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Denial after app spree, now what for future? Kinda LONG!


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My wife had some derogs drop off and she's got a bunch of new credit.

Enough new credit. And she got her denial due to too many new

accounts and recent activity so it's time to stop. (INQs for auto loan,

CCs, etc). She has a "Settled for less than" Crap1 collection and a

medical collection (2 on 1 bureau) that is beyond SOL. Other than that

it's just a bunch of new credit. He's been on file since 1999 but only

positive stuff since 2004. Here are the accounts.

Acct / Open date / Limit & Comments

BofA $99/500 / 5-05 / $500 $0 Balance

Zales(Citi) / 8-05 / $2K

Paypal Visa / 7-05 / $0 Balance, High APR % $1K

Carnival Sea Miles / 11-05 / (hasn't been used) 14.99%F $1K

Orchard MC / 11-05 / $2K

Household MC / 11-05 / $2K

Wal-Mart Discover / 10-05 / (Hasn't been used) High APR 1$K

Old Navy / 11-05 / $700 / $0 Balance

Palais Royal/Beals / 11-05 / $350 $0 Balance

Auth. User

My Paypal Visa / 2-05 / $1K $0 Balance

Sam's Club Credit / 8-04 / $300 $0 Balance

Joint

Household MC / 12-04 / $300 $0 Balance

Patelco Auto Loan / 11-04 / $20K

She has 3-6 Inqs on each of the BIG 3. Scores are in the mid to upper mid 600s. Looking for a logical course of action. Goal is to get into prime cards like Citi, BofA, Amex, etc.

-Is this too many cards and does she need to cancel some?

-How long should she wait wait with the new accounts before she

start looking at those prime cards? 6 months, a year, 2 years?

-We're looking to refinance our house in 2007, how should she consider

that in this process?

-She also plans to stop working in the next few weeks (maybe permanently).

Does this seem to pose any problems for future credit (DTI or Too much credit)?

Any advise from the experienced is appreciated.

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My wife had some derogs drop off and she's got a bunch of new credit.

Enough new credit. And she got her denial due to too many new

accounts and recent activity so it's time to stop. (INQs for auto loan,

CCs, etc). She has a "Settled for less than" Crap1 collection and a

medical collection (2 on 1 bureau) that is beyond SOL. Other than that

it's just a bunch of new credit. He's been on file since 1999 but only

positive stuff since 2004. Here are the accounts.

Yes, you do seem to have quite a bit new there

Acct / Open date / Limit & Comments

BofA $99/500 / 5-05 / $500 $0 Balance

Zales(Citi) / 8-05 / $2K <<---- YUCK!!!!

Paypal Visa / 7-05 / $0 Balance, High APR % $1K

Carnival Sea Miles / 11-05 / (hasn't been used) 14.99%F $1K

Orchard MC / 11-05 / $2K

Household MC / 11-05 / $2K

Wal-Mart Discover / 10-05 / (Hasn't been used) High APR 1$K

Old Navy / 11-05 / $700 / $0 Balance

Palais Royal/Beals / 11-05 / $350 $0 Balance

Auth. User

My Paypal Visa / 2-05 / $1K $0 Balance

Sam's Club Credit / 8-04 / $300 $0 Balance

Joint

Household MC / 12-04 / $300 $0 Balance

Patelco Auto Loan / 11-04 / $20K

She has 3-6 Inqs on each of the BIG 3. Scores are in the mid to upper mid 600s. Looking for a logical course of action. Goal is to get into prime cards like Citi, BofA, Amex, etc.

-Is this too many cards and does she need to cancel some?

Don't Cancel - that wastes the inquiry

-How long should she wait wait with the new accounts before she

start looking at those prime cards? 6 months, a year, 2 years?

Minimum 1, maybe 2

-We're looking to refinance our house in 2007, how should she consider

that in this process?

To get a good rate, I'd stand on this 17 and let the dealer hit

-She also plans to stop working in the next few weeks (maybe permanently).

Does this seem to pose any problems for future credit (DTI or Too much credit)?

Stop working?!? ICK! Yes - Big problems. Are you sure you're ready for the 50% cut in income? My ex- quit her job and wouldn't work and that's how we got our finances all fouled up

Any advise from the experienced is appreciated.

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Yes, you do seem to have quite a bit new there

Acct / Open date / Limit & Comments

Zales(Citi) / 8-05 / $2K <<---- YUCK!!!!

We only got it because it was 0% for 12 months provided it's paid in full

Other than what's bad about Zales or than the horrible interest?

She has 3-6 Inqs on each of the BIG 3. Scores are in the mid to upper mid 600s. Looking for a logical course of action. Goal is to get into prime cards like Citi, BofA, Amex, etc.

-Is this too many cards and does she need to cancel some?

Don't Cancel - that wastes the inquiry

-How long should she wait wait with the new accounts before she

start looking at those prime cards? 6 months, a year, 2 years?

Minimum 1, maybe 2

Kinda what I thought

-We're looking to refinance our house in 2007, how should she consider

that in this process?

To get a good rate, I'd stand on this 17 and let the dealer hit

Meaning as stated above? Cool it for a year or two?

-She also plans to stop working in the next few weeks (maybe permanently).

Does this seem to pose any problems for future credit (DTI or Too much credit)?

Stop working?!? ICK! Yes - Big problems. Are you sure you're ready for the 50% cut in income? My ex- quit her job and wouldn't work and that's how we got our finances all fouled up

Well, she's already down to sub-part time and we are comfortable w/ very little debt other than house & car. Lifestyle wise this doesn't concern me. I was refering more to credit wise.

Any advise from the experienced is appreciated.

Grim, see comments.

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That is some scary-a** spree!!!

I'd leave this be. And I'd seriously reconsider the work decision unless it's for major care-taking reasons (sick or disabled relative or child).

Well, I didn't exactly know all of it was going on. Particularly, Wal-Mart, Palais Royal, and Old Navy. So I would have expressed to her my concern. But you think if we just stay good, and sit on it for a year she should be okay?

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I definitely wouldn't play any more games with her credit for at least a year. And she should avoid running up the balances past about 10-15%. Use them here and there to keep them active, but that's it. Good chance some of those new accounts will enjoy a CLI or two in the next year, too. That can only help (utilization-wise ).

If she can keep all these accounts really low, you should be OK to refi if she stops working. If she has no income, she should obviously have as little debt as possible, and crazy low utilization. :)

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Well, she wouldn't necessarily have to be on the refi. She's not on this home loan, just on the Title. But I agree just the same. Right now she's at about 50% utilization because we spend my bonus before we got it all (two separate checks). But after this week she'll be at about 20% and after our tax return she'll be at about 6% So we should be good.

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Sorry... I assumed from your question that her income and credit might affect the refi, and that was your concern. My bad! :oops:

Well yes and no. I would add her if there was a benefit, like the use of her scores. But if she's wasn't working, I'm not sure there would be a point.

I guess my overall question/concern was about building her credit profile overall.

Would creditors grant new cards to someone who's occupation is "homemaker" and only has "household income". She will eventually return back to work, but while the kids are younger she wants to take some time off.

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She's certainly not the first woman to take some time off to raise her kids. So that shouldn't be a problem. Jobless students get cards. But the last thing she needs to think about right now is getting new cards!! :shock:

She should leave her credit alone for a while. I'd say 2 years would be best... from the sound of it, you two don't really "need" more credit because you're in decent shape. She has enough cards, and many will earn CLIs. I wouldn't ask for any CLIs, just wait for the automatic ones. HH and Orchard should give her a $200 bump every 6 months or so. 99/500 should go unsecured after a year of good behavior. Let the inqs drop off, and allow everything--good and bad--to age and the CLs to increase.

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  • 3 weeks later...

Thanks for the reply. I hope I don't suffer more of a hit than that. Between 5 and 7 accounts will hit my report around the same time. I'm a little nervous about how much of a hit I will take. The bad thing is that they will all have the same month opened. But the upside is that I don't plan on applying for anything else for the next year or two.

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