Reply
New Member
raistlinux
Posts: 6
Registered: ‎05-23-2011

Re: Close old credit card and/or increase limit on new one?

Hi all - this might sound a little silly but it turns out I do have three revolving lines... I decided to look at my latest credit report today (after all this discussion) and I have a credit line I opened a few years ago strictly for medical use called "Care Credit". Not sure if you have heard of this, but I do have a $5K limit with only a few hundred dollars on it at the moment. It isn't a VISA, MC, AMEX or Disc, but does this still count toward my 3rd revolving line of credit? Thanks, Rafa.
Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Close old credit card and/or increase limit on new one?


raistlinux wrote:
Hi all - this might sound a little silly but it turns out I do have three revolving lines... I decided to look at my latest credit report today (after all this discussion) and I have a credit line I opened a few years ago strictly for medical use called "Care Credit". Not sure if you have heard of this, but I do have a $5K limit with only a few hundred dollars on it at the moment. It isn't a VISA, MC, AMEX or Disc, but does this still count toward my 3rd revolving line of credit? Thanks, Rafa.


My Care Credit card reports as a revolving account. You can see if yours does by looking at how it shows on your credit reports.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: Close old credit card and/or increase limit on new one?

My Care Credit reported (properly, I might add) as a revolving account as well.

 

That's nice - Care Credit tends to give fairly healthy CL's.  IMO it's a PIF-ASAP card.  :smileywink:

Just puttin' syrup on something, don't make it pancakes.
Senior Contributor
score_building
Posts: 3,509
Registered: ‎01-10-2008

Re: Close old credit card and/or increase limit on new one?


beamMEup wrote:

My Care Credit reported (properly, I might add) as a revolving account as well.

 

That's nice - Care Credit tends to give fairly healthy CL's.  IMO it's a PIF-ASAP card.  :smileywink:


+1 on PIF ASAP, due to the way interest accrues, must be mistaken but thought previously posted Care Credit acct (improperly) reported as a CFL.

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: Close old credit card and/or increase limit on new one?

[ Edited ]

Thanks to these forums, we (that means I :smileywink: ) have learned that as far as FICO is concerned, accounts must be installments to be categorized as a Consumer Finance account.

 

For FICO scoring purposes.  i.e. if you are hit with FICO code # 6 (Too many consumer finance accounts) it is referring - always - to an installment account. 

 

Just to clarify - Consumer Finance Accounts are always baddies (though some say they do not have a huge FICO impact).  Having even one CFA is too many as far as FICO is concerned.  When they're closed, and when they age, their impact is minimized but they still have an impact as long as they are on your CR's.  DH has one (two, actually) and they still show up as a FICO derogatory code when his FICO score is pulled.  They will age off next year, IIRC.

 

edited for clarity

Just puttin' syrup on something, don't make it pancakes.
Senior Contributor
score_building
Posts: 3,509
Registered: ‎01-10-2008

Re: Close old credit card and/or increase limit on new one?

IIRC there were a few isolated posts citing Care Credit, a revolving acct., as improperly reporting as a CFL.  

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Moderator Emeritus
beamMEup
Posts: 4,473
Registered: ‎12-31-2008

Re: Close old credit card and/or increase limit on new one?


score_building wrote:

IIRC there were a few isolated posts citing Care Credit, a revolving acct., as improperly reporting as a CFL.  



Ach!!!  that was probably me!!!  :smileysurprised:

 

A while back, and when I was relatively new here, I did have a note on my Care Credit inquiry that it was for "consumer finance"  on one of my FAKO score reports (CCT - IIRC).  And I did have a note on my FICO report pulled here that I had too many Consumer Finance accounts.  Very very confusing to me. 

 

But FICO doesn't  put revolving accounts in the CFA category - so my Care Credit has never been seen as a Consumer Finance account by FICO, in spite of how my CCT report categorized the inquiry.  When I learned how FICO viewed the account, I posted the corrected info (hopefully on each and every one of my posts that indicated anything to the contrary :smileyindifferent: )

 

This was part of how I learned to discount some of the info (and the FAKO scores) on CRMS pulls.  :smileysurprised:

 

It turned out that the CFA that FICO was recognizing (and scoring me on) was a mortgage (through Litton IIRC).  My Care Credit account was not the culprit. 

Care Credit still gives me the willies, though, because of their financing terms.  I closed mine and use my local CU account for medical instead.  Same CL as Care Credit, but I sleep better if I have to carry a balance for a short while.

 

Sorry if this thread has been totally hi-jacked. 

Just puttin' syrup on something, don't make it pancakes.
Senior Contributor
score_building
Posts: 3,509
Registered: ‎01-10-2008

Re: Close old credit card and/or increase limit on new one?

[ Edited ]

I see beam, gotcha, thanks for the helpful clarification and rejoinder on the topic in any case.  

 

would imagine many have sought more clarity on this somewhat intermediate/advanced topic, and appreciate that you highlighted important info. about CFLs and to avoid these types of accounts, since when one reports it is always (somewhat) a neg. entry.  

 

Perhaps since they generally tend to cater to more risky borrowers they get a ding by FICO unlike more solid TLs (don't think that is common knowledge with all the new members and even some vets.)  I support your well conceived decision to bag Care Credit for a non predatory CU product, even though it has worked out for me so far. Good going with your forward thinking, I may eventually cancel for the same reason.

 

OP please forgive me for going astray briefly...now back to the regularly scheduled OP :smileyhappy: 

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+