Thread: How to manage the 9 accounts on my credit report?

Hi,

I need your advice understanding and managing my credit accounts.

My FICO® score: 620
Oldest account was opened 3 Years
Accounts carrying a balance: 9 accounts

I never missed payment, i usually pay all balances at the end of each month, my mistake that i learnt from my friend was to use the credit card a lot instead of debit card and then pay it all each month. But learning my FICO credit report, i was utilizing 70% of my balance which affect it negatively.

Here is my 9 accounts:

Installment loans: $42,561 (Auto Financing)

Company: Ally Open Date: 10/2012 Balance: $21,483
Company: Fmcc Open Date: 10/2012 Balance: $21,078


Revolving: $16,483

Bk Of America Reward Open Date: 08/2009 Credit Limit: $3,000 Reward
Paypal Extra MasterCard Open Date: 03/2010 Credit Limit: $5,500 Reward
Cap One Platinum MasterCard Open Date: 05/2010 Credit Limit: $1,500 No Reward
Chase Freedom Open Date: 12/2011 Credit Limit: $4,000 Reward
Citi Forward Open Date: 01/2012 Credit Limit: $6,500 No Reward
Amex Gold Charge Card Open Date: 08/2012 Open Account Reward

BestBuy Credit Card: Open Date: 09/2012 Credit Limit: $2,500


It become too much to keep up with all the cards, using them all to ratio of 70% which caused my Fico score to drop for 760 to 620 in a year.

Do you suggest for me to close any account? especially the Capital One as there is no reward and the limit is small.

Should I close the Amex charge card and change it to Amex blue credit card?

Any advice how to manage this cards?

For the 2 auto loan installment, what's the best to handle it? I have money to pay 50% of the 2 loans but some people told me it is better to only pay the monthly installment in 2 years to help in credit report. (the 2 loans are 0 interest for 3 years)

Thanks guys for your help.

It's great that you're paying all your cards in full, but what will really boost your FICO score would be to pay them in full BEFORE the statement closes. That way once it closes, the balance will be very low or even $0. That will take care of your utilization problem. Your friend taught you right...don't use the debit card.

Don't close the Cap1 account, as it is one of your oldest ones. Closing it would make your Average Age of Accounts drop (after 10 years)

As for the AmEx, I don't think they'll let you do a product change to a credit card. Just apply for a Blue Cash Preferred and have them backdate it.

Same here, but i didn't get auto loan.