rebuildingwoes

30 Contributions 69 People Helped Top Contributor

Member Since: January 2015

About Me: I started rebuilding my credit in mid 2015. When I started my FICO scores were mid to low 500's. As of May 2016, my credit scores range from mid-high 600's. I've played the game, made the mistakes, and learned valuable lessons. Not every credit approach works for everyone, but if I can help with my experiences I would love to. My credit journey continues, as I make progress toward my goal of 720+

Most Helpful Contribution

Capital One® Secured Mastercard®

Jun 05, 2016
Does what it is meant to do
Helpful to 37 out of 37 people

This card openly says it is for rebuilding credit.  That's what it's for.  No thrills, perks, or bonuses. 

I applied for this card well over a year ago, back when it was silver/white (forgot what they called it then) as a secured card.  I put $99 down and got a $300 credit limit.  It was upgraded a few months later to $500 without requesting.  At that time my credit was mid 500's, with severl deregatory accounts, including a $3,000 collection account for a credit card.  I had 0 open credit accounts, other than my car loan.  I hadn't had a credit card for around 2 years (since the above mentioned credit card went into collections).

The approval was instant, and the card was sent as soon as I made my down payment.  I still have the card today, as there is no annual fee and it is adding to the average age of my credit.  They are not likely (near impossible) to graduate this card to unsecured.  It is also not qualified for credit limit increase requests or automatic credit limit increases like other Capital One cards.

I gave this card 5-Stars becaue they approved me when I was at my lowest, credit wise.  Since getting this card and making regular payments I have raised my credit scores to 650 (average).  If you can get approved for the Capital One Quicksilver or Quicksilverone (Quicksilverone has an annual fee), do that.  If not, start with this card.  It's a card that will not grow with you BUT it's a card that won't keep charging you as you grow as some of the other bad credit credit cards do.  I will likely keep this card open forever.

Here's a bit of a success story:  Started with this card (and mid 500 credit score), approved for $300 and then upped to $500.  Shortly after I got the Quicksilverone (high 500 low 600 credit score) and approved for $500.  About 6 months later I got the Amazon Store Card (low 600 credit score) wth a $800 limit.  Just this week I was approved for Discover it (mid-600's) with a $1,800 limit.  I keep my utilization low, usually paying in full every month, and avoid annual fee cards (I have one annual fee card, the Quicksilverone, but the rewards pay the annual fee plus profit).  If you're building your credit, stick with it, this card can help

Activity (29 Total Contributions)

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Capital One® Secured Mastercard®

Jun 05, 2016
Does what it is meant to do
Helpful to 37 out of 37 people

This card openly says it is for rebuilding credit.  That's what it's for.  No thrills, perks, or bonuses. 

I applied for this card well over a year ago, back when it was silver/white (forgot what they called it then) as a secured card.  I put $99 down and got a $300 credit limit.  It was upgraded a few months later to $500 without requesting.  At that time my credit was mid 500's, with severl deregatory accounts, including a $3,000 collection account for a credit card.  I had 0 open credit accounts, other than my car loan.  I hadn't had a credit card for around 2 years (since the above mentioned credit card went into collections).

The approval was instant, and the card was sent as soon as I made my down payment.  I still have the card today, as there is no annual fee and it is adding to the average age of my credit.  They are not likely (near impossible) to graduate this card to unsecured.  It is also not qualified for credit limit increase requests or automatic credit limit increases like other Capital One cards.

I gave this card 5-Stars becaue they approved me when I was at my lowest, credit wise.  Since getting this card and making regular payments I have raised my credit scores to 650 (average).  If you can get approved for the Capital One Quicksilver or Quicksilverone (Quicksilverone has an annual fee), do that.  If not, start with this card.  It's a card that will not grow with you BUT it's a card that won't keep charging you as you grow as some of the other bad credit credit cards do.  I will likely keep this card open forever.

Here's a bit of a success story:  Started with this card (and mid 500 credit score), approved for $300 and then upped to $500.  Shortly after I got the Quicksilverone (high 500 low 600 credit score) and approved for $500.  About 6 months later I got the Amazon Store Card (low 600 credit score) wth a $800 limit.  Just this week I was approved for Discover it (mid-600's) with a $1,800 limit.  I keep my utilization low, usually paying in full every month, and avoid annual fee cards (I have one annual fee card, the Quicksilverone, but the rewards pay the annual fee plus profit).  If you're building your credit, stick with it, this card can help

Capital One® QuicksilverOne® Cash Rewards Credit Card

Jun 07, 2016
Helpful to 10 out of 10 people

Credit Karma's suggestions are just guesses based on your credit profile. Lenders, such as Capital One, have their own set of screening criteria that they do not release. So no one can give a guaranteed prediction of approval.

If you were denied for this card, I would recommend you try Capital One Platinum or the Capital One Platinum Secured. Before you apply for these cards, go to the Capital One website and fill out the pre-approval (find my card) form. It does not do a hard inquiry, therefore, no impact to your credit score. Pre-approval can help you get an idea of your odds for actual approval and save you from wasting a hard inquiry.

Capital One® QuicksilverOne® Cash Rewards Credit Card

May 16, 2016
My favorite of my cards, currently
Helpful to 3 out of 3 people

I'm rebuilding my credit.  When I got this card my Credit Karma scores were around 620.  My FICO ranged between 570-610.

So yes, there is an annual fee.  That's the down fall of this card.  However, when I applied I instantly received a $500 line of credit.  I use this card for EVERYTHING and pay off the balance in full every week or so.  With 1.5% cash back on everything, I earned my $39 annual fee back in rewards in just a few months.  After having this card just under 6 months, my credit karma is up to 640, FICO ranges between 589-640. 

Customer service has been great!  Very responsive.  I am enrolled in the credit steps program, so I should see a credit limit increase soon.  I love getting cash back for everything I used to buy with a debit card (getting nothing).  If you are rebuilding your credit, I absolutey recommend this card. 

TIP:  Before you apply, go to Capital One and fill out the pre-qualification form.  This will help you make the decision to apply or not, and not waste a hard inquiry. 

Discover it®

Jun 05, 2016
Rebuilding Credit and was Approved
Helpful to 3 out of 3 people

When I applied My CK Scores were: TU 648 EQ 638, FICO8 was: EX: 598 EQ: 639 TU: 610

My scores were low after one credit card went to collections 4 years prior and closing several of my accounts.  After that card went to collections and I closed my accounts, I had 0 credit cards.  The only credit account I had was a vehicle loan.  So my average age of credit was low, plus some derogatory remarks.  I had two low limit ($500) cards with perfect payment history, 1 for 6-months and 1 for just over a year.  (I'm saying all those to give you a glimpse of my credit profile when I applied, maybe you can compare that to yours if you're thinkig of applying.)

I applied online, and was not approved for the special offer I was applying for but I was instantly approved for the Discover it Card.  My initial offer included all the rewards (5% cash back on rotating categories, 1% cash back on everything else, plus the normal discover benefits) and a $1,800 credit limit.

I did use the pre-qualification application first.  The prequalification was unusual.  It normally will say "Your Offers" or "You're Prequalified".  In this case it did not, it took me to a page describing the discover it card, comparing it to other cards, and a Apply Now option.

I do not have the card yet, waiting for it to arrive. 

Capital One® Platinum Credit Card

Jun 05, 2016
It does what it was designed to do
Helpful to 6 out of 7 people

This card openly says it is for rebuilding credit.  That's what it's for.  No thrills, perks, or bonuses. 

I applied for this card well over a year ago, back when it was silver/white (forgot what they called it then) as a secured card.  I put $99 down and got a $300 credit limit.  It was upgraded a few months later to $500 without requesting.  At that time my credit was mid 500's, with severl deregatory accounts, including a $3,000 collection account for a credit card.  I had 0 open credit accounts, other than my car loan.  I hadn't had a credit card for around 2 years (since the above mentioned credit card went into collections).

The approval was instant, and the card was sent as soon as I made my down payment.  I still have the card today, as there is no annual fee and it is adding to the average age of my credit.  They are not likely (near impossible) to graduate this card to unsecured.  It is also not qualified for credit limit increase requests or automatic credit limit increases like other Capital One cards.

I gave this card 5-Stars becaue they approved me when I was at my lowest, credit wise.  Since getting this card and making regular payments I have raised my credit scores to 650 (average).  If you can get approved for the Capital One Quicksilver or Quicksilverone (Quicksilverone has an annual fee), do that.  If not, start with this card.  It's a card that will not grow with you BUT it's a card that won't keep charging you as you grow as some of the other bad credit credit cards do.  I will likely keep this card open forever.

Here's a bit of a success story:  Started with this card (and mid 500 credit score), approved for $300 and then upped to $500.  Shortly after I got the Quicksilverone (high 500 low 600 credit score) and approved for $500.  About 6 months later I got the Amazon Store Card (low 600 credit score) wth a $800 limit.  Just this week I was approved for Discover it (mid-600's) with a $1,800 limit.  I keep my utilization low, usually paying in full every month, and avoid annual fee cards (I have one annual fee card, the Quicksilverone, but the rewards pay the annual fee plus profit).  If you're building your credit, stick with it, this card can help!

One large loan payment or multiple payments for a higher credit score?

Jun 14, 2016
Tough Question
Helpful to 2 out of 2 people

This really depends on your credit profile.  Therefore, I can't outright answer, but hopefully the information I provide can help you make the decision.

Paying off immediately:

If the student loan is your oldest account, closing it will drop the average age of your open credit accounts thereby causing a drop in your score.

Dependimg on your debt and the remaining balance on the loan, paying it off could reduce your credit debt significantly and cause a raise on your score.  However, if your close to paying it off I imagine the balance is relatively low now and paying it off won't have a huge impact.

Making Payments:

Making multiple payments in a single month will not do anything, as all the payments in the month (billing period) will just be reported as making one payment on time.  To build history you would need to make regular payments every month, as you have been.

The amount when they will close is different depending on the underwriters.  You would need to call your lender to determine this level, if there is one at all.

Some Suggestions:

If you can keep the loan open for several months and pay on time, this will help your score.  But, eventually you will pay the loan off.  To counter the impact of this you could open a credit card or installment loan and let that account age as you pay off your student loan.

You could "piggyback" as an authorized user on one of your parents or spouse's credit cards.  Being an authorized user will cause that account to appear on your credit report, so be sure the account has a good payment history and utilization before doing that.  Also, on rare occasions credit card companies will not report authorized users but this is the minority.  It needs to be a relative.  If the reporting agencies determine you do not have a relationship with the original account holder, they will not factor the account into your score.

Credit Score went down after a new car purchase

Jun 11, 2016
Is That Normal?
Helpful to 2 out of 2 people

Is that normal is a difficult question to answer.  A drop in your score after having a new account is normal, but the amount of points you drop is really a guessing game.  In my experience, 50 points is above average, but not out of the realm of possibility.  There are three reasons for this drop.

1.  Average age of credit history.  A portion of your score is the average age of your open credit accounts.  So, for example, let's say you have an open credit that has been open for 10 years, another credit card open for 2 years.  Your average credit age is now 5 years, which is respectable.  Today, you buy a new car.  Well, with this account added your average age has now dropped to 4 years.  Hence a drop in your score.

2.  Inquiries.  When you try to get financing through a dealership they take a shotgun approach to finding lending.  They will often submit an application on your behalf to several, some times up to 10 companies, to get you the lowest rate or to find a company willing to finance you.  Each of those companies run your credit, causing a new credit inquiry for each company.  Each inquiry will drop your credit score.  Luckily, SOME scoring models will count all the inquiries as one single inquiry when you are shopping around for a car or home loan (other types of inquiries are never counted as just one).  However, this number of inquiries can hurt your score.  Inquiries impact your credit score for 12 months.  After 12 months they are no longer counted in your score but remain on your credit report.  They will completely fall off your credit report just over 24 months.

3.  Now you are in debt.  Creditors consider debt when considering to approve/deny you.  A new car is a significant increase in your debt that appears suddenly.  As you make payments on time with this account, you will see your score grow.

Continue to keep a perfect payment history on your new car loan and you will see your score thank you for it.  You will likely recover the points you dropped and then some, assuming you have no new negative information added in the mean time.

My score dropped over 90 points in 4 days?

Jun 11, 2016
Shot in the Dark
Helpful to 1 out of 1 people

So, without a little more information I cannot give you an accurate answer, so I will take a shot in the dark.

A part of your credit score is credit utliziation.  This is how much of your available credit are you using.  So, for example, you have three credit cards and each card has a limit of $500.  Your total available credit is $1,500.  As you approach this total availble limit, your score will drop.  Most experts recommend your keep your cards around 10%-30% or lower of your available limit.  However, what people often overlook is that each individual card utilization matters as well.  So you want to stay 10%-30% below your limit on EACH card as well.  Obviously 10% is better than 30%.  Lower is EVEN better.

The next thing to consider is when your credit card companies report to the credit reporting agencies.  They often only report once a month or maybe even every other month. If you make a $500 purchase on a $500 limit card on Monday then pay it in full on Thursday but the company reported on Tuesday, they are going to report a $500 balance equating to 100% utilization. 

To recover, pay of your balances and keep them that way until your company reports again.

I have card offers form citi ,discover, have 9 inquires should I apply or wait ?

Jun 07, 2016
This Depends
Helpful to 1 out of 1 people

This really depends.  Why do you have so many inquiries?  In some scoring models, if you have several inquiries for the same reason within a very short period of time they will be scored as 1 single inquiry.  For example, if you are getting a mortgage and are looking for rates at three banks, those inquiries may be considered as only one.  This is only true under certain scoring models though.  So keep that in mind.

I will say this, I have had as many as 11 inquiries on my reports at a time (Still had a FICO score of 660).  This was because I was shopping for an auto loan and had a few inquiries from that.  While having all those inquiries, I also got a Discover card.  When the inquiry was reported, my score dropped 3 points.  After approval, my score rose 11 points a net gain of 8 points.  BE AWARE:  YOUR CREDIT PROFILE MAY (MOST LIKELY IS) BE DIFFERENT THAN MINE AND HAVE A DIFFERENT OUTCOME.

Without knowing your credit profile we cannot make a reasonable recommendation. 

To close or not close out credit cards

Jun 07, 2016
Don't Rush to Judgement
Helpful to 1 out of 1 people

People are often very quick to say "NEVER" close a credit card.  This is simply not true 100% of the time.

If having credit cards are too tempting for you, and you can not control your use then you should limit the amount of credit cards you have.  High utilization, over limit, or missed/late payments will hurt your credit more than having this card will help it (most of the time). 

If your card has an annual fee, or other "maintenance" fees, then close the card if you have other cards that do not "cost" you money just to have them in your wallet.  Your score may take a hit if your age of credit drops too much, but this will be recovered with time.

If your card is what I call "free", no annual or maintenance fees, and you can control your use of it, then keep it open forever and ever.  The age of this card is only helping your credit.

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