When to ask for more or better?

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Heatfixr
 
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When to ask for more or better?

Postby Heatfixr » Mon Sep 29, 2014 11:57 am

I want to take the reins on my credit situation and for the moment that's mostly paying down my debt on my BOA BankAmericard Platinum Plus Visa - 8,000 CL, Balance of 7,183 currently. but at the same time I'd like to make some moves to enhance my FICO (unknown, trying to get it now) as soon as possible. I have no late pays and a nine year history with BOA. no installment loans either. so my question is this:

What should I get my utilization down to before I request one of the following, and what is the easiest to get in the opinion of the board members?

BOA CLI
BOA rate reduction (currently 21.24% yikes!)
Drop annual fee that BOA added a few years ago (renews in April)
Balance Transfer to another card, preferably 0% interest)


I realize that to be on the safe side I should be under 30% utilization, but the point is I'm trying to make moves that get me out of debt faster, so, what say you? When can I make a move and what is the first request? anything else I'm missing?


Thanks in advance everybody!


Heatfixr
 
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Postby Heatfixr » Mon Sep 29, 2014 1:49 pm

Update:


Just got my Experian Fico -719 yay!

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Vattené
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Postby Vattené » Mon Sep 29, 2014 1:52 pm

Ideally you would want to balance transfer to a card with a 0% introductory rate, but I doubt that is possible at this point. I can't speak from experience, but I would guess you're going to have a lot of trouble getting approved for another card at 90% utilization (but you point out that you realize you'll have to get this down).

When you say drop the annual fee do you mean PC your card to a different BoA card?

A rate reduction would save you money, but if increasing your FICO is your biggest priority I would request a CLI if I were you. This will help imediately with your utilization and I think your odds are better this route anyway. Interest rates are positively correlated with risk, and at your current utilization BofA may well deem you too risky to extend a lower rate.

Sorry I can't be more concrete as far as what utilization to reach before taking any action. I would request a CLI immediately, however. You can call a CSR and ask if they can do one without a HP. You do have a long history with them after all. They may think you'll run the balance up and refuse, but being denied won't impact your FICO. They may even tell you what utilization they would like to see first. Don't charge anything new to the card; use cash/debit card so you can make more progess on that balamce. Pay as much as you can afford over the next 3-4 months or so, and call to inquire about a rate reduction. This way you can explain your situation and they will know you are serious based on your behavior.

The bottom line is getting that balance as low as you can is the best thing you can do for your FICO at the moment. Once that utilizatuon is down to a point where it isn't a red flag to lenders - perhaps not even to 30% - a balance transfer is more realistic (and consider a Chase slate).

Good luck!
-Vattené
FICO-8:
EX - 805 (2/17) | TU - 787 (2/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

MemberSince99
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Postby MemberSince99 » Mon Sep 29, 2014 4:44 pm

You can ask for any or all of those things any time you like.


However the likelihood of them agreeing to them with your balance is likely very slim.


You would be in a much better position to make those requests if you paid down that balance to say 2 or 3k. However watch for them to maybe start balance chasing you as you pay it down especially if you've carried that balance for a while. I think that is a risk that's worth taking because as you pay it down they may chase you and keep your utilization sky high, but once you pay it off, you should be in a position to get better cards from other lenders so no biggie.


I'd work on paying off what you owe before I started asking for things. I think if you do you'll find it much easier going. And if you can't pay it off in a reasonable amount of time or at least make a sizable dent in it, you've got other problems that need to be addressed anyway.

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CarefulBuilder14
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Postby CarefulBuilder14 » Mon Sep 29, 2014 8:33 pm

Using 90% of an $8k CL is going to make any BT or CLI tricky, so you can try but don't expect too much from BofA or other lenders.

Your EX FICO is pretty good for someone with high utilization, but I guess that help is mostly due to the nine-year account age.

A Chase Slate, I agree, is probably the best BT card for which you'll possibly qualify for a while. I don't know how far you should pay down your debt before applying, though. It simply is easier to get than BT/Rewards 'combo' cards like Discover. Slate also has very attractive BT terms.

Definitely pay down the existing debt as quickly as you can, because every other solution we've given and you've asked about is far from guaranteed to work.
Keeping indefinitely: IHG, SchwabPlat, CSP, Discover, Freedom, ED, BCE, Hyatt
May close or PC: Prestige, Arrival, BrooksBros
AA Platinum converting into Costco

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech
Letting new accounts cool off since May

takeshi
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Postby takeshi » Tue Sep 30, 2014 2:34 pm

Heatfixr wrote:What should I get my utilization down to before I request one of the following, and what is the easiest to get in the opinion of the board members?

As stated above, none of them are going to be easy at 90%. Everything is based on your credit and utilization plays a major role. Get your utilization down then worry about the rest and your score. At this stage your focus should be avoiding adverse action.

Heatfixr wrote:I realize that to be on the safe side I should be under 30% utilization, but the point is I'm trying to make moves that get me out of debt faster, so, what say you? When can I make a move and what is the first request? anything else I'm missing?

What you're missing is that 30% isn't "being on the safe side". 30% is what you should never exceed. Get under 30 first. If you want to be on the safe side then get it under 10%.

Berk
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Postby Berk » Wed Oct 01, 2014 7:21 pm

Pay down your debt! Give that card to a friend who won't give it back to you until the card is paid down to under 10% or cut the thing up. Then, when you have reached the under 10% mark, apply for more credit cards. I am currently at 3% of my total CL. I rarely exceed 5%. It takes discipline and hard work to establish good credit. I learned my lesson the hard way and ended up in my late 20s having to try to settle with all my creditors for 50 cents on the dollar. One or two wouldn't do it and I ended up defaulting on those loans. I took a 10 year hiatus and just used cash and a debit card so that my credit file would clear. So, I started with a thin file and a $750.00 line of credit from Capital One on a Visa with a $50.00 annual fee. It took me 10 years but I was able to build my credit back up.

Good luck to you in your endeavors.
Fico Scores 05/25/2015
Equifax 766
TransUnion 788
Experian 797

Over $140,000 in credit across 12 cards.

Red_Rena
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Postby Red_Rena » Mon Oct 06, 2014 7:19 pm

Heatfixr wrote:I want to take the reins on my credit situation and for the moment that's mostly paying down my debt on my BOA BankAmericard Platinum Plus Visa - 8,000 CL, Balance of 7,183 currently. but at the same time I'd like to make some moves to enhance my FICO (unknown, trying to get it now) as soon as possible. I have no late pays and a nine year history with BOA. no installment loans either. so my question is this:

What should I get my utilization down to before I request one of the following, and what is the easiest to get in the opinion of the board members?

BOA CLI
BOA rate reduction (currently 21.24% yikes!)
Drop annual fee that BOA added a few years ago (renews in April)
Balance Transfer to another card, preferably 0% interest)


I realize that to be on the safe side I should be under 30% utilization, but the point is I'm trying to make moves that get me out of debt faster, so, what say you? When can I make a move and what is the first request? anything else I'm missing?


Thanks in advance everybody!


Hi OP!
I don't know what you finally decided on, but I can tell you with absolute certainty that your CLI request would be denied. When my util was that high, they turned me down a few times. I paid the card off and didn't use it for 2 years. I requested a CLI last week and got it. And they gave me a hard time regarding removal of the annual fee. I finally called the back door number to get it done. And they are inquiry happy, so CLI will be a HP. I haven't tried APR reduction, but figured I'd better quit while I was ahead, lol. But I was really lucky that I wasn't cut like some other people were. I would follow the advice of the others who responded and pay down a chunk of the debt before taking any action with BofA.
EQ 861
EX 08 869
TU 08 822

American Express Blue Cash Everyday $16,000 (6/2014)
Bank of America Better Balance Rewards $3800 (7/2003)
Bank of America Cash Rewards Visa Signature $6000 (3/2012)
Barclaycard Rewards $8200 (2005)
Capital One Quicksilver $4750 (12/2010)
Capital One Quicksilver $4000 (3/2011)
Chase Freedom $2000 (9/2003)
Citi Dividend $5700 (6/2013)
First National Bank of Omaha Visa Platinum $9000 (2011)
Bill Me Later (PayPal Credit) $1960 (2011)



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