ADVICE: How to avoid toy card hell

[foeplay]

Guys, if you are rebuilding will you please stop with all the GEMB, Cap1, HSBC, WTFNNB app-sprees?!

 

You will no doubt regret your decision down the road when you find yourself stuck with a bunch of high APR, low limit, and in some cases hard to use cards. It's ok to add one for mix, but then you must contain yourself!

 

You really owe it to yourself to join a few credit unions. I know it's really time consuming and unsexy to fill out an app, ach a deposit and then wait a WHOLE week or two just to get in, but I guarantee that it will be one of the smartest decisions you'll make for the future. By doing this you are giving yourself options for the future. Even if you are in chex there are options that will accept you, so just research it. If you are on Kona or still working on your reports its still ok to join now (provided they don't run credit check for membership). The trick is to build a relationship with them and who knows, they might even send you a pre-approval on your road to clean!

 

It is really not worth it to seek instant gratification via instant approvals. Remember that rebuilding is a marathon, not a race!

 

Here is my favorite website. Research ones you are eligible for in your area and give them a shot. You might discover a diamond in the rough!

http://creditunionaccess.com/

 

Good luck!

 

Feel free to add anything else or ask any other questions!

[Roland99]

+1

 

Even though I'd bought a house this summer and needed some things, I really wish we'd waited a few months until I got a couple more things cleaned up on the ol' credit report and gotten a couple of nice limit credit cards instead of my 10 new accounts (half store, half credit card). Going to take a few more months of aging and paying down the util. Not to mention the efforts and money spent to b* off most of the INQs.

 

App sprees are SO tempting. Get that first approval and the itch has to be scratched

[hkbushido]

nice post. As proof of this message I started with 2 cards each $300 and stopped. a year later got a card for 4k. another year got a card for 20k. another 6 month got a card for 15k.

 

closed the two 300's around the 3 year mark. Now my lowest limit is a 6k card, with the next lowest limit being 15k.

 

Don't get trapped in the mind set of having 20 cards to rebuild credit. It only takes 2-3 at a time.

[BlueEyris]

OP, thanks for the reminder. BTW what does "b" mean?

[foeplay]

OP, thanks for the reminder. BTW what does "b" mean?

 

BEGIN BY CLICKING HERE!

[Wado]

GREAT POST

 

I started out with a Target Card at $200 in early 09.

I then got a BBRZ for 100 and an Orchard for 300 in Aug/Sept.

 

I was stuck in toy card hell. I've been able to get out of that hell starting in October. I joined PENFED, NFCU, PSECU, and Alliant in that order.

 

Penfed denied my apps.

I was able to get a 8500 cashRewards and an 8k NavCheck from NFCU.

I got the 20k combo from PSECU

Alliant denied my apps

and I was able to get the AMEX gold.

 

Needless to say, i dont want nor need the HSBC cards.

 

My advice is similar to foe's, join a couple credit unions and I would also suggest staying away from store cards. If it's going to cost an INQ, you might as well go for the big cards.

[wow]

wholeheartedly agree

[gnarlywood]

That's a great post, foeplay. I'm going to chime in with my progression as well.

 

I still have a $750 CapitalOne Platinum (no AF) that's been open with that CL since 1999. It "survived" everything, but they won't CLI.

 

After years without a bank account, I got one with WaMu in early 2007. In Sept 2008, I finally answered one of their "pre-approved" CCs and was shocked to receive a $1500 CL. My FICOs had to be in the mid-500s at the time, but everything bad 5+ years old.

 

1999: $750 CapitalOne Platinum MC (still open, same CL)

2000-2008: Bad times with most everything else.

Sept 2008: $1500 WaMu MC (still open, same CL)

Oct 2008: Found CB

Oct 2008: $300 HSBC 2% (still open, same CL)

Dec 2009: $500 Sterling "trifecta" Kay/Jared/JBR (I got caught in the mania... now I really regret these STORE lines.)

Dec 2009: Direct Loan for SLs

Dec 2010: $1700 Amamzon Store Card (w/70+% UTIL)

Dec 2010: $20,000 PSECU VISA/PSL (w/47% UTIL)

Dec 2010: Joined Alliant CU

 

That's where I am now. Can you see the escalation? And those Sterling accounts are completely worthless. I wish I didn't have them. When PSECU reports, my UTIL will be tiny. Along with my B* train on EQ (7 INQ... 3 from that Sterling spree, 1 Alliant, 1 Amazon, 2 old CAs), I have a plan for a small power spree in early 2011. Citi Forward is in the works, Alliant CC, attempt to join NFCU, something from AmEx... at least. I'm also eying some real store cards, like Macy's AmEx and Nordstrom.

Edited December 21, 2010 by dkfd3s

[Karen_]

Guys, if you are rebuilding will you please stop with all the GEMB, Cap1, HSBC, WTFNNB app-sprees?!

Thank you! I was going to make a similar thread a few months ago but I'm too nice.

 

Like I always say, I'm so glad I got rid of my crappy WFNNB cards that never gave me CLIs even though I heavily used them.

[BobWang]

Thank you! I was going to make a similar thread a few months ago but I'm too nice.

Whereas the foe is not similarly encumbered.

[Repairerer]

Don't judge the Tarjhay Rouge.

[wow]

But honestly, couldn't it be said that repair occurs in generations?? In other words, there is a CB generation that HAD to use toy limits to build bc there were no other options. Our generation was just lucky enough to catch the USAFed 'in' to NFCU and the PSECU opening maybe more strategic by using secured credit to build the initial foundation rather than toy cards.

[Sniper762]

I don't disagree.

 

When I joined CB it was all about the app spree, just get in the door and grow it, well some of late to that party didn't get to enjoy the perks as the credit landscape rapidly changed. IN the end they hurt me and the inquiries hung around my neck.

 

It's all about the strategic informed app with surgical precision..

[foeplay]

wow, the past is the past. I see people still doing this NOW...

 

http://creditboards.com/forums/index.php?showtopic=446777

 

That being said, CUs have always been around so there has never been a legitimate reason to app for every store under the sun.

[wow]

wow, the past is the past. I see people still doing this NOW...

 

http://creditboards.com/forums/index.php?showtopic=446777

 

That being said, CUs have always been around so there has never been a legitimate reason to app for every store under the sun.

 

 

I agree, was just making an observation. I do think that ppl get on here and start reading (like we tell them to) and get too anxious and start app'ing. In most old threads, toy cards were the ticket to rebuilding. So I def think threads like this one is important to slow ppl down.

Edited December 21, 2010 by wow

[virtualtreasure]

This thread should be stickied IMHO, posts regarding full rosters of low limit cards are all too common, this thread could help spare many newbies the 'agony' of toy limit hell. Good going foe!

[Crackie]

Great point, OP and since you're inviting questions, here's mine ...

 

I don't have "toy" cards but I would like to add new cards in about 6 or so months. (I have to refi my house in March.) Other than Navy Fed, what do you suggest and how long should one wait in between apps? My goal is to increase FICO's.

 

TU - 734 (FICO)

EQ - 709 (FICO)

EX - 699 (FAKO)

[Repairerer]

Great point, OP and since you're inviting questions, here's mine ...

 

I don't have "toy" cards but I would like to add new cards in about 6 or so months. (I have to refi my house in March.) Other than Navy Fed, what do you suggest and how long should one wait in between apps? My goal is to increase FICO's.

 

TU - 734 (FICO)

EQ - 709 (FICO)

EX - 699 (FAKO)

 

Depends what's wrong with yer FICOs.

 

To help scores by minimizing util, you want the fattest limits you can qualify for. If that would normally be less than 40K, join PSECU and apply for the combo.

 

To help scores over the long term by enjoying the possibility of adding another card that's not brand new, or switching to a card you like better without taking the new account hit, go for Amex.

[T77125]

I guess it depends on the situation. I've been able to get my Macys & Pennys card to $2000 & $2200 limits,These cards were also on my reports for over yen years each. I just started using them again & they uped my limits, but they are my highest limit cards, & Pennys reports the line.

 

I Just got an AMEX green as well as a Sunnoco gas card this month, that repots the line as well, it is also issued by citi-bank, so I think that will help me establish a link to new lines though them.

 

I don't have any secured cards. My HSBC is at $1000 & FPB is $550. FPB is getting tossed in 11'. I do belong to the NYC MCU & Maintain checking & savings, but they denied my app for credit. I'm gonna try again in the spring.

 

I'm going on 3 years in Febuary with really rebuilding my credit, so I'm hoping this will be the year I can launch into some new cards with decent limist & at least close my FPB.

[seattlecredit]

Great post. As for my personal experience, I went from a highest limit of $1000 to $15,000.

 

While perhaps some banks with more sophisticated software factor in your highest credit limit, from my experience not all do.

 

What I think explains "toy card" predicament more often than not is that people pull the trigger too soon on their app sprees.

 

If you look at a typical journey of credit card repair, you usually see someone starting in 500s and then going into 600-670 category fairly quickly, after a couple of rounds of deletions. At that point, people may be tempted to pull the trigger and assume that a score of 670 is the same as 720+. Unfortunately, the result is often a bunch of approvals but smaller than desired credit limits and, as a side effected, decrease in their average age of credit lines.

 

It's easy to charge this to a "black box" or mysterious phenomenon of a "toy credit card hell" but really I think it can be explained by FICOs (or modified FICOs used by banks) not being high enough and not having long enough history on positive accounts.

 

Of course, this is just largely based on my personal experience and reading stories on this board. If someone can show me their approval for a "toy" limit with 720-740 score AND low utilization, I will take all of this back.

 

Thanks!

[Crackie]

Nothing really wrong with my scores other than I would like to give them a little jump start so to speak. I was very uneducated about credit until I found CB. I think there's some pretty sharp people on here and knew good advice was here just for the asking.

[Jazzyburrell]

I agree with the sentiment of this thread, but I have always taken offense to the throwing around of the term "Toy Limits" It is funny you see someone so happy to get a $1000 GEMB card, but 6 months later they are complaining about their "Toy Limit" psst..... lemme tell you a little secret: You wouldn't have gotten that $6000 Citi Card without the Toy card.

 

As far as downing store cards in their entirety, I have a $7600 Kay's CL, that is more than some of the CC's people's are excited about, so not every Store Card is bad and many of them can grow!

 

Here is what I know: My highest Limits are "Toy Limits" to some guys around here. In closing: I agree that when we start we should stop going on App Sprees. I agree that the quickest path to higher limits is through long term relationships with Credit Unions.

 

I also know that there are several paths to that Golden Road!

[virtualtreasure]

I agree with the sentiment of this thread, but I have always taken offense to the throwing around of the term "Toy Limits" It is funny you see someone so happy to get a $1000 GEMB card, but 6 months later they are complaining about their "Toy Limit" psst..... lemme tell you a little secret: You wouldn't have gotten that $6000 Citi Card without the Toy card.

 

As far as downing store cards in their entirety, I have a $7600 Kay's CL, that is more than some of the CC's people's are excited about, so not every Store Card is bad and many of them can grow!

 

Here is what I know: My highest Limits are "Toy Limits" to some guys around here. In closing: I agree that when we start we should stop going on App Sprees. I agree that the quickest path to higher limits is through long term relationships with Credit Unions.

 

I also know that there are several paths to that Golden Road!

 

I try to use, 'low limit' instead of 'toy' but view both as descriptive terms used most often to depict CLs in the triple digits, not as an offense.

 

Of course it is also relative, so a15k CL is perhaps considered low limit to Trevor, hege and them.

[Conflictxnj]

WTH I just got a toy limit from Chase. I applied for a Toys R' Us card to take advantage of some rewards for Christmas because my credit has been repaired a bit and I can actually do that stuff now. I applied in late November or so. I get a monitoring alert yesterday from SC RE: Chase. They say they didn't pull again, but whatever; I didn't see it on TU twice

 

In any case, $200.00? It's going to hurt more than help! I'd rather a denial! Are they generous with CLIs and terms? Should I decline or build a relationship being it is a major bank?

 

My other limits are $750, $650, $300 (first in years), $350. Now I'll have 3 cards with very low limits, 2 are store. 5 cards, an auto loan all less than a year. I'm paying them off next month and closing my First Premier.

 

When I applied for Barclay's, it was for a purchase at Apple online 0%APR. I called them and basically said I was trying to by a new laptop for my first purchase and $750 wouldn't cover it. The credit analyst said, "we're your largest credit line at this point so we can't really to do it." She said if you are still in need of a laptop, you can try to apply for a new card in 6 months and should be okay.

 

 

 

Edited December 22, 2010 by Conflictxnj

[TexasinATL]

Thanks for posting this. Sometimes I see people go on app sprees and then suddenly they have 10 cards with $200-300 limits, eeek. I guess they are so excited about being approved, which I totally understand.

 

There are definitely some Rebuilder cards that I wish I didn't have in my wallet (e.g. Hooters, I'm stuck at $900 with them, ugh) but as someone pointed out, that probably helped me get my Citi with the $5K limit.