Credit Tips: Trying to Rebuild my Credit
Posted On: April 1, 2005
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Post subject: Establishing Credit
dma
Date: 1/15/2001 11:24 am CDT
I have made a concerted effort to re-build my credit history. I have bought a car, bought a home and have applied for and received 3 dept. store cards, a gas card and have 2 visa cards with small credit limits. The dept. store cards have larger credit limits. I pay these bills faithfully every month. I wanted to apply for a more established visa credit card, but was denied because of the reasons stated: “too many inquiries in last 12 months”, “total available revolving credit” and “insufficient number of credit accts rated satisfactory”. This is crazy because, you are constantly bombared with mail of preapproved credit offers, so inquiries are made on your credit that are not authorized by you; I established this accounts to strenghten my credit and now I have too many accounts to satisfy receiving a more established card. What to do !? Should I close some accounts? Or should I continue to make payments and hope in the future my credit rating will improve.
Thank you.
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Shereen
Date: 1/15/2001 12:36 am CDT
Just to inform you…
When you recieve a preapproved offer by mail or phone, a credit report IS NOT pulled. Preapproved means… that specific creditor receive CERTAIN information (it may be as little information as your income, or job, or even the state you live in) this information that they had recieved filled the criteria that they were looking for to offer you that PRE-Approved offer.
In other words: YOU HAVE RECIEVED A PREAPPROVED OFFER BECAUSE ACCORDING TO THE PRESCREENING INFORMATION OFFERED TO THE CREDITOR FROM THE CREDIT REPORTING AGENCIES, YOU FILLED THEIR CRITERIA.
IF you repond to the preapproved offer…you give the creditor grounds to pull, and they WILL pull, a full credit report on you and base their credit decision on the full information.
And, as you know, a simple thing like excessive inquires can hurt and possibly deny you credit with that specific company.
In addition, when a creditor sees that you have lots of inquries, it shows that you may be CREDIT HUNGRY or may be having some finacial difficulties and trying to acquire credit.
Some advice…work with what you already have. You have alot of credit now, work on building that by paying your bills on time all the time and stop trying to get more credit. If you work with what you have, you will get more credit from your current creditors.
hope i helped!
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dma
Date: 1/15/2001 8:38 pm CDT
Shereen:
thank you for answering my email. i don’t apply for the preapproved offers i get in the mail, i just wasn’t sure if this was being used against me. and i am now aware that certain inquiries are not reported to businesses. the cards i do have i applied for over time. and i pay all of my cards on time, each month. i even have paid off balances in full most times. but this is not reported to help your credit rating. it is very frustrating to make the effort to pay your bills and still be considered a risk. i will continue to pay my bills ON TIME and close some accounts completely. the card companies with the limit on credit work against the consumer not for them (excessive fees late and overlimit). the overlimit fee is applied if you are $.01 over. that is crazy. and the limits are so low that you can get very close to that limit (which is also a strike against your credit rating). i will not be applying for any more credit for long time.
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Shereen
Date: 1/15/2001 8:49 pm CDT
To respond to you posting:
Just remember “you didnt get into debt in one day, and it wont take you one day to get out of it.” Time is the only thing that you have on your side to heal credit! Take advantage of it.
A good thing to start practicing with all your credit accounts is: NEVER EVER USE MORE THAN 75% AT THE MAX OF YOUR CREDIT you will avoid ever being charge over limit fees and getting fustrated.
It is eaiser to lower your credit limit on your credit cards than to raise them. The best way to reestablish yourself with credit is:
-1.Your total amount of credit…on all cards… should not exceed what you make in one month.
-2.Keep ONE credit card in your house that has a 500-1000 limit as AN EMERGENCY CARD…This card is the only exclusion to the cards i was talking about in number one.
Doing this will allow you to NOT have excesive credit, but…if there is an emergency you still have the credit you need.
hope i helped!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Mr. Clams
Date: 1/16/2001 1:03 pm CDT
dma,
You need to check your credit reports and see where those inquiries are coming from. I don’t know what Shereen meant by “excessive inquires can hurt and possibly deny you credit with that specific company.” You need to raise your credit score that is being sold by the CRAs and excessive inquiries will always lower it.
Really it’s hard to give you advice on how to raise your score without knowing what’s on your credit reports. It sounds like you have been doing smart things to raise your credit score but are all those cards and loans being reported to the CRAs? I would guess that you probably have one so so credit report and two credit reports that are fine. You just had bad luck in applying for a credit card from a company that pulled your so so credit report.
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Shereen
Date: 1/16/2001 4:36 pm CDT
To respond to Mr. Clams posting…
Having a lot of inquires on your credit reports are BAD…creditors dont want to see that you have been “running around town applying for credit.” So, it WILL hurt you.
Having alot of inquires will NOT lower your credit score. In fact, its works in your favor to now have alot of inquries…This will play a factor in RAISING your credit score. (If you dont believe me call any creditor)
For example: A creditor goes to grant two pleople credit that they applied for. Both people have their credit reports pulled and this is what the creditor sees differently:
Person 1: Has applied 6 times for credit in the past 3 months or twice a month.
Person 2: Has applied 6 times for credit in the past year, or once a every two months.
Excluding all other information on the credit reports. Person 2 doesnt see to be “credit hungry”- and will probably be more likely to viewed more positively in a credit analysts mind.
Keep in mind that there are not just one thing that will help raise you credit score, but…not have alot of inqures WILL help.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
What
Date: 1/16/2001 9:40 pm CDT
Having alot of inquires will NOT lower your credit score. In fact, its works in your favor to now have alot of inquries…This will play a factor in RAISING your credit score. (If you dont believe me call any creditor)
Did you read what you just typed???? Hello????????
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What
Date: 1/16/2001 11:18 pm CDT
I thought so but the NOT had me confused.
thanks
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Shereen
Date: 1/16/2001 10:27 pm CDT
Im very sorry. I was in a rush when I wrote that reply. What was ment to be written was:
Having alot of inquires WILL NOT raise your credit score, infact it works in your favor not to have alot of inquires…this will play a factor in RAISING your credit score.
Thank you for pointing out my incorrections!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Ira Stoller
Date: 1/17/2001 10:38 am CDT
I don’t buy your premise, unless things have changed drastically over the past two years.
I used to have a large credit card debt of close to $40,000.00, when I suddenly got religion and started applying for every low interest balance transfer promotional rate card I could find. I got virtually every one I applied for, transfered all my high interest balances to these cards, and kept applying for more cards. As the promo rates expired I would cancel the old cards and transfer the - now lower - balances to new cards with promo rates. Over approximately 4 years I must have received close to 20 cards and may have been turned down twice. My credit report is 15 pages long, listing all the cards that have been closed by consumer request. Using this tactic I have now completely paid off my debt.
Banks are in business to grant credit. They make no money denying it. What did I do right that others are doing wrong?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Shereen
Date: 1/17/2001 12:15 am CDT
ALL REPEAT MYSELF AGAIN THIS TIME WITH THE CAPS LOCK ON:
NOT HAVING ALOT OF INQUIRES—IS A FACTOR—THAT PLAYS INTO RAISING YOUR CREDIT SCORE TO BECOME LIKELY TO BE APPROVED FOR CREDIT—IT IS NOT THE ONLY THING THAT MATTERS—. -That why creditors use the POINTS SYSTEM!
In addition, if you have ever recieved a credit score…maybe one on Qspace.com or truecreit.com…and you have read the disclosure after your score is given. It will say that:
To help raise your credit score, ONE of the things that would help is NOT HAVING alot of inquires. (or something like that!)
Keep in mind, If having alot of inquires was not important in credit decision making, then banks wouldnt use: EXCESSIVE AMOUNTS OF INQUIRES - as a reason for denying credit.
Happy Day!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Ira Stoller
Date: 1/17/2001 5:44 pm CDT
So what you’re saying is that my situation didn’t or couldn’t have happened. Ok, then I suppose that all my records, open and closed credit cards, cancelled checks, etc must be fictional. And here I thought I was living in the real world. Silly me!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Mr. Clams
Date: 1/17/2001 4:50 pm CDT
Ira,
All those inquiries did lower your score somewhat. Just not enough to deny you credit. DMA said the reasons he got for his credit denial were “too many inquiries in last 12 months, total available revolving credit and insufficient number of credit accts rated satisfactory”. DMA was probably on the borderline of receiving credit or not and the exessive inquiries were the straw that broke the camels back. Your credit history is likely very strong in other respects and this is why you are often approved. Additionally inquiries over one year old don’t hurt your score.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Ira Stoller
Date: 1/17/2001 5:39 pm CDT
OK, that’s a reasonable explanation. What you’re saying is that every situation is different. It is difficult to generalize, isn’t it?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Shereen
Date: 1/17/2001 10:52 pm CDT
It is nice to know that some people can read and understand very specific explanations, thanks Mr. Clams!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
dma
Date: 1/18/2001 6:10 pm CDT
Thanks to everyone who responded !! I received all advice and will take some. I also went to www.fairisaac.com and read up on FICO Score Factors and Credit Scoring. Very helpful !! I know now what to do and even though my credit is not terrible, it can be improved. Again thanks.
dma
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Credit Tips: Trying to Rebuild my Credit
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Post subject: re: Retail Credit Cards
Bea
Date: 10/15/2000 9:05 am CDT
I have been re-establishing my credit for the last year. I have 3 sub-prime credit cards from Capital One, Household, and Home Federal. My question is that these cards charge really high interest rates so, I tried to apply for prime rate cards but, I was denied. My goal is since I have had these cards for almost a year I thought I could apply for the prime rate cards and transfer the balance. This is not true. I though maybe I have to apply for a retail card or something so that I can get some prime rate credit established. Any suggestions????
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Linda
Date: 10/15/2000 11:37 am CDT
That happened to me too. Different lenders have different requirements, but there’s no way to know what they are.
I used the letter the credit card company sent me when they declined me, to get a free copy of my credit report. The reasons they gave (they have to tell you the top 3 reasons) didn’t make sense. I think the person who sent the letter included every reason they had in the word processer. None of them were on my credit report when it arrived. The only negative things on my credit record are federal tax liens that were filed in 1992 and paid off in 1996. I am using about 50% of the credit available to me.
On top of that, they had “prequalified” me and sent me an invitation to apply, and to roll over balances. This has made me very leary of the so-called “prequalified” offers. All I accomplished was adding another inquiry to my credit file. I have my checking and savings accounts with the bank that did this (Centura) and I am planning on moving my business elsewhere, because I don’t appreciate what they did.
Linda
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Bea
Date: 10/15/2000 1:17 pm CDT
Thanks for responding. You are exactly right about the denial letters. Everything on my credit report that was negative is paid in full and my current credit card payments are all paid on time. I have used probably a little over 50% of the available balances. I don’t understand the denial letters and when you ask for clarification they don’t know why they just refer you to your credit report. Strange world of credit we live in.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Linda
Date: 10/15/2000 4:56 pm CDT
I would like to know what the “prequalification” consists of. Perhaps the credit bureaus are just selling names.
Linda
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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Credit Tips: Trying to Rebuild my Credit
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Post subject: first premier card
tim
Date: 10/2/2000 6:21 pm CDT
Just recieved my First Premier Bank Mastercard approval letter. I really don’t think it is the card for me.After having credit problems about 5 years ago, I was able to open up a Providian Visa and another Mastercard about 18 months ago.
Since then my Providian credit limit doubled and I transferred my Mastercard and cancelled it in order to take advantage of a lower interest rate.
Now comes First Premier with an 18% interest rate and only a $250.00 limit which has all but $78.00 delegated to the annual fee, program fee and monthly participation fee. There is only * $78.00 * of credit on the card and I have not used this card yet.
I called and was transferred to an account specialist and after 20 minutes he waiwed a $19.00 set-up fee. He said he would give my file to another dept. to asses my credit limit. He stated” maybe they were off $50 to $75.00.
I am not holding my breath however.Notwithstanding, though, I would think that after 15 months of on-time credit and a negative history that is rapidly being updated by the big three bureaus,that I would qualify for more then $250.00 in credit. *****, At&T gave me more then that when I applied for a digital phone about three months ago.
Well, the customer service rep. was nice and knowledgeable. I will update everyone here once a decision is made. Has anyone had any negative experiences with First Premier Bank?
I would reccommend this card for the person just beginning to rebuild their credit. But for the person almost 2 years in, I would not even apply.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
dave
Date: 10/2/2000 11:14 pm CDT
mmm….let’s see. A credit card with a $250 limit that costs $172 per year unless you use it and then you pay 18% on top of that. this looks like a no-brainer. even people just out of bankruptcy can get better deals than this.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
James
Date: 10/4/2000 6:23 pm CDT
I actually had a PREMIER Visa a few years back after having some very bad problems with my credit. Although the initial fees were around $175, I did realize that no one else was going to approve me and I bit the bullet and took the card. I had a credit limit of $250, but after six months of on-time and more than the minimum payments, they increased my credit limit. After about a year and a half I got Capital One offers and Providians, now about three and a half years after I started, I now have limits of $3000 with both Providian and Cap One. I gave up my PREMIER card about two years ago, but it gave me a start and helped me get to where I am today. Plus, every time I called customer service, it seemed like I was always talking to a real fox!
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