Advice needed - Climbing the CREDIT LADDER !!! GOAL: 700 Club by July 2016 !

[Anonymous]

If you can get the revolving credit down to under 20%, i would think that would be totally doable. Utilization is a hefty chunk of the score calculation.

[Anonymous]

Talk to your Credit Union or a sub-prime lender and try to get a personal loan or auto refi (if you have equity), pay off those credit cards, dig a big hole in the back yard, toss the credit cards in, and fill the hole. Forget the credit cards for 5 years to get your mindset straight.  If you don't have enough for a iMac or home decor, you save. 

[Anonymous]

Slipper lol

That's funny actually .. But I'm told credit cards are very necessary to build credit. Without it you can't show a lender that you use credit responsibly. Student loans only show so much. They aren't revolving.

However I would like to maybe get it down to 1-2 cards with higher limits as opposed to smaller cards and many accounts. And as for a personal loan - can't get one even with a co signer until I hit 615 score is what I'm told even at my amazing credit union WFCU in L.A. I was shooting for a $8,000 loan to wipe out my debt - no dice ! Not yet at least. If you have any recommendations I'm all ears

[Anonymous]

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@Anonymous wrote:
Slipper lol

That's funny actually .. But I'm told credit cards are very necessary to build credit. Without it you can't show a lender that you use credit responsibly. Student loans only show so much. They aren't revolving.

However I would like to maybe get it down to 1-2 cards with higher limits as opposed to smaller cards and many accounts. And as for a personal loan - can't get one even with a co signer until I hit 615 score is what I'm told even at my amazing credit union WFCU in L.A. I was shooting for a $8,000 loan to wipe out my debt - no dice ! Not yet at least. If you have any recommendations I'm all ears

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credit cards are indeed important for building credit. However, money is also important, and money is, generally, more important than credit. 

Here is what I would do: 

1. close credit one now. Seriously. The only reason to ever deal with them is if you cannot get ANY other card. You are in with cap1 and barclay. Other primer lenders will follow. credit one cannot help you now. This will save you money in ridiculous fees and interest. 

2. Make progress on paying down your balances on the non-0% cards. Then start saving so that when the time comes you can pay them off and not have to pay interest. 

3. Only charge to credit cards what you can afford to PIF and not pay interest. You should never be paying interest to the banks. 

4. Take slipper's advice to heart, even if not literally. There is no excuse to ever finance home decor or home improvement on a credit card that you pay interest with. EVER. Those are luxuries that you get when you can afford them. If you are paying interest, it means you could not afford them. Similarly for financing an iMac, unless you are a graphic designer or IT specialist and need it for work (not the case for you). 

Seriously. 90% of growing your credit is not overextending. Gimmicks like consolidating ballances with loans or lines of credit do work to speed up the process, but without the right attitude it won't work, and might get you in more trouble. 

[DrZoidberg]

Sell your car and get a cheaper one or find alternate transportation. If you're carrying balances on credit cards you shouldn't be in a $20k car.

I'm not here to judge you I'm just here to offer advice based on the information provided.

[Anonymous]

Great feedback here. Won't closing my Credit One hurt my score though since it's already 10 months old and aging ? I was told it's only good to close new credit accounts immediately after opening so they don't factor into age.

As for my car, I can afford my car because my father pays every other month (I'm young-ish and it's an agreement we made after I graduated nursing). In addition, once I get my advanced nursing degree in a year or so my income is going to sky rocket $30,000 more annually. So I'm looking forward to that too!!! I think paying these cards down and rarely using is my best strategy now. I can't lie -- I'd love the day I see an approval for a prime card online with a $25,000 limit ! Even if just for the moment.

[Anonymous]

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@Anonymous wrote:
Great feedback here. Won't closing my Credit One hurt my score though since it's already 10 months old and aging ? I was told it's only good to close new credit accounts immediately after opening so they don't factor into age.

As for my car, I can afford my car because my father pays every other month (I'm young-ish and it's an agreement we made after I graduated nursing). In addition, once I get my advanced nursing degree in a year or so my income is going to sky rocket $30,000 more annually. So I'm looking forward to that too!!! I think paying these cards down and rarely using is my best strategy now. I can't lie -- I'd love the day I see an approval for a prime card online with a $25,000 limit ! Even if just for the moment.

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The credit one card will continue to contribute to your credit score for 10 years after it is closed. and since all your cards are of similar age you will see no score decrease pretty much - either now or 10 years from now. 

Also closing new credit accounts immediately after opening isn't any better than closing them 10 months later. If it showed up on your report, it will factor into the age. 

[OmarGB9]

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@Anonymous wrote:
Great feedback here. Won't closing my Credit One hurt my score though since it's already 10 months old and aging ? I was told it's only good to close new credit accounts immediately after opening so they don't factor into age.

As for my car, I can afford my car because my father pays every other month (I'm young-ish and it's an agreement we made after I graduated nursing). In addition, once I get my advanced nursing degree in a year or so my income is going to sky rocket $30,000 more annually. So I'm looking forward to that too!!! I think paying these cards down and rarely using is my best strategy now. I can't lie -- I'd love the day I see an approval for a prime card online with a $25,000 limit ! Even if just for the moment.

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False. Someone correct me if I'm wrong, but as soon as you're approved the account will show up on your CR and factor into your AAoA regardless of whether you decide to keep it open or close it. Also, closing it won't affect your AAoA immediately because the closed account will remain on your CR for 10 more years, by which point it shouldn't matter anymore anyway. 

[Gmood1]

Great feedback here. Won't closing my Credit One hurt my score though since it's already 10 months old and aging ? I was told it's only good to close new credit accounts immediately after opening so they don't factor into age.

As for my car, I can afford my car because my father pays every other month (I'm young-ish and it's an agreement we made after I graduated nursing). In addition, once I get my advanced nursing degree in a year or so my income is going to sky rocket $30,000 more annually. So I'm looking forward to that too!!! I think paying these cards down and rarely using is my best strategy now. I can't lie -- I'd love the day I see an approval for a prime card online with a $25,000 limit ! Even if just for the moment.

It's great that your Dad is helping you out! That's also a very nice raise to look forward to. If I were in your shoes, I'd focus on living comfortable at your current income. Do not stack any more bills. Nothing wrong with using your cards, just PIF. As mentioned previously, do not charge on the cards what you do not have in your bank account.

Many people focus on earning more money, but completely miss the boat on managing it. lol You can earn a million dollars a year and still be so broke, you couldn't afford to buy a mosquito a wrestling jacket. If you stack bills.

[Anonymous]

You are all great!!!! I will be doing just that. Someday I'll hit 700!! Then I'll get one huge CL credit card and call it a day lol!!!!