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Outline for Rebuilding Credit

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    Wow, interesting that Amex could hold it against you for that long. Working on my glass half full self, nice to be part of something legendary. I was just under 10k with them, so interested to see if they let up anytime soon.

    Hope to prevent others from making the same silly mistakes as I'm making. I applied for US Bank's secured card and got the we'll review and get back to you response. So thinking I got denied, applied for Chime's secured card. Joke's on me, Chime doesn't report utilization % as they don't have a pre-set limit per se. A lot of current customers complaining that their scores went down based on how Chime reports. You'll still get a boost from timely payments through them, just maybe less so than a traditional secured card. Though take what I say with some salt as my financial literacy is the equivalent of a shiny rock with a happy face drawn onto it. Also apparently it takes up to a couple weeks sometimes for the secured card process to go through (set up your account and debit, pull the deposit, send the cc, etc), so be patient. Now that I have potentially two secured cards in tow (I will keep US bank with high deposit and Chime with lower), would I still need a third card?

    For the SSL, are there any recommended parameters on the amount or payment schedule?


      A few answers:
      • Three revolving credit card are considered by the experts in FICO scoring to be the minimum for maximum points, and while some folks get along with just one or two, it takes longer to see a score bump versus using three.
      • I would avoid lenders like Chime, CreditOne, and other bottom feeders; they often do more damage to either your credit scores or your bank account than traditional lenders.
      • Regarding secured cards, some folks opt for say three cards with secured limits of $500 or so, and then rebuild from there. Others prefer to swing a bigger hammer and opt for a single card with a multi-thousand dollar limit; I opted for the latter and got a secured card with a $5,000 limit, and without any hard evidence to support this, I believe that one card was the springboard from which sprang all of my subsequent unsecured cards.
      • Regarding the SSL; the most common approach, and the approach I took, is to drop $3,000 (some folks say $3,001) into a savings account at either PenFed or NFCU, let it age for 30 days, and then take out a five year loan for that amount. Once the loan is approved, take the loan money and pay the balance to say, $250, this in turn will push the next payment date out several years.
      Last edited by shipo; 05-31-2024, 03:44 AM.
      Chapter 13 (not 100%):
      • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank cum Bank of Southern California
      • Filed: 26-Feb-2015
      • MoC: 01-Mar-2015
      • 1st Payment (posted): 23-Mar-2015
      • 60th Payment (posted): 07-Feb-2020
      • Discharged: 04-Mar-2020
      • Closed: 23-Jun-2020


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