

What is my best course of action for optimum results?


Elijahmex
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Re: Next steps for rebuilding my credit

Postby Elijahmex » Tue Dec 15, 2015 4:43 pm

Why on earth do you have 12 credit cards? If you've had credit for 20 years you must know that 18 inquiries cannot be good! I just don't see the point.

I've been in the credit game for 10 months and my TU is in the 740s. If I were you I would not be so desperate to have so many credit cards, get rid of some or toss them in a drawer, minimize your utilization and just law low and let it grow bc I don't see you getting any high limit cards any time soon

I can kind of smell the desperation and trust me that aint no good!

Best of luck
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creditguyone
 
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Re: Next steps for rebuilding my credit

Postby creditguyone » Wed Dec 16, 2015 8:36 am

The reason for them all mainly is the discount for opening a card with purchase. my utilization is less than 10% and many of them are 0 balance. Also i have no problem paying them off right away. My thinking is i'll prove a better history quicker with many cards with perfect history rather than a couple cards with perfect history.

Maybe i'm wrong, which is why i was asking. Thanks for the non advice. Again, if anyone has been in similar situations and seen results from doing something then id like to hear about it.

Oh yeah, add a khols card to the array as of yesterday.

takeshi
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Re: Next steps for rebuilding my credit

Postby takeshi » Wed Dec 16, 2015 8:59 am

creditguyone wrote:how long until i can expect to get a nice high limit card, and also get some credit respect?

Time is one factor but it's not just about time itself. If you opened a lot of new accounts that will have an impact on what you qualify for as well. 12 new accounts is a lot of activity and you'll probably need to stop opening new accounts. Your profile determines the limits that you qualify for and the low limits indicate concerns with your profile. Did you receive any letters that indicated scores used and why you were granted the limits and such that you received? Those could be a good starting point.

The good thing is that if you've addressed your derogs then you've taken care of some of the biggest negative impacts to your profile. You must ensure that all your accounts have 100% Payment History going forward as that is the biggest factor.
http://www.myfico.com/crediteducation/w ... score.aspx

Revolving utilization is a factor that has a significant impact so keep in in check as well. General advice is do not exceed 30%.

Elijahmex wrote:Why on earth do you have 12 credit cards? If you've had credit for 20 years you must know that 18 inquiries cannot be good!

Impact depends on one's credit profile. 18 could be no big deal for someone with a thick profile in good standing but the OP's profile is definitely not in good standing.

Elijahmex
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Re: Next steps for rebuilding my credit

Postby Elijahmex » Wed Dec 16, 2015 12:43 pm

I understand that however he did say since the begining of the year (at least that it what I understood from his post) & it's my understanding that they fall off after 2 years correct?

I have a very thin profile with 3 inquiries and that worries me so I can't imagine having 18 and hope to get high limit cards.
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yfan
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Re: Next steps for rebuilding my credit

Postby yfan » Wed Dec 16, 2015 1:19 pm

Here's my advice.
  • Stop opening store credit accounts.
  • Use the cards you have and pay your bills on time.
  • Spend only what you need, and never spend a penny on a card that you couldn't pay for in cash on the spot.
  • Don't apply for anything in the next 2 years at least.
  • Enjoy the holidays with your loved ones!

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Vattené
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Re: Next steps for rebuilding my credit

Postby Vattené » Thu Dec 17, 2015 11:48 am

If you follow yfan's advice you will be in good shape in a couple of years. Hopefully you won't need a mortgage or a car loan soon. If not I see nothing wrong with your approach. Two years is nothing in the credit world, and by then (assuming good behavior) your accounts will have aged, you'll have much more positive payment history, and your HPs will be gone. You should have a pretty strong credit profile by then.

It doesn't do any good to close any accounts now (unless just having them is encouraging you to spend money you otherwise wouldn't): you've already taken the HP. Of course 18 HPs is a lot, but the impact will be gone relatively soon.

Are you wrong about many cards with perfect history being better than a couple cards with perfect history? I don't know for sure, but it did work for me. I took a similar approach in starting my credit history. Out of high school I opened up a lot of store accounts (spread out over a few years, but still), but I didn't let it influence my spending and I paid everything on time and in full. I've yet to pay anything in credit card interest. By the time I was out of college I could get any prime credit card I wanted with high limits as well as a car loan and a mortgage at the best available terms. Some people simply cannot handle credit. They approach a store card as free cash they have in their pocket available to spend. You've gotten into some trouble in the past, but you say you're paying them all off now. The key is making sure your credit decisions are secondary to your financial decisions (i.e., don't let it impact your spending and don't get into debt by chasing credit).



To answer your question more directly: I think your best course of action is to sit on what you have and be diligent about managing them responsibly and avoiding any more credit trouble. Pay every account in full each billing cycle. I'd also pay that installment loan off as soon as possible (I hate paying interest, and there's no need to just to build credit). I don't know what you consider a high limit card, but it will happen AT MOST in a couple of years.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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