Discussion in 'Credit Talk' started by CreditCard, May 24, 2000.

  1. CreditCard

    CreditCard Guest

    Hi, I have a problem. I know this isn't a board for credit junkies, I don't even know if one exists. My situation: I don't have any past credit problems, but my credit score is very low, somewhere in the 500's. I started establishing my credit in Mid 98, and I've manage to rack up Tons and Tons of inquiries. I have like 100+ on my Equifax report, lots of them are from the same companies that I've been trying to establish credit with. My Experian report has about 80 inquiries, the same problem as with Equifax, TransUnion has about 60 inquiries. I can imagine what you are thinking. I have a major problem with applying for credit. I have about 30 accounts, mostly from every Sub-Prime lender and a couple of secured cards. A few other types of accounts and cards. I've aquired most of these accounts in the last year or so. I've never payed the min. payment on any of them. Yes, the majority of my accounts have balances. I'm not in a bad financial situation, I just like receiving cards. I really value my credit and my ultimate goal was to build my self up to get a Platinum account, I guess I went about it all wrong. Sorry this is so long, (Herb,Barry, and the other serious credit advisors, I hope you're reading this.)
    What is the best way for me to build up my credit score without having to close the majority of my accounts. I've just started closing some of my lowest limit cards, (3 in the last 2 months) and I'm paying off most of my others, I really don't want to close them. How many accounts is really too many before lenders refuse to grant any more credit. I know I've taken up more than enough of your time and I hate that I couldn't explain my situation better, but I am sure that you get the general idea. Thank for reading and I'll appreciate any advice given.
  2. creditwork

    creditwork Well-Known Member

    You have started the process. You should close as many low limit accounts as possible. I have no exact number on how many accounts are too many, that depends on too many factors. If you are getting turned down for credit, it is a good idea to wait about 6 months, close some accounts or increase your income, before going through another round of applications. Remember the key to better and less expensive credit is to exercise your credit. Borrow close to the limit and make large payments. This method has yielded me lower rates and higher limits. Good Luck and good hunting.

    Proud to be a credit junky.
    Profit from the experience.
  3. Barry N -

    Barry N - Guest

    My 2-Cents

    I agree with Herb. You should now concentrate on paying down the debt to income ratio. Get rid of the low limit/high rate cards. Just keep a few of the better performers. Do not apply for credit for a while. I would also suggest waiting for your scores to rise enough that you begin getting pre-approved offers from the "prime" crowd. This will be a trigger to let you know that you are ready to transfer your sub-prime balances to prime offers. Then you can then you can finally close the last of your rebuilding credit cards.

    I would be curious to know what negatives are still on your report?


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  4. CreditCard

    CreditCard Guest


    Thanks Herb & Barry. I don't have any negatives, never had, but my score is super low, I guess it's from all the inquiries and the high balances. As Herb suggested, borrowing close to the limit and making lage payments is exactly what I do. I guess my main problem is once I do that, I end up using the card again. My income is suffient enough now to handle my debt load. I'm not in any real danger, but I may look like a credit hungry monster to lenders. By the way do you think that my age plays a part in my credit limits. I'm in my mid 20's. Thanks again.
  5. LadyCarr

    LadyCarr Guest

    My Goodness

    That sounds exactly like my situation. Well at least you're not alone. Between my husband and myself, we have about 45 accounts, all with low low limits, with the exeption of a few cards. I know our score is under 600. We haven't had any past credt problems, just a lot of inquiries. I just love to get those little hard envelopes in the mail, so I keep applying. I don't keep applying because I need the credit, I just like to see what I can get, and that's why I'm paying for it now, because I can't get anything from a Prime lender, except for my sorry secured Chase $ Amex Optima cards. I would also like some advice on how to get our scores raised. I don't want to close all of my accounts either. I've closed 3 and I have about 10 more that I don't want, so that will still leave me with a lot of accounts. What should we do.
  6. creditwork

    creditwork Well-Known Member

    RE: Thanks

    You are welcome. Just make sure you bring your balances to zero and let them sit for a couple of months unused. Then repeat, this has worked well for me with regular cards. The key to the whole process is to make sure you do not make late payments or minimum payments. I have been a heavy credit user for years and I am proud of the fact I have been able to now build a company on just credit. Profit from the experience.

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