Reapplying to PSLOC's after 6 Months.

[Constantine]

Hi everyone, I missed you all since the unceremonious closure of lawstudents. 

Last cycle I was rejected by every bank I went to due to: no employment (COVID), late payments (2 went to collections), and high utilization. At the time, I was laid off for about a year due to COVID and had ~95% leverage on both my credit card (2k) and personal line of credit (18k). Both factors led to me applying with a 658 credit score.

While it did suck having to defer because of this, I have used much of the past few months to better my finances. I've managed to score two jobs. I've paid of my card and have about 60% utilization on my line of credit. It hasn't been easy, but I'm in a better financial position than I have been in the past 2 years and am confident I can land a PSLOC this time around. 

With that in mind, is there anything I should keep in mind when I re-approach banks within the next few months? I initially wanted to apply when my utilization was ~30% on my line of credit; however, if I can apply sooner I'd prefer that. 

[Thrive92]

27 minutes ago, Constantine said:

Hi everyone, I missed you all since the unceremonious closure of lawstudents. 

Last cycle I was rejected by every bank I went to due to: no employment (COVID), late payments (2 went to collections), and high utilization. At the time, I was laid off for about a year due to COVID and had ~95% leverage on both my credit card (2k) and personal line of credit (18k). Both factors led to me applying with a 658 credit score.

While it did suck having to defer because of this, I have used much of the past few months to better my finances. I've managed to score two jobs. I've paid of my card and have about 60% utilization on my line of credit. It hasn't been easy, but I'm in a better financial position than I have been in the past 2 years and am confident I can land a PSLOC this time around. 

With that in mind, is there anything I should keep in mind when I re-approach banks within the next few months? I initially wanted to apply when my utilization was ~30% on my line of credit; however, if I can apply sooner I'd prefer that. 

As someone with a low credit score, the situation that you have gone through terrifies me.

May I ask if you had tried to re - apply for PSLOC with a guarantor last cycle?

[Constantine]

12 minutes ago, Thrive92 said:

As someone with a low credit score, the situation that you have gone through terrifies me.

May I ask if you had tried to re - apply for PSLOC with a guarantor last cycle?

Yes, and I still got a hard pass from banks. 

It's not that bad -- sure I got smacked down, but I got back up. I'm sure you'll do the same if the same happens to you. 

[Thrive92]

Just now, Constantine said:

Yes, and I still got a hard pass from banks. 

It's not that bad -- sure I got smacked down, but I got back up. I'm sure you'll do the same if the same happens to you. 

No disrespect to you mate, but I would rather not get smacked down in the first place.

I'm glad to hear that you came back though. Although I do not know much about the approval process of PSLOC, i'm sure they will not reject you en masse like that again with the improvements you have made

[Renerik]

52 minutes ago, Constantine said:

With that in mind, is there anything I should keep in mind when I re-approach banks within the next few months? I initially wanted to apply when my utilization was ~30% on my line of credit; however, if I can apply sooner I'd prefer that. 

Showed this post to my family member who issues out LOCs/PSLOCs at their bank. Once you've been denied, it's harder to get approved in the (short-term) future. They said they would only issue you one if your cc was paid off and they saw you making aggressive payments towards your current line of credit.

Edited September 12, 2021 by Renerik

[Constantine]

8 minutes ago, Thrive92 said:

No disrespect to you mate, but I would rather not get smacked down in the first place.

I'm glad to hear that you came back though. Although I do not know much about the approval process of PSLOC, i'm sure they will not reject you en masse like that again with the improvements you have made

Of course, I wouldn't wish what I went through on anybody.

Here's hoping it doesn't. 

5 minutes ago, Renerik said:

Showed this post to my family member who issues out LOCs/PSLOCs at their bank. Once you've been denied, it's harder to get approved in the future. They said they would only issue you one if your cc was paid off and they saw you making aggressive payments towards your line of credit.

Ah okay, the CC is paid off now and I should be able to pay off the LOC within the next 10 months. for my LOC I'm paying off about 1k per month and throwing whatever else I have at it. 

Edited September 12, 2021 by Constantine