Amex mail offer, but I have a FPB on my Credit report..Advice pls!

[carlismycat]

I have been reading that AMEX will deny an application if you happen to have a subprime card, ESPECIALLY First Premier. I actually have made the decision to close my FPB and FSB (first premier and first savings cards asap (was going to do it today actually)  .

I only have this "rsvp " available until June 19TH . 

If I just close out my first premier and first savings (which will lower my Utility by 700 and more than likely lower my score,until I get my balance lower on my discover) , and just garden for a while will I get more offers later on from them?

I have 8  old late payments from 3+ years ago (before my credit rebuilding journey).   I have been paying on time with my existing cards, for the last 2+= years now,but I still have to wait for those baddies to fall off my report in about 3-4yrs . And my score has not even reached 700 yet! So why would they be sending me an rsvp offer ?? I don't want to risk an unnecessary inquirer but I would LOVE to add this card to the mix, and then trash the ones I had been planning to trash. 

[NJTurnpike]

What are the specifics of the offer you got from amex? what is your current util? and no, amex really doesn't deny you just because you have sub prime cards. thats a myfico myth.

[carlismycat]

NJTurnpike, 

As of right now , when this last statement period ended (most of my cards are almost on the same schedule, I did that on porpose) Here were my approx balances when they reported last at the end of April:

Discover : CL 5,750.00    bal : close to 900 

Cap1 CL:500 Bal : 128.something

FirstPremier:  Cl: 300 Bal: 0 * 

First savings:CL 400: Bal: 0  * This MIGHT have had the 42. balance reported before I paid the other day,I forget*

ToysRUs store card: CL 500 Bal: 0

Orchard Bank: CL 500  Bal :0 

Walmart: CL 400 Bal : -4 (negative cuz i got a credit from them,right after making a PIF payment) 

Right now My Discover CL 5,750. is up to nearly a 2,000. balance (I will be paying that off the next couple months) So balance on that did go up,and my score will likely go down after June 3RD . It recently went up (according to FICO SW) last week when they last reported, I beleive because my CL went up by 2,000. 

Everything else was PIF a few days ago , accept my Cap1 which I will be pif soon, before it reports again. 

So in June,  when it reports again and based on what i plan to pay down (assuming I don't close the crap cards yet ) ....  it will be total CL : 7,850.00 with just my discover balance of around 1800. I know that is a high balance  

[carlismycat]

OH, the specifics... It's for the green card. Zero AF for first year, then $95 AF after that. NO APR, because it's PIF .  If I make any foureign transactions it's 2.7% for each of those. I don't make foreign purchases  unless it's ebay,but then again i won't be using that card on ebay .

Membership rewards program (whatever that is, I have to learn more about that) , and a bunch of little perks similar to what my Discover offers, like purchase protection, return protection, and other stuff too like baggage insurance plan, Identity theft assist, In the flyer it says I can use my membership reward points to help pay for flight,vacation,hotel etc... Hope that info helps. 

[NJTurnpike]

what was the amex offer you recieved in the mail? what are the details of that offer? and why are you looking for more credit? I ask the last question not to be nosy, but because I always think it prudent to have goals when it comes to your immediate, medium term and long term credit goals.

that said, it does seem like you're still in the "building credit" phase. any relaitonship with amex is probably a good thing.

Before applying for the amex, i suggest you email the executive office at cap1 and ask for a CLI, removal of annual fee, lower apr and rewards (either cash 1.5% or 2 miles per $, i'd go with the miles). Do the same with your orchard card as that is a cap1 product now as well.

then call credit solutions for your walmart card and as for a CLI to 2.5k. I think that's a reasonable request. they will do a SP and either deny you, counter, or give you what you ask for.

Close FPB and FSB immediately!

[LisaJ]

I recently debunked another MyFico myth when I qualified for a BCP with a really nice CL--and I had a charge off with Amex for a hefty amount 10 years back.

AMEX has relaxed their underwriting a bit over the years.  I feel like they approved me because I have two Chase cards with higher limits.  It has been a long time, and they feel like the risk they are taking on me is worth the chance that I will spend my money with them. 

Look at your credit profile and evaluate your current tradelines.  I had a 4 year old tax lien and a 30 day late that is aging, too.  So definitely room for baddies with AMEX.  I also have two Orchard cards that I closed reporting.

Oh, and AMEX knows exactly who I am, so not a chance that they "lost" me in the system...my card backdated to 1994.

Lisa

[carlismycat]

My long term goal was to keep and what order of importance they would be to me :

Discover  *To use as my high limit card, and take advantage of the 5% cash back and 1% cash back rewards. 

*WANT an Amex* as #2 ( OK if low limit card) just to get my foot in the door,and grow with over time,to establish history and relationship with that bank and enjoy the perks for travel later in the future when we can afford to start having real vacations (within a year or two) 

Walmart : I want to keep. Walmart has special financing deals on their products sometimes,when you use their store card. And I like the free SW through TU by being signed up for their online  viewing. I don't use this card,unless I PIF. 

And below my long term goal is to get rid of these: **************************************************************************************************************************** 

I can't just close them ALL out , at once because I would wipe out a LOT of my UTL & open card History and tank my score. Or can I ? 

FPB&FSB cards:  I KNOW I  want to close these ASAP. They are my oldest cards . About 5&6yrs history.  They will be the first to go. 

**********************************************************************************************************************************************************************************

Cap1 : Am unsure what to do with that. After trashing the FPb&FSB cards, it will have been my longest history card (3yrs I think) . They refused to do a CLI and said they do NOT do customer initiated CLI requests. I talked with a credit manager (or whatever it was called,it was a number off this forum and she was higher up)  and she told me the reason they haven't done any auto CLI's since I first got the card was because I am not using it enough. That if they see me using more than my CL each month (but paying it back down ) I would have gotten more Auto CLI. Honestly this card has done nothing for me,as it has NO perks what so ever. I have to double check about an AF. I was pretty sure it had no AF. I was thinking of closing it,but hey if you think I can get it switched to a different Cap! card with benefits, I can try for that  .

************************************************************************************************************************************************************************************

These two along with my walmart were a result of  a APP spree within the same week ,last fall. My scores were looking so good on the FAKO website I was using .  was exited and felt special because I could never get approved for a store card before. 

 I regret getting them.  These two I figured I'd just SD, and do occasional small purchases and PIF, while waiting for my other "keeper" cards to grow with history&UTL, then trash them when my "keeper cards" have grown more. 

Orchard bank  :  It was a Sears card, when I applied I thought it was a store card,but ended up being a mastercard I can use anywhere. I got it because I was sold on the Sears purchase points they give, coupons or something .  Found out (just like with babies r us) I think the points are separate,and a CC is not needed. They went and changed it on me to orchard bank/Cap within months of getting it.  **  I don't want this card anymore but hung onto it (as explained above) since its a new account and I didn't want to close too many all at once.**

Toys RUs :  I mistakenly signed up ,for the " rewards points" , but realized later the rewards is separate and they just put the bar code for rewards points on the CC.

**I don't want this card anymore but hung onto it (as explained above) since its a new account and I didn't want to close too many all at once.** 

So YEAH, I don't need/want all the cc's except my Discover&walmart , (and hopefully a amex just for variety,just because ) but I figured I would SD the others and slowly weed them out, while letting my main usage cards grow. Whether it be in the meantime, or in the near future, get a amex just to have it,but of course use it too. 

I like having a lot of available credit, (and working on growing a savings to use as back up eventually too) not because I plan to rack it up. But incase of an unforeseen situation, like unexpected medical bill , or if something needs fixing in our house (after we buy a house ) . Last year our dryer broke again after fixing it twice. It was 13 yrs old and time to get a new one. Having a CC and being able to pay off the $300. (or if it was more) on a new dryer was a blessing. And knowing it wouldn't hurt to have that kind of balance because I had all this other available credit on zero balance cards. I don't plan to only rely on credit during hard times. But I want to have it available,and also have a high score &great CR incase we ever have anything bad happen and need to buy something unexpectedly,and have the luxury to pay it off in a few months,instead of all at once KWIM ? 

My husband will be applying for a home loan in about a year , or less. His credit looks very good. He is getting close to the 800 club ;-) When we find the home we will eventually buy, I will be taking the needed steps to do become licensed with the business I do (home daycare) so I can take on more kids. I will have a budget to be on,and I like using CC to pay for everything,and PIF back before the end of the month. When all that happens with my getting licensed so I can watch more than just two kids at one time, our household income will rise a lot,and I will be able to afford to spend everything on my cards (only what I can PIF) and then really start enjoying the benefits like points & cash back rewards.  For stuff like travel/vacation ,dining,movies, my hobbies the kids hobbies.  I figured right now is a good time to keep the cards I want, and then slowly grow them over the next few years,and trash the ones I don't want by the time we are home owners . 

Feel free to critique my plans. My plans are based on what I know and have read about credit, so far. 

[carlismycat]

So is a 687 not too low ? Or do they do their own scoring system based on all three/four ? 

[sccredit]

My bet is that you would be approved for the green as is, right now. 

[carlismycat]

That's what I was thinking, or if I just waited . Well, at the risk of sounding impulsive I will admitt I just did the application online today. I only have two other inquireys right now ,so not TOO bad .

It was very easy! And I was scared of seeing the results while I waited (which was less than a second lol) so I clicked on another tab in my browser. But still accidentally saw the result when it popped up lol. I was approved and I went ahead and set up the online user&password. I'm not sure how the whole credit limit/spending rules work but I will carefully learn as I go.

Thanks for the debunking (sp?)  the fico myth....Because it WAS a myth about them rejecting me if I had a FPB on my Credit Report . Now, to go kick the FPB to the curb as originally planned !