Mistakes, some more mistakes, time to fix them! 5 cards, limits, gen questions

For just about anything you want to get off your chest about credit cards.
6 posts
Tomson
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Mistakes, some more mistakes, time to fix them! 5 cards, limits, gen questions

Postby Tomson » Thu May 09, 2013 2:23 pm

Hello everybody,

I have put my self in semi difficult situation, by using credit cards without any
knowledge of how It can lower or minimize my score.
So my score is 674, but i want to be in 700, and now I just need
some of your help to make it happened.
So this is my history.

Capital one card, 500 limit, used it for two years, paid it off 6 months ago and closed it yesterday.

Discover card, 2500 limit, used it for 5 months, 2200 too pay off ( still got 6 months to pay it off with 0 apr )

Walmart card, 800 limit, 700 on it.

Now, after closing capitalone yesterday, I have
opened 3 more cards ( just realized it was a bad mistake )
Zales card - limit 1500 -
Chase feedom - limit 1300
Chase slate - 900

Previously I had couple loans, all paid off.

So now, what are my options & and couple questions.

First off, if I will not use my Zales card at all, will that affect my credit score?

Second, since Walmart card is screwing me with their 23 apr
should I transfer 450 to my Chase freedom, and 250 to my Chase slate so I wont
have to pay the apr? And if I do that, do I close the account or just leave it open?

There is no point of transferring my Discover balance to Chases cards because I should be pay if off in 6 months.

What are your suggestions folks?
What are my best options to increase my score in this case now?
Should I even activate my Zales card if I wont use it, will it affect me?
What are your opinions on that?

Thankkk youuuu so much for reading my post!
Hope to hear back !


Okie21
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Postby Okie21 » Thu May 09, 2013 7:26 pm

With concern to all the "should I" questions about what to do with your balances and such, I am not experienced enough to answer those. And I've never carried a balance at any time.

However, I got my first card (Cabela's store VISA) in January 2011, and it remained my only card until this week; I got two more. In October 2011, after using my card fairly little, I had an EQ FICO of 671. Then I had three months of 70%+ utilization ($500 limit, and I had NO IDEA what utilization was). After those three months I had an EQ FICO of 629 and was denied a CLI on my card. That was in February 2012

That day I got online and joined this forum, and let me tell you that it helped a LOT. I kept my utilization low 10%, and I kept paying on my student loans, and by August 2012 I had an EQ FICO of 747. My score went up 118 points in 6 months. I could not believe it. In September I got approved for a truck loan through my local credit union, and my credit was in their highest tier, so i got a great rate 2.99%.

This week I decided to finally get some big boy cards that would help my credit in the long run, and I got approved for an AMEX BCE and the Discover IT. I say all this to say, that keeping your spending low (utilization under 20%), not carrying a balance, and never making a late payment can work wonders for your credit, or at least it sure helped me. I'm sure there will be others on here with WAY more insight on what you should do with you balances, and how many cards you should have, etc. Good luck!

HookEmHorns
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Postby HookEmHorns » Thu May 09, 2013 9:36 pm

Just some insight. Your average age of accounts also helps your credit score. In the future, if the credit card company isn't charging you an annual fee, keep it open. Use it every once in a while to keep it active, but leave that sucker on your credit report with no balance, or a small one, it's working in your favor.

I personally would activate the Zales card because it's adding to your available credit. You don't have to use it often, but adding $1,500 to your available credit line is a good idea in my opinion.
AMEX PRG~1/14--backdated to 2012
AMEX BCE~6/13--backdated to 2012
Chase Freedom~5/13
Discover IT ~12/12

:cool:

Tomson
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Location: Chicago

Postby Tomson » Fri May 10, 2013 8:28 pm

Hey, thank you for the replys!

So you are saying that keeping cards open and not using them will not affect my credit in a negative way?

Also, does anyone hae any suggestions as to questions : "
Second, since Walmart card is screwing me with their 23 apr
should I transfer 450 to my Chase freedom, and 250 to my Chase slate so I wont
have to pay the apr?"

astro26
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Postby astro26 » Sat May 11, 2013 8:58 pm

Here is my 2 cents...

Average age of credit appears that it will affect you. Cap One will probably have a annual fee, I would ask to see if they will reopen. It seems like that is an old account.

Here is my take on Credit scores....

Age of Accounts - not much you can do about this

Utilization - you want your utilization over all accounts to be 20%, but should strive for about 2%. balances/credit limits give you utilization. I don't know how zales will report, so it may not factor into utilization at all.
seems like you have 5500 limit and 3000 of balances which makes your utlization high so you are in the 50% range.

balances on cards, if you carry balances on all cards vs a couple, that could impact your score as well.

strategy 1- keep the money on walmart and pay it off as fast as possible
strategy 2- transfer the balance to one of the chase's and try to pay down as fast as possible
alternate - make sure you are saving so you can pay discover when the 6 months is up.
strategy also - I would reopen capital one even if it had a fee if it is your oldest card. pay the fee for a couple of years, then ask to convert to a better card in their portfolio (ask the executive office once your credit history and payment history is great).. I worked a capital one secured card into a 10k limit card from capital one over time.

I wouldn't activate the zales card, you took a hard pull for no reason, but I dont see how it can help you the balance should only hurt utilization on it if you have a balance, and it shouldnt help your overall utlization (or it may, i am not sure how store cards work).

Don't close any accounts at this time, unless it is zales.

Thus if you are going to transfer balance I would transfer to lowest rate card (1 card) and pay that balance off. then you will have 2 cards with 0 balance (walmart and the other chase).

Tomson
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Location: Chicago

Postby Tomson » Tue May 14, 2013 10:16 am

Thank you for the replay brother!
So this is what I am going to do.
Transfer walmart to Chase freedom.
Cut the card, dont use it and leave it open for years.
I will not activate Zales.
Activate Chase slate, but dont use it untill I pay off discover.
Try to re-open my capitalone.
Pay off Chase freedom as soon as possible ( walmart balance )

Good strategy?

Thanks for all the help fellas!



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