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dragonboas

First unsecured..what's next

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Yesterday I finally got approved for my first unsecured card in 10 years.  It's a discover cashback card, now I'm wondering what can or should I do?  I remember reading about people that would apply for multiple cards from the same place, i.e. applying for a second discover card.  Not sure if that's still a thing or not.  I did the pre-qualify check with discover before I applied but I don't have any pre-qualification through citi, chase, or cap one.  Anyone just curious cause now I'm excited that rebuilding credit may actually be working.

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I wouldn’t go for a second Discover. What open accounts do you have reporting? What do your reports look like—general FICO and derogs? 

 

Depending on on the above answers, I would think you could get an unsecured Cap1 and let them age together. 

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I have a cap one secured and victoria secret card.  both on time entirely.  vs is right over a year old and cap one is 8 months old.  I have a cap one auto loan that's 3 months old and now the discover card which of course isn't reporting.  I have 1 bad collection, medical from 5 years ago.  Then some student loans too but all deferred.  experian fico was 670, apparently dropped to 657 today after the discover inquiry.

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Have you tried to get rid of the medical collection?  I'd take a stab at that before moving forward.

 

Congrats on your first unsecured card!!  :good: 

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9 hours ago, cv91915 said:

Have you tried to get rid of the medical collection?  I'd take a stab at that before moving forward.

 

Congrats on your first unsecured card!!  :good: 

I've tried and tried many times.  Can't get it gone.  At this point I'm trying to figure out what the best option is for that one.  Be stubborn and finish waiting out the 7 years, pay it off, call and pay less than full?  Not sure which will help me the fastest because I don't know how the last two options would reflect on the credit report.  We are wanting to buy a house next year which is another reason for trying to get everything improved quickly.  Not sure exactly when next year but roughly 11-15 months from now.

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20 hours ago, dragonboas said:

I have a cap one secured and victoria secret card.  both on time entirely.  vs is right over a year old and cap one is 8 months old.  I have a cap one auto loan that's 3 months old and now the discover card which of course isn't reporting.  I have 1 bad collection, medical from 5 years ago.  Then some student loans too but all deferred.  experian fico was 670, apparently dropped to 657 today after the discover inquiry.

1 inq can't lower your score by 13 points so there must be another reason. My guess would be util % and/or # of cards with balances. Before you app for anything else make sure you have exactly 1 card reporting a very small balance but at least $2.01 ($2.11 min for VS).

 

Lose the collection first if possible (I know nothing about this so can't advise how).

 

Your scores should rise the day the new Discover reports. As soon as that happens, you should open 2 more CCs for a total of 5. Make them no AF cards you can keep. That gives you 5 open revolvers, the minimum optimal. Do this even if you've decided to wait out the collection.

 

12 months after that, the new cards will be boosting your scores and the effect of inqs will have vanished. Don't app for anything else during those 12 months, until you've closed on the house.

 

If you can't get rid of the collection it might be worth waiting an extra year for it to drop before buying the house. You could save a small fortune in interest.

 

 

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1 hour ago, Occam said:

1 inq can't lower your score by 13 points so there must be another reason. My guess would be util % and/or # of cards with balances. Before you app for anything else make sure you have exactly 1 card reporting a very small balance but at least $2.01 ($2.11 min for VS).

 

Lose the collection first if possible (I know nothing about this so can't advise how).

 

Your scores should rise the day the new Discover reports. As soon as that happens, you should open 2 more CCs for a total of 5. Make them no AF cards you can keep. That gives you 5 open revolvers, the minimum optimal. Do this even if you've decided to wait out the collection.

 

12 months after that, the new cards will be boosting your scores and the effect of inqs will have vanished. Don't app for anything else during those 12 months, until you've closed on the house.

 

If you can't get rid of the collection it might be worth waiting an extra year for it to drop before buying the house. You could save a small fortune in interest.

 

 

I wonder if it's because of the inquiries I already had?  I have quite a few already, bought a new truck in April and the dealer started shotgunning my credit app out to everyone before I yelled at them.  

 

I do carry small balances on both the cap 1 and VS.  Not $2 but it's about 25-30%  Credit limits aren't high so it's still pretty small.  I could pay both down to next to nothing if that helps.  I just pulled my actual TU report and it says the medical collection is estimated to be removed 05/2020, so 9 months from now.

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