sugar5

"question Concerning Credit"

Recommended Posts

Good Morning,

I have a question concerning bringing my fico scores up, if I go and get a secured credit card that reports to all 3 bureaus today will that bring my fico up or down when the credit card creditor reports it?

I am trying to bring my scores up I have a 602 at Trans union 585 at experian and a 595 at equifax.

And I also have 2 credit cards already one which I have had for 5 years they just increased yesterday (limit now is 1300.00) And the other one I have had for 6 months coming march they will increase it to 400.00. I always wanted a department store card such as walmart, do you think with these scores I can get approved for one?

Share this post


Link to post
Share on other sites

Apply online for Kay Jewelers. They'll approve you, probably for at least $1500.

Kay is an instant approval, so if it goes through, then you can also apply online for Jared's Jewelers and Robinson. Search here for "sterling trifecta" for more info.

Share this post


Link to post
Share on other sites

Thanks, what is Kay Jewelers? and are you sure they will approve me with theses scores i have? will my scores drop any by applying for the credit?

Share this post


Link to post
Share on other sites

Your scores may drop briefly by a few pts due to the INQs and new accts, but the upside is worth it after you have a few months of positive history. Your scores may go up the very next month after the initial drop. I did the Trifceta and Kays reported before I received the card.

They won't drop that much - It's a small price to pay...

Share this post


Link to post
Share on other sites

Well i was just approved for the orchard card should receive it soon. but the card i want to apply for is the target or walmart. since i have applied for this orchard i will wait a month before applying for the walmart card or does it matter? i just dont want to be rejected i guess

Share this post


Link to post
Share on other sites

Since you just opened a card I would suggest waiting 6 months for that account to age and help the credit score.

Why is the score so low? I don't know what score Walmart takes, but guessing I would say that you should get your scores up over 650 range before applying.

Share this post


Link to post
Share on other sites

Sounds to me like you already have enough cards and credit history to have a good score (only really need 1 credit card and perhaps 1 installment account). I would concentrate on fixing whatever is bringing the score down. Any late payments reporting? Any collection accounts or judgments? Do you have any installment accounts (loans)? Do you carry high balances on your current cards?

Share this post


Link to post
Share on other sites

yes "maxedout" i have 3 credit cards now including the one i just got approved for and a finger hut card. I think that is enough now although i wanted the walmart card. I have enough credit history good and bad i guess thats whats holding my scores down i have 2 five 5 year old credit card charge offs and collection and i am now trying to dispute and dv which is not going to well. if i would have known what i know now i would have been a little more credit smart i am older now and value my credit and its so hard to straighten out what i mess up long ago. "kb9tbq" ok i guess i have to wait 6 month before i apply for the walmart card. Hopefully my scores will be 650 and above across all 3 of the bureaus.

Share this post


Link to post
Share on other sites

Good luck on the credit repair. Yeah if you can space out hard inquiries months apart that is better. If you run up too many inquiries in a short period of time they are going to send red flags and you could be declined due to too many inquiries.

If you get that score up, you can applie at prime and get a better interest rate hopefully.

I always wanted a walmart card myself since I do a lot of shopping there. But my credit is messed up right now so I have not even tried.

Share this post


Link to post
Share on other sites
yes "maxedout" i have 3 credit cards now including the one i just got approved for and a finger hut card. I think that is enough now although i wanted the walmart card. I have enough credit history good and bad i guess thats whats holding my scores down i have 2 five 5 year old credit card charge offs and collection and i am now trying to dispute and dv which is not going to well. if i would have known what i know now i would have been a little more credit smart i am older now and value my credit and its so hard to straighten out what i mess up long ago. "kb9tbq" ok i guess i have to wait 6 month before i apply for the walmart card. Hopefully my scores will be 650 and above across all 3 of the bureaus.

Keep at the disputing and DV's. You may not even need to wait 6 months if those come off in the next couple months. I bet your score will be in the high 600's to low 700's once they are removed. "The Woman" as I call her, got a 24 - 68 jump in scores just by removing the only collection on her account (see my sig)

Also, having different types of accounts help. If you do not have any installment accounts, it may be good to get a secured loan through your local credit union just to get a different type of credit account in the mix.

Share this post


Link to post
Share on other sites

ok "maxed out" i think i will go take out a secured loan soon, if you dont mine could you tell me how you got where you are i mean those scores are great, do you have credit cards? if so how many? any loans anywhere? tell me your secret

Share this post


Link to post
Share on other sites

Ok, I will tell you my secret if you promise to keep it between us...

The secret to a higher score *looks over shoulders*, is keeping all your balances below 10% of the limit if possible and never being late on your bills.

Not much of a secret, I know, but there it is in a nutshell. Those are just my fakos though, the FICO scores are TW's. All my fakos are over 700 but I will not have FICOS until later this month. All my accounts are hitting 6 months the next time they report.

My Cards:

Crown Jewelers - $1500 ($25 balance)

Orchard - $500 ($0 balance)

*Penfed - $1000 (just opened, not reporting yet)*

My Loans:

Secured Credit Union Loan - $5000 ($2100 balance)

With just those 3 accounts, my fako was 675 after 2 months credit history. After that though, I was added as an AU to TW's 2 year old crap1 which raised my EX fako to around 695 and gave me a FICO of 726. They only report AU to EX though.

I am also an AU on her AMEX which reports to all 3, but is only a few months old. It still raised all of my scores above 700, but that is most likely due to the high limit of the card (5k) and my accounts aging to 5 months.

It is worth mentioning that when it comes to credit cards, quality is far far FAR more important than quantity. If I could do it all over again, I would have opened a Kay card (perhaps along with Jareds and Robinson... GO TRIFECTA!) instead of the Crown Jewelers, simply because the quality of jewelry is better at Kay AND the CJ does not report to EQ. I also would not have opened the Orchard. I have not had any problems with orchard so far, but I prefer to have cards that can increase to very high limits. For instance, the max limit the crap1 card can reach is 3k. If we want a higher limit, we have to apply for a different type of card. My penfed though can have a max limit well over 20k (I think 50 or 70k). So if I need more credit, I do not have to open another account, just get my current one increased. Same with the AMEX card.

You do not need lots of cards to have a good score. 1 or 2 credit cards, at least 1 installment loan and department store or gas card, and of course time. Let those accounts age like a fine wine. It is very tempting to get more cards, especially after reading all of the success people have here when they clean up their credit and go on the app sprees, but I try to remind myself that I should only open new credit as needed. The most important thing is getting negative items removed from your report and keeping your credit clean from then on.

Sorry so long, and I apologize if some of this doesn't make sense. I am running on 2 hours of sleep! I should go back to bed...

Share this post


Link to post
Share on other sites
Ok, I will tell you my secret if you promise to keep it between us...

The secret to a higher score *looks over shoulders*, is keeping all your balances below 10% of the limit if possible and never being late on your bills.

Not much of a secret, I know, but there it is in a nutshell. Those are just my fakos though, the FICO scores are TW's. All my fakos are over 700 but I will not have FICOS until later this month. All my accounts are hitting 6 months the next time they report.

My Cards:

Crown Jewelers - $1500 ($25 balance)

Orchard - $500 ($0 balance)

*Penfed - $1000 (just opened, not reporting yet)*

My Loans:

Secured Credit Union Loan - $5000 ($2100 balance)

With just those 3 accounts, my fako was 675 after 2 months credit history. After that though, I was added as an AU to TW's 2 year old crap1 which raised my EX fako to around 695 and gave me a FICO of 726. They only report AU to EX though.

I am also an AU on her AMEX which reports to all 3, but is only a few months old. It still raised all of my scores above 700, but that is most likely due to the high limit of the card (5k) and my accounts aging to 5 months.

It is worth mentioning that when it comes to credit cards, quality is far far FAR more important than quantity. If I could do it all over again, I would have opened a Kay card (perhaps along with Jareds and Robinson... GO TRIFECTA!) instead of the Crown Jewelers, simply because the quality of jewelry is better at Kay AND the CJ does not report to EQ. I also would not have opened the Orchard. I have not had any problems with orchard so far, but I prefer to have cards that can increase to very high limits. For instance, the max limit the crap1 card can reach is 3k. If we want a higher limit, we have to apply for a different type of card. My penfed though can have a max limit well over 20k (I think 50 or 70k). So if I need more credit, I do not have to open another account, just get my current one increased. Same with the AMEX card.

You do not need lots of cards to have a good score. 1 or 2 credit cards, at least 1 installment loan and department store or gas card, and of course time. Let those accounts age like a fine wine. It is very tempting to get more cards, especially after reading all of the success people have here when they clean up their credit and go on the app sprees, but I try to remind myself that I should only open new credit as needed. The most important thing is getting negative items removed from your report and keeping your credit clean from then on.

Sorry so long, and I apologize if some of this doesn't make sense. I am running on 2 hours of sleep! I should go back to bed...

When you only had the few good tradelines, you'd had gotten rid of most of the bad stuff or did you have a very limited credit history? I'm trying to figure out how you got such a big jump with aging (and kind of hoping the same will be true for me in another 3 months when my cards hit 6 months).

My theory was getting enough good new tradelines to balance out the bad old ones. My big example is my EX report where I have 7 negatives (started with 20) and before the latest app spree only 3 good tradelines reporting, two of which were student loans (and no one seems to care about them unless they aren't being paid, they don't seem to help credit very much). I've fought EX with no success and now since 5 of them are due to drop off in 2008 I'm just waiting for most of them to go away.

In any case my EX is at about 600, TU 630 and EQ 650. I can see EX hitting 700 in the next 6 months, but I don't know about the other two.

Share this post


Link to post
Share on other sites

There is no balancing out the bad. 1 bad account REALLY screws your credit. Take note of TW's credit, jumping 24 on TU, 55 on EX, and 68 on EQ just by removing the one and only collection on her report. New accounts will not help the score, or will help VERY little (given the same negatives remain). In fact, when you apply for credit with the prime lenders, the amount of new credit opened within that last 6m to a year can have a negative impact, even if your scores are great. Remember, the new credit lowers the average age of your accounts.

Once you get those baddies removed, or once they fall off (whichever comes first), your score will most likely jump up to high 600's or low 700's. Just be patient and work on getting those baddies removed.

Share this post


Link to post
Share on other sites
There is no balancing out the bad. 1 bad account REALLY screws your credit. Take note of TW's credit, jumping 24 on TU, 55 on EX, and 68 on EQ just by removing the one and only collection on her report. New accounts will not help the score, or will help VERY little (given the same negatives remain). In fact, when you apply for credit with the prime lenders, the amount of new credit opened within that last 6m to a year can have a negative impact, even if your scores are great. Remember, the new credit lowers the average age of your accounts.

Once you get those baddies removed, or once they fall off (whichever comes first), your score will most likely jump up to high 600's or low 700's. Just be patient and work on getting those baddies removed.

The worst is EX. TU has only 2 baddies one is coming off very soon (it came off EX, I'm assuming that TU is slower, they usually are for me). The other will be off next month. EQ only has one baddie and I'm waiting for the SOL to expire to start messing with them (it's a repo, I'm sure I can get them off if I fight, but I'm not messing with it until the SOL is up. I don't want them getting ideas).

My modus operandi in balancing out the bad was that I essentially had no good, just lots of old bad. I realize the new cards are going to rack me for a few months until they get age. Even with the bads I've gotten a couple of prime cards (there must have been some wild Christmas parties in a few credit approval sections, drunkenness is the only explanation I have for getting some of these cards), but I agree with you, I'm unlikely to get anymore with the derogatories still outstanding.

Patience, patience, that's what I tell myself, but it's hard.

Share this post


Link to post
Share on other sites

So far these are my credit repair efforts. I used to be in the high 500s, now its

TU Fico 642 Neg TLs: 22 Inqs: 4

EX Fico 601 Neg TLs: 25 Inqs: 8

EQ Fico 617 Neg TLs: 23 Inqs: 1

Share this post


Link to post
Share on other sites

I went to a seminar and a mortgage lender said.. when you apply for a new line of credit. your score may drop 10-15 points, based on what you were approve for. The key is, if you are approved for $500.. dont spend more than %50/$250.. make your first 3 paymts on time.. and pay off on the 4th payment.. regardless of what your balance is. In return, your score will go up abt 30-40 points. They also suggested you start with jewelry store accts, something small to build your credit.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.