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Frequent Contributor
Posts: 463
Registered: ‎11-28-2012
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Re: How to get from under low limit cards


Wolf3 wrote:

09REX wrote:

So I am attempting to rebuild my credit, but my utilization is high (used one large NFCU card for wedding and honeymoon).

 

But, one of things that I have noticed is that I have a lot of low limit cards that have not increased over the years.

 

BoA Secured - $300 - opened 06/2008 - $185 balance

Sears store card - $250 - opened 03/2003 - Account closed by credit grantor - Closed 10/2012 - $0 balance

Barclay's - $250 - opened 07/2008 - $0 balance

Cap1/Best Buy - $600 - opened 12/2007 - 1 CLI from $300 - $600 - $492 Balance - $59 Annual fee.

Cap1 - $1500 - opened 03/2003 (combined 2 lower limit Cap1 cards) - $1,385  Balance

Merrick (Hooters) - $700 - opened 08/2008 - $586 Balance

Ikea - Started at $500, lowered to $100 within a month - opened 08/2008 - closed 09/2010 - Account closed by credit grantor

 

The only high limit card is:

NFCU - $10,000 (joint) - opened 10/2011 - $9,499 balance

 

So you can see the average of the open accounts is $670. If you included the recently closed Sears Card, it would be $600. Most of these accounts do not do consumer requested CLIs, but I don't to close them out and go on an app spree because they are helping the age of my accounts. But the very low limits are hurting my utilization.

 

Any suggestions?

 

 

 

 

 


I disagree.   Your balances are hurting you utilization.   It is very difficult to get CLI when you have such high utilizaiton.   Or new cards for that matter.

 

 

 

 


+1

Work on paying down your balances ASAP, let your util go down (a lot) before requesting CLIs or applying for additional credit. High util like this can appear extremely risky to  lenders (desperate for more credit but not managing the credit you have type of thing)

Start: Nov'12 EQ 699/EX 685/TU 696 / Current: April''14 EQ 715/EX 709/TU 709 * Goal 750+


Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
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Re: How to get from under low limit cards


QAMngrGirl wrote:

Wolf3 wrote:

09REX wrote:

So I am attempting to rebuild my credit, but my utilization is high (used one large NFCU card for wedding and honeymoon).

 

But, one of things that I have noticed is that I have a lot of low limit cards that have not increased over the years.

 

BoA Secured - $300 - opened 06/2008 - $185 balance

Sears store card - $250 - opened 03/2003 - Account closed by credit grantor - Closed 10/2012 - $0 balance

Barclay's - $250 - opened 07/2008 - $0 balance

Cap1/Best Buy - $600 - opened 12/2007 - 1 CLI from $300 - $600 - $492 Balance - $59 Annual fee.

Cap1 - $1500 - opened 03/2003 (combined 2 lower limit Cap1 cards) - $1,385  Balance

Merrick (Hooters) - $700 - opened 08/2008 - $586 Balance

Ikea - Started at $500, lowered to $100 within a month - opened 08/2008 - closed 09/2010 - Account closed by credit grantor

 

The only high limit card is:

NFCU - $10,000 (joint) - opened 10/2011 - $9,499 balance

 

So you can see the average of the open accounts is $670. If you included the recently closed Sears Card, it would be $600. Most of these accounts do not do consumer requested CLIs, but I don't to close them out and go on an app spree because they are helping the age of my accounts. But the very low limits are hurting my utilization.

 

Any suggestions?

 

 

 

 

 


I disagree.   Your balances are hurting you utilization.   It is very difficult to get CLI when you have such high utilizaiton.   Or new cards for that matter.

 

 

 

 


+1

Work on paying down your balances ASAP, let your util go down (a lot) before requesting CLIs or applying for additional credit. High util like this can appea r extremely risky to  lenders (desperate for more credit but not managing the credit you have type of thing)


 

And even focussing on utilization seems beside the point at this juncture.  Yes, it makes it hard to get CLI/new cards, but you must also be paying a LOT of interest (well, assuming the Navy card isn't 0%)  I would focus on paying down what you can, with whatever strategy appeals to you (highest rate first to reduce overall payment, or smallest balance first so that you have the success at zeroing out a card, etc).  And of course this improves utilization, but that is a side effect, the main goal is reducing interest payments.

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Posts: 3,197
Registered: ‎01-24-2010
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Re: How to get from under low limit cards


09REX wrote:

Yes, I agree that my high balances are hurting my utilization, but I have been paying off the lower limit cards and working towards paying off the higher limit cards. I do not max the cards out, yes they might get near max, buI keep the bill on a leash.

 

Is the old Hooters card (Merick card) that bad of a card?

 

If I remember correctly I can ask BoA to swap the secured card to a real card? But should I bump up the secured limit before I do that?


Once you pay off a low limit card, you can use that for your new charges (make use of grace period).   Then I would concetrate on paying off highest APR.  

 

Hooters card is mediocre card.   Keep it open for now, if it has no AF, otherwise close.   It is a good idea to bump up the BofA deposit but not until you pay off your debt.

 

 

Contributor
Posts: 142
Registered: ‎01-15-2013
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Re: How to get from under low limit cards

Welcome to the forum.

 

You're going to learn a lot here. I know I have and continue to learn more each day.

 

 



I'll be in the garden... FICO Score | TU-08: 732 in May 2013
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Posts: 10,898
Registered: ‎12-30-2011
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Re: How to get from under low limit cards


Wolf3 wrote:

09REX wrote:

Yes, I agree that my high balances are hurting my utilization, but I have been paying off the lower limit cards and working towards paying off the higher limit cards. I do not max the cards out, yes they might get near max, buI keep the bill on a leash.

 

Is the old Hooters card (Merick card) that bad of a card?

 

If I remember correctly I can ask BoA to swap the secured card to a real card? But should I bump up the secured limit before I do that?


Once you pay off a low limit card, you can use that for your new charges (make use of grace period).   Then I would concetrate on paying off highest APR.  

 

Hooters card is mediocre card.   Keep it open for now, if it has no AF, otherwise close.   It is a good idea to bump up the BofA deposit but not until you pay off your debt.

 

 


Not sure, didn't work well for me and it's a HP, also I'd note that the current secured card has been open since '08.  As you correctly point out the debt is more important, and in my case facing that sort of utilization, I'd probably call and ask BOFA if they'd unsecure anyway though I'm not certain they will at those utilization numbers.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 693, EQ 8 685, TU 705, EX 709 (02/27/15)
Goal Score: 700 on EQ 04 (01/01/16)


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Re: How to get from under low limit cards

I can PIF the BoA card since the balance is so low, I just would perfer not to. I perfer to keep cash on hand as I try to pay down the cards.

 

The NFCU Card is a joint card with my wife. I had a discussion with her and she is going to work with me to help pay it down since it was used for OUR wedding and honeymoon. I had been paying a little over Minimum on it every month with a side job I had that I just lost.

 

If I PIF the BoA, is it worth trying to bump it up to $500 or more? Some people say that this is a PiTA to do.

 

Everything else is set on autopay, so I will have to contribute more to those cards to get them paid down. I had Cap1 down to $1000, then used to for X-mas presents, so that is why it is a little higher.

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