Why does my credit still suck? I honestly want help

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Okie21
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Why does my credit still suck? I honestly want help

Postby Okie21 » Fri Jul 06, 2012 8:21 pm

I am 22 and have had a credit card for 18 months. A Cabela's Club Visa (store card), with only a $500 limit. I have never carried a balance, paid late, maxed it out, or asked for a CLI.

6 months ago i found out my score was dropping due to utilization issues. I had no idea what utilzation was, but since i found out what it was and what it had done to my score, my utilization has been from 5%-20% for 6 months now.

I graduated college a year ago and i will make over 50k this year (have stubs to prove 40k; im in sales). I have 5k in a checking account and 1k in a Roth IRA. I have 17k in student loans that i have been paying on for 6 monthsnow; all on time, auto-debited,and double what the payment plan requires. I own a truck and a boat free and clear, in my name, totalling 15k+ in worth. I have never had a car or personal loan, and have no bad debt of any kind.

I see all these posts about people with younger credit age than me getting 4 to 5 cards w/in a year, and raising their scores from the high 600's to mid 700's. I have NEVER had a negative "mark" on my report. I have never asked for a CLI, and until this week, I had only applied for one card, or had my credit "hard" pulled.

I have no idea why my credit sucks like it does. (only 671 at peak from what i know, then dropped to 629 in 4 mos, due to 2 mos of 80% utilization). I dont actually know what it is now, but i'm guessing its not over 700 cause i just got denied for an Amex Blue Cash Everyday, and have yet to get the "reasons why"

Experienced ones, what is my biggest problem and what is step one to fixing it?


Ratfacedudeguy
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Postby Ratfacedudeguy » Fri Jul 06, 2012 9:28 pm

If I had to wager I'd say it's because you actually have too few major credit cards. Going for an Amex revolver is setting the bar kind of high given this fact. I'd start out with trying to get another Visa or Mastercard through your bank or credit union, let that age for a while, and then start setting your sights higher.
Amex Green - NPSL - 05/12
Amex Zync - NPSL - 06/12
Discover it - $7750 - 11/12
Chase Sapphire Preferred Visa Signature - $5000 - 11/12
SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13

agp
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Postby agp » Fri Jul 06, 2012 9:29 pm

I wish I owned a boat at the age of 22.

As of your credit, just keep your utilization low, preferably 10% or lower. Don't go crazy spending, save up your money and pay off that loan as soon as you can, and just keep using your credit card. Try calling Amex for recon. If not then get with another bank first before tackling Amex.

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

432521
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Postby 432521 » Fri Jul 06, 2012 9:39 pm

I would say that it would be good for you get get a credit card from your bank. I am 20 and have a score of 750 and I think that it is because I have a Wellsfargo Credit Card for about a year and a half now.
March 2011- Wellsfargo Cash Back College Card
May 2012- Chase Freedom
May 2012- Discover IT
August 2012- American Express Blue Cash Everyday

namvet
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Postby namvet » Sat Jul 07, 2012 10:13 pm

One more credit card in your portfolio should solve your problem. Three would be better. How you manage those cards will show up in your credit score. How much money your make or other assets you have acquired has no effect on your score.

Okie21
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Postby Okie21 » Sun Jul 08, 2012 5:24 pm

Thank you all for the input. I know that my income and assets dont affect my score[I][/I] but I mentioned them because I wonder if that affected my ability to get approved for another line of credit.

So it sounds like i cant get approved for Amex cause I havent had enough "big boy" cards. Do you all think that i would also get denied for something like a chase freedom, or a regular discover card if i applied right now after having one more inquiry on my report? Also, what is the major difference in a bank credit card and a Visa/Mastercard/Discover/Amex, and what kind of weight they hold?

Ratfacedudeguy
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Postby Ratfacedudeguy » Sun Jul 08, 2012 7:13 pm

Bank credit cards will be Visa, Mastercard, Discover, or Amex, (the vast majority being Visa or MC) depending on which specific bank and/or card you apply for, so they're treated with equal weight. The whole purpose of applying with a bank, or your primary bank preferably, is hopefully you already have a relationship with them in the form of deposit accounts so they may exercise some more leniency on your approval process versus a random person off the street with no prior history or relationship.
Amex Green - NPSL - 05/12
Amex Zync - NPSL - 06/12
Discover it - $7750 - 11/12
Chase Sapphire Preferred Visa Signature - $5000 - 11/12
SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13

Okie21
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Postby Okie21 » Wed Jul 11, 2012 10:48 pm

Ok thanks Ratface. With that in mind i think i will go down to the local bank i have had an account with for 5 years and see what i can strike up with them.

Update on this whole deal: I got my denial letter from Amex for the Blue Cash Everyday i applied for. It has my Fico score as a 731. I was denied because of length of accounts established (18 mo. credit history), small number of open accounts (one), lack of monies in bank accounts/lack of bank account info(what info? they never asked for it; 6K in bank i told them about), loan amounts to loan balances too high (newly paid on 18k student loans), and revolving credit balance too high vs my limit (20% or less for 6 months).

I'm going to call for a reconsideration tomorrow so we'll see if they let me through. I would think with a 731 reporting to them that i could get through, but i'm still really green on this whole credit game.

MemberSince99
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Postby MemberSince99 » Thu Jul 12, 2012 6:13 am

Keep in mind the Amex revolvers like Blue are harder to get than their charge cards. To be honest you are still pretty new in the credit game as Amex pointed out to you. There is nothing that will substitute for time.

If you are unable to recon with Amex, which is likely what will happen, then in 31 days go for one of their revolvers. You should be a shoo in for a Zync card. After 6 months with that go for a revolver like Blue.

You may be able to get a Freedom or in with Discover.

Your credit does not suck by the way you are just new to it. Few people have 800 scores after a year and a half it just doesn't happen, just like few people become CEO in 18 months or get a Ph.D in 18 months. I know we live in a society of instant gratification, but please keep this in mind.

Okie21
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Postby Okie21 » Thu Jul 12, 2012 2:02 pm

Thanks for the input there 99. When I started the thread I thought I must have still had 650's score cause I got insta-denied. But now I see my experian is a 731. I called for a recon and was told there is no recon process and the decision is always final unless there was false info on the report they used. Not sure what that was about but as you noted, I'm new.

I guess I'll wait it out on Amex and go for Zync in a few months. I think I'll open up a card with my bank and maybe try for a Freedom. Thanks for the input.



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