I rebuilt my credit a couple years ago using a cap1 secured card. I now have a mortgage, car loan, and 13 open credit accounts. Only 3 of those credit accounts are actual credit cards while the other are store cards. My highest limit is Home Depot at 2200 for store and US Bank at 1500 for cc. I opened these accounts in order to fatten my credit portfolio with the plan to pay them off using my refund...Which leads me to now.
I used my tax refund to pay off all my outstanding balances, leaving $200 reporting on Home Depot and removing all my regular monthly auto payments that come out of my debit card to my cap1 cash reward that will be paid off immediately each month, I just want the reward benefits. I then bought a lockbox where I'm storing all of the other cards, because next year's refund is planned to pay off the car loan and I don't want to have to take from that to pay off these cards again. I have one cap1 card (my initial secured card) with a limit of $550 that I intend to keep on me for "emergencies".
My question is, how can I go about getting the most of this situation? Once the payoffs report to my credit, my score should get a boost over 725, and my personal income is 34k. Do I request increases on my current cards at that time or wait? Should I wait a while and then apply for a card with a higher limit and better benefits? What's a good major cc that I could qualify for? Do I close out the secured card?
I have 2 derrogatory "paid in full" accounts on my credit, one is a student loan, the other was from the VA (while I was in school). Those accounts date back to 2006, but were paid in full in 2010. The only other accounts listed on my credit are the above mentioned ones (mortgage, car, 13 cc accts) and they're all paid on time. How do I work this situation to my advantage?
My immediate goal is to keep increasing my credit score and obtain a major cc with at least a $5000 limit and eliminate the cap1 cards that have the annual fee. If you were me, what would you do?
Thank you for responding! I'd define "good" as no annual fee, preferably a cash rewards card, and no more than a 14% interest rate- even better if it has an interest free term for a year? I may attempt to use it to pay off my car loan, then pay off the card instead of paying interest on my car payment? The interest rate on my car loan is a little over 14% (first car loan). I don't even know if it's possible to do that, but if the card is interest free for a year (and less than 14% after), and my loan will be paid off in a year, it makes a lot more sense to do that than continue paying interest over this next year, I think?
Thank you. I believe my second Cap 1 has been changed into a Qucksilver, that's the image that is displayed when I log on. The scores listed on my signature are from last March when the lender pulled them for my car loan. All my payments have been on time with everything, no new issues on my credit, and now that all my balances have been paid off, my scores should be over 725 when it's reported. Even with a 725 or better, it would be difficult to get a 0% entry (at least 12 months) rewards? It'd be so much better to be paying a straight $240 on a flat charge with 0% interest than having a chunk of that going towards the lender. My tax refunds are anywhere between 6k-8k each year, so come this time next year it'd be PIF regardless. There is other income coming into the household, but I don't count his because we aren't married and he doesn't "use" my credit cards. Total household income is around $54,000... mortgage payment is $358/mo (sickening isn't it? lol).
